Merck & Co sells ophthalmic brands and Colorado biologicals unit

US pharma giant Merck & Co (NYSE: MRK) has entered into two more divestment transactions, following the recent sell-off of its consumer business to Bayer for $14.2 billion (The Pharma Letter May 6), the firm is divesting a number of ophthalmic brands to Japan’s Santen Pharmaceuticals (TYO: 4536) in certain regions, and will also sell its Colorado-based biologicals manufacturing facility to KBI Biopharma.

The sales territories are Japan, Europe, and Asia Pacific, and annual sales in these markets associated with these ophthalmic products are around $400 million and include brands such as Cosopt (dorzolamide) and Timoptic (timolol maleate). Merck divested its US ophthalmology business to Akorn Pharmaceuticals in 2013 and 2014. It will continue to sell its eye products in Latin America, Canada, Australia, the Middle East, Africa and other markets.

Under the terms of the agreement, Santen will make an upfront payment of around $600 million and additional payments based on defined sales milestones as needed. Santen will also receive supply from Merck, the ophthalmology products within this agreement for a two to five year period.

“The decision to divest our ophthalmics business is part of our ongoing strategy to sharpen our commercial focus and improve our operational effectiveness,” said Jay Galeota, president, Hospital and Specialty Care, at Merck, adding: “This transaction provides products that complement Santen’s portfolio and is designed to ensure continued access for physicians and patients to these medicines around the world.”