Novartis to acquire Xiidra from Takeda, for up to $5.3B

Swiss pharma giant Novartis (NOVN: VX) announced to late Wednesday that it has entered into an agreement with Takeda Pharmaceutical (TYO: 4502) to acquire the assets associated with Xiidra(lifitegrast ophthalmic solution) worldwide.

Xiidra 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. Closing of the transaction is expected in the second half of 2019, subject to customary closing conditions including regulatory approvals. On closing, Novartis plans a smooth transition of operations and integration of Xiidra into its pharmaceuticals portfolio.

Prior to Takeda’s $62 billion acquisition of rare diseases specialist Shire, which was developed Xiidra, the Japanese firm has no ophthalmic products in its portfolio, so it would have represented a new market sector, in which it does not have expertise.