Takeda Pharmaceutical Company Limited has announced the completion of the sale of its Xiidra (lifitegrast ophthalmic solution) 5% product to Novartis for $3.4 billion upfront in cash and up to an additional $1.9 billion in potential milestone payments.

 

“The completion of this transaction marks an important step in executing Takeda’s strategy, which is focused on optimizing our portfolio around the key business areas that are core to our long-term growth and creating the most value for our patients and shareholders,” said Christophe Weber, President and Chief Executive Officer of Takeda.

 

Takeda intends to use the proceeds from the sale to reduce its debt and accelerate deleveraging toward its target of 2x net debt/adjusted EBITDA in the medium-term following closing of the Shire acquisition. As of March 31, 2019, Takeda has 5,048.9 billion yen in net debt outstanding and its net debt/adjusted EBITDA ratio is 4.7x. Takeda continues to target a net debt/adjusted EBITDA ratio of 2x within 3 to 5 years.

 

Xiidra is the first and only prescription treatment approved by the U.S. Food and Drug Administration for both signs and symptoms of dry eye disease, with a mechanism of action that targets inflammation.

Takeda intends to use the proceeds from the sale to reduce its debt and accelerate deleveraging toward its target of 2x net debt/adjusted EBITDA in the medium-term following closing of the Shire acquisition.