Novartis completed its divestment of ‘front of eye’ ophthalmology assets to Bausch + Lomb, a global eye health company, in a transaction valued up to USD 2.5 billion, consisting of 1.75 billion in upfront cash, plus potential additional milestone payments.
The deal includes Xiidra®, the first approved prescription treatment for the signs and symptoms of dry eye disease, and investigational medicine SAF312 (libvatrep), 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.
“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.”
Under the terms of the agreement, Novartis will receive USD 1.75 billion in an upfront cash payment and potential milestone payments of up to USD 750 million linked to the achievement of specified sales milestones for Xiidra, and the achievement of specified commercialization and sales milestones for certain pipeline products in the transaction. Novartis, on behalf of Bausch + Lomb, will continue to supply Xiidra to patients via transitional agreements for a limited period post-close, to ensure consistent supply for patients.
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