Viatris Bolsters Its Ophthalmology Franchise With Oyster Point Pharma Deal, Shares Surge
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Viatris Inc (NASDAQ: VTRS) has agreed to acquire Oyster Point Pharma Inc (NASDAQ: OYST) as the foundation of its new ophthalmology franchise.
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Viatris will commence a tender offer for $11.00 per share in cash at closing, plus a contingent value right (CVR) for a potential cash payment of up to $2.00 per share upon achievement of specified performance targets by Oyster Point Pharma for the full year 2022.
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"Oyster Point Pharma brings to Viatris the strength of TYRVAYA Nasal Spray, the first and only FDA-approved nasal spray for dry eye in the U.S., an eye care-focused pipeline," said Michael Goettler, chief executive officer of Viatris.
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In November 2021, Oyster Point Pharma launched Tyrvaya, the first and only FDA-approved nasal spray for the signs and symptoms of dry eye disease.
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The transaction is anticipated to close during the first quarter of 2023.
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Viatris reported Q3 sales of $4.07 billion, down 10% Y/Y and below the consensus of $4.14 billion.
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The company reported adjusted net earnings of $1.1 billion, down 11%.
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It reaffirmed FY22 sales guidance at $16.2 - $16.7 billion versus the consensus of $16.50 billion.
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Price Action: OYST shares are up 39.5% at $11.65, and VTRS shares are up 13.87% at $11.05 on the last check Monday.
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