Novartis sells 5 products

Novartis is selling a group of ophthalmic drugs to Harrow Health for $175 million.

On December 14, local time, Harrow Health, an ophthalmic pharmaceutical company, announced that the company will obtain exclusive U.S. commercialization rights for five ophthalmic products of Novartis Pharmaceuticals. Under the terms of the agreement, Harrow Health will make a one-time payment of $130 million upon closing, with an additional $45 million expected as a milestone payment following TRIESENCE's commercialization in the second half of 2023.

Harrow Health is a pharmaceutical company focused on ophthalmic treatment, founded in 2011 and listed on the NASDAQ in 2013. The transaction is the second acquisition between Harrow Health and Novartis. In December 2021, Harrow Health obtained the rights to four FDA-approved eye drops from Novartis for $14 million.

THE PRODUCTS SOLD BY NOVARTIS INCLUDE CATARACT SURGERY RECOVERY EYE DROPS ILEVRO AND NEVANAC, BACTERIAL CONJUNCTIVITIS EYE DROPS VIRAMOX, INFLAMMATORY EYE DROPS MAXIDE, AND THE INJECTION TRIESENCE. It is reported that the transaction is expected to close in the first quarter of 2023. Novartis will retain all rights to these products except in the United States.

Just 1 month ago, Bloomberg reported that Novartis was considering selling its ophthalmology and respiratory business, which is expected next year. According to reports at the time, Novartis' ophthalmic business alone could be worth as much as $5 billion. Novartis' sale of products may be part of its downsizing of its ophthalmic business.

It is worth mentioning that in addition to the official announcement of the divestment of Sandoz this year, Novartis also announced in September that it will invest in five main areas in the future: cardiovascular, immunology, neuroscience, solid tumors and hematology, and has a number of important market and pipeline assets in these areas.

Ophthalmology may not be a focus compared to the five core therapeutic areas mentioned above. According to the analysis of the financial report, Novartis ophthalmology accounted for 8% in 2021, -2% year-on-year. The sale of ophthalmic products may mean that Novartis may gradually withdraw from the ophthalmic field after spinning off Alcon in 2019.