Novartis has entered an agreement to divest its ophthalmology assets to eye health firm Bausch + Lomb in a deal valued at $2.5bn.
The divested products comprise Xiidra, SAF312 (libvatrep) and OJL332.
Xiidra is an approved prescription therapy indicated for treating dry eye disease.
SAF312 is an investigational asset being developed as a chronic ocular surface pain treatment.
A second-generation TRPV1 antagonist, OJL332 is currently in the pre-clinical development stage.
The agreement also comprises the usage rights for the AcuStream delivery device in dry eye disease indications.
The deal comprises an upfront payment of $1.75bn in cash to Novartis, which will also receive $750m in future milestone payments linked to Xiidra, SAF312 (libvatrep) and OJL332 sales.
To guarantee a constant supply of Xiidra to patients, Novartis will continue distributing the therapy on behalf of Bausch + Lomb under transitional agreements following closure of the deal.
The divestiture will conclude in the second half of 2023.
Novartis chief strategy and growth officer Ronny Gal stated: “This transaction will enhance our focus on prioritised 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 programmes and therapeutic areas, while remaining open to opportunistic development for additional high-impact conditions leveraging our advanced technology platforms.”
In June 2023, Novartis agreed to acquire US-based clinical-stage biopharmaceutical firm Chinook Therapeutics in a $3.5bn deal.
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