Bausch + Lomb Shares Climb After $2.5 Billion Deal to Buy Dry-Eye Drug from Novartis

By Robb M. Stewart

Bausch + Lomb shares jumped Friday after the eye-care company moved to buy a dry-eye drug from Novartis for up to $2.5 billion.

In late morning trading, the shares were 5.5% higher at C$26.77, widening the advance so far this year to 27%.

The company confirmed a report by The Wall Street Journal that it would buy Xiidra, Novartis's non-steroid eye drop approved to treat the signs and symptoms of dry eye disease, libvatrep and AcuStream for $1.75 bullion in cash, the first big move by Chief Executive Brent Saunders since he returned to the helm in March. The deal includes potential milestone payments of up to $750 million based on sales thresholds and pipeline commercialization, Bausch + Lomb said.

The company, which is in the process of being spun out of a larger healthcare firm, Bausch Health, said it will bring on the sales force supporting Xiidra.

Bausch + Lomb said the deal, which it expects to close by the end of the year, will be immediately accretive.

Write to Robb M. Stewart at [e-mail]

(END) Dow Jones Newswires

June 30, 2023 11:35 ET (15:35 GMT)

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