Bausch + Lomb IPO: Everything you need to know about Bausch + Lomb

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By :  ,  Financial Writer

What is Bausch + Lomb?

Bausch + Lomb is a global eye health medical supply company based in Quebec, Canada. Throughout its 170-year history, Bausch + Lomb has produced over 400 various products and has become known for its soft contact lenses and solutions. At the time of its filing, Bausch + Lomb services more than 10 countries and has over 12,500 employees.

The company was previously listed on the New York Stock Exchange but was delisted in 2007 after being acquired by private equity firm Warburg Pincus. In May 2013, the company was sold to Valeant Pharmaceuticals for $8.57b, which later took the company’s name during a rebrand to become Bausch Health Companies Inc. The rebrand was done to shed a tainted reputation involving improper revenue recognition and misleading disclosures.

Now, the Bausch + Lomb IPO is part of a larger plan by Bausch Health Companies to segment into three distinct lines of business. The other two are Bausch Health, which will hold most of the company’s pharmaceuticals in gastroenterology and neurology, and Solta Medical, an aesthetic medical device provider which has also filed for an IPO.

When is Bausch + Lomb’s IPO?

Bausch + Lomb is set to go public on Friday, May 6th, 2022 on both the New York (NYSE) and Toronto (TSX) stock exchanges under the ticker “BLCO.”

Bausch Health Companies CEO Joseph Papa has stated both Bausch + Lomb and Solta Medical are ready to move forward with their IPOs and will do so “when market conditions are right for each of them.”

What do we know about the Bausch + Lomb IPO?

In the company's amended filing, Bausch + Lomb states it will issue 35,000,000 common shares at $21.00 to $24.00 per share, which means the IPO in total would be worth around $788m. Bausch + Lomb’s parent compan,y Bausch Health Companies, will hold an indirect majority stake of the subsidiary once it goes public. Morgan Stanley, Goldman Sachs, Citigroup and J.P. Morgan are some of the 20 firms serving as underwriters.

Bausch + Lomb has also stated it does not expect to pay dividends on common shares for the foreseeable future.

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How much is Bausch + Lomb worth?

Bausch + Lomb has stated it’s reaching for a post-IPO valuation of over $20b. Mad Money host Max Crammer has valued the eye health company at around $21b, and Bloomberg Intelligence has stated the company could be valued between $20b to $30b. Although the final valuation will be determined closer to the IPO.

Meanwhile, Bausch Health Companies is valued at $33b with a market capitalization of around $10b after subtracting the company’s $21.9b debt. The move to split Bausch Health Companies into three individual companies is an attempt by Papa to both further reduce debt and allow Bausch + Lomb to reach a higher value on its own.

What does Bausch + Lomb do?

Bausch + Lomb is one of the world’s largest suppliers of eye health products. A relative majority of its turnover comes from soft contact lenses and lens care products including well-known international contact lens brands such as Biotrue daily disposable and solution. It also produces intraocular lenses and other surgery aids and implants, over-the-counter and Rx eye drops, and other high-tech ocular surgery equipment.

In the company’s nearly 200-year history, Bausch + Lomb was one of the first companies to mass-produce disposable contact lenses and developed Ray-Ban sunglasses for military pilots in the 1930s.

Is Bausch + Lomb profitable?

Bausch + Lomb reported a profit in 2021 and 2019 but a loss in 2020. The company generated over $3.7b in sales and $318m in pre-tax profits in 2021. Below is a chart outlining Bausch + Lomb’s financial performance over the past three years. (USD, millions)

Year 2021 2020 2019
Revenue 3,765 3,412 3,778
Operating Profit 329 260 396
Net Income 182 (18) 298

What is Bausch + Lomb’s business model and strategy?

Bausch + Lomb’s business strategy is largely tied to its parent company Bausch Health Companies. The firm’s goals have been centred on overcoming past scandals that caused the company, named Valeant Pharmaceuticals at the time, to rack up more than $30b in debt and saw its stocks plummet over 90%.

Since naming Joe Papa as CEO in 2016, the company has chipped away at its debt, become profitable again, and resolved multiple legal charges involving the Security and Exchange Commission and class action lawsuits. To stabilize the company, Papa has stated they will continue to “invest in R&D, new product launches and core franchises.”

The IPOs of both Bausch + Lomb and Solta Medical are a move to divide the company into three parts, with Bausch Pharma left under Bausch Health Companies. The division allows Bausch + Lomb to reach higher valuations and share prices than if grouped together.

Who are Bausch + Lomb’s competitors?

Bausch + Lomb’s competitors include other global pharmaceutical and optical health brands. Some of the most similar companies to Bausch + Lomb are Alcon, Allegran, CooperVision, and Johnson & Johnson. In terms of sales, Bausch + Lomb is third after Alcon and Johnson & Johnson Vision.

Bausch + Lomb board of directors

  • Joseph Papa – CEO and Chairman
  • Thomas W. Ross, Sr. – Lead Director
  • Nathalie Bernier – Director
  • Andrew C. van Eschenbach – Director
  • Sarah B. Kavanagh – Director
  • John A. Paulson – Director
  • Russel C. Robertson – Director
  • Richard U. De Schutter - Director

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