Bausch Health recently announced that it had entered into an agreement with Allegro to acquire an option to purchase all of the latter’s ophthalmology assets. This transaction will be a significant step for Bausch Health in its strategy to create a long-term growth opportunity, says GlobalData, a leading data and analytics company.
Vinie Varkey, MSc, Senior Pharma Analyst at GlobalData, comments: “Access to these assets will offer the company a tangible opportunity to tap into the commercial market for specific indications, particularly in dry atrophic macular degeneration (AMD) for which there are currently no approved drugs available, and in dry eye syndrome (DES), for which the company has a credible presence in over-the-counter eye drops.”
According to GlobalData, the drug sales in the AMD market is expected to grow at an overall Compound Annual Growth Rate (CAGR) of 8.1% from 2018 to 2028 to reach a value of $18.7bn; while the DES market is expected to grow at a CAGR of 10.6% during the same period to reach a value of $10.7bn in 2028. A significant driver of both these indication-specific markets is an anticipated increase in the global aging population.
Varkey continues: “In order to help optimize its growth strategy, Bausch Health has been active on the licensing front for ophthalmology indications. An example of this is when the company acquired a license in December 2019 for the development and commercialization in the United States and Canada of NOV03, a pipeline therapy with a novel mechanism of action (MOA) for dry eye syndrome associated with Meibomian gland dysfunction.”
Although Bausch Health currently has a significant presence in ophthalmology, this standing is expected to strengthen with acquisition of Allegro’s assets.
Varkey adds: “Bausch Health has prescription therapies in ophthalmic indications such as ocular inflammation, conjunctivitis, Keratitis, Glaucoma. Therefore, the new product additions are expected to bolster Bausch Health’s ophthalmology product offerings and help create long-term growth opportunities for the company and its shareholders.”