Bausch + Lomb to buy Novartis eye drop for $1.75 billion

Bausch + Lomb Corp will purchase a dry-eye drug from Swiss pharma company Novartis for $1.75 billion, the companies said on Friday, as the contact lens maker seeks to capitalise on a growing market for the disease's treatment.

Acquisition of the drug, Xiidra, will mark the first big deal by CEO Brent Saunders since he returned to the company in March.

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Sales of the anti-inflammation eye drop Xiidra, mainly from the US market, were $487 million last year, up 4 per cent. It faces competition from AbbVie's Restasis and cheaper copycat versions.

The deal will also include potential milestone payments worth up to $750 million.