Novartis to divest ‘front of eye’ ophthalmology assets to Bausch + Lomb

Novartis (NVS) announced that it has signed an agreement to divest “front of eye” ophthalmology assets to Bausch + Lomb (BLCO) in a transaction valued up to $2.5B, including $1.75B in upfront cash, plus additional milestone payments. The deal includes Xiidra, which Novartis calls “the first approved prescription treatment for the signs and symptoms of dry eye disease,” and investigational medicine SAF312, or libvatrep, which is in development as a first-in-class therapy for chronic ocular surface pain, or COSP, as well as the rights for use of the AcuStream delivery device in dry eye indications and OJL332, a second generation TRPV1 antagonist in pre-clinical development. “This transaction will enhance our focus on prioritized innovative medicines to alleviate society’s greatest disease burdens, achieve the greatest patient impact and drive our growth strategy. Our ongoing portfolio refinement enables us to best deploy our scientific expertise and resources towards priority programs and therapeutic areas, while remaining open to opportunistic development for additional high impact conditions leveraging our advanced technology platforms. 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,” said Ronny Gal, Chief Strategy & Growth Officer of Novartis. Under the terms of the agreement, Novartis will receive milestone payments up to $750M linked to anticipated future sales for Xiidra, SAF312 and OJL332. Novartis will continue to supply Xiidra to patients on behalf of Bausch + Lomb, via transitional agreements for a limited period post-close, to ensure consistent supply for patients. Closing is anticipated in the second half of 2023 subject to customary conditions.