BLCO - Earnings call transcript Q1 2022 | Bausch + Lomb Corporation

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Operator

Good morning, and welcome to the Bausch + Lomb's First Quarter 2022 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Allison Ryan. Please go ahead.

Allison Ryan

Thank you. welcome first and results XXXX everyone, call. conference morning, to quarter our financial Good call and are Mr. today's on Participating Chairman Chief Officer, Executive Joe Officer, Financial Papa; and Mr. Chief Sam Eldessouky.

presentation a In will call on the of live to under available replay webcast, website Relations addition today's this this be slide Investor and our conference a of copy section.

legend begin, presentation you information. statement forward-looking ask that of today take the we moment at We This like read non-GAAP financial remind to as important would we measures. presentation contains Before you our to a it that our information. contains would forward-looking contains presentation

For more the about measures, in posted appendix Non-GAAP presentation. Slide please refer presentation information of the X found these can to website. be our reconciliations the to on

in today than this disseminated as following to my over to guidance With our policy Joe. quarter effective is or to that, only. call other it through update not not is affirm financial update until of generally presentation guidance and broadly the guidance the disclosure. pleasure It Finally, public is to

Joe Papa

detail Thank comments Bausch everyone, I us begin Bausch some in + discuss the discuss traded CFO, highlights. in completed vision our Sam quarter our that earnings will for first IPO Eldessouky, XXXX Lomb's a will you, you, then first and today + and Lomb company. call with joining as Allison, for and about thank now publicly the has results been financial our the guidance. briefly first quarter review the

our before the questions. opening by Finally, catalysts I line will product pipeline discussing upcoming and conclude for

growth of greater B&L on Simply questions. provide for the a to let May your the stated, is the call? future first results objective and forum B&L for performance, we Bausch and started, If what answer provided me get provides B&L vision on I Health, Before XX answer our clarity as part today's quarter question.

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Moving now X. highlights on to the Slide first quarter

X by was revenue driven quarter growth X% grew despite Surgical, organically and First segments, headwinds. Vision organic XX%, of largest which X% by and Care respectively, our macro

momentum quarter our quarter focus, first and first eye LUMIFY. key continued approximately the of U.S. demonstrating of at in in care areas through an Looking lens had the consumer eye vitamins share the XX% market

and Our share XXXX. daily category of in from this XX% market approximately SiHy to growth doubled lens we market expect XXXX

to headwinds whose on dedication first and road entering I uveitis. results hard and + first Finally, in turn the Lomb ongoing patients XX,XXX of an publicly first world quarter, suprachoroidal with independent becoming of enabled to with completing us the company. financial to navigate work focus effort the employees due milestone the a with eye the we quarter of the will execute and care key the impressive And are more on Bausch detail. category product traded in external the areas approximately to These new and use for call into macular while associated sustained around Sam the that, to only in contributions the our an space cover product the over edema important achievements eye launched

Sam Eldessouky

be to call happy company first as I'm publicly quarter Thank a you, on results. Joe. traded our our earnings first discuss here to

we adjusted and and Care, reminder, divestitures a organic we report now Before going I listeners remove results growth, of to Also X discontinuations. basis in talk financial remind the ophthalmic that the our and into the details, Vision on pharmaceuticals. will currency constant impact when we as a segments: mean about revenue Surgical

results X. Slide now on to our Turning

Our first durability the integrated business continue results the of demonstrate an platform. quarter eye our and benefits of to health

to key across on for franchises, enabled commercial which a $XXX reported first overcome demand is organically. of heading on continues us focus basis and the momentum start X% headwinds Strong investment company X quarter, to up million total our year. the the primary strong at Our reflected up into X% lead the execution in revenue of and XXXX to

First, approximately in quarter; exchange from unfavorable second, of currency lockdowns and $XX impact the COVID headwinds related of in million first $XX roughly China. foreign million

growth market impact the of believe term, favorable surgical, growth the organic lockdown, mega market driven Vision the expect health. is from the Excluding the continued we in business. new optomic market over we product near benefit market benefit trends consumer Care well [indiscernible] position to grew launches revenue growth recovery And for eye the longer term, business to in China penetration and the be we from and in in led Overall, by in to ongoing by by our dynamics. X% positioned and In expect additional leadership countries, launches in the quarter.

