Harrow closes acquisition of U.S. rights to Novartis drugs

The deal transfers exclusive U.S. rights to multiple ophthalmic products.

Harrow today announced the closing of its previously announced acquisition of the exclusive U.S. commercial rights to five branded ophthalmic products.

This deal transfers exclusive U.S. rights to the following ophthalmic products:

• ILEVRO (nepafenac ophthalmic suspension) 0.3%, a non-steroidal, anti-inflammatory eye drop indicated for pain and inflammation associated with cataract surgery.
• NEVANAC (nepafenac ophthalmic suspension) 0.1%, a non-steroidal, anti-inflammatory eye drop indicated for pain and inflammation associated with cataract surgery.
• VIGAMOX (moxifloxacin hydrochloride ophthalmic solution) 0.5%, a fluoroquinolone antibiotic eye drop for the treatment of bacterial conjunctivitis caused by susceptible strains of organisms.
• MAXIDEX (dexamethasone ophthalmic suspension) 0.1%, a steroid eye drop for steroid-responsive inflammatory conditions of the palpebral and bulbar conjunctiva, cornea, and anterior segment of the globe.
• TRIESENCE (triamcinolone acetonide injectable suspension) 40 mg/ml, a steroid injection for the treatment of certain ophthalmic diseases and for visualization during vitrectomy.

According to a news release by Nashville-based Harrow, under terms of the asset purchase agreement, Harrow paid $130 million at closing, with an additional milestone payment due upon the commercial availability of TRIESENCE.

Harrow and the seller have entered into an estimated 6-month transition period during which the seller will continue to sell the products in the U.S. and transfer all net profits from the products to Harrow.

The company noted that during the transition period, the product NDAs will be transferred to Harrow. Upon the transfer of a product NDA, Harrow will assume control over all U.S. market activities for the product.

Novartis will retain all rights to the products outside of the U.S.

According to the news release, Harrow expects these products to be immediately financially accretive and reaffirms 2023 guidance of $135 million to $143 million in net revenues and $44 million to $50 million in adjusted EBITDA.

When the agreement was announced in December, Mark L. Baum, chairman and CEO of Harrow, pointed out that the deal places the company among the leaders in the U.S. ophthalmic pharmaceuticals market.

“Following the satisfaction of the relevant closing conditions, these products will be immediately accretive to our revenues and excellently complement our current portfolio of ophthalmic prescription products,” he said. “We know these products very well and have long appreciated and admired them for the value they have delivered to thousands of U.S. eyecare professionals and many millions of their patients.”

Moreover, Baum also noted that the addition of the products will give the company’s customers more choices and flexibility when considering treatment options for their patients and the specific needs of their practices.