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Merck announces plan to acquire Inspire Pharmaceuticals
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Merck has entered into a definitive agreement to acquire Inspire Pharmaceuticals, according to a press release from Inspire.
Under the terms of the agreement announced in early April, a subsidiary of Merck will tender Inspire shareholders a total of $430 million in cash at a price of $5 per share. Warburg Pincus Private Equity IX, owner of about 28% of Inspire’s outstanding shares, will tender all of its shares in the offer, the release said.
“This acquisition combines the talented commercialization organization at Inspire with the excellent team already in place at Merck, thereby strengthening our ophthalmology business and positioning us for future growth with an expanded portfolio,” Beverly Lybrand, Merck’s senior vice president and general manager, neuroscience and ophthalmology, said in the release.
The transaction promises to bolster Merck’s presence and future growth in the global eye care market, Ian McConnell, a spokesman for Merck, told Ocular Surgery News.
“Merck believes this transaction is about developing a stronger presence and sustainable growth within eye care,” Mr. McConnell said. “Through the acquisition of Inspire, Merck continues to build upon its long-term commitment to improving therapeutic options for the treatment of eye diseases.”
The closing of the acquisition will depend on certain financial and customary closing conditions, at which point Merck will acquire all remaining shares, the release said.
Details of corporate restructuring will also hinge on the regulatory approval process, Mr. McConnell said.
“We are working to obtain the required regulatory approvals necessary to complete this transaction, which we expect to occur in the second quarter of 2011,” he said. “Upon completion of the acquisition, Inspire will become a wholly owned subsidiary of Merck.”
Mr. McConnell characterized the acquisition as a significant boost for clinical development in the treatment of ocular disease.
“Merck’s acquisition of Inspire represents a fantastic opportunity for Merck to continue playing an important role in appropriately helping customers attain health outcomes in the treatment of eye diseases,” Mr. McConnell said. “This transaction is about developing a stronger presence and sustainable growth within eye care.”
With the acquisition, Merck will enter the ophthalmic drug market with AzaSite (azithromycin ophthalmic solution 1%), one of Inspire’s leading products, Mr. McConnell said.
“With the pending approval of Saflutan, Inspire allows Merck to have an instant presence within the eye care market and add to its ophthalmic options with AzaSite, broadening its eye care therapeutic offerings,” Mr. McConnell said.
AzaSite is undergoing U.S. Food and Drug Administration phase 2 clinical trials for blepharitis. It is approved for the treatment of bacterial conjunctivitis in adults and children.
The FDA approved Merck’s new drug application for Saflutan (tafluprost), a preservative-free prostaglandin analogue designed to increase drainage of the aqueous humor, in March. The drug has already been approved in several European countries. If Saflutan is approved in the U.S., Santen would have the option of co-promoting the product under a licensing agreement with Merck.
Other products in Inspire’s development pipeline include INS117548, a Rho-kinase inhibitor. Inspire recently completed a phase 1 proof-of-concept study to evaluate the safety, tolerability and IOP-lowering effects of INS117548. The study included 84 patients with early-stage glaucoma or ocular hypertension. – by Matt Hasson and Courtney Preston
- Ian McConnell can be reached at Merck, One Merck Drive, P.O. Box 100, Whitehouse Station, NJ 08889; 908-423-1000; email: ian_mcconnell@merck.com.