Glaukos and Avedro Announce Definitive Acquisition Agreement
Potential Revenue Synergies from Complementary Product Portfolios that Leverage Glaukos’ Commercial Scale, Market-Building Experience and Shared Reimbursement Expertise and Customer Relationships
Acquisition Expected to Accelerate Glaukos’ Revenue Growth Rate in 2020 and be Accretive to Operating Results and Cash Flows by 2021
Executives to Discuss Transaction on Glaukos’ Second Quarter Financial Results Conference Call at
The acquisition combines two complementary, hybrid ophthalmic pharmaceutical and device organizations and establishes the cornerstone for Glaukos’ new corneal health franchise, providing synergistic avenues for potential long-term growth in large, underserved markets.
“Avedro is an ideal fit for Glaukos’ core strengths in creating and disrupting ophthalmic markets with novel therapies that address important unmet clinical needs of practitioners and patients,” said
Avedro’s platform uses its proprietary, bio-activated, single-use Photrexa® drug formulations to strengthen corneal tissue and halt progression of keratoconus, a degenerative corneal ectatic disease that affects approximately 1.1 million eyes in
“Avedro is extremely pleased with the potential to become part of
Key strategic and financial benefits of the transaction include:
Avedrofits perfectly with Glaukos’ commercial organization: Roughly 700 of Avedrotarget accounts are comprehensive ophthalmic practices where Glaukosmaintains deep relationships. In addition, the Avedroplatform can benefit from a 5-fold increase in the size of its current 17-person U.S. field sales organization. Avedrocan accelerate Glaukos’ growth trajectory: Avedrogenerated 66% year-over-year revenue growth in the first half of 2019. Once combined, the addition of Avedro’s fast-growing product portfolio is expected to generate revenue growth acceleration for Glaukosbeginning in 2020 and potential revenue synergies beginning in 2021.
- Furthers Glaukos’ hybrid strategy:
Avedroand Glaukoshave similar and complementary hybrid pharmaceutical and device profiles that can combine to create a unique set of R&D, clinical, regulatory and commercial capabilities with the potential to enhance organizational success.
- Enhances organic pipeline initiatives and R&D teams: The combined R&D and clinical organization can provide
Glaukoswith scale and a unique blend of integrated expertise across ophthalmic pharmaceuticals, drug delivery, micro-scale engineering, and hardware and software development.In addition, an expanded pipeline can provide new opportunities to extend leadership positions in high-growth ophthalmic markets.
- Provides attractive financial benefits and potential shareholder value creation: In addition to the potential for accelerated revenue growth,
Glaukosanticipates achieving annualized cost savings in excess of $15 millionby 2021, primarily through reduced public company and administrative costs. As such, the company expects the transaction to be accretive to operating results and cash flow by 2021.
Transaction Terms and Approvals
Under the terms of the merger agreement, for each share of
Based on the parties’ volume weighted average prices (“VWAPs”) for the last 60 trading days prior to
The transaction is subject to customary closing conditions and regulatory approvals, including approval of the merger by stockholders of
Conference Call, Webcast and Presentation
In separate news releases issued today,
Use of Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements may contain words such as “believes”, “anticipates”, “estimates”, “expects”, “intends”, “aims”, “potential”, “will”, “would”, “could”, “considered”, “likely” and words and terms of similar substance used in connection with any discussion of future plans, actions or events identify forward-looking statements. All statements, other than historical facts, including statements regarding the expected timing of the closing of the proposed transaction and the expected benefits of the proposed transaction, are forward-looking statements. These statements are based on management’s current expectations, assumptions, estimates and beliefs. While
The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (i) failure of
Additional Information and Where to Find It
In connection with the proposed transaction between
Participants in the Solicitation
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities nor a solicitation of any vote or approval with respect to the proposed transaction or otherwise. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Glaukos Investor Contact:
Chris Lewis, Director, Investor Relations,
Corporate Development & Strategy
Glaukos Media Contact:
Avedro Investor Contact:
Brian Johnston or Lynn Lewis