Glaukos Corp. (NYSE: GKOS), a San Clemente-based maker of devices to cure glaucoma, will purchase Avedro Inc. (Nasdaq: AVDR) to add what it calls “disruptive bio-activated pharmaceuticals.”
Glaukos said it’s paying a 42% premium to acquire Avedro, which had a $291 million market cap as of today’s close.
The acquisition should accelerate Glaukos’ revenue growth rate in 2020, when analysts previously projected 19% growth to $273.7 million and should be accretive to operating results and cash flows by 2021. Avedro is expecting 2019 revenue of $38 million to $41 million.
Avedro, which is based in Waltham, Mass., said it uses drug formulations to strengthen corneal tissue and halt progression of keratoconus, a degenerative corneal disease that affects approximately 1.1 million eyes in the U.S.
Perella Weinberg Partners LP is serving as financial advisor to Glaukos, and O’Melveny & Myers LLP is serving as its legal advisor. Guggenheim Securities is serving as financial advisor to Avedro and Cooley LLP is serving as its legal advisor.
Separately, Glaukos also reported second quarter sales rose 36% to $58.6 million and a wider loss from operations of $6.2 million. Shares fell 5.6% in after hours trading after the release was issued.