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Novartis (NVS) to Divest Xiidra, SAF312 to Streamline Focus
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Novartis (NVS - Free Report) , a leading pharmaceutical company, recently made a strategic decision to divest its “front of eye” ophthalmology assets to Bausch + Lomb (BLCO - Free Report) , a global eye health company.
Xiidra, the first approved prescription treatment for dry eye disease, and SAF312, a first-in-class therapy for chronic ocular surface pain (COSP), are pivotal assets included in the transaction.
Novartis has signed an agreement with Bausch + Lomb to transfer Xiidra and SAF312 (libvatrep) for $2.5 billion. This deal comprises $1.75 billion in upfront cash, along with additional milestone payments.
The agreement also grants Bausch + Lomb rights to the AcuStream delivery device for dry eye indications and OJL332, a second-generation TRPV1 antagonist in pre-clinical development.
Novartis will be entitled to milestone payments of up to $750 million based on the anticipated future sales of Xiidra, SAF312, and OJL332.
This transaction further advances Novartis' business strategy to focus on core drugs.
While divesting its ophthalmology assets, Novartis remains committed to its research and development efforts in addressing retinal diseases. The company will leverage advanced technology platforms, such as gene therapy and optogenetics, to further advance its work in this therapeutic area.
The deal will close in the second half of 2023.
Bausch + Lomb is a subsidiary of Bausch Health Companies Inc.
Shares of Novartis have gained 11.2% in the year so far compared with the industry’s 2.2% growth.
Image Source: Zacks Investment Research
In addition, Novartis presented new long-term data from the open-label extension study, ALITHIOS, at the European Academy of Neurology (EAN) Annual Meeting. The data showed the sustained efficacy of continuous treatment with Kesimpta (ofatumumab) over five years in patients with relapsing forms of multiple sclerosis (RMS).
The study demonstrated that patients treated with Kesimpta experienced significantly reduced relapse rates, fewer MRI lesions and high rates of no evidence of disease activity (NEDA-3). Notably, patients who switched from teriflunomide to Kesimpta also experienced pronounced reductions in relapse rates and MRI lesions. The number of patients achieving NEDA-3 substantially increased after the switch to Kesimpta.
These impressive five-year efficacy data, combined with Kesimpta's well-tolerated safety profile, continue to support its favorable benefit-risk profile for RMS patients.
Novartis’ performance in the first quarter was better than expected, as earnings and sales beat estimates. It also raised its annual guidance. This boosted investors’ sentiment and increased its share price.
While the older drugs face generic competition, the continued strong performance of Entresto, Pluvicto, Kesimpta and Kisqali has been fueling growth. Pluvicto and Scemblix saw very strong launches and recorded solid sales. Demand for Pluvicto continues to exceed supply in the United States. The Leqvio launch continues to progress well.
Over the past 30 days, earnings estimates for LGND have increased by $1.09 to $5.25. LGND topped earnings estimates in two of the last four quarters and missed in the remaining two, the average surprise being 21.50%.
Over the past 60 days, earnings estimates for ABBV have increased by 3 cents to $10.99 for 2023. ABBV surpassed estimates in all the trailing four quarters, the average surprise being 1.78%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Novartis (NVS) to Divest Xiidra, SAF312 to Streamline Focus
Novartis (NVS - Free Report) , a leading pharmaceutical company, recently made a strategic decision to divest its “front of eye” ophthalmology assets to Bausch + Lomb (BLCO - Free Report) , a global eye health company.
Xiidra, the first approved prescription treatment for dry eye disease, and SAF312, a first-in-class therapy for chronic ocular surface pain (COSP), are pivotal assets included in the transaction.
Novartis has signed an agreement with Bausch + Lomb to transfer Xiidra and SAF312 (libvatrep) for $2.5 billion. This deal comprises $1.75 billion in upfront cash, along with additional milestone payments.
The agreement also grants Bausch + Lomb rights to the AcuStream delivery device for dry eye indications and OJL332, a second-generation TRPV1 antagonist in pre-clinical development.
Novartis will be entitled to milestone payments of up to $750 million based on the anticipated future sales of Xiidra, SAF312, and OJL332.
This transaction further advances Novartis' business strategy to focus on core drugs.
While divesting its ophthalmology assets, Novartis remains committed to its research and development efforts in addressing retinal diseases. The company will leverage advanced technology platforms, such as gene therapy and optogenetics, to further advance its work in this therapeutic area.
The deal will close in the second half of 2023.
Bausch + Lomb is a subsidiary of Bausch Health Companies Inc.
Shares of Novartis have gained 11.2% in the year so far compared with the industry’s 2.2% growth.
Image Source: Zacks Investment Research
In addition, Novartis presented new long-term data from the open-label extension study, ALITHIOS, at the European Academy of Neurology (EAN) Annual Meeting. The data showed the sustained efficacy of continuous treatment with Kesimpta (ofatumumab) over five years in patients with relapsing forms of multiple sclerosis (RMS).
The study demonstrated that patients treated with Kesimpta experienced significantly reduced relapse rates, fewer MRI lesions and high rates of no evidence of disease activity (NEDA-3). Notably, patients who switched from teriflunomide to Kesimpta also experienced pronounced reductions in relapse rates and MRI lesions. The number of patients achieving NEDA-3 substantially increased after the switch to Kesimpta.
These impressive five-year efficacy data, combined with Kesimpta's well-tolerated safety profile, continue to support its favorable benefit-risk profile for RMS patients.
Novartis’ performance in the first quarter was better than expected, as earnings and sales beat estimates. It also raised its annual guidance. This boosted investors’ sentiment and increased its share price.
While the older drugs face generic competition, the continued strong performance of Entresto, Pluvicto, Kesimpta and Kisqali has been fueling growth. Pluvicto and Scemblix saw very strong launches and recorded solid sales. Demand for Pluvicto continues to exceed supply in the United States. The Leqvio launch continues to progress well.
Zacks Rank and Stocks to Consider
Novartis currently carries a Zacks Rank #2 (Buy).
Some top-ranked stocks in the healthcare sector are Ligand Pharmaceuticals (LGND - Free Report) and AbbVie (ABBV - Free Report) . While Ligand currently sports a Zacks Rank #1 (Strong Buy), AbbVie carries the same rank as Novartis. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, earnings estimates for LGND have increased by $1.09 to $5.25. LGND topped earnings estimates in two of the last four quarters and missed in the remaining two, the average surprise being 21.50%.
Over the past 60 days, earnings estimates for ABBV have increased by 3 cents to $10.99 for 2023. ABBV surpassed estimates in all the trailing four quarters, the average surprise being 1.78%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.