Bausch & Lomb to acquire Ista Pharmaceuticals for $500 million
27 Mar 2012
Bausch & Lomb, the maker of contact lenses yesterday said that it will buy eye care company Ista Pharmaceuticals Inc, for about $500 million in cash, in order to broaden its portfolio of eye health products.
The deal comes a month after Canada's Valeant Pharmaceuticals International withdrew its $7.50 a share or $327 million sweetened bid for Ista, citing lack of progress on the deal.
Rochester, New York-based Bausch & Lomb will pay $9.10 a share in cash, a premium of 10 per cent to Ista's closing price on 23 March, and a 40 per cent premium to Valeant's last month offer.
Irvine, California-based Ista is the third-largest branded prescription eye care company in the US with an expanding focus on allergy therapeutics.
Ista currently markets four products, including treatments for ocular inflammation and post-cataract surgery pain, glaucoma and ocular itching associated with allergic conjunctivitis.
The company, which generated revenues of $160 million in 2011, also has drugs in various stages of development to treat dry eye, ocular inflammation and pain, and nasal allergies.