Bausch + Lomb to acquire Xiidra, ‘front of eye’ assets from Novartis
Key takeaways:
- Bausch + Lomb will acquire Xiidra and other assets from Novartis for a transaction of up to $2.5 billion.
- The deal is expected to close later this year.
Novartis has entered a transaction of up to $2.5 billion to divest ‘front of eye’ ophthalmology assets, including Xiidra, to Bausch + Lomb, according to a company press release.
Under the terms of the agreement, Bausch + Lomb will acquire dry eye disease treatment assets including Xiidra (lifitegrast ophthalmic solution 5%), SAF312 (libvatrep), which is in development for chronic ocular surface pain, the AcuStream drug delivery device and OJL332, a second generation TRPV1 antagonist in pre-clinical development.
Bausch + Lomb will pay Novartis $1.75 billion in upfront cash, as well as additional milestone payments of up to $750 million.
“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,” Brent Saunders, chairman and CEO of Bausch + Lomb, said. “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.”
Novartis will continue to supply Xiidra to patients for a limited period after the deal closes to ensure a consistent supply, according to the press release.
The deal is expected to close in the second half of 2023.
Reference:
- Bausch + Lomb Will Acquire XIIDRA.
- https://www.bausch.com/news/releases/?id=163. Published June 30, 2023. Accessed June 30, 2023.
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