Omeros Corporation [NASDAQ: OMER] disclosed that it has decided to divest OMIDRIA. The company is going to sell the franchise to Rayner Surgical Group Limited. As per the pact, Rayner will purchase the OMIDRIA commercial organization, including the OMIDRIA sales force. OMIDRIA will become an important product in Rayner’s ophthalmology franchise, which contains intraocular lenses, ophthalmic viscoelastic devices, and dry eye treatments.
OMER revealed that OMIDRIA has become an essential part of cataract surgery, the de-risking process for surgeons, and also enhances patient outcomes. This deal realizes OMIDRIA’s current and future value in cataract surgery, providing Omeros with a significant ongoing economic interest in OMIDRIA’s expected growth while letting the firm strive for its complementary franchise of large- and small-molecule MASP-2 and MASP-3 inhibitors, as well as the rest of its groundbreaking channel.
The transaction covers an upfront payment of $125 million with an additional $200 million in a commercial milestone payment. Omeros will also maintain its accounts receivable balance at the closing, which was $34 million at the end of last quarter. In conjunction with significant royalties payable by Rayner to Omeros on net sales of OMIDRIA, the transaction is appreciated in excess of $1 billion.
The deal is likely to execute on or before December 31, 2021. Moreover, Omeros will receive royalties from Rayner on both U.S. and ex-U.S. net sales of OMIDRIA. In the U.S., the royalty rate will be 50% of U.S. net sales until the earlier of either January 1, 2025, or payment of the $200-million commercial milestone, after which Omeros will obtain royalties of 30 percent of U.S. net sales for the life of OMIDRIA’s U.S. patent estate.