Iridex Announces Strategic Collaboration With Topcon
Iridex announced that it has entered into a strategic collaboration with Topcon.
The collaboration between Iridex and Topcon includes three main agreements: an Exclusive Distribution Agreement, an Asset Purchase Agreement, and an Equity Funding Agreement. Under the terms of these agreements, Topcon will acquire exclusive distribution of Iridex laser systems, delivery devices and disposable probes to be sold through its networks in Asia Pacific and key EMEA regions. Concurrently, Iridex will add Topcon’s PASCAL systems to its U.S. direct sales, and rest-of-world distribution network. Iridex will also acquire the design and manufacturing operation of Topcon’s PASCAL product line. Finally, Topcon will purchase $10 million of Iridex common shares at a price of $6.18 per share, and will acquire a common equity stake of approximately 10.4% in Iridex.
The net cash proceeds to Iridex of these transactions are expected to be approximately $19.5 million before offering expenses. Iridex said the $19.5 million will provide multiyear funding for strategic growth initiatives, particularly those designed to drive expanded market penetration of Iridex’s unique non-incisional glaucoma therapy products.
“We feel energized entering into this important alliance with Topcon that advances the strategic positions of both companies on multiple fronts,” David Bruce, CEO of Iridex, said in a company 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. Topcon can further capitalize on its already-strong distribution network by adding our leading retina product portfolio to enhance the breadth of its ophthalmic system offerings. This alliance will enable both companies to benefit from the enhanced scale achieved by consolidating the design, manufacturing and distribution of two leaders in scanning laser retinal treatment. Finally, with $19 million in additional capital, Iridex has the resources to drive its multiyear growth programs.”
“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,” Fumio Ohue, Managing Executive Officer of Topcon’s Eye Care Business, said in the news release. “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.”