Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Avg
|
New words:
abeyance, Ahuja, Alladina, Alpha, Amneal, AP, appellant, Appellate, Aspen, ASU, attractive, awaiting, Bahaa, Bharat, billion, Boeing, Brahman, buying, CABTREO, capped, catastrophic, cease, climate, Colonial, comfort, commodity, Commonwealth, copyright, costly, Council, Crohn, CT, damage, denial, dietary, digitalisation, distributor, DRL, Dynamic, Dynasty, economy, edge, Elidel, EMA, endoscopic, FASB, faster, Foinaven, Fonden, GIC, GMO, GMTA, IlluminationsTM, Incline, intensify, intention, IRA, Kowalyshyn, Lanham, led, Levered, Los, maker, Maverick, Medicare, member, memorandum, MNE, MSD, multinational, narrow, Neutral, noncompliance, Northwestern, nuisance, OECD, Okeley, OPG, Opportunistic, outperformance, payout, pillar, pledged, political, preferred, prohibited, Prudential, recessionary, reconsider, redesigning, redirecting, Relistor, reopened, residual, respond, restitution, reward, rotation, Sandoz, stable, stoppage, Sukenaga, Suspension, Templeton, timetable, topline, Torchlight, traditional, Treasurer, Trust, Trustee, undertaxed, Union, University, USAA, VALIC, vii, viii, Wellbutrin
Removed:
abroad, adapalene, anniversary, appointment, assigned, Auro, Aurobindo, begun, benzoyl, BLCO, bond, bps, breadth, Brent, budesonide, budget, build, Carolyn, cell, chargeback, clindamycin, comment, concluding, constituted, contemplated, contracting, creating, Cuprimine, dealing, dealt, declaration, declared, decreased, deductibility, deducting, degeneration, deposited, directing, director, dosage, ease, enforced, enrolling, entrant, establishing, exchanging, expire, finalization, fit, GmbH, harm, high, impaired, Inactive, incentivize, inflationary, intentionally, intestinal, irrevocably, issuer, likelihood, linked, Logan, logistic, main, medicine, Mellon, Microsphere, minimal, Missouri, netted, Nifediac, Noritate, noting, Novaliq, Nuvessa, Ocuvite, omicron, orphan, Ortho, outbreak, overgrowth, pandemic, pension, peroxide, pertaining, phosphate, postretirement, predicted, Prolensa, prospectively, publicity, question, recourse, reflecting, registered, registration, reinstitution, relation, reputational, restoration, resurgence, ROTC, RSU, scientific, Shanghai, shelter, SIBO, sickle, sourcing, steroid, suggest, suspend, suspended, tangible, Targretin, ticker, tool, trading, unbranded, underwriting, unlocked, unvested, upcoming, validated, variant, version, vested, Xerese, ZeaVision
Financial report summary
?Competition
Akorn • Staar Surgical • IRIDEX • Prestige Consumer Healthcare • EyePoint Pharmaceuticals • LENSAR • Albireo Pharma • Aerie Pharmaceuticals • Kiora Pharmaceuticals • Aquestive TherapeuticsRisks
- Risks Relating to Economic and Market Conditions
- Current market and economic conditions in one or more of our markets could impact our ability to grow our business.
- Inflation and other macroeconomic factors could materially adversely affect our business and operations.
- Risks Relating to the B+L Separation
- The B+L Separation is subject to challenge and could be subject to further challenges in the future, any of which could delay or prevent the consummation of such transactions or cause them to occur on terms that are different or less favorable than we originally anticipated.
- The B+L Separation is subject to uncertainties
- Even if the B+L Separation is completed, we may not realize all of the benefits that we originally anticipated.
- We have and will continue to expend significant resources in pursuing the B+L Separation
- If the distribution of the shares in Bausch + Lomb (the “Distribution”) proceeds pursuant to the existing arrangement agreement between the Company and Bausch + Lomb, to preserve the tax-free treatment of certain transactions related to the Distribution, we may not be able to engage in certain transactions. In such case, we could incur significant tax liabilities, or be liable to Bausch + Lomb, if certain transactions occur which result in these transactions or the Distribution being subject to tax.
- Certain contracts used in our business may need to be replaced in connection with any B+L Separation and failure to obtain such replacement contracts could increase our expenses or otherwise adversely affect our results of operations.
- In connection with any B+L Separation, some of our directors and officers may have actual or potential conflicts of interest because of their equity ownership in Bausch + Lomb, and/or because they also serve as officers or directors of Bausch + Lomb.
