Novartis Divests Ophthalmology Assets to Bausch + Lomb for Up to $2.5 Billion
Novartis has signed an agreement to divest its 'front of eye' ophthalmology assets to Bausch + Lomb, a global eye health company. The transaction is valued at up to $2.5 billion, which marks a strategic move to focus on innovative medicines and growth opportunities.
The deal includes assets such as Xiidra, the first approved treatment for dry eye disease, libvatrep, an in-development medication for chronic ocular surface pain, and other promising therapies for ocular conditions.
This move enables Novartis to prioritize its growth strategy and concentrate on other innovative medicines with a substantial impact on patients. Previously Takeda had sold Xiidra to Novartis in 2019 for $3.4 billion upfront plus additional milestone payments.
“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”, says Ronny Gal, Chief Strategy & Growth Officer of Novartis.
The agreement dictates that Novartis will receive milestone payments of up to $750 million linked to the future sales of the pharmaceuticals. Novartis will continue to supply Xiidra for a limited time until Bausch + Lomb takes over, ensuring patients receive a consistent supply. Closing is expected by the end of 2023.