consumer Division and reported Now Revenue includes XX% first and XX% and I'll an categories. go into their segment, contact vitamines eye our of reported detail growth are LUMIFY. lenses for Care products in grew in by organic more leaders in which by XX% the lenses X% the segments. was the on launched market brand X% in -- organic reported and products, each this reported we To X% hydration launched organic earlier Both driven Solutions multipurpose Plus U.S. quarter, the countries hydration includes and which the XXXX. now boost XX growth boost eye month, in Biotrue launched solution eye form, eye franchise, Biotrue daily leverage in and in the growth a which in multipurpose Hydration And high XX% we organic in solutions. the the growth

continue to expand are: for one, three, lenses; the year products of multi-focal global the vitamine the eye and of our two, of SiHy the to remainder daily the goals LUMIFY; daily rollout Our position leadership market lenses. SiHy and

segment. Moving our on to Surgical

implantable, sustained momentum through XX% IOL as the elective entry LuxSmart the franchise, procedures revenue premium the in has consumables in segment mainly category the including our IOL the backlog markets. and enVista driven surgeries. into had by quarter and Growth First COVID-related by market working positive The demand IOL cataract by increased was the of international retina of grew organically. continues for

grew decline was prior quarter, and business, in driven revenue of XX% the an year This quarter mainly see reflected of represents by Pharmaceuticals performance performance in basis. international XX% the pleased segment markets We're offset Europe which first by the X% $XXX revenue the of Finally, on the the organic a Ophthalmic by offshore growth in approximately million U.S. organic decline strong XX% Organic segment. compared Asia. to strong in international revenue to

see portfolio was due to TRx the TRx the to in continue tail by we and LOE including end impacted While generic rebates products growth the brands, of competition. key XX% promoted of VYZULTA higher quarter, growth in our

this launch the were on of We We transform end a portfolio the have first the portfolio, key launched the see followed IPO. to the LOE. At Pharmaceuticals by transforming of following the lower new believe continue impact and ahead we which the -- path we provide Ophthalmic pleased to to March, step as the foundation investment the in scale growth expect the in and commercial the APA quarters product have drive and stronger organization. we We segment allow with made launch will to the a to years leverage launches to in us XXXX. will Max

we our R&D to market our investing business and long-term X. in product macro now conditions. supporting QX by impact XXXX, strategy pipeline, the Slide behind fundamentals, continued With our Turning strong launches of notwithstanding

in was $XXX EBITDA adjusted first the million. Our quarter

and the to to during X% in XX% from spend Higher QX points the launches, which timing the XXXX, driven gross XXXX commodity adjusted basis our level grows for continue product chain and total seen mix in supply first inflation driven our share and Our quarter the the of return largely than our of to war the pipeline. versus to quarter mainly of attributed product to in macro sales. R&D projects headwinds, to the Ukraine, Russian market lenses, us R&D can execute accelerate investment gains. SG&A to COVID including increased normalized spend on recovery SiHy the QX approximately This is increased by by be margin higher due pressure, prices for mainly ability in roughly is increase lower XXX challenges. including position spend more momentum daily

X% R&D the of range year full expect will We in revenue. of spending

and China resulted adjusted Finally, lockdowns to of QX million foreign in roughly EBITDA. in headwinds exchange COVID $XX

was + do impact investment $XX QX $X.X timing was IPO, to by timing in credit quarter, our billion. the to in includes first of conjunction closed operations We of million intercompany a launched Bausch not significant flows future million, in and XXXX these And anticipate subsequent facilities. manufacturing Moving and In the for Slide on from lens agreement have quarters. we approximately balances between cash Bausch the with from on XX. which operations CapEx on the Health. Cash factors negatively of a flow that and quarter impacted will $X certain Lomb settlement in

and spin-off, the the debt goal is the rated enhance to further going flexibility at to and the of to our for invest operate investment-grade continue in Our be time forward. business

to turning XX Now Slides XX. our and guidance on

Our growth. for to and between X% revenue representing organic billion XXXX $X.X is of guidance range a X% billion, revenue $X.XX

While $XXX impact China the year. -- we absorbing million headwind of approximately to full for the be lockdown, range estimate

from expect in saw half COVID second we of that that we have XXXX. China, QX, into continue to normalize We impact policies the and and the in lockdown headwinds expect to an will QX

$XXX Our forma excluding of with base to synergies year range currency. adjusted EBITDA of the pro full approximately adjusted guidance XXXX X% represents million. growth and for $XXX performance This XXXX impact a over is EBITDA the million

will find the is guidance basis an adjusted $XXX our for expense their by in navigate currency macroeconomic the as the to full We exchange our portfolio. XX. overall global annual to EBITDA. strong be In QX from This on of inflation free be strategy results approximately integrated the EBITDA also adjusted ways Our to recover financial estimate foreign we XX%, we're $XX to be various pressure. rate to in be with and reflect XXX to execute we year. approximately the of Health summary, with expected tax resilience the on guidance a million position guidance call Interest are to impact and approximately We earnings XX% adjusted of we approximately expected current believe Bausch continue headwinds points full is approximately million and flow enhance year provided factors. Adjusted of our May in pleased and Across on expect segments, COVID-XX momentum business basis. the our cash consistent and flexibility Buchanan. includes continue

