Novartis is set to kick off the sale of some of its ophthalmology portfolio assets as it plans to focus more on its core areas, according to a report today by Bloomberg News.
According to reports, the assets on the block include dry eye therapy Xiidra, which had revenues of $487 million in 2022. Bloomberg added the company has engaged an adviser to check interest in the so-called front-of-eye therapies, the report added.
Novartis acquired Xiidra from Takeda Pharmaceutical in 2019 for $3.4 billion in upfront cash plus up to an additional $1.9 billion in milestones.
Moreover, the report cited sources that noted the assets for sale do not include wet age-related macular degeneration therapy Lucentis, which generated about $1.87 billion in revenue last year.
Despite moving forward and reaching out to potential suitors, Novartis could still decide against the sale.
In August, Novartis first announced plans to spin off the Sandoz generics unit as it directed its focus on the development of patented prescription medications. Last month, Gilbert Ghostine was named chairman-designate of Sandoz.
He will become the chairman of the new board at Sandoz, which is to be formed after its spin-off from Novartis in the second half of 2023, subject to final Novartis Board of Directors and shareholder approvals.
In 2019, Novartis spun off the Alcon eye care business, and in 2021 sold approximately a third of its voting share in Roche. The company continues to see successes in its ophthalmology pipeline.
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