- In connection with any B+L Separation and the various separation-related agreements entered into by us and Bausch + Lomb, we have agreed to indemnify Bausch + Lomb, for certain liabilities, and Bausch + Lomb has agreed to indemnify us for certain liabilities. However, there can be no assurance that Bausch + Lomb’s indemnity will be sufficient to insure us against the full amount of such liabilities, or that Bausch + Lomb’s ability to satisfy its indemnification obligation will not be impaired in the future.
- Legal and Reputational Risks
- We are the subject of a number of ongoing legal proceedings, investigations and inquiries respecting certain of our historical distribution, marketing, pricing, disclosure and accounting practices, including our former relationship with Philidor, which have had and could continue to have a material adverse effect on our reputation, business, financial condition, cash flows and results of operations, could result in additional claims and material liabilities, and could cause the market value of our common shares and/or debt securities to decline.
- Our historical business practices, including with respect to past pricing practices, are under scrutiny. Any changes to our practices relating to pricing or the current prices of products, whether imposed, legislated or voluntary, could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- We are involved in or may become subject to various other legal and governmental proceedings that are uncertain, costly and time-consuming and could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- We depend on third parties to meet their contractual, legal, regulatory, and other obligations.
- If our products cause, or are alleged to cause, serious or widespread personal injury, we may have to withdraw those products from the market and/or incur significant costs, including payment of substantial sums in damages, and we may be
- subject to exposure relating to product liability claims. In addition, our product liability self-insurance program may not be adequate to cover future losses.
- Our marketing, promotional and business practices, as well as the manner in which sales forces interact with purchasers, prescribers and patients, are subject to extensive regulation and any material failure to comply could result in significant sanctions against us.
- Our 2022 Amended Credit Agreement and the indentures governing our senior notes impose restrictive covenants on us. Our failure to comply with these covenants could trigger events, which could result in the acceleration of the related debt, a cross-default or cross-acceleration to other debt, foreclosure upon any collateral securing the debt and termination of any commitments to lend, each of which would have a material adverse effect on our business, financial condition, cash flows and results of operations and would cause the market value of our common shares and/or debt securities to decline and could lead to bankruptcy or liquidation.
- We have incurred significant indebtedness, which restricts the manner in which we conduct business.
- We are exposed to risks related to interest rates.
- The transition of our key management positions in connection with the B+L IPO will be critical to our success, and the failure to successfully manage this transition could adversely impact our business.
- The loss of the services of, or our inability to recruit, retain or motivate, our executives and other key employees could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- Our effective tax rates may increase.
- Risks Relating to Intellectual Property and Exclusivity
- The expiration or loss of patent protection or regulatory exclusivity rights for our key products could adversely impact our business. In addition, we have faced generic competition in the past and expect to face additional generic competition in the future. Competitors (including generic and biosimilar competitors) of our products could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- We may fail to obtain, maintain, license, enforce or defend the intellectual property and proprietary rights required to conduct our business, or third parties may allege that we are infringing, misappropriating or otherwise violating their intellectual property rights, which could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- Intellectual property litigation could cause us to spend substantial resources, distract our personnel from their normal responsibilities and cause the value of our common shares to decline.
- We operate in extremely competitive industries. If competitors develop or acquire more effective or less costly pharmaceutical or OTC products or medical devices for our target indications, it could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- Risks Relating to Our Business Strategy
- We have previously made commitments and public statements with respect to limitations on pricing increases for certain of our products. These pricing decisions, or decisions to increase prices, could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- In prior years, we have undertaken a number of divestitures of certain of our assets and businesses. We may, in the future, seek to divest additional assets and/or businesses, some of which may be material and/or transformative, which could adversely affect our business, prospects and opportunities for growth.
- As part of our business strategy, we seek to identify and acquire certain assets, products and businesses.
- Bausch + Lomb has recently completed a number of acquisitions and in-licensing transactions and may, in the future, seek to identify and acquire certain other assets, products and businesses. Bausch + Lomb may experience difficulties in integrating any acquired assets, products and businesses and Bausch + Lomb may fail to realize the anticipated benefits of any such acquisitions.
- If we fail to maintain our relationships with, and provide appropriate training in our products to, health care providers, including physicians, eyecare professionals, hospitals, large drug store chains, wholesale distributors, pharmacies, government entities and group purchasing organizations, customers may not buy certain of our products and our sales and profitability may decline.
- Development and Regulatory Risks
- The successful development of our pipeline products is highly uncertain and requires significant expenditures and time. In addition, obtaining necessary government approvals is time-consuming and not assured. The failure to commercialize certain of our pipeline products could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- Our marketed products will be subject to ongoing regulatory review.
