Merck to buy EyeBio for up to $3bn

US pharma giant Merck said on Wednesday that it has agreed to buy ophthalmology-focused biotechnology firm EyeBio for up to $3bn.

Under the terms of the agreement, Merck - which is making the purchase through a subsidiary - will make an upfront payment of $1.3bn in cash and a further potential $1.7bn in developmental, regulatory and commercial milestone payments.

EyeBio is developing a pipeline of clinical and preclinical candidates for the prevention and treatment of vision loss associated with retinal vascular leakage, a known risk factor for retinal diseases.

Dr. Dean Y. Li, president of Merck Research Laboratories, said: "We continue to execute on our science-led business development strategy to expand and diversify our pipeline.

"The EyeBio team, under the leadership of Dr. David Guyer and Dr. Tony Adamis, has a strong track record of developing groundbreaking ophthalmology therapies. By combining our strengths, we aim to advance with rigor and speed the development of their promising pipeline of candidates targeting retinal diseases."

The deal is expected to close in the third quarter of this year.