Bausch + Lomb (US:BLCO)2025-10-29 20:31Product Portfolio and Development - Bausch + Lomb reported a comprehensive portfolio of approximately 400 products, including contact lenses, IOLs, and surgical devices, marketed in about 100 countries[189]. - The company acquired Whitecap Biosciences in 2025, expanding its clinical-stage pipeline with therapies for glaucoma and geographic atrophy[195]. - The acquisition of Elios Vision in December 2024 is expected to enhance the glaucoma treatment portfolio with a minimally invasive surgery procedure[196]. - Bausch + Lomb's R&D team of around 1,000 employees is focused on over 60 projects, including new contact lenses for myopia and investigational treatments for dry eye[199]. - The company launched enVista Aspire IOLs in the U.S. in October 2023, with further launches planned in Europe and Canada[205]. - The company is developing a next-generation eye vitamin formulation, AREDS3, anticipated to launch in 2026[203]. - Bausch + Lomb's Blink NutriTears, launched in June 2024, targets the root causes of dry eyes and promotes healthy tear production[203]. - The company plans to launch enVista Beyond extended depth of focus (EDOF) in the U.S. in early 2027[215]. - The European launch of the LuxLife Trifocal IOL is currently in process, expanding the premium IOL portfolio[215]. - The company is planning the U.S. submission for ELIOS, a minimally invasive glaucoma surgery procedure using an excimer laser[215]. Financial Performance - Revenues for the three months ended September 30, 2025, were $1,281 million, an increase of $85 million, or 7%, compared to $1,196 million in 2024[242]. - Product sales contributed $1,277 million to revenues, with a notable increase in volumes of $76 million primarily from Pharmaceuticals and Vision Care segments[242]. - Vision Care segment revenue was $736 million, up 8% from $684 million, driven by sales from dry eye and eye vitamins portfolios[251]. - Pharmaceuticals segment revenue increased to $330 million, an 8% rise from $306 million, primarily due to increased net sales of branded pharmaceuticals like MIEBO[252]. - Surgical segment revenue reached $215 million, a 4% increase from $206 million, attributed to higher sales of consumables and equipment[253]. - Total revenues for the nine months ended September 30, 2025, were $3,696 million, a 5% increase from $3,511 million in the same period of 2024, driven by increased volumes and favorable currency impacts[283]. - Vision Care segment revenue increased by $129 million, or 6%, to $2,145 million for the nine months ended September 30, 2025, primarily from the dry eye portfolio and contact lenses[288]. - Pharmaceuticals segment revenue rose by $23 million, or 3%, to $906 million for the nine months ended September 30, 2025, mainly due to increased sales of MIEBO[289]. - Surgical segment revenue increased by $33 million, or 5%, to $645 million for the nine months ended September 30, 2025, driven by demand for consumables and implantables[290]. Costs and Expenses - Cost of goods sold was $509 million, an increase of $45 million, or 10%, primarily due to higher volumes and unfavorable foreign currency impacts[258]. - Total provisions to reduce gross product sales to net product sales were $837 million, representing 39.6% of gross product sales, an increase of 3.9 percentage points from 35.7% in 2024[256]. - SG&A expenses increased by $17 million, or 3%, to $528 million in Q3 2025 from $511 million in Q3 2024, driven by higher selling costs in the Pharmaceuticals segment[262]. - R&D expenses rose by $11 million, or 13%, to $95 million in Q3 2025 compared to $84 million in Q3 2024, attributed to ongoing product development[264]. - Selling, General and Administrative (SG&A) expenses rose by $120 million, or 8%, to $1,670 million for the nine months ended September 30, 2025, driven by higher selling costs and Business Transformation Costs[295]. - Research and Development (R&D) expenses increased by $27 million, or 11%, to $277 million for the nine months ended September 30, 2025, due to ongoing product development[297]. Losses and Income - Operating income for the three months ended September 30, 2025, was $95 million, a significant increase from $43 million in 2024[240]. - Net loss attributable to Bausch + Lomb Corporation was $28 million for the three months ended September 30, 2025, compared to net income of $4 million in 2024[240]. - Net loss attributable to Bausch + Lomb Corporation improved by $12 million to $302 million for the nine months ended September 30, 2025, mainly due to a decrease in the provision for income taxes[311]. - Operating income decreased by $74 million to $1 million for the nine months ended September 30, 2025, reflecting increased SG&A and R&D expenses[301]. Economic and Market Conditions - The ongoing Russia-Ukraine war has impacted economic conditions, including inflation and global supply-chain disruptions, affecting the company's business trends[210]. - Revenues attributable to Russia, Ukraine, and Belarus were approximately 3% of total revenues for both the nine months ended September 30, 2025, and the year ended December 31, 2024[214]. - Revenues from the impacted regions in the Middle East were less than 1% of total revenues for the nine months ended September 30, 2025, and the year ended December 31, 2024[218]. - The company is assessing the impact of macroeconomic factors, including inflation and fluctuations in exchange rates, on its financial performance[357]. - The company is exposed to adverse global economic conditions, including inflationary pressures and foreign currency exchange volatility[364]. - The company faces risks associated with the ongoing conflict between Russia and Ukraine, which could affect sales, earnings, and market conditions[364]. Regulatory and Compliance Issues - The company is monitoring ongoing policy changes by the Trump administration, which could adversely affect business operations due to tariffs and trade restrictions[220]. - The global minimum corporate tax rate of 15% for companies with revenue above €750 million is expected to be effective for fiscal years beginning on or after December 31, 2023[223]. - The company anticipates minimal impact on its 2025 tax rate due to the global minimum tax provisions, but there is a risk of an increase in the overall effective tax rate[227]. - The implementation of the OECD inclusive framework on Base Erosion and Profit Shifting may impact the company's tax provision for 2025 and future years[364]. - The company must navigate complex regulatory environments, including compliance with healthcare laws and potential changes in legislation[367]. Debt and Financial Obligations - As of September 30, 2025, Bausch + Lomb had outstanding borrowings of $490 million under the September 2028 Term Facility and $2,319 million under the January 2031 Term Facility[323]. - The interest rate for the September 2028 Term Facility was 8.16% per annum as of September 30, 2025[327]. - The January 2031 Term Facility had an interest rate of 8.41% per annum as of September 30, 2025[328]. - Bausch + Lomb expects to make interest payments of approximately $120 million and mandatory debt amortization payments of $7 million for the period from October 1, 2025, to December 31, 2025[343]. - The weighted average stated rate of interest for the company's outstanding debt obligations was 7.97% as of September 30, 2025[339]. - The company is required to make mandatory prepayments of loans under certain circumstances, including 100% of net cash proceeds from asset sales[329]. Strategic Initiatives and Risks - The company is evaluating strategic separation from Bausch Health Companies Inc., which may include a distribution of shares to shareholders[190]. - The company is actively managing its pipeline to identify innovative projects expected to provide sustainable revenues and growth[237]. - The company is pursuing acquisitions, including the acquisition of XIIDRA and other ophthalmology assets, with potential risks related to realizing expected benefits[362]. - The company is facing risks related to the recent voluntary recall of certain enVista IOL products, which may affect inventory resupply and operational costs[358]. - The potential for product recalls could lead to significant costs and impact the company's reputation[367]. - The success of the company's drug development pipeline is contingent on the outcomes of clinical trials and regulatory approvals[367]. - The company is at risk of illegal distribution or sale of counterfeit products, which could harm its market position[367]. - There have been no material changes to the company's assessment of its sensitivity to market risks[370].