Novartis Finalizes Sale of 'Front of Eye' Assets to Bausch + Lomb for $2.5 Billion

Novartis has officially completed the divestment of its 'front of eye' ophthalmology assets to Bausch + Lomb. The transaction is valued at up to USD 2.5 billion, which includes an upfront cash payment of 1.75 billion dollars, along with potential additional milestone payments.

This deal includes Xiidra®, the first approved prescription treatment for addressing the signs and symptoms of dry eye disease, along with the investigational medicine SAF312 (libvatrep), currently in development as a pioneering therapy for chronic ocular surface pain (COSP). Additionally, it encompasses the AcuStream delivery device for dry eye indications and OJL332, a second-generation TRPV1 antagonist currently in the pre-clinical development phase.

“The closing of this transaction is a further step forward as we advance our focused portfolio, investing in prioritized therapeutic areas that address high disease burden and hold the greatest potential for Novartis,” said Ronny Gal, Chief Strategy & Growth Officer of Novartis. “On behalf of Novartis, I‘d like to extend our gratitude to the talented ‘front of eye’ therapy team, who remain committed to bringing Xiidra and these potential treatments to patients into the future as part of Bausch + Lomb.”

Under the terms of the agreement, Novartis will be granted an initial upfront cash payment of USD 1.75 billion. Additionally, there is the potential for milestone payments of up to USD 750 million, contingent upon the attainment of specified sales milestones for Xiidra and the accomplishment of specified commercialization and sales milestones for select pipeline products involved in the transaction.

Novartis, acting on behalf of Bausch + Lomb, will maintain the supply of Xiidra to patients through transitional agreements for a limited duration following the closure of the deal, with the aim of guaranteeing uninterrupted supply for patients.