Novartis to boost eye care portfolio with $3.4bn buy

Novartis is set to acquire assets associated with Xiidra ((lifitegrast ophthalmic solution), a dry eye treatment, from  Takeda.

The deal, which was  announced yesterday, May 9, will see Novartis pay $3.4 billion up front, with potential milestone payments of $1.9 billion.

Xiidra is the only prescription treatment approved for both signs and symptoms of dry eye disease. It made $400 million of revenue in 2018.

Paul Hudson, CEO of Novartis, said: “Xiidra, with its unique dual benefits, is an example of the type of innovative advances we invest in for the benefit of patients. We look forward to leveraging our well-established commercial infrastructure to bring this medicine to more patients.”

Novartis said that Xiidra fits strategically within its $4.6 billion ophthalmic pharmaceutical portfolio, laying groundwork for front-of-the-eye pipeline products currently in development.

As part of the agreement, which is expected to close in the second half of 2019, Novartis will take on approximately 400 employees associated with the product.

Novartis has been on the acquisition trail for some time, although it has tended to focus on acquiring companies.

In April last year, the Swiss drug maker  announced plans to strengthen its gene therapy expertise with the $8.7 billion addition of Nasdaq-listed  AveXis to its portfolio.

Later that year, in October, Novartis  said it would acquire  Endocyte, an Indiana-based biotech, to accelerate its development of radiopharmaceuticals.

The drug maker has also dispensed with parts of its business—in September 2018, Novartis  revealed plans to sell the dermatology business and generic US oral solids portfolios of its subsidiary Sandoz US to India-based Aurobindo for $900 million.

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