After saying goodbye to biosimilars by divesting its copycat biologics franchise to Biocon Biologics, Viatris is saying hello to the ophthalmology field with a pair of buyouts.
Monday, the company simuntaneously unveiled the purchase of Oyster Point Pharma at $11 per share—plus $2 per share in contingent value rights—and Famy Life Sciences, for an undisclosed sum. Together, the deals are worth between $700 million and $750 million.
Viatris expects the buyout targets to add $1 billion to its sales by 2028, the company said. The drugmaker, formed in late 2020 through the merger of Mylan and Pfizer's Upjohn unit, will fund the purchases with cash on hand.
The moves are part of Viatris' effort to create a "leading" ophthalmology unit. The company aims to combine its R&D capabilities and “global commercial footprint" to build a presence in the field, and it will be starting out with a commercial asset thanks to the Oyster Point buy.
Last October, Oyster Point's Tyrvaya won FDA approval to treat dry eye disease with a novel approach. The drug is administered through the nose as opposed to traditional eye drops, activating a nerve in the nose that triggers the production of tears in the eyeball.
The moves mark somewhat of a pivot for the company since its launch in late 2020. Viatris initially launched with a presence in biosimilars but opted to sell that franchise to partner Biocon earlier this year for $3.3 billion.
The company aims to close the Oyster Point acquisition by the first quarter of 2023. As for this past quarter, Viatris pulled down $4.1 billion in sales, a 10% decline from the same period last year as currency fluctuations took a toll on the company's financial performance.