Ocuphire Pharma has announced the acquisition of Opus Genetics to create a biotech company dedicated to gene therapy development for inherited retinal diseases (IRDs).

The combined entity will be named Opus Genetics.

Ocuphire has issued 5.2m common stock shares and 14,100 shares of its convertible preferred stock to Opus Genetics' stockholders.

The preferred shares will be convertible into common stock, pending approval at the annual meeting in April 2025.

Post-merger, Ocuphire's pre-acquisition stockholders will hold 58% of the fully diluted capitalisation of the combined company, while Opus Genetics' stockholders will own almost 42%.

Newly combined company president Ben Yerxa stated: “With the Ocuphire team’s late-stage ophthalmic drug development and regulatory approval experience and resources, we believe we are well-positioned to accelerate our pipeline of potentially transformative gene therapies for inherited retinal diseases.

“We see this transaction as a win for patients with IRDs around the world, and we look forward to efficiently progressing our combined pipeline.”

The expanded pipeline of the new company includes adeno-associated virus (AAV)-based gene therapy assets for IRDs and Ocuphire’s late-stage product candidate RYZUMVI (phentolamine ophthalmic solution 0.75%), which is being assessed for presbyopia and dim light vision disturbances following keratorefractive surgery.

RYZUMVI is designed to reduce pupil size by blocking alpha-1 receptors on the radial iris dilator muscles.

The combined company's expected cash runway is extended into 2026, anticipating clinical data readouts for several trials.

Leerink Partners is the exclusive financial advisor to Ocuphire.

Sidley Austin and Smith Anderson are serving as legal counsels to Ocuphire and Opus Genetics, respectively.

In 2022, Opus Genetics signed an agreement with National Resilience for developing and manufacturing AAV vector-based gene therapies for IRD.