Bausch Health’s Bausch + Lomb to acquire Novartis’ XIIDRA

Bausch + Lomb Corporation (BLCO), a subsidiary of Bausch Health Companies (BHC), announced that it has entered into a definitive agreement with Novartis (NVS) to acquire XIIDRA 5%, a non-steroid eye drop specifically approved to treat the signs and symptoms of dry eye disease focusing on inflammation associated with dry eye. Under the terms of the agreement, Bausch + Lomb, through an affiliate, has agreed to acquire XIIDRA, libvatrep and AcuStream from Novartis for up to $2.5B, including an upfront payment of $1.75B in cash with potential milestone obligations up to $750M based on sales thresholds and pipeline commercialization. Bausch + Lomb will also bring on the sales force supporting XIIDRA. Bausch + Lomb has obtained fully committed financing from J.P. Morgan for the transaction and intends to finance the $1.75B upfront cash purchase price with new debt prior to closing. The transaction is expected to close by the end of 2023 and be immediately accretive to Bausch + Lomb. The transaction was approved by the Board of Directors at each of the respective companies and is subject to receipt of regulatory approval and other customary closing conditions.