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Novartis enters eye-opening deal with Xiidra
Posted on Friday, 10 May 2019 14:12
Novartis is snapping up the assets associated with prescription eye drop treatment Xiidra from Takeda Pharmaceutical for USD 5.30 billion.

The purchase price includes an upfront payment of USD 3.40 billion and a further USD 1.90 billion dependent on certain milestones being achieved.

Subject to the usual raft of closing conditions and regulatory approvals, the deal is due to complete in the second half of 2019.

Xiidra is billed as the first and only prescription treatment to tackle both the signs and symptoms of dry eye disease, which currently affects more than 34.00 million people in the US alone.

The product has been tested on over 1,000 patients in four separate, 12 week trials and was shown to reduce the effects of the condition, which often results in irritated, itchy and watery eyes, through its anti-inflammatory mechanism.

Xiidra has been approved for use across the US, Canada and Australia, and is currently under regulatory review for additional markets worldwide.

As a result of the deal, Novartis will strengthen its position as a leader in ophthalmology and expand its pharmaceuticals portfolio.

The transaction also puts the acquiror in contention for front-of-the-eye pipeline products that are currently in development.

In addition, the purchaser will gain 400 employees associated with Xiidra.

For the financial year ended 31st December 2018, Novartis posted net sales of USD 51.90 billion, up from USD 49.11 billion in the preceding 12 months.

A deal with Xiidra represents another transaction for the group this year; in April, it agreed to buy US-based anti-inflammatory medicine developer IFM Tre for USD 1.58 billion.

Novartis also snapped up US-based medical device developer PowerVision, through its subsidiary Alcon, for USD 285.00 million back in March.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 479 deals targeting pharmaceutical preparation manufacturers announced worldwide since the beginning of 2019.

In the biggest of these, and the third-largest transaction ever for this sector, Bristol-Myers Squibb agreed to acquire US-based Celgene for USD 74.00 billion.

Other targets include AstraZeneca, Bayer and Brammer Bio.

© Zephus Ltd