Oyster Point Pharma, Inc. (NASDAQ: OYST) is engaged as a commercial-stage biopharmaceutical company, which is focused on the research, development and commercialization of first-in-class treatments for ophthalmic diseases. Shares of the biopharma company are rallying 40% through early trading on Monday, November 7, 2022. Over the past three months, Oyster Point Pharma has seen average daily volume of 102,540 shares. However, volume of 5.18 million shares or dollar volume of around $60.35 million, has already exchanged hands through early trading.
Shares of Oyster Point Pharma are gaining after the company announced that it has entered into a definitive agreement to be acquired by Viatris, Inc. (NASDAQ: VTRS) for $11.00 per share in cash plus a contingent value right (CVR) of up to $2.00 per share, if certain milestones are achieved. Viatris says the acquisition will serve as the foundation for its new ophthalmology business, driven by Oyster Point’s strong team, TYRVAYA treatment and pipeline. The transaction remains subject to customary closing conditions, but is estimated to close during the first quarter of 2023.
Turning to the CVR, Oyster Point Pharma shareholders can earn an extra $1.00 per share if the company generates $21.6 million of net product revenues and 131,822 total prescriptions for TYRVAYA. The shareholders have the ability to pull in $2.00 per share in cash if Oyster Point Pharma produced $24 million of net revenue and 146,469 total prescriptions of TYRVAYA.
TYRVAYA was launched by Oyster Point Pharma in November 2021 and the treatment remains the first and only FDA-approved nasal spray for the treatment of dry eye disease. In addition, the company has a robust pipeline of clinical and pre-clinical programs that seek to treat various different diseases and ailments for eye patients.
“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, and a very experienced team that possesses extensive knowledge of the ophthalmology space from a clinical, medical, regulatory and commercial perspective,” said Michael Goettler, chief executive officer of Viatris. “Together, we believe we are setting the foundation for the next global ophthalmology leader, accelerating efforts to address the unmet needs of patients with ophthalmic disease and the eye care professionals who treat them, and positioning Viatris for growth.”
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The post Oyster Point Pharma (NASDAQ: OYST) Enters Into Agreement to be Acquired by Viatris (NASDAQ: VTRS) For $11 Per Share Plus CVR Up to $2.00 Per Share appeared first on Spotlight Growth.