- Complying with existing government regulation of dietary supplements, including our eye vitamins and mineral supplements, in the U.S., Canada and elsewhere could increase our costs significantly and adversely affect our financial results.
- Our revenues and profits from generic products may decline as a result of changes in regulatory policy.
- Manufacturing and Supply Risks
- If we or our third-party manufacturers are unable to manufacture our products or the manufacturing process is interrupted due to failure to comply with regulations or for other reasons, the interruption of the manufacture of our products could adversely affect our business. Other manufacturing and supply difficulties or delays may also have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- For some of our finished products and raw materials, we obtain supply from one or a limited number of sources. If we are unable to obtain components or raw materials, or products supplied by third parties, our ability to manufacture and deliver our products to the market would be impeded, which could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- Changes in inventory levels or fluctuations in buying patterns by our large distributor and retail customers may adversely affect our sales and earnings and add to sales variability from quarter to quarter.
- Our approved products may not achieve or maintain expected levels of market acceptance.
- For certain of our products, we depend on reimbursement from governmental and other third-party payors and a reduction in reimbursement could reduce our product sales and/or revenue. In addition, failure to be included in formularies developed by managed care organizations and coverage by other organizations may negatively impact the utilization of our products, which could harm our market share and could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- We have and may continue to experience pressure on the pricing of certain of our products due to pricing controls, social or government pressure to lower the cost of drugs, and consolidation across the supply chain.
- The illegal distribution and sale of counterfeit versions of our products may reduce demand for our products or have a negative impact on the reputation of our products, which could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- Our revenues and profits could be reduced by imports from countries where our products are available at lower prices.
- Our policies regarding returns, allowances and chargebacks, and marketing programs adopted by wholesalers, may reduce our revenues in future fiscal periods.
- We may experience declines in sales volumes or prices of certain of our products as the result of the concentration of sales to wholesalers and the continuing trend towards consolidation of such wholesalers and other customer groups and this could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- Risks Relating to the International Scope of our Business
- Our business, financial condition, cash flows and results of operations are subject to risks arising from the international scope of our operations.
- Due to the large portion of our business conducted in currency other than U.S. dollars, we have significant foreign currency risk.
- As a result of the ongoing conflict between Russia and Ukraine, the current and any future responses by the global community to such conflict and any counter responses by the Russian government or other entities or individuals, and the potential expansion of the conflict to other countries, we have begun to experience and may continue to experience an adverse impact on our business and operations in this region, as well as on our business and operations generally, which could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares to decline.
- Our business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by the ongoing conflict between Israel and Hamas.
- We have become increasingly dependent on information technology systems and infrastructure and any breakdown, interruption, breach or other compromise of our or our third-party service providers’ information technology systems could compromise sensitive information related to our business or prevent us from accessing critical information and subject us to liability or interrupt the operation of our business, which could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- Risks Relating to Specific Legislation and Regulations
- We are subject to various laws and regulations, including “fraud and abuse” laws, anti-bribery laws, environmental laws and privacy and security laws, and a failure to comply with such laws and related regulations or prevail in any litigation related to noncompliance could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- Legislative or regulatory reform of the health care system may affect our ability to sell our products profitably and could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- We are subject to a broad range of environmental laws and regulations and may be subject to environmental remediation obligations under such safety and related laws and regulations. The impact of these obligations and the Company’s ability to respond effectively to them may have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline.
- The consequences of climate change, such as extreme weather and water scarcity, could pose risks to our facilities and disruption of our activities.
- We must maintain adequate internal controls and be able to provide an assertion as to the effectiveness of such controls on an annual basis.
- Our business and operations could be negatively affected by shareholder activism, which could cause us to incur significant expenses, hinder execution of our business strategy and impact our share price.
- We have significant goodwill and other intangible assets and potential impairment of goodwill and other intangibles may have a significant adverse impact on our profitability.
- We have various indemnity agreements and indemnity arrangements in place, which may result in an obligation to indemnify or reimburse the relevant counterparty, which amounts may be material.
- Our operating results and financial condition may fluctuate.
Management Discussion
- Revenues for 2023 and 2022 were $8,757 million and $8,124 million, respectively, an increase of $633 million, or 8%. The increase was primarily driven by growth in the Bausch + Lomb, Salix, International and Solta Medical segments driven by: (i) higher volumes, (ii) improved net pricing and (iii) incremental sales attributable to acquisitions, partially offset by: (i) the unfavorable impact of foreign currencies, primarily in Europe and Asia, (ii) lower revenues in our Diversified segment and (iii) the impact of divestitures and discontinuations. The changes in our segment revenues and segment profits are discussed in further detail in the subsequent section titled “Reportable Segment Revenues and Profits”.