Harrow Health signs binding agreement to acquire rights to ophthalmic products

Harrow (HROW) announced that it has entered into a binding agreement for the acquisition of the exclusive U.S. commercial rights to five FDA-approved ophthalmic products from the Novartis (NVS) group of companies. This acquisition, when closed, will further expand and diversify Harrow’s portfolio of branded pharmaceutical products and its ability to serve the U.S. ophthalmic surgical and acute care markets. Subject to customary closing conditions, this acquisition is expected to close in early 2023. This transaction, which is the second acquisition transaction between Harrow and Novartis, transfers exclusive U.S. rights to the following ophthalmic products: ILEVRO, NEVANAC, VIGAMOX, MAXIDEX, and TRIESENCE. Harrow will make a one-time payment of $130M at closing, with up to an additional $45M payable in a milestone payment upon the commercial availability of TRIESENCE, which is expected in the second half of 2023. During an estimated 6-month NDA transfer period, Novartis will continue to sell the products in the U.S. market and will transfer all net profits to Harrow. Following the NDA transfer period, Harrow will assume control over all U.S. market activities and will begin a process to have the products manufactured by third parties. Novartis will retain all rights to the products outside of the U.S. The transaction is expected to close in the Q1 of 2023, subject to the satisfaction of customary closing conditions, including clearance under the Hart-Scott Rodino Antitrust Improvements Act.