(Tiper Stock Exchange) – Novartisa Swiss multinational operating in the pharmaceutical sector, has signed a agreement for the sale of the ophthalmology business “front of eye” a Bausch + Lomba North American eye health company, in a transaction valued at up to $2.5 billion, including $1.75 billion in cash upfront.
The deal also includes Xiidrathe first approved prescription treatment for the signs and symptoms of dry eye disease, the investigational drug SAF312 (libvatrep), under development as a therapy for chronic ocular surface pain (COSP), and other assets.
“Our continuous improvement of the portfolio it enables us to best employ our scientific expertise and resources towards priority therapeutic programs and areas, while remaining open to opportunistic development for additional high-impact conditions, leveraging our advanced technology platforms,” he said Ronny Gal, Novartis Chief Strategy & Growth Officer.
The acquisition “provides the scale needed for the company and transform our pharmaceutical business to make us a leader in ocular surface disease,” he said Brent Saunders, CEO of Bausch + Lomb. “The deal is also expected to accelerate margin expansion through a broader mix of pharmaceutical products in our portfolio, deliver strong and immediate earnings lift, and present a clear path to deleveraging,” he added.
Under the terms of the agreement, Novartis will receive payments of up to $750 million related to anticipated future sales of Xiidra, SAF312 (libvatrep), and OJL332. The closing is expected in second half of 2023.