Valeo Pharma Inc. (TSX:VPH, OTCQB:VPHIF) has unveiled changes to a seven-year agreement with Novartis Pharmaceuticals for the distribution of its eye treatment.
Xiidra, a treatment for dry eye, will be distributed by Valeo until late this year, rather than for an initially agreed seven-year term, following Bausch and Lomb’s acquisition of the brand from Novartis in September.
This is part of a transition period following the acquisition, which is expected to conclude in the third quarter of this year, the Canadian pharmaceutical firm said on Friday.
Valeo will continue to exclusively distribute Novartis’ Simbrinza, an eye drop used to treat open-angle glaucoma, meanwhile, as agreed in 2022.
Valeo will be partially reimbursed by Novartis as part of the amendment, with this set to be used to accelerate debt repayments to Sagard Healthcare Royalty Partners under a deal signed alongside the distribution agreement in 2022.
Some US$10 million will be repaid by late August under the plan, with Valeo holding the option to add a further US$5 million payment at the same time.