The deal value comprised an upfront cash payment of $1.75bn, apart from further milestone payments in the future.
The parties entered an agreement in this regard in June 2023.
As part of the divestment, Bausch + Lomb acquired approved therapeutic Xiidra; SAF312 (libvatrep), investigational therapy; and pre-clinical asset OJL332.
Xiidra is indicated to treat dry eye disease’s signs and symptoms while SAF312 (libvatrep) is being developed as a first-in-class treatment for chronic ocular surface pain (COSP).
The agreement also comprises usage rights for the AcuStream delivery device for indications of dry eye diseases.
The potential milestone payments are subject to meeting certain Xiidra’s sales-linked milestones as well as meeting some commercialisation and sales-associated milestones for some pipeline assets that are part of the deal.
For a limited time after the deal closing, Novartis will supply Xiidra through transitional deals on behalf of Bausch + Lomb to guarantee its steady availability.
The latest divestment deal is part of Novartis’ strategy to develop focused portfolios and therapeutic areas.
Novartis chief strategy and growth officer Ronny Gal said: “The closing of this transaction is a further step forward as we advance our focused portfolio, investing in prioritised therapeutic areas that address high disease burden and hold the greatest potential for Novartis.
“On behalf of Novartis, I’d like to extend our gratitude to the talented ‘front of eye’ therapy team, who remain committed to bringing Xiidra and these potential treatments to patients into the future as part of Bausch + Lomb.”