Last month, Deerfield Management accused Alcon of obstructing Aurion’s IPO plans so it could acquire the startup “at a discount.”
Alcon has secured a majority stake in Aurion Biotech, its latest move as it jockeys for control over the cell therapy specialist.
Alcon also ousted Greg Kunst, former CEO of Aurion, and replaced him with Arnaud Lacoste, who had been serving as Aurion’s chief scientific officer. In its news release announcing the moves on Wednesday, Alcon positioned these changes as a positive for Aurion, writing that the Seattle-based startup will now “have access to the broader R&D, regulatory, medical ophthalmic and commercial capabilities of Alcon.”
But Alcon sees the move as a boon for itself as well, saying it will now be “at the leading edge of biopharma applications in ophthalmology” and will have “the potential to advance the first-ever corneal cell therapy candidate,” according to the announcement.
Aurion will continue to operate as a separate entity with full backing from Alcon to advance its clinical programs.
Alcon and Aurion have been locked in a months-long power struggle. In November 2024, Alcon sued Aurion after the startup signaled its intent to go public. Alcon claimed at the time that, as Aurion’s largest shareholder with a 40.5% stake, it needed to first consent to an initial public offering before Aurion could push through.
Aurion challenged the claim and ultimately 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.” Alcon vowed to appeal.
Most recently, Deerfield Management, which at 34% is also a huge owner of Aurion stock, accused Alcon of orchestrating what it last month called a “Valentine’s Day massacre.” According to Deerfield, Alcon “sought to obstruct the IPO, because the IPO would thwart Alcon’s goal of buying Aurion for itself at a discount.”
To this end, Alcon replaced one board member with one of its nominees, coinciding with the unexpected resignation of another director, according to Deerfield. If these changes are deemed valid, Alcon would end up owning three of the six board seats, essentially forcing a deadlock on the IPO vote. The courts have yet to reach a verdict on Deerfield’s complaint.
