Switzerland-headquartered pharmaceutical giant Novartis is weighing up the sale of its ophthalmology and respiratory business units, according to a Bloomberg report that cited to people familiar with the matter.
According to the report, the company – which has operations in Australia – is seeking to raise funds from the possible sale to invest in cutting-edge medicines. The ophthalmology unit could be valued at US$5 billion (AU$7.5 billion).
Novartis has a significant presence in ophthalmology, with one of the first approved anti-VEGFs for macular disease, Lucentis (ranibizumab), available on the Pharmaceutical Benefits Scheme (PBS) since 2007. The therapy – which now has seven indications in Australia – is now the eighth most expensive drug on the PBS, costing the government around $220 million annually.
The company subsequently developed the longer-acting (Beovu) which was listed on the PBS as a second-line anti-VEGF therapy for neovascular age-related macular degeneration in October 2021, and also secured approval of Australia’s first gene therapy, Luxturna (voretigene neparvovec), in August 2020 for patients with inherited retinal disease caused by pathogenic biallelic RPE65 mutations.
However, it was unclear which therapies would be sold as part of the ophthalmology portfolio.
In August, Novartis said it intended to spin off its generics unit Sandoz to re-focused its position as an innovative medicines company, with depth in five core therapeutic areas (hematology, solid tumors, immunology, neuroscience and cardiovascular) and strength in technology platforms, including gene therapy, cell therapy, radioligand therapy, targeted protein degradation and xRNA.
The company also spun off its Alcon eyecare business in 2019.
Any sale of the ophthalmology and respiratory businesses is likely to begin in 2023, after the process for Sandoz is completed, the Bloomberg report said.
In December 2021, Novartis announced the acquisition of Gyroscope Therapeutics, the UK-based company behind an investigational gene therapy for geographic atrophy that is the focus of key clinical trials in Australia.
The deal centres on the GT005 gene therapy and saw Novartis make an upfront payment of US$800 million (AU$1.1 billion) and potential additional milestone payments of up to US$700 million (AU$970 m).
Novartis did not respond to Bloomberg for its report.
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