Harrow Completes Acquisition of US Rights to Five Branded Ophthalmic Drugs

Harrow announced the closing of its previously announced acquisition with Novartis of the exclusive US commercial rights to five branded ophthalmic products: Ilevro, Nevanac, Vigamox, Maxidex, and Triesence.

In December, Harrow announced it had entered into a agreement for the acquisition of the exclusive US commercial rights to the five FDA‑approved ophthalmic products from Novartis in a deal worth up to $175 million. 

Pursuant to the terms of an 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 US and transfer all net profits from the products to Harrow. 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 subject product.

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. Harrow believes that both net revenues and adjusted EBITDA should grow further during 2024 and for at least 3 to 5 years thereafter, according to a company news release.