Prescription dry eye drug Xiidra is changing hands, with ophthalmic giant Novartis signing a deal to sell the therapy to industry counterpart Bausch + Lomb (B+L) for up to US$2.5 billion (AU$3.6 b). It forms part of a new direction for Novartis, which is selling off it ‘front the eye’ drug portfolio.
Xiidra (lifitegrast ophthalmic solution) 5% can be prescribed by Australian eyecare professionals, and is a non-steroid eye drop for signs and symptoms of dry eye disease (DED) focusing on inflammation.
“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 Mr Brent Saunders, B+L chairman and CEO.
“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.”
Xiidra is expected to complement B+L’s existing dry eye portfolio that includes consumer eye and contact lens drops, as well as its pharmaceutical business that features MIEBO (perfluorohexyloctane ophthalmic solution), recently approved by the FDA as the first and only eye drop for DED that directly targets tear evaporation. XIIDRA and MIEBO work differently.
As part of the deal, B+L will also acquire libvatrep, an investigational compound being studied for chronic ocular surface pain, and AcuStream technology, an investigational device with the potential of precise dosing and accurate delivery of certain topical ophthalmic medications to the eye.
By divesting ‘front of eye’ ophthalmology assets to B+L, Novartis chief strategy and growth officer Mr Ronny Gal said the move would enhance the company’s focus on innovative medicines to alleviate society’s greatest disease burdens, including the ophthalmic gene therapy Luxturna.
“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,” he said.
“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.”
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