Harrow Health, an eye care pharmaceutical company, announced Wednesday morning that Novartis agreed to sell five drugs approved by the Food and Drug Administration for up to $175 million. 

The drugs sold to Harrow include Ilevro, Nevanac, Vigamox, Maxidex and Triesence. The move is one that Harrow is hoping will diversify its ophthalmic portfolio. Additionally, Bezinga reported that Harrow expects to generate between $135 million to $145 million in net revenues next year. 

Harrow will make a one-time $130 million payment to Novartis at the close of the deal, with up to an additional $45 million in milestones upon the commercial availability of Triesence, which is expected in the second half of next year. 

As part of an estimated six-month NDA transfer period, Novartis will sell products in the U.S. market and transfer all net profits to Harrow. Following that NDA period, Harrow will take over all U.S. market activities and commence with a process to have the products manufactured by third parties. 

Novartis will retain rights to the products outside of the U.S. 

The deal is expected to close in Q1 2023, pending customary closing conditions and regulatory approval. 

“This is a landmark transaction for Harrow, catapulting Harrow into a leadership position in the U.S. ophthalmic pharmaceuticals market,” Harrow CEO Mark Baum said in a statement. “Following the satisfaction of the relevant closing conditions, these products will be immediately accretive to our revenues and excellently complement our current portfolio of ophthalmic prescription products.”

The sale of nearly a half dozen drugs to Harrow comes as Novartis continues with its plans to spin off Sandoz as a standalone company, which was first announced in August. The transaction is expected to be completed in the second half of 2023.

Sandoz is no stranger to the ophthalmology space.

In April, the Novartis subsidiary launched a generic eye drop challenger to AbbVie’s Combigan, marking an expansion of the company’s ophthalmology portfolio.

The Sandoz spin-off itself is taking place as Novartis proceeds with a previously announced organizational restructuring effort that is projected to save the company $1.5 billion by 2024.