Otsuka Pharmaceuticals Acquires Asia-Pacific Rights to 4DMT's Eye Disease Treatment for $85M Upfront

In a significant move within the ophthalmology sector, 4D Molecular Therapeutics has entered into a lucrative agreement with Japan's Otsuka Pharmaceuticals for the rights to develop and commercialize 4D-150, a novel eye disease treatment, in the Asia-Pacific region. The deal, announced on Thursday, includes an upfront payment of $85 million and could potentially reach over $400 million in total value.

Deal Structure and Financial Terms

The agreement between 4DMT and Otsuka Pharmaceuticals encompasses:

• An $85 million upfront payment to 4DMT
• $50 million in cost-sharing arrangements
• Up to $336 million in potential milestone payments
• Royalties on future sales

This structure provides 4DMT with immediate capital while offering Otsuka the opportunity to tap into the promising Asia-Pacific market for eye disease treatments.

4D-150: A Novel Approach to Eye Disease Treatment

4D-150 represents a innovative approach to treating wet age-related macular degeneration (wet AMD) and diabetic macular edema (DME). The therapy combines:

1. A VEGF-C inhibitory RNAi
2. Regeneron's Eylea (aflibercept)

This combination is delivered via a single, low-dose ocular injection, potentially offering a longer-lasting treatment option for patients. Developed using 4DMT's Therapeutic Vector Evolution platform, 4D-150 aims to address the limitations of current therapies that require frequent administration.

Market Context and Competition

The deal comes at a critical time in the ophthalmology market:

• Regeneron's Eylea, a current standard of care, has seen declining sales, with Q3 2025 revenue dropping 28% to $1.11 billion
• Regeneron faced a setback with the FDA's rejection of Eylea HD, a longer-lasting formulation
• Other companies, including Ocular Therapeutix and Kalaris Therapeutics, are developing competing treatments
• Eli Lilly recently offered up to $261.7 million to acquire Adverum Therapeutics, which has a gene therapy candidate for wet AMD

These developments highlight the intense competition and significant financial interest in the eye disease treatment market, particularly for longer-lasting therapies that can improve patient outcomes and reduce treatment burden.