HQ Team
July 3, 2023: Swiss drugmaker Novartis is divesting its ophthalmology assets including Xiidra, an anti-inflammatory eye drop to Bausch + Lomb, a leading eye care company for about USD 2.5 billion.
Xiidra is specifically approved for the treatment of dry eye disease (DED), a common ocular surface disorder affecting millions of people worldwide. In the US alone, approximately 38 million individuals suffer from DED, while the global prevalence stands at around 739 million.
The acquisition of Xiidra will enhance Bausch + Lomb’s existing dry eye portfolio, which includes Miebo, an ophthalmic solution recently approved for DED in the US. Additionally, the deal will grant Bausch + Lomb rights to Novartis’ investigational drug libvatrep for chronic ocular surface pain, as well as access to the AcuStream dry-eye drug delivery device.
The agreement, expected to be finalized in the second half of this year, involves USD 1.75 billion in upfront cash, plus additional milestone payments
Novartis expressed confidence in Bausch + Lomb’s capabilities, scale, and commitment to advancing therapies for dry eye and related conditions. They will continue to supply Xiidra on behalf of Bausch + Lomb for a limited period after the deal’s completion to ensure uninterrupted patient access.
Brent Saunders, Chairman and CEO of Bausch + Lomb, emphasized that the acquisition would establish the company as a leader in ocular surface diseases, transforming its pharmaceuticals business. He also highlighted the expected margin expansion, immediate earnings accretion, and the path to deleverage, making the deal financially compelling for Bausch + Lomb.
Novartis said it would continue to supply Xiidra on behalf of Bausch + Lomb for a “limited period” after the deal closes to ensure consistent supply to patients.
Saunders said the acquisition would transform the company’s pharmaceuticals business by making it “a leader in ocular surface diseases”.
