The company noted YUTIQ is used for the treatment of chronic non-infectious uveitis affecting the posterior segment of the eye, and is the same as Alimera’s ILUVIEN.
Alimera Sciences Inc. today announced its acquisition of additional commercialization rights for fluocinolone acetonide intravitreal insert (YUTIQ) 0.18mg for the treatment of chronic non-infectious uveitis affecting the posterior segment of the eye from EyePoint Pharmaceuticals Inc.
The transaction was completed at the close of business Wednesday.
Fluocinolone acetonide intravitreal insert is the same as Alimera's current commercial product ILUVIEN for DME, though the name and labeling indication is different.
During a corporate conference call today, Rick Eiswirth, Alimera’s president and CEO, pointed out that the transaction boosts the company’s revenue vase and leverages the commercial structure it has built in the United States.
“We know this product very well, having marketed ILUVIEN for the uveitis indication in Europe and the Middle East for several years now,” he said. “We believe there are immediate synergies in adding YUTIQ to our portfolio that will be accretive to revenue, Adjusted EBITDA and cash flow in the second half of 2023.”
Eiswirth added that company officials believe that deploying a larger commercial team focused on both ILUVIEN and YUTIQ will increase utilization of both products moving forward and expect Alimera to generate in excess of $100 million in net revenue and $20 million in adjusted EBITDA* in 2024.
According to the company, fluocinolone acetonide intravitreal insert net product revenue increased 60% to $7.4 million in Q1 2023 compared with $4.6 million in Q1 2022. For the full year of 2022, fluocinolone acetonide intravitreal insert net product revenue increased 67% to $28.3 million compared to $16.9 million in 2021, according to Eyepoint’s SEC reports.
Eiswirth noted in the conference call that Alimera now has exclusive global rights to fluocinolone acetonide intravitreal insert, excluding China, Hong Kong, Taiwan, Macau, South Korea and Southeast Asia, where EyePoint has a pre-existing license with Ocumension Therapeutics.
It was noted during the conference call that under the terms of the agreement with EyePoint:
It was noted during the call that Alimera funded the upfront payment and obtained additional working capital with a $69 million private placement of Series B preferred stock and common stock to a syndicate of investors led by Velan Capital and Caligan Partners.
The company is borrowing of an additional $20 million through an amendment to its existing term loan agreement with SLR Capital Partners, LLC.
“We deeply appreciate the support of SLR Capital and our new shareholders with this transformative transaction for Alimera,” Eiswirth added
"I am very excited to complete this transaction,” Eiswirth added. “It transforms our financial outlook and stability.”
Eiswirth noted that EyePoint has grown the therapeutic in the United States and something that has been considered for some time.
“It just seemed like the right time to do it,” he said.
The company will add 35 to 40 sales represenatives as it expands its reach among ophthalmologists to market both therapeutics.