ALIM - Alimera jumps 48% on deal with EyePoint for eye disorder therapy Yutiq

2023-05-18 07:49:20 ET

Nano-cap pharma Alimera Sciences ( NASDAQ: ALIM ) added ~48% pre-market Thursday after announcing the acquisition of U.S. commercial rights for eye disorder therapy Yutiq from EyePoint Pharmaceuticals ( NASDAQ: EYPT ).

The treatment, also known as fluocinolone acetonide intravitreal insert, is a once-very-three-year therapy for chronic non-infectious uveitis affecting the posterior segment of the eye.

The company has previously partnered with EyePoint ( EYPT ) to market the treatment as Iluvien for uveitis indication in Europe and the Middle East. EyePoint ( EYPT ) shares gained ~10% in the pre-market.

Yutiq net product revenue reached $28.3M in 2022, indicating a ~67% YoY rise, and in Q1 2023, the treatment generated $7.4M in net product revenue with ~60% YoY growth.

Alimera ( ALIM ) expects the transaction to immediately expand its revenue and adjusted EBITDA in 2023 and projects at least $100M of consolidated net revenue and more than $20M of Adj. EBITDA for 2024.

Per the terms, Alimera ( ALIM ) has made $75M in cash upfront for EyePoint ( EYPT ) at the closing of the deal. EyePoint ( EYPT ) is also eligible to receive $7.5M in equal quarterly installments in 2024 in addition to potential royalties from 2025 to 2028.

Alimera ( ALIM ) has resorted to a $69M private placement and $20M borrowing to fund the deal.

“We believe there are immediate synergies in adding YUTIQ to our portfolio that will be accretive to revenue, Adjusted EBITDA and cash flow in the second half of 2023,” Chief Executive of ALIM Rick Eiswirth remarked.

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