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Takeda Expects $150 Mln Loss On Novartis' Xiidra Withdrawal

Takeda expects loss of about $150 million in the three-month period ending June 30, 2020 related to Novartis' decision to withdraw a marketing application for the dry-eye drug Xiidra in Europe.

Takeda expects that the probability of receiving certain sales-based milestones may be reduced, although the total potential milestone receipts of up to $1.9 billion remain unchanged.

It was one of the products obtained through the acquisition of Shire plc by Takeda in January 2019. In July 2019, Takeda completed the sale of Xiidra to Novartis for a sales price of $3.4 billion upfront in cash and up to an additional $1.9 billion in potential milestone receipts, including certain sales-based milestones.

Last week, Novartis withdrew its marketing application for Xiidra in Europe after regulators concluded that the dry-eye drug's effectiveness had not been demonstrated.

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