Switzerland's Novartis to buy Japanese drugmaker Takeda's eye drug assets

Swiss healthcare company Novartis International AG has entered into a definitive agreement to acquire eye-disease medicines from Japanese drugmaker Takeda Pharmaceutical Co.

The main product in the transaction is Xiidra, prescription drops that compete with Allergan Plc’s blockbuster Restasis to relieve dry-eye disease.

Novartis will pay $3.4 billion to Takeda Pharmaceutical Co., which will use the sale proceeds to shed credit after its $62 billion purchase of Shire Plc.

More so, Novartis will also pay as much as $1.9 billion in milestones, along with $3.4 billion in cash upfront. The company expects the deal to close in the second half of the year and plans to bring over around 400 employees.