Bausch Health: Spin-off of eye health business

Bausch Health Companies Inc. (BHC) announced in a prepared statement today its decision to spin off its eye health business into an independent publicly traded company, Bausch & Lomb-NewCo, that will be separate from the other Bausch Health entities.

By so doing, BHC anticipates a number of benefits from this action, namely, unlocking value in the Bausch + Lomb brand and integrated portfolio of eye health products, facilitating BHC focus on expanding leadership in gastroenterology, aesthetics/dermatology, neurology, and international pharma, and enhanced focus on and highlighting of two attractive but dissimilar businesses, according to the statement.

This action, according to BHC, will result in 2 separate companies, specifically, a fully integrated, pure play eye-health company built on the iconic Bausch + Lomb brand and long history of innovation; and a diversified pharmaceutical company with leading positions in gastroenterology, aesthetics/dermatology, neurology and international pharmaceuticals.

Bausch & Lomb said it anticipates that this action will “improve strategic focus and enhance financial transparency to better enable stakeholders to value each business independently.”

"We are committed to taking action to unlock what we see as unrecognized value in Bausch Health shares, and we believe that separating our business into two highly focused, stand-alone companies is the way to accomplish that goal," said Joseph C. Papa, chairman and CEO of Bausch Health.

Four years ago, the organization initiated a multiphase plan, first to stabilize and then to transform Bausch Health into a company positioned to deliver long-term organic growth, Papa noted.

“We have divested approximately $4 billion of non-core assets, paid down over $8 billion of debt, resolved numerous legacy legal issues and managed a loss of exclusivity on an approximately $1.4 billion product portfolio, while also investing in R&D, new product launches­­ and core franchises with attractive growth opportunities,” he continued. “Our Board of Directors and management team have been working on alternatives over the last 12 months to determine how to best unlock value across our businesses, and we believe that the time is right to begin the separation process, so each business has greater flexibility to pursue strategic opportunities in their respective markets."

It is anticipated that after satisfying certain conditions and approvals and completion of other actions, reporting is expected to begin in the first quarter of 2021.

Bausch + Lomb - NewCo, will include Bausch Health's global vision care, surgical, consumer and ophthalmic Rx businesses. The company explained that the combination of pipeline expansion and established durable eye care brands, including BAUSCH + LOMB ULTRA, Biotrue ONEday, LUMIFY, Ocuvite and PreserVision, among others, and the launch of BAUSCH + LOMB INFUSE contact lenses, is expected to drive what is expected to be consistent revenue growth worldwide.

BHC will include a diversified portfolio of leading durable brands across the Salix, International Rx, Solta, neurology and medical dermatology businesses. Core products include XIFAXAN, TRULANCE and RELISTOR for gastrointestinal diseases; JUBLIA, DUOBRII and Thermage FLX for dermatologic conditions; and WELLBUTRIN and APLENZIN for neurological conditions.