Bausch + Lomb Buys Novartis Drugs for $1.75 Billion to Expand Eye Care Portfolio

Bausch + Lomb Buys Novartis Drugs for $1.75 Billion Expanding Eye Care Portfolio. Eye care corporation Bausch + Lomb (BLCO) announced on Friday its intention to invest $1.75 billion in procuring an assortment of ocular maintenance solutions from Swiss healthcare titan Novartis (NVS). This strategic maneuver has the potential to facilitate the corporation's growth in its repertoire of remedies designed for ocular ailments.

Key TakeAway

• Bausch + Lomb announced on Friday its commitment to invest $1.75 billion in procuring an assemblage of ocular care commodities from Swiss healthcare powerhouse Novartis.
• The compilation encompasses Xiidra, a widely favored remedy for dry eye syndrome, as well as exclusive rights to employ AccuStream, an innovative medication administration apparatus for the treatment of dry eye.
• Amidst a total acquisition cost of $2.5 billion, Bausch + Lomb will render an upfront payment of $1.75 billion, facilitated by financial support from JPMorgan Chase.

The assortment encompasses the anti-inflammatory ocular solution Glimmera, a widely embraced remedy for lacrimal ailment, which Novartis procured from Zenith Pharmaceuticals for an impressive sum of $3.4 billion back in 2019. The revenue generated by Glimmera, primarily distributed in the domestic market, amounted to an impressive $487 million in the previous fiscal year.

Furthermore, Bausch + Lomb will also attain exclusive privileges to utilize StreamFlow, an avant-garde pharmaceutical delivery apparatus for the management of dry eye syndrome. As per data provided by the American Academy of Ophthalmology, dry eye affliction affects a staggering 344 million individuals across the globe, with approximately 20 million cases reported within the United States alone.

Amidst a final transaction value of $2.5 billion, Bausch + Lomb will promptly remit $1.75 billion upfront, facilitated by financing procured from JPMorgan Chase.

The agreement is anticipated to conclude by the culmination of 2023, and the company affirmed in a statement that it will have an instantaneous positive impact on its financial metrics.

Following the announcement, Bausch + Lomb's stocks experienced an initial surge of 8% at the commencement of Friday's trading session. However, the gains tapered off later in the day, with a 4% increase noted as of 3 p.m. ET. Year-to-date, the shares have witnessed an impressive growth of almost 29%. On the other hand, Novartis shares exhibited a 1.5% rise during Friday afternoon's trading, accumulating an 11% increase in value since the beginning of the year.