Joe. you, to back Now

Joe Papa

drive our Sam. you, our we catalysts Beginning product with XX. discuss will pipeline Thank the that upcoming to results. and on Slide I expect now business LUMIFY

the began In eye our we LUMIFY, illustrated product with May a XXXX. the products. U.S. it example and it dollar Here, a #X million brand. of the Today, an successfully the fully is of physician XXXX, in performance to and launch, approximately have share with category became of the drive highly our the brand market after in X of XX% register care of integrated launching we case recommended in promote platform differentiated number LUMIFY $XXX

XX% was eye with able awareness our we with education demand, by Our ongoing and were e-commerce satisfaction customer and drive care CVS public able meet strong presence. Walmart a to and patient awareness which television, with a team media through collaborating drive along while the efforts, product driving retailers through for helped rate partnerships channels. relations to with like and These professionals to social

including to our next We and dry expect similar approach NOVXX, of launching product. to a integrated take a disease approach new similar eye our products, wave

In the with how disposable doing lenses. August to with launched contact lenses patient exceptionally fastest-growing with well INFUSE lens to dryness. next-generation our need eye of INFUSE SiHy experience of daily category. who contact lens we're material technology ProBalance patients minimize Slide concerns an now market about with and dryness, Turning symptoms lens lens a lens in illustration the daily an we lens contact to is is XXXX, only unmet help hydrogel to able The daily dryness. have response silicone infused XX contact into for first

do lenses of they XX% all contact wear not agreed INFUSE lens long. INFUSE patients dry that fact, and In day can that surveyed feel comfortably

based BCVA, trial with of uveitis. or from which XIPERE Phase was is in results Moving III the is edema to FDA associated and from on leading first only with suffering XIPERE patients XX. available space vision a on primary patients therapy that cause people with of XIPERE uveitis, macular a best approval the XXX utilizes pivotal to treat visual loss for Slide endpoint. suprachoroidal acuity, corrected the

the had XX the primary As right, BCVA patients endpoint in after improved was proportion follow-up. at on by the from XX of the chart whom least baseline FSP weeks

medication. which particularly to and offers eye the about the of in enables microinjector, utilization the innovative excited compart are the We unique target delivery back of access

want for therapy. treatment the of a new shows dry the dysfunction. gland trial. to first-in-class investigation of Moving opportunity dry Slide on demonstrated has efficacy the trials. Statistically Slide Phase safety on endpoints efficacy, to NOVXX III been associated XX. and I with eye meibomian for class is a significant spend potential The an III X in for tolerability market Phase now minute second eye charts on XX disease

XX. Importantly, as from and endpoints all were primary achieved statistically include secondary significant changes baseline early as day

We near-term and segment. coming NDA has are some Phase a the studies weeks. for results of to growth XX, with We potential are the X future in Slide ecstatic working business. the filing NOVXX and present for our for that anticipate the of the III towards an driver we pipeline believe be opportunities Surgical these On major NOVXX

rate. on integrate launch support compound new XD microscope and opportunities First, our billion this enVista intelligence is annual clinical at to with IOL X% Lux expansions growing later growth a premium premium expected year, offer is that $X.X also we'll We're that our decision software. market in IOL and a working

people significant Excimer phases the to Finally, decade. reach care consumer eye-health Teneo meet in Lomb expected Teneo than more received spanning U.S. and + Pharmaceuticals is surgery The innovation for the be highest LASIK as from questions. XXX Laser all laser in refractory has operating redefined and refractive significant eye cataract devices unmet is integrated needs better. and portfolio Ophthalmic products, more well the is been integrates the a serves the e-commerce to the market LASIK efficiency. an has patient broad captures Health and care our in company. innovation, Eye more meet care Slide adopted needs. the as in eye opportunity platform to available the importantly, laser, better a workflow laser, new awareness a lenses, world flap Lomb help one relationship XXx live that comprehensive lasers serve Bausch operates any the including integrated with to key line markets next Femto see of XX The Bausch surgery eye developing a everything our compact that footprint. + widely surgical as of and and cataract consumers to of combined eye versatile which offers of XX the around over-the-counter With and new than the open B&L positions first which Slide on Lomb of retina fluidics that with for lens their complements operator, well XX, eye + To with company technology fully of health Teneo health which Lomb treatments + channels a advanced that, a into long-standing for illustrate software. and with and for uniquely intelligence consumer the retailers ecosystem has we summarize, lives, professionals an fully integration power room contact efficient removal products and needs patients Bausch ophthalmic let's brand surgical offering up instruments. with platform Bausch eye B&L lens throughout product and the generation

