EUR 75 Million Deal: This Low PE, High ROCE Pharma Company Enters Exclusive Agreement to Commercialise YUVEZZI in Europe

On Thursday, the Nifty 50 index rose 124.40 points, or 0.52 per cent, to 24,202.70, while Lupin shares were trading at Rs 2,221.00, down 0.18 per cent. The company announced that its Netherlands-based wholly owned subsidiary, VISUfarma B.V., has entered into an exclusive licence agreement with US-based Visus Therapeutics Inc. to commercialise YUVEZZI, an ophthalmic product indicated for the treatment of presbyopia in adults, across selected European markets.

Exclusive Commercialisation Rights Across Europe

Under the agreement, VISUfarma will have exclusive rights to undertake regulatory activities, commercialisation, marketing, promotion, distribution and sale of YUVEZZI across the European Union, the United Kingdom, Switzerland, Norway and Iceland. The agreement is valid on a country-by-country basis until the 20th anniversary of the first commercial sale of YUVEZZI in the respective country, subject to the terms of the agreement. VISUfarma will also have the right to renew the agreement for additional five-year periods.

Potential Consideration of Up to EUR 75 Million

The total potential consideration under the agreement is up to EUR 75 million through to the first commercial sales in the licensed territories. This includes a EUR 20 million strategic investment in Visus or its parent entity through a SAFE instrument and up to EUR 55 million in regulatory and commercial milestone payments.

In addition, the agreement provides for royalty payments based on net sales and sales milestone payments upon achieving specified sales thresholds in the licensed territories. The milestone payments are contingent on specified regulatory submissions, approvals and other commercial milestones.
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YUVEZZI Approved for Presbyopia

YUVEZZI is a once-daily, dual-agent ophthalmic solution containing carbachol and brimonidine tartrate and is indicated for the treatment of presbyopia in adults. According to the company, YUVEZZI is the first and only approved once-daily dual-agent eye drop for presbyopia. The product has received approval from the US FDA.

Presbyopia is a condition associated with the gradual loss of near-vision acuity that typically begins around the age of 45. YUVEZZI combines two medicines designed to improve close-up vision by influencing pupil size.

Management Commentary

Vinita Gupta, Chief Executive Officer, Lupin, said: “We are delighted to partner with Tenpoint Therapeutics to bring a novel ophthalmic therapy that advances our Specialty Care strategy. Building on the strategic acquisition of VISUfarma, this partnership further strengthens our vision care franchise and expands our presence across key European markets. The addition of YUVEZZI underscores our commitment to broadening access to differentiated therapies, improving patient outcomes, and reinforcing our leadership in eye care across the Licensed Territories.”

Henric Bjarke, Chief Executive Officer, Tenpoint, said: “This exciting partnership marks an important step for Tenpoint as we continue our work to make YUVEZZI available for the millions of patients with presbyopia and eye care professionals around the world.”

About Lupin

Lupin Ltd is a global pharmaceutical company headquartered in Mumbai, with operations across India, the US, other developed markets and emerging markets. The company distributes its products across more than 100 markets and has a portfolio spanning generics, complex generics, specialty medicines and biosimilars. Lupin has 15 manufacturing facilities and six research centres, supported by a workforce of more than 26,000 professionals.

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Disclaimer: The article is for informational purposes only and not investment advice.