Bausch + Lomb eye care company (BLCO) has said on Friday it would pay $1.75 billion to acquire a portfolio of eye-care products from Swiss healthcare giant Novartis (NVS), which could help the company expand its offering to treat eye conditions.
Key Points to Remember
- Bausch + Lomb said on Friday it would pay $1.75 billion to acquire a portfolio of eye care products from Swiss healthcare giant Novartis.
- The portfolio includes Xiidra, a popular dry eye treatment, and rights to use AccuStream, a drug delivery device used to treat dry eye.
- On a final purchase price of $2.5 billion, Bausch + Lomb will pay $1.75 billion upfront, with funding from JPMorgan Chase.
The portfolio includes anti-inflammatory eye drops Xiidra, a popular dry eye treatment, which Novartis acquired from Takeda Pharmaceuticals for $3.4 billion in 2019. Sales of Xiidra, which is primarily sold in the United States, totaled $487 million last year.
Bausch + Lomb will also obtain the rights to use AccuStream, a drug delivery device for the treatment of dry eye disease. Dry eye affects up to 344 million people worldwide, including about 20 million in the United States, according to the American Academy of Ophthalmology.
On a final purchase price of $2.5 billion, Bausch + Lomb will pay $1.75 billion upfront, with funding from JPMorgan Chase. The deal is expected to close by the end of 2023 and “will be immediately accretive,” the company said in a statement./>
Bausch + ; Shares of Lomb jumped 8% at the start of trading on Friday following the news, but pared some of the gains later in the day and were up 4% at 3 p.m. AND. It's up almost 29% so far this year. Shares of Novartis were trading up 1.5% on Friday afternoon, up 11% year-to-date.
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