Operator

[Operator from first Instructions] Company. and The question with Cacciatore Ken Cowen comes

Ken Cacciatore

path clear BAC to for options I forward BLC. It's not my the has easier everyone for and Joe, know And questions win. a fundamental. XX% it's fundamental understand on BHG still the lots Thanks pain a question going are for the to what patent coming as holdings actually to and likely that the I'm in a save all of discussion. one loss. less

about could talk best launch I'm it, the talk term not a as of that to Can still for them can event the you folks? be you in near describe the So about but -- in the some and you potential there's ramifications able sure that discuss remaining. you'll XX%

Joe Papa

question. for Ken, you, the Thank Okay.

the for and towards XX% just Number Bausch little this, always for to a the to utilize by strategy the IPO. question have -- reduce Health. + that. would path me our debt. actual to. that to of of is the forward bit as that now stated monetized we their the The we actually one, maybe us clear. think Bausch We've debt X.X% about We've done you're Health do to Bausch be will Lomb down up getting the percent back get pay the we initial They will would be flexibility XX-plus out remaining value Let turn

the on more question will the will Health, to shareholders spin go to utilized directly I of say Health. That As the issue, as of XX% Bausch will of the that just be and said, go Bausch remaining remaining one XX%, will me the XIFAXAN on let be the to that XX%. be to direct -- clear shareholders

So that's how play that will out.

of have and expect first question to to win. the continue to XIFAXAN, On we say, I foremost

intellectual of patents. have property We XX-plus

felt team legal the trial. the start end trial at confident Our the the more at versus of of

to something that. have continues through So we that at be all and that of managed way our looked

all advisers the have One utilized reviewed and legal has of outside point it. everyone we've view, of from that looked a this through

In will and we it an fact, at prevail. expect looked that was trial company at attending that IPD, independent the

to your As question me XIFAXAN let get though on loss, that. the to to

we have continue done would need expect always look evaluate we expect, to we to any probably planning win. -- something of win, to in that's we do any at and I say to process, have expect for further for scenarios the on will that that As Obviously, that. business, Health purposes, I'll to leave not Bausch to at it you'd that comment. and continue But and company but multiple speculate terms

Operator

America. is with question Bijou The from of next Bank coming Craig

Craig Bijou

guidance. top the ask wanted Congrats about done. to on getting IPO I line

So in obviously, X% growth QX. organic the

X% to slowdown. guidance Your X% of a slight full suggests year

to ask, is we And guidance? about about? So else quarterly simply there that each I of a the in perspective, of think is something that be should how China, it QX? just to And think what about we we conservatism? then should the saw of Is segment cadence thinking wanted segments from should similar we growth that

Joe Papa

Sam?

Sam Eldessouky

take I'll question. Craig, this

far June in Chinese guidance million. the the impact second So XXX%, guidance, the the had coming X% to saw in a right now, up that the impact Things early government that about Still still from to China plays been back We That in didn't is with we have to and of what see market. we factor seeing normal, $XX so shutdown. us we our refer continues second I'll think QX about are opened from is completed to roughly in balanced is have in -- quarter. we we lockdown the April how month way yet us I news of it did but China. The we'll quarter, May out would QX. as an of have X% good have understand the month on

what step be That's revenue So of from April China. the of than and general, shutdown X% to just about X% month in as you tend in half our anticipate guidance phasing more back year. we've our well the When and in on in to half general. first seen we May of think the second you the

that we So think point cadence would from phasing, the a at what when in seen our view phasing QX basis. about up more QX with QX, into and than That's a QX expect ramp you us. from normal will you've you of of

seen which QX have anomaly China, just and in the to QX. factor in again, You of we've

Joe Papa

I'd thing business something the that back-to-school to we is quarter, little Sam's is in a comment put just contact quarter. see on to add more that fourth think that third I perspective lens bit

think how So third at else looking quarter pickup of is business. everything seasonality Sam we their see as agreement. on that's our some making quarter, contact only they what that go commentary thing to and we're get I'd add, that's part of of was some is probably the lenses, back but the I the school in There fourth

