OSI Pharmaceuticals / EyeTech Pharmaceuticals Inc.

Neovascular (Wet) Age-Related Macular Degeneration

Disease Overview

Wet (neovascular) AMD is a leading cause of irreversible vision loss in adults over 50, driven by abnormal choroidal neovascular growth and leakage in the macula. Without treatment, central vision deteriorates rapidly. About 1 in 5 AMD patients has the wet form; the majority have the slower-progressing dry form.

Competitive Landscape

When OSI announced its $935M acquisition of Eyetech in August 2005, Macugen (pegaptanib) — a pegylated anti-VEGF aptamer launched in January 2005 — was the only FDA-approved pharmacologic therapy for wet AMD, with photodynamic therapy (Visudyne, QLT/Novartis) as the legacy alternative. The deal logic collapsed within months: on November 7, 2005, Genentech released positive Phase 3 MARINA/ANCHOR data for ranibizumab (Lucentis), and OSI delayed the Eyetech closing to assess the threat. Analysts predicted Lucentis would 'quickly eat into Macugen's market share'. After closing on Nov 14, 2005, OSI took repeated impairments on the eye business; Lucentis approval (June 2006) and off-label Avastin (bevacizumab) rapidly displaced Macugen. OSI eventually divested the eye unit to (OSI) Eyetech (later acquired by Valeant in 2008). The wet AMD market today is dominated by Eylea (aflibercept, Regeneron), Vabysmo (faricimab, Roche), Lucentis biosimilars, and longer-acting agents — Macugen is effectively obsolete. The deal is widely cited as a cautionary tale of M&A timing risk in fast-moving biotech.