Bausch + Lomb (US:BLCO)2025-12-03 15:00Financial Data and Key Metrics Changes - The company is focused on achieving financial excellence, particularly improving EBITDA margins to align with or exceed competitors [5][6][11] - A three-year plan was announced, targeting a revenue growth rate of 5%-7% [13][15] - The company aims for a net leverage of 3.5 times by 2028 [18] Business Line Data and Key Metrics Changes - The Vision 27 program is designed to enhance operational efficiency and gross margins across various business lines [6][11] - The contact lens segment is expected to grow faster than the market, with a new bioactive platform, Project Halo, set to launch in 2028 [21][27] - The dry eye product portfolio, including Xiidra and Miebo, is positioned as the gold standard in the market [52] Market Data and Key Metrics Changes - The contact lens market has slowed to about 4% growth, influenced by economic conditions in Asia, particularly China [28][29] - The company anticipates a recovery in the contact lens market, projecting growth to return to 5% or higher by 2026 [29] Company Strategy and Development Direction - The company is committed to organic growth, with no M&A planned in the three-year strategy [18] - Focus on innovation is critical, with a deep pipeline of products expected to drive future growth [90] - The company aims to leverage its existing infrastructure for new product launches to maintain high margins [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation into a high-performance competitor, emphasizing the importance of innovation and operational excellence [5][6] - The management highlighted the need for a disciplined approach to spending as growth resumes [9][11] - The company is optimistic about the aging population's demand for premium IOLs, viewing it as a growth driver [89] Other Important Information - The company is focusing on enhancing its R&D efficiency, aiming to allocate more resources towards product development rather than administrative costs [50] - The introduction of new products like Lumify Luxe and the expansion of the PreserVision brand are seen as significant growth opportunities [44][46] Q&A Session Summary Question: How should investors think about the liquidity of Bausch + Lomb given its ownership structure? - Management acknowledged the 88% ownership by Bausch Health and indicated that both boards are committed to addressing liquidity issues, though the timeline is uncertain [12] Question: What are the components of the 5%-7% revenue long-range plan? - Management explained that the guidance is based on current market conditions and internal capabilities, with a balanced approach to growth [13][15] Question: How does the company view tuck-in M&A opportunities? - Management stated that no M&A is needed at this time, focusing instead on organic growth and improving the balance sheet [18] Question: What is the expected timeline for the new bioactive contact lens material? - The new product is expected to launch in 2028, with ongoing clinical studies providing positive data [24][27] Question: How does the company plan to manage its R&D budget? - The company is increasing its R&D spending to about 7.5% of revenue, focusing on high-potential programs [48][50] Question: What is the outlook for the dry eye market? - Management believes they have the best portfolio for dry eye treatment, with Xiidra and Miebo positioned as leading products [52] Question: What is the growth outlook for the surgical business? - The surgical business is expected to grow steadily, driven by an aging population and consistent demand for IOLs [89]