Today, Aldeyra (ALDX) acquired privately company Helio Vision for an all stock deal worth $12.5M, with milestones of up to additional $12.5M.
The acquisition adds yet another Phase 3 ready candidate to Aldeyra's pipeline. ADX-2191 (intravitreal methotrexate) is used for the treatment of proliferative vitreoretinopathy (PVR), a serious sight-threatening condition with no approved treatment. ADX-2191 has received Orphan Drug Designation from the FDA. Phase 3 will initiate in 2019 with data expected in 2020.
PVR affects up to 5-10% of all retinal detachment cases (4,000 US cases annually). A milder form of PVR occurs to patients with macular pucker, which complicates 20-30% of all retinal detachment surgeries (8,000-12,000 US cases annually). We think the market for Helio is about 2,000 patients and can be approximately 100M opportunity. With no approved therapy for the treatment of PVR, at a first glance, it seems that Aldeyra got a great deal.
All Stock Deal Could Be Seen As Positive for ALDX
Importantly, the acquisition was an all equity deal. Aldeyra acquired Helio Vision for an upfront payment of approximately $10 million in common stock, subject to a six-month lock-up period, and an additional $2.5 million payment in common stock two years from the date of closing. Helio Vision shareholders will also be eligible to receive up to an additional $12.5 million in Aldeyra stock upon achievement of certain regulatory milestones.
Helio was founded by retinal surgeons at Massachusetts Eye and Ear Infirmary (MEEI). Presumably, these doctors analyzed and valued ALDX stock and believed in it enough to accept an all equity deal. This can be interpreted as a vote of confidence from doctors in the field, or bullish for ALDX.
We are still waiting for AC data sometime in February (read more here)
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