Merck & Co today struck a deal to sell some eye care products in several markets to Japan's Santen Pharmaceutical Co in a deal worth at least $600 million.
The deal comes a week after the New Jersey-based company agreed to sell its consumer care business to Germany's Bayer AG for $14.2 billion. (See: Merck & Co to sell consumer care business to Germany's Bayer for $14.2 bn)
Merck, which divested its US ophthalmology business to Akorn Pharmaceuticals in 2013 and 2014, will continue to sell its ophthalmology products in Latin America, Canada, Australia, the Middle East, Africa and other markets.
Under the deal, Merck will sell eye care products, including Cosopt, Cosopt PF, Trusopt sterile ophthalmic solution 2 per cent, Trusopt preservative-free, Timoptic, Timoptic PF, Timoptic XE, Saflutan, and Taptiqom in Japan and key markets in Europe and Asia Pacific.
Santen will make an upfront payment of approximately $600 million and additional payments on reaching defined sales milestones.
The products involved in the sale generate about $400 million in annual revenue.
Santen will also purchase the ophthalmology products covered by this agreement from Merck 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.
''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,'' he added.