Glaukos will set the cornerstone of its new corneal health franchise with the acquisition of Avedro, according to a press release announcing the two companies have entered into a definitive merger agreement.
The all-stock transaction is subject to Avedro stockholder approval, as well as customary closing and regulatory approvals, and is expected to be completed by the end of the year, the release said.
The acquisition in the corneal health space comes quickly after the expansion of Glaukos into the retinal space with its acquisition of Dose Medical, announced in June.
“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,” Thomas Burns, Glaukos president and CEO, said in the release.
Glaukos will gain Avedro’s FDA-approved Photrexa keratoconus therapy, estimated as an approximately $3 billion opportunity in the U.S., the release said.
When the deal is closed, the proportion of Glaukos-to-Avedro shareholders with ownership in the company is expected to be 85% to 15%.