Novartis stated today that it has finalised the divestment of ‘front of eye’ ophthalmology assets to Bausch + Lomb, a worldwide eye health firm, in a transaction valued up to USD 2.5 billion, including 1.75 billion in upfront cash and potential extra milestone payments.
The agreement includes Xiidra®, the first approved prescription treatment for the signs and symptoms of dry eye disease, and SAF312 (libvatrep), an investigational medicine in development as a first-in-class therapy for chronic ocular surface pain (COSP), as well as the AcuStream delivery device in dry eye indications and OJL332, a second generation TRPV1 antagonist in pre-clinical development.
Terms of Agreement:
Novartis will receive USD 1.75 billion in upfront cash payments and potential milestone payments of up to USD 750 million linked to the achievement of specified sales milestones for Xiidra, as well as the achievement of specified commercialization and sales milestones for certain pipeline products in the transaction, under the terms of the agreement. Novartis will continue to provide Xiidra to patients through transitional arrangements on behalf of Bausch + Lomb for a limited period following the closure to maintain constant supply for patients.
Expert Opinion:
“The closing of this transaction is a further step forward as we advance our focused portfolio, investing in prioritized therapeutic areas that address high disease burden and hold the greatest potential for Novartis,” said Ronny Gal, Chief Strategy & Growth Officer of Novartis. “On behalf of Novartis, I‘d like to extend our gratitude to the talented ‘front of eye’ therapy team, who remain committed to bringing Xiidra and these potential treatments to patients into the future as part of Bausch + Lomb.”
