Alcon Secures Majority Stake in Aurion Biotech, Replaces CEO Amid Ongoing Power Struggle

In a significant development in the pharmaceutical industry, eye care giant Alcon has acquired a majority stake in Aurion Biotech, a clinical-stage cell therapy company focused on ophthalmology. This move marks the latest chapter in a months-long power struggle between Alcon and other major shareholders, including Deerfield Management.

Alcon's Takeover and Management Changes

Alcon announced on Wednesday that it has secured a majority stake in Aurion Biotech, simultaneously replacing CEO Greg Kunst with Arnaud Lacoste, Ph.D., who previously served as Aurion's Chief Scientific Officer. According to Alcon, Aurion will continue to operate as a separate entity but will now have "access to the broader R&D, regulatory, medical ophthalmic and commercial capabilities of Alcon."

The takeover comes after a series of legal battles and strategic maneuvers. In November 2024, Alcon sued Aurion to block its plans for an initial public offering (IPO), claiming that as the largest shareholder with a 40.5% stake, it needed to consent to such a move. However, Aurion challenged this claim and won a court decision in January, with a Delaware judge ruling that the startup "did not require Alcon's consent for the reverse stock split."

Allegations of Obstruction and Discounted Acquisition

Deerfield Management, which held a 34% stake in Aurion as of February, accused Alcon of orchestrating what it called a "Valentine's Day massacre" to obstruct Aurion's IPO plans. According to Deerfield's lawsuit, Alcon "sought to obstruct the IPO, because the IPO would thwart Alcon's goal of buying Aurion for itself at a discount."

Deerfield alleged that Alcon had been waging "an unrelenting campaign" for over two years to take over Aurion "at a highly discounted valuation" and had sought to "cut off Aurion's ability to obtain financing from sources other than Alcon." Independent analyses had reportedly placed a multibillion-dollar value on Aurion, even before it launched its first product in Japan and completed a clinical trial in the U.S.

Aurion's Cell Therapy Pipeline and Future Plans

Aurion Biotech specializes in developing treatments for diseases affecting the corneal endothelium. The company's approach aims to reverse vision loss and offer patients an easier recovery compared to traditional corneal endothelial transplant procedures. Aurion has already secured approval for a product in Japan and is advancing its lead candidate, AURN001, through clinical trials in the United States.

Newly appointed CEO Arnaud Lacoste stated that Aurion looks forward to "leveraging Alcon's global resources and commercial expertise" to move AURN001 into Phase 3 development later this year. The Phase 1/2 study for AURN001 included 97 patients with corneal edema secondary to corneal endothelial dysfunction.

Alcon views this acquisition as an opportunity to position itself "at the leading edge of biopharma applications in ophthalmology" and to potentially advance "the first-ever corneal cell therapy candidate," according to their announcement.

As the dust settles on this corporate takeover, the pharmaceutical industry will be watching closely to see how Alcon's majority ownership influences Aurion's innovative cell therapy pipeline and whether the promised synergies between the two companies will accelerate the development of new treatments for eye diseases.