Novartis Divests Xiidra in Major Deal
In a significant move for the pharmaceutical industry, global healthcare company Novartis signed an agreement in June 2023 to divest its “front of eye” ophthalmology assets, including the dry eye disease treatment Xiidra, to Bausch + Lomb. The transaction, valued at up to $2.5 billion, officially closed in September 2023. This sale was the direct cause of the misinformation regarding Xiidra's discontinuation, as many patients and pharmacists mistook the change in ownership for the product being pulled from the market.
Novartis's Strategic Portfolio Refinement
For Novartis, the decision to sell Xiidra was not a signal of the drug's failure but rather a calculated step in a broader corporate strategy. The company has been refocusing its efforts on developing and selling innovative medicines in priority therapeutic areas, leading to the divestiture of non-core assets.
The rationale behind Novartis's decision included several factors:
- Underperformance: Despite significant investment, Xiidra's sales were not meeting the company's high expectations. Novartis initially acquired Xiidra in a $3.4 billion deal in 2019 but saw returns that were far less than anticipated.
- European Rejection: In 2020, Novartis withdrew its marketing application for Xiidra in Europe after the European Medicines Agency (EMA) raised major objections regarding its effectiveness, dimming the drug's global market potential.
- Patent Landscape: The company faced an upcoming patent expiry for some key aspects of Xiidra in 2024, along with ongoing challenges from generic drugmakers, which could impact future profitability.
- Focus on Core Areas: The sale allowed Novartis to concentrate its resources on other high-impact therapeutic areas and advanced technology platforms, such as gene therapy for retinal diseases.
Bausch + Lomb's Strategic Acquisition
For Bausch + Lomb, the acquisition of Xiidra was a key strategic move to strengthen its position in the prescription dry eye market. The company, a leader in eye health, saw an opportunity to complement its existing portfolio and expand its market share.
The acquisition provided several benefits for Bausch + Lomb:
- Enhanced Dry Eye Portfolio: Xiidra's anti-inflammatory mechanism complements Bausch + Lomb's other dry eye products, including Miebo, which targets tear evaporation. This allows the company to offer a more comprehensive range of treatments for the multi-factorial condition of dry eye disease.
- Market Leadership: The addition of a well-known brand like Xiidra helps Bausch + Lomb quickly establish a leading position in the growing prescription dry eye category.
- Access to Patient and Sales Channels: Bausch + Lomb gained access to Xiidra's existing customer base and sales force, ensuring a smooth transition and continued market presence.
Xiidra under New Management: What Changed?
Patients concerned about the rumors of discontinuation might wonder how the change in ownership affects their medication. Here is a comparison of the Xiidra eras:
| Aspect | Xiidra under Novartis (pre-2023) | Xiidra under Bausch + Lomb (post-2023) |
|---|---|---|
| Ownership | Novartis Pharmaceuticals | Bausch + Lomb Corporation |
| Reason for Sale | Strategic divestment to focus on innovative medicines and retinal diseases | Strategic acquisition to expand dry eye portfolio and achieve market leadership |
| US Status | Approved and available for adult dry eye disease | Approved and available for adult dry eye disease |
| EU Status | Marketing application voluntarily withdrawn by Novartis in 2020 due to regulatory concerns | Not marketed in the EU |
| Sales Force | Managed by Novartis's sales team | Managed by Bausch + Lomb's sales team |
| Product Integrity | Standard formulation | Unchanged, same active ingredient (lifitegrast) and delivery device |
Clarifying the Confusion
The rumor of Xiidra's discontinuation gained traction for a few reasons. The most significant is the change in ownership. Many people interpreted Novartis's divestment as a broader end-of-life for the product. Furthermore, the withdrawal of the drug's marketing application in Europe, due to regulators doubting its effectiveness, may have been conflated with its US status. Some temporary supply chain disruptions following the transfer of manufacturing and distribution from one company to another may have also contributed to pharmacy shortages and user confusion.
Ultimately, Xiidra is not being discontinued. It remains a viable treatment option for adult dry eye disease and is now a key part of Bausch + Lomb's pharmaceutical lineup. For more information, patients can refer to the official Bausch + Lomb press release on the acquisition.
Conclusion
While rumors and a change of corporate hands led many to question the future of the dry eye medication Xiidra, it was not discontinued. The sale from Novartis to Bausch + Lomb was a strategic business move that allows both companies to better focus their resources. For patients, the change means continued availability under a new manufacturer, with Bausch + Lomb committed to its commercialization in the US market.
