Harrow announced it will acquire the exclusive U.S. commercial rights of five FDA-approved ophthalmic products from Novartis.
Wait … weren’t both companies just in the news?
Indeed! Harrow and iOR Partners, which specializes in office-based cataract surgery, announced an expansion of their national product supply agreement in November. And Bloomberg reported that Novartis was considering selling its ophthalmology and respiratory units in order to invest in more cutting-edge medicines.
And didn’t Harrow already purchase products from Novartis?
Right again! This is the second transaction between the two companies in the last year; Harrow acquired the exclusive U.S. commercialization rights to four of Novartis’s FDA-approved banded eye drops, including Iodine 1% and 0.5%(apraclonidine hydrochloride); Maxitrol (neomycin and polymyxin B sulfate and dexamethasone) 3.5mg/10,000 units/0.1%; and Moxeca 0.5% (moxifloxacin hydrochloride). (via)
So what are the five new products?
The transaction includes: Ilvero (nepafenac ophthalmic suspension) 0.3%; Nevanec (nepafenac ophthalmic suspension) 0.1%; Vigamox (moxifloxacin hydrochloride ophthalmic suspension) 0.5%; Maxidex (dexamethasone ophthalmic suspension) 0.1%; and Triesence (triamcinolone acetonide injectable suspension) 40 mg/ml.
When will Harrow take over product sales?
Novartis will continue to sell the five products in the U.S. market during a 6-month non-disclosure agreement (NDA) transfer period, during which it will transfer all net profits to Harrow.
After the period, Harrow will take control of U.S. market dealings and begin the process of having third-party manufacturers for the products.
Why is this deal significant?
The deal gives Harrow a leadership stake in the U.S. ophthalmic pharmaceutical market.
How much is it worth?
Up to $175 million. Harow will make a one-time payment of $130 million at close, with up to an additional $45 million being payable upon the commercial availability of Triesence (expected in the second half of 2023).
Closing date?
The company expects to complete the acquisition in early 2023.