Bausch + Lomb Poised To Boost Presence In Growing Market With Potential $1.75B Drug Acquisition Deal From Novartis
Portfolio Pulse from Vandana Singh
Bausch + Lomb Corporation (NYSE:BLCO) has agreed to acquire 'front of eye' ophthalmology assets from Novartis AG (NYSE:NVS) for $1.75 billion in upfront cash, plus additional milestone payments. The deal includes Xiidra, an eye drop for dry eye symptoms, and other assets. The acquisition is expected to bolster Bausch's stake in the profitable and expanding dry-eye market. The company forecasts total FY23 sales of $3.9-$3.95 billion. Bausch is being spun out of a larger healthcare firm, Bausch Health Companies Inc (NYSE: BHC).
June 30, 2023 | 12:40 pm
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POSITIVE IMPACT
Bausch + Lomb's acquisition of ophthalmology assets from Novartis is expected to boost its presence in the dry-eye market and increase its revenue.
The acquisition of 'front of eye' ophthalmology assets, including Xiidra, is expected to bolster Bausch's stake in the profitable and expanding dry-eye market, which could lead to increased revenue and a potential boost in stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Bausch + Lomb is being spun out of a larger healthcare firm, Bausch Health Companies Inc.
Bausch + Lomb is being spun out of Bausch Health Companies Inc. The impact on BHC's stock price is uncertain as it depends on the terms of the spin-off and the future performance of both companies.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Novartis is selling its 'front of eye' ophthalmology assets to Bausch + Lomb for $1.75 billion in upfront cash, plus additional milestone payments.
Novartis is selling its ophthalmology assets to Bausch + Lomb. While this will bring in cash and potential milestone payments, the impact on its stock price is uncertain as it depends on how the funds are used and the overall strategy of the company.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
Xiidra, a drug included in the acquisition, will compete against Restasis, a dry-eye drug that had $666 million in sales for AbbVie last year.
Xiidra, a drug included in the acquisition by Bausch + Lomb, will compete against Restasis, a dry-eye drug that had significant sales for AbbVie last year. This could potentially impact AbbVie's sales and stock price negatively.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60