Ophthotech Expands Innovative Retinal Disease Pipeline

Ophthotech (NASDAQ:OPHT) announced that it has acquired Inception 4 a privately held company backed by Versant Ventures, expanding Ophthotech’s therapeutic pipeline in age-related retinal indications.

As quoted in the press release:

“We are thrilled to welcome Versant Ventures as a major shareholder through our acquisition of Inception 4,” stated Glenn P. Sblendorio, Chief Executive Officer of Ophthotech. “This HtrA1 inhibitor program aligns with our commitment to further build upon Ophthotech’s strategy to develop novel therapeutics and gene therapy treatments for retinal diseases. We believe this acquisition is a compelling opportunity to create value for our shareholders. We look forward to adding the HtrA1 program to our pipeline and potentially further expanding our portfolio with additional opportunities in retinal diseases.”

As a result of the closing of the acquisition, Ophthotech obtained approximately $6.1 million in cash through Inception 4. As upfront consideration in the transaction, Ophthotech agreed to issue approximately 5.2 million shares to the shareholders of Inception 4. After giving effect to the transaction, Versant Ventures, through its affiliated investment funds, owns approximately 12.5% of the outstanding shares of Ophthotech’s common stock. In addition, Inception 4 equity holders will be entitled to receive post-closing payments contingent upon the achievement of certain clinical and marketing approval milestones in certain AMD indications. As a result of closing this transaction, the Company is increasing its year end 2018 projected balance of cash and cash equivalents to range between $125 million and $130 million based on its current 2018 business plan and planned capital expenditures. Ophthotech will not assume any additional employees or corporate infrastructure in connection with this transaction.

Click here to read the full press release.