Eye healthcare firm Bausch + Lomb Corp. (BLCO) Friday said it has entered into a definitive agreement to buy XIIDRA (lifitegrast ophthalmic solution) 5%, a non-steroid eye drop, from Swiss drug major Novartis AG (NVS) for up to $2.5 billion.<\/p>\n
In pre-market activity on the NYSE, Bausch + Lomb shares were gaining around 3 percent to trade at $19.75.<\/p>\n
Under the deal terms, Bausch + Lomb, through an affiliate, has agreed to acquire XIIDRA. The consideration includes an upfront payment of $1.75 billion in cash with potential milestone obligations up to $750 million based on sales thresholds and pipeline commercialization.<\/p>\n
XIIDRA is specifically approved to treat the signs and symptoms of dry eye disease or DED focusing on inflammation associated with dry eye.<\/p>\n
Bausch + Lomb will also bring on the sales force supporting XIIDRA. The company has obtained fully committed financing from J.P. Morgan for the transaction and intends to finance the $1.75 billion upfront cash purchase price with new debt prior to closing.<\/p>\n
The deal was approved by the Board of Directors of both companies. It is subject to receipt of regulatory approval and other customary closing conditions.<\/p>\n
The transaction would close by the end of 2023 and will be immediately accretive. <\/p>\n