Bausch + Lomb completes acquisition of Xiidra from Novartis

Bausch + Lomb (BLCO) announced it has completed its acquisition of Xiidra 5%, a non-steroid eye drop specifically approved to treat the signs and symptoms of dry eye disease, or DED, focusing on inflammation associated with dry eye, and certain other ophthalmology assets. As part of the transaction, Bausch + Lomb also acquired libvatrep, also known as SAF312, an investigational compound being studied for the treatment of chronic ocular surface pain, and AcuStream technology, an investigational device that may have the potential to facilitate precise dosing and accurate delivery of certain topical ophthalmic medications to the eye. Libvatrep is currently in Phase 2b development with study results anticipated to be completed in the second half of 2023. Under the terms of the agreement, Bausch + Lomb, through an affiliate, acquired Xiidra and the other ophthalmology assets from Novartis (NVS) for up to $2.5B, including an upfront payment of $1.75B in cash with potential milestone obligations of up to $750M based on sales thresholds and pipeline commercialization. Bausch + Lomb also brought on the sales force supporting Xiidra. The company funded the acquisition with the previously announced offering of $1.4B aggregate principal amount of 8.375% senior secured notes due 2028 and $500M of new term B loans under an incremental term loan facility. The issuance of the notes and the closing of the term loan facility occurred substantially concurrently with the closing of the acquisition, the company stated.