Iridex (NSDQ:IRIX) announced that it entered into a strategic collaboration with Topcon to develop glaucoma therapy products.
Mountain View, Calif.-based Iridex said in a news release that the transaction brings in $19.5 million in cash to the company, providing multiyear funding for strategic growth initiatives, namely those seeking to penetrate the market with Iridex’s non-incisional glaucoma therapy products.
Topcon is set to purchase $10 million of Iridex’s common shares at $6.18 per share.
Additionally, Japan-based Topcon — which brings in $1.3 billion in revenues with $430 million coming from its eye care business — will invest in Iridex by purchasing the exculsive rights to distribute its retina and glaucoma products in certain global markets while also acquiring a common equity stake in approximately 10.4% of Iridex.
Iridex’s product portfolio is set to benfit from Topcon’s distribution capabilities in the Asia Pacific and key EMEA markets, while the company is also acquiring Topcon’s Pascal laser product line to combine it with its MicroPulse technology for retinal scanning laser products.
The deal will see Iridex add Pascal to its U.S. direct sales and rest-of-world distribution network while also acquiring the design and manufacturing operation of the product line.
“We feel energized entering into this important alliance with Topcon that advances the strategic positions of both companies on multiple fronts,” Iridex CEO David Bruce said in the news release. “Joining Topcon’s comprehensive distribution network throughout Asia Pacific and key EMEA regions will help Iridex to significantly expand the market penetration of our marquee non-incisional glaucoma therapy.
Bruce added that the addition of Iridex’s retina product portfolio can help Topcon capitalize on its already-strong distribution network, while both companies will benefit from the improved scale brought on by the consolidation of design, manufacturing and distribution efforts.
“We sought this alliance with Iridex to achieve significant benefits to our operating and distribution efforts. As leaders and innovators in advancing the treatment options for eyesight-threatening diseases, we recognize a great opportunity to bring our strengths together,” managing executive officer of Topcon’s eye care business Fumio Ohue said. “We are excited to bring Iridex’s retina and glaucoma therapy products to our expansive customer base throughout Asia Pacific and key Europe, Middle East and Africa markets.
“This alliance with Iridex is one of the major initiatives which Topcon will offer with our ‘Shared Care’ program. We are confident that combining our new product design and development efforts will enhance our existing and future products in both retina and glaucoma.”