07:21 AM EDT, 05/29/2024 (MT Newswires) -- Merck ( MRK ) has entered into a definitive agreement to acquire Eyebiotech, a privately held biotechnology company, for up to $3 billion, the companies said Wednesday.

Merck ( MRK ) said that, through a subsidiary, it will make an upfront payment of $1.3 billion in cash and a further potential $1.7 billion in developmental, regulatory and commercial milestone payments.

EyeBio is developing a pipeline of clinical and preclinical candidates for the prevention and treatment of vision loss associated with retinal vascular leakage, a known risk factor for retinal diseases, the companies said.

EyeBio's board of directors unanimously approved the acquisition. The transaction is expected to close in Q3.

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