The consideration includes $1.75bn in upfront cash and up to $750m in the form of potential milestone payments contingent on future sales of Xiidra, SAF312, and OJL332
Bausch + Lomb to buy Novartis’ ‘front of eye’ ophthalmology assets for up to $2.5bn. (Credit: Novartis AG)
Canada-based eye health company Bausch + Lomb has agreed to buy certain ophthalmology assets of Swiss pharmaceutical major Novartis for a sum of up to $2.5bn.
As part of the deal, Novartis will sell its dry eye disease product Xiidra (lifitegrast ophthalmic solution) 5% and SAF312 (libvatrep),an investigational compound for chronic ocular surface pain.
The deal also consists of the Swiss pharmaceutical firm’s AcuStream, an investigational drug delivery device for dry eye indications, and OJL332, a second generation TRPV1 antagonist which is in pre-clinical development stage.
Novartis chief strategy and growth officer Ronny Gal said: “Our ongoing portfolio refinement enables us to best deploy our scientific expertise and resources towards priority programmes and therapeutic areas, while remaining open to opportunistic development for additional high impact conditions leveraging our advanced technology platforms.
“We believe that Bausch + Lomb has the capabilities, scale and commitment to continue the work of Novartis in delivering and developing much needed therapies for patients suffering from dry eye and related conditions.”
The consideration includes $1.75bn in upfront cash and up to $750m in the form of potential milestone payments contingent on future sales of Xiidra, SAF312, and OJL332.
Additionally, the pharmaceutical major will continue to deliver Xiidra to patients on behalf of Bausch + Lomb. It will be done through transitional agreements for a limited period post-close to maintain consistent supply for patients.
Bausch + Lomb chairman and CEO Brent Saunders said: “This acquisition is a prime example of our strategy in action, as it provides needed scale for the company and transforms our pharmaceuticals business by making us a leader in ocular surface diseases.
“The deal is also expected to accelerate margin expansion through a larger mix of pharmaceutical products in our portfolio, provide strong and immediate earnings accretion and presents a clear path to deleverage, making it financially compelling.”
The board of directors of both the companies have approved the transaction, which is anticipated to close by the end of the year. This will be subject to regulatory approval and other closing conditions.