Bausch + Lomb said Friday it plans to buy several eye care products from Novartis for a total of $1.75 billion, with an option for additional milestone payments of $750 million.

The agreement includes the acquisition of Xiidra, the first prescription drug approved to treat the indications and symptoms associated with dry eye disease. It also includes SAF312 (libvatrep), which is currently being developed as a pioneering therapy for chronic ocular surface pain (COSP). Xiidra achieved sales of $487 million in the prior year. Potential milestone payments totaling $750 million are associated with upcoming sales of Xiidra and two pipeline products.

Based in Vaughan, Ontario, Canada, Bausch + Lomb specializes in eye health products. It has a significant position as one of the world's largest suppliers of contact lenses, lens care products, pharmaceuticals, intraocular lenses and other eye surgery related products. The company has a rich history, having been founded in Rochester, New York in 1853. It currently employs approximately 12,900 people and operates in approximately 100 countries where it directly and indirectly manufactures and sells medical products.

This year has seen a marked increase in transaction activity in the pharmaceutical industry as companies look to leverage M&A to achieve their growth objectives. Major players such as Pfizer, AstraZeneca and Merck have unveiled ambitious acquisition strategies that have the potential to change the face of the industry. In the first five months of this year, a staggering $85 billion was spent on acquisitions. This surge in M&A activity comes as companies look to replenish their drug portfolios in the wake of impending patent expiries. By comparison, the same period in 2022 saw deals worth only US$35.6 billion, while 2021 saw US$49.1 billion, according to investment bank Stifel.