IRIDEX Announces Strategic Collaboration

At the market close today, Iridex Corporation (IRIX), a provider of ophthalmic laser-based medical products for the treatment of glaucoma and retinal diseases, announced a major deal with $1 billion plus Japanese eye care company, Topcon.

Highlights of the new strategic relationship include:

• The transaction nets $19.5 million of cash to Iridex, providing multiyear funding for strategic growth initiatives, particularly those designed to drive expanded market penetration of Iridex’s unique non-incisional glaucoma therapy products
• Topcon invests in Iridex by i) purchasing exclusive rights to distribute Iridex’s retina and glaucoma products in certain global markets, and ii) acquiring a common equity stake of approximately 10.4% in Iridex
• Iridex product portfolio to benefit from Topcon’s distribution strength in Asia Pacific and key EMEA markets, joining Topcon’s broad offering of diagnostic and treatment products for glaucoma and retina customers
• Iridex acquires Topcon’s PASCAL^® product line, combining Iridex’ MicroPulse^® technology with Topcon’s PASCAL^® laser platform, resulting in a leading market share for retinal scanning laser products, plus greater scale to generate design, manufacturing and marketing efficiencies

“We sought this alliance with Iridex to achieve significant benefits to our operating and distribution efforts. As leaders and innovators in advancing the treatment options for eyesight threatening diseases, we recognize a great opportunity to bring our strengths together,” said Fumio Ohue, Managing Executive Officer of Topcon’s Eye Care Business. “We are excited to bring Iridex’s retina and glaucoma therapy products to our expansive customer base throughout Asia Pacific and key Europe, Middle East and Africa markets. This alliance with Iridex is one of the major initiatives which Topcon will offer with our ‘Shared Care’ program. We are confident that combining our new product design and development efforts will enhance our existing and future products in both retina and glaucoma.”