BY Fraser Tennant
In a deal designed to boost its eyecare portfolio, global eye health company Bausch + Lomb Corporation has acquired a number of the ophthalmology assets of Swiss multinational pharmaceutical corporation Novartis.
Under the terms of the definitive agreement, Canada-based Bausch + Lomb will acquire Novartis’ assets for up to $2.5bn, including an upfront payment of $1.75bn in cash, with potential milestone obligations up to $750m based on sales thresholds and pipeline commercialisation.
Novartis’ ophthalmology assets include its anti-inflammation eye drop Xiidra, experimental drug libvatrep for chronic ocular surface pain and the rights to use the Swiss pharma company's AcuStream dry-eye drug delivery device.
“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,” said Brent Saunders, chairman and chief executive of Bausch + Lomb. “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.”
Founded in 1853, Bausch + Lomb has a significant global R&D, manufacturing and commercial footprint with approximately 13,000 employees and a presence in nearly 100 countries. Likewise, in its quest to find new medicines, Novartis consistently ranks among the world’s top companies investing in R&D.
“This transaction will enhance our focus on prioritised innovative medicines to alleviate society’s greatest disease burdens, achieve the greatest patient impact and drive our growth strategy,” said Ronny Gal, chief strategy & growth officer at Novartis. “Our ongoing portfolio refinement enables us to best deploy our scientific expertise and resources towards priority programmes and therapeutic areas, while remaining open to opportunistic development for additional high impact conditions leveraging our advanced technology platforms.
The transaction – which is expected to close in the second half of 2023 – has been approved by the board of directors of each company and is subject to receipt of regulatory approval and other customary closing conditions.
Mr Gal concluded: “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.”
News: Bausch + Lomb buys Novartis drugs for $1.75 billion to boost eye-care portfolio