Bausch + Lomb (BLCO) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total company revenue for Q3 2023 was $1.007 billion, reflecting an 8$187 million, negatively impacted by currency headwinds of approximately $14 million and Lynchburg-related disruptions of$7 million [54][26] Business Line Data and Key Metrics Changes - Vision Care revenue was $648 million, increasing by 11$174 million, representing constant currency growth of 1%, with VYZULTA growing by 54% [22][40] - The lens care portfolio grew by 8% on a constant currency basis, while the implantables segment declined by 2% [17][19] Market Data and Key Metrics Changes - The consumer business grew by 14% on a constant currency basis, led by LUMIFY, Eye Vitamins, and Artelac franchises [45] - The China business was down 1% on a constant currency basis, but year-to-date constant currency growth in China has been 6% [44] - Daily SiHy lenses reported a 79% revenue growth in the quarter [47] Company Strategy and Development Direction - The company is focused on addressing supply chain challenges and has made significant investments in improving its distribution facilities [10][62] - The launch of MIEBO and the acquisition of XIIDRA are seen as transformative for the Pharma business, with a strong emphasis on the Dry Eye Disease market [23][66] - The company expects 2024 to be one of the most active launch years in its history, with plans to strengthen its leadership in Dry Eye Disease [87][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the eye care market remaining strong, with overall market growth expected to be mid-single digits [29] - The company anticipates currency headwinds to revenue of approximately $100 million in 2024, which will be monitored closely [31] - Management acknowledged the need for continued investment in product launches and the importance of maintaining high-quality supply [116][88] Other Important Information - The company raised its revenue guidance for 2023 to a range of$4.035 billion to $4.085 billion, reflecting a constant currency growth rate of approximately 9.5% to 10.5% [27] - The adjusted tax rate for the third quarter was 6%, in line with expectations for the full year [26] - The company is committed to investing in R&D, with approximately 8% of revenue allocated to this area [25] Q&A Session Summary Question: What is the outlook for XIIDRA and MIEBO sales next year? - Management indicated that XIIDRA is expected to stabilize and potentially achieve mid-single-digit growth, while MIEBO is showing promising early trends [78][76] Question: How is the company addressing supply chain issues? - Management emphasized a practical approach to supply chain improvements, with ongoing investments and strategic sourcing to enhance product availability [62][90] Question: What is the impact of the FDA warning on eye drops? - While the company was not directly affected, management noted that it underscores the importance of quality control and may create some market opportunities [116]