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Novartis acquires Xiidra from Takeda

Novartis acquires Xiidra from Takeda

Tokyo (SCCIJ) – The Basel-based pharmaceutical group Novartis is strengthening its ophthalmology division with a billion-dollar takeover in Japan. Its competitor Takeda will sell the ophthalmic drug Xiidra to Novartis. Deal terms include a USD 3.4 billion upfront payment with potential milestone payments of up to USD 1.9 billion. As part of the agreement, Novartis will be taking on approximately 400 Takeda employees associated with the product.

Dry eye treatment

Xiidra (lifitegrast ophthalmic solution) is the first and only prescription treatment approved to treat both signs and symptoms of dry eye by inhibiting inflammation caused by the disease. The transaction would bolster the Novartis front-of-the-eye portfolio and ophthalmic leadership. The acquisition is expected to be completed in the second half of 2019. On closing, Novartis plans a smooth transition of operations and integration of Xiidra into its pharmaceuticals portfolio.

Dry eye is a common inflammatory disease that, left untreated, can become extremely painful and lead to permanent damage to the cornea and vision. This damage manifests in the form of signs that can be objectively measured by eye care professionals through various clinical tests (such as corneal staining), and symptoms (such as pain and discomfort).

Novartis acquires Xiidra from Takeda

Novartis Campus in Basel

Innovative advance

Xiidra, with its anti-inflammatory mechanism of action, is the first dry eye treatment approved to treat both the signs of eye damage and the physical symptoms experienced by patients. Additional benefits of Xiidra, exhibited in phase III studies, include a timely onset of action and well-tolerated safety profile.

“Xiidra, with its unique dual benefits, is an example of the type of innovative advances we invest in for the benefit of patients,” said Paul Hudson, CEO Novartis Pharmaceuticals, in a statement. “We look forward to leveraging our well-established commercial infrastructure to bring this medicine to more patients.”

The additional commercial experience established with Xiidra is also expected to better position the Swiss pharmaceutical giant for front-of-the-eye pipeline products currently in development: According to Fiercepharma, the eye-product ECF843, a recombinant form of human lubricin in-licensed from Lubris in 2017, is in phase 2 with a planned first regulatory submission in 2022.

Divestment strategy

Takeda simultaneously entered into an agreement to divest its Fibrin Sealant Patch “TachoSil” to Ethicon as part of its strategy to focus on business areas core to its long-term growth and facilitate rapid deleveraging following its acquisition of Shire. The Japanese market leader intends to use the proceeds from both divestitures to reduce its debt and accelerate deleveraging in the medium term.

“We are working to strategically simplify and optimize our portfolio, while also rapidly deleveraging and continuing to invest in our growth drivers as a global, values-based, R&D-driven biopharmaceutical leader,” stated Christophe Weber, the French President and Chief Executive Officer of Takeda. Takeda had bought the Irish pharmaceutical company Shire in December for 46 billion British pounds, half of it through new shares and half with loans. Hence, it has announced to accelerate deleveraging in the medium term.


Text: SCCIJ with material of Novartis and Takeda; Photo: Novartis

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