NOVARTIS EYES SALE OF OPHTHALMOLOGY BUSINESS

Pharmaceutical giant Novartis is reportedly weighing up the sale of its ophthalmology and respiratory units.

A Bloomberg reported stated the company – which has operations in Australia – is seeking to raise funds from the possible sale to invest in cutting-edge medicines. The ophthalmology unit could alone fetch about US$5 billion (AU$7.5 billion).

Novartis has a significant presence in ophthalmology, with one of the first approved anti-VEGFs for macular disease, Lucentis (ranibizumab), available on the Pharmaceutical Benefits Scheme (PBS) since 2007. The therapy – which has seven indications in Australia – is now the eighth most expensive drug on the PBS, costing the government around $220 million annually.

The company subsequently developed the longer-acting (Beovu) which was ultimately listed on the PBS as a second-line anti-VEGF therapy for neovascular age-related macular degeneration in October 2021, and also secured approval of Australia’s first gene therapy, Luxturna (voretigene neparvovec), in August 2020.

However, it was unclear which therapies would be sold as part of the ophthalmology portfolio.

In August, Novartis said it intended to spin off its generics unit Sandoz to focus on five core areas (hematology, solid tumours, immunology, neuroscience and cardiovascular) and strengthen its technology platforms, including gene therapy, cell therapy, radioligand therapy, targeted protein degradation and xRNA.

The company also spun off its Alcon eyecare business in 2019.