Omeros selling Omidria franchise to Rayner Surgical for more than $1 billion

Omeros Corp. has reached an agreement to sell its Omidria franchise to Rayner Surgical in a deal valued at more than $1 billion.

According to the companies, the agreement includes an upfront payment of $125 million with an additional $200 million in a commercial milestone payment. Omeros will also retain its accounts receivable balance at the closing, which was $34 million at the end of last quarter. Together with substantial royalties to be paid by Rayner to Omeros on net sales of Omidria, the transaction is valued at more than $1 billion.

Rayner will pay Omeros royalties on both U.S. and ex-U.S. net sales of Omidria. In the U.S., the royalty rate will be 50 percent 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 receive royalties of 30 percent of U.S. net sales for the life of Omidria 's U.S. patent estate. The commercial milestone payment is triggered if separate payment for Omidria is secured for a continuous period of at least four years. Outside of the U.S., Omeros will receive a 15-percent royalty rate on Omidria net sales throughout the applicable patent life on a country-by-country basis.

Omidria will become a key product in Rayner's ophthalmology franchise, which includes intraocular lenses, ophthalmic viscoelastic devices and dry eye treatments. As part of the agreement, Rayner will acquire the Omidria commercial organization, including the Omidria sales force. In addition, Rayner plans to expand the sales force in both the U.S. and ex-U.S., further strengthening its commercial presence internationally and further accelerating U.S. market growth of Omidria.

“Omidria will be an important part of our ophthalmic product portfolio internationally and a key strategic focus for Rayner,” Tim Clover, CEO of Rayner, said in a statement. “Our new Omidria business and commercial team of seasoned industry professionals are an ideal fit for Rayner as we focus on broadly serving ophthalmic surgeons with our pipeline of innovative products, including the recently FDA-approved RayOne EMV intraocular lens. We look forward to continue growing U.S. sales of Omidria and the rest of our portfolio and to launching EMA-approved Omidria throughout Europe and other regions of the world, consistent with our mission of offering superior products and outcomes for surgeons and their patients.”

The transaction is subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

“We are immensely proud of our OMIDRIA team and its achievements over the last seven years,” Gregory A. Demopulos, MD, chairman and CEO of Omeros, said in a statement. “Omidria has become an important part of cataract surgery, de-risking the procedure for surgeons and improving patient outcomes.”

Demopulos pointed out that the transaction recognizes both the current and future value that Omidria brings to cataract surgery, affording Omeros a significant ongoing economic interest in the expected growth of Omidria, while allowing us to focus on the company’s efforts primarily on our complement franchise of large- and small-molecule MASP-2 and MASP-3 inhibitors as well as on the rest of its innovative pipeline.

“We believe that Rayner, with its expertise and increasingly strong international presence in ophthalmology, represents a great home for Omidria and the product's commercial team, and Omeros is committed to assist Rayner, throughout the transition and beyond, to maximize Omidria utilization and revenues,” he said.