Alimera Sciences Inc. announced today the acquisition of additional marketing rights for fluocinolone acetonide 0.18 mg intravitreal insert for the treatment of chronic noninfectious uveitis. (Image courtesy of Adobe Stock)
Alimera Sciences Inc. today announced the acquisition of additional marketing rights to Fluocinolone Acetonide Intravitreal Insert (YUTIQ) 0.18 mg for the treatment of chronic non-infectious uveitis affecting the posterior segment of the eye from EyePoint Pharmaceuticals Inc.
The transaction was finalized at the close of business on Wednesday.
The fluocinolone acetonide intravitreal insert is the same as Alimera’s current commercial product ILUVIEN for DME, although the name and labeling indication are different.
During a corporate conference call today, Rick Eiswirth, president and CEO of Alimera, noted that the transaction increases the company’s revenue and leverages the business structure it has built in the United States.
“We know this product very well as we have been marketing ILUVIEN for the uveitis indication in Europe and the Middle East for several years,” he said. “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.”
Eiswirth added that company officials believe the deployment of a larger commercial team focused on both ILUVIEN and YUTIQ will increase utilization of both products going forward and expect Alimera to generate more than $100 million in revenue net and $20 million in Adjusted EBITDA* by 2024.
Fluocinolone acetonide intravitreal insert product net revenue rose 60% to $7.4 million in Q1 2023 compared to $4.6 million in Q1 from 2022. to $16.9 million in 2021, according to Eyepoint’s SEC filings.
Eiswirth noted at the conference that Alimera now has exclusive global rights to the fluocinolone acetonide intravitreal insert, excluding China, Hong Kong, Taiwan, Macau, South Korea and Southeast Asia, where EyePoint has a pre-existing license with Ocumension Therapeutics.
During the conference it was noted that under the terms of the agreement with EyePoint:
Alimera made an initial cash payment of $75 million at closing; an additional $7.5 million will be paid in equal quarterly installments in 2024. EyePoint will also receive potential royalties from 2025 to 2028 based on the combined US net revenues of ILUVIEN and YUTIQ exceeding certain thresholds, starting at $70 million by 2025 and increasing. annually thereafter.Alimera will immediately assume control of all business activities related to YUTIQ in the US
During the call, it was noted that Alimera funded the upfront payment and raised additional working capital with a $69 million private placement of Series B preferred stock and common stock to a syndicate of investors led by Velan Capital and Caligan Partners.
The Company is borrowing an additional $20 million through an amendment to its existing term loan agreement with SLR Capital Partners, LLC.
“We deeply appreciate the support of SLR Capital and our new shareholders with this transformational transaction for Alimera,” Eiswirth added.
“I am very excited to complete this transaction,” added Eiswirth. “It transforms our financial outlook and stability.”
Eiswirth noted that EyePoint has grown the therapeutic in the United States and something that has been considered for some time.
“It just seemed like the right time to do it,” he said.
The company will add 35 to 40 sales representatives as it expands its reach among ophthalmologists to market both therapeutics.
