US-based opthalmic pharmaceuticals company Harrow announced that it will pay Viatris $30 million up front and up to $70 million in milestone payments to acquire Tyrvaya varenicline nasal spray. Tyrvaya was approved by the FDA for the treatment of dry eye disease in October 2021, and Viatris acquired Tyrvaya’s developer Oyster Point Pharma the following year.
According to Harrow, the intranasal varenicline is also approved in China and Taiwan; Ji Xing acquired the Chinese rights from Oyster Point in August 2021.
Harrow CEO Mark L. Baum noted that, “as the first and only FDA-approved nasal spray for dry eye disease, Tyrvaya offers the 45-plus million US contact lens wearers a drop-free treatment option because it is the only prescription therapy that does not require lens removal before administration. We believe Harrow is now uniquely positioned to accelerate growth across our dry eye franchise by providing physicians with greater flexibility to individualize treatment for their patients.”
President and Chief Financial Officer Andrew Boll commented, “This transaction aligns with what we believe is an attractive investment, providing a long-term stream of strategic value creation, with the primary purchase payment from cash on hand and any additional payments made only if net revenue milestones are achieved. Moreover, Tyrvaya is ‘plug and play’ with our existing cost structure, and given the existing stream of revenue Tyrvaya produces, is expected to be financially accretive shortly after the transaction closes.”
Read the Harrow press release
