Novartis AG agreed to sell part of its portfolio of eye medicines to Bausch + Lomb Corp. in a deal worth as much as $2.5 billion as the Swiss pharma company focuses on developing new and more lucrative drugs.
This content was published on
2 minutes
Bloomberg
The transaction consists of $1.75 billion in upfront cash and additional milestone payments, according to a statement Friday. It includes Xiidra, a prescription medicine for dry eye disease, that generated $487 million in sales last year.
Under Chief Executive Officer Vas Narasimhan, Novartis has helped lead an industry-wide push to hive off low-growth businesses. It spun off its eye-care unit Alcon in 2019 and is in the process of doing the same with Sandoz, its generic-drugs business.
The $750 million in potential milestone payments is linked to future sales for Xiidra as well as two pipeline assets: libvatrep, an experimental drug being tested in mid-stage trials for chronic ocular surface pain, and a second-generation experimental compound that works in a similar way. Novartis will supply Xiidra on behalf of Bausch + Lomb.
Novartis shares rose 1% in Zurich.
Xiidra was at the heart of a multibillion-dollar deal for Narasimhan in 2019, when Novartis agreed to buy the drug and other assets from Japan’s Takeda Pharmaceutical Co. But Novartis has struggled to boost sales much beyond the $400 million Xiidra was generating at the time of that acquisition. In 2020, the company gave up efforts to get Xiidra approved in Europe.
Bloomberg News first revealed last year that Basel-based Novartis was considering options for all or parts of its ophthalmology and respiratory units. The Wall Street Journal reported Bausch + Lomb’s interest earlier on Friday.
The deal is expected to close in the second half of the year, Novartis said. The Swiss drugmaker will continue to develop new medicines for other eye diseases.
This content was published on
Director General Tedros Adhanom Ghebreyesus says the American "absence" on the executive board since last week makes him "sad".
Number of bearded vultures in the Alps could double in ten years
This content was published on
The bearded vultures in the Alps are currently doing so well that their population could double to around 700 animals within ten years.
Hardly any violations of minimum wage regulations in Ticino
This content was published on
A good 3% of companies inspected have violated the minimum wage in the Swiss canton of Ticino in the past three years, according to an official review.
Mandatory EU referendum not possible, says Swiss commission
This content was published on
Switzerland's treaties with the European Union cannot be subject to a mandatory referendum. This is the opinion of the majority of the responsible committee of the House of Representatives.
Consumer group files legal complaint against Swiss shoemaker On
This content was published on
The consumer affairs bureau of French-speaking Switzerland has filed a legal complaint against On accusing it of greenwashing.
This content was published on
Thomas Schinecker, CEO of Swiss pharma firm Roche, has dismissed fears that sales targets would be under threat by US tariffs.
This content was published on
Researchers are asking the Swiss public for help in naming two newly discovered Swiss fish species of the genus Barbatula.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Novartis sets sights on high-value medicines and US market
This content was published on
Swiss pharma giant Novartis has unveiled an updated strategy focused on high-value medicines and boosting its position in the US market.
This content was published on
The recent decision by the Swiss drugmaker to shed 7% of its workforce is more than just a cost-cutting measure - it’s a turning point for Novartis.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.