The company also acquired an investigational medicine and rights to a delivery device for treating dry eye disease (DED). AcuStream, an investigational device that may have the potential to facilitate precise dosing and accurate delivery of certain topical ophthalmic medications to the eye.
XIIDRA (lifitegrast ophthalmic) solution 5% has approval to treat the signs and symptoms of DED. It focuses on inflammation associated with dry eye.
The acquisition complements Bausch + Lomb’s existing dry eye portfolio, which includes eye and contact lens drops. It features the recently approved MIEBO eye drop for DED, which works differently than XIIDRA.
Novartis values the transaction at up to $2.5 billion, including $1.75 billion in upfront cash, plus additional milestone payments. The deal includes Xiidra and the investigational medicine SAF312 (libvatrep). Novartis had it under development as a first-in-class therapy for chronic ocular surface pain (COSP).
Bausch + Lomb also acquired rights for the use of the AcuStream delivery device in dry eye indications. Finally, the company acquired OJL332, a second-generation TRPV1 antagonist in pre-clinical development.
“This acquisition is a prime example of our strategy in action, as it provides needed scale for the company and transforms our pharmaceuticals business by making us a leader in ocular surface diseases,” said Brent Saunders, chair and CEO, Bausch + Lomb. “The deal is also expected to accelerate margin expansion through a larger mix of pharmaceutical products in our portfolio, provide strong and immediate earnings accretion and presents a clear path to deleverage, making it financially compelling.”
Novartis officials say the transaction enhances its focus on prioritized medicines elsewhere.
“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,” said Ronny Gal, Novartis chief strategy & growth officer.
This article’s headline previously listed the acquisition price as “$2.5M” when the value totals $2.5 billion. This has been updated.