Operator

question Wells with Biegelsen Larry Fargo. from The next is

Larry Biegelsen

I'll question. big picture one ask just

talk about are year. Bausch's the about Joe, level, said about upfront, of Just X EBITDA XX% think how high a in organic XXXX margins you this -- How I was at growth guidance and beyond EBITDA pathway thinking to company. long-term growth you about back The call was the of Joe, Sam, you goals XXXX? and thinking an growth implies are margin XX%? of your the to about margin this for

Joe Papa

it. and Sam, can to start, you add I'll

and foremost, Number is good do. in The continue the think point strategic to Number a we're we're on products about portfolio as question in the the business, they're + in I I one, our strategic First with to invest contact and business. plan at us momentum two, the we first in what planning XXXX, make we about of to now eye want example. direction. portfolio, of the to continue important growing is is lens a current faster our an finished lenses. for grew products that that Lomb we've XX% have XXXX categories our new daily than said with Bausch in all news plan fastest-growing We've overall launched in publicly, XX to chance we SiHy to health, launch eye going as less momentum health countries. our in to Try

We've like more into launched digit. IOLs. premium in go these than into certainly SiHys, going multi-focal daily side second. Daily quarter. coming we growth more also on every And to And on SiHy on add these product expect margin, board revenue faster-growing U.S. will get the I'll a side we the as will the believe to then our we Luxmar the and to which the outside But have that just the and grow SiHy. We categories also double launch both We're daily

the additional the looking market. We enVista to forward IOs IOL premium eye dry -- at and enter have opportunity also some coming

planning. us new growth at just launched therapy, categories in into allowing We for edema brand-new looking that the the patients to on to available these these in to the us products we're going utilizes then and biosimilar help going surgical are ecosystem. us. faster-growing the of will All the the have for categories And categories we new uveitis. help as some product We're associated We're what only injection suprachoroidal enter into who with macular digital us. margins XIPERE, and first expand finally, some U.S.

a we Daily stronger a yield will contribute our then about XX% yield the to come a get gradually go out more -- the product margin. yield know a when that's helping -- that with. as to lens yield That going with to line, growth. opportunity get those all we on daily higher be get the then from the time. on on margin lens, importantly, experienced, going patients, the XX-plus the a progress of SiHy with which, you'll products question, overall from facility drive as a in first price new Usually, patients you are So then at more monthly will allow first achieve us all that SiHy margins. us margin term, year, also example, And that to the in opportunity to XX% a a get the better enhancement, XX% with a products for and experience you to point to also And new long to lens for up to percent daily as simple to on helps

contribute daily So margin story more lens the we get driven launching these it. margin products, to experience at were overall by higher the will as and we anything story that you with SiHy new will to driven will story to us price to And get help the be help be point, levels want to Sam, past. we're add all specifically? margin the as that in the

Sam Eldessouky

contribution. where said -- launches we Larry, heading very about and from things X into of a where from if -- the add just the a move launches are are today there's think margin critical be And we're going is Joe we of and to how part in to all can as as again, on top growth that critical think I Yes. terms line very the we what a I across because future as number a us segments forward important well for few

year. year in ophthalmology, this Vision base next out with itself very you and NOVXX in having business Also, Surgical So out right the it see now. in is Care, and XIPERE coming the outstanding the a coming durable

the prepared seen I performing a brands of growth well. XX%. business, number growth vitamins, remarks. think our we've We in But some -- organic of very doing has Opto are the them couple key the international LUMIFY, the have which driven highlight also roughly a we -- -- of of

cost stepped fundamental So launches stand-alone operate our to we us those XXXX, in we operate about good the -- to company of think investment here stand-alone to have where existing and How the up as we is, we company. it's also for structure year very -- for a the allow growth ourselves up portfolio. to seeing in to the as support we're a that elements stepped our we business. go had forward position And it

forward go don't in forward. we XXXX, that as structure cost beyond we move need we step change our As

that, what that we'll So able us a both right the is company, the on to means as of commercial forward. leads to achieving infrastructure cost will trend be built we in terms as that our the that from front expansion now as structure margin we go be a scaled well have and that's leverage help overall that that

Operator

Your next Suneja question from is coming from Yatin Partners. Guggenheim

Yatin Suneja

strategy on can require? bit little is trying is Lucentis opportunity you will the there. there? your infrastructure little Can relevant comp what's touch How there And it What as just also NOVXX? -- the if build you just the update a market? provide for market a of sort big a on then to biosimilar, bit understand Obviously, there

Joe Papa

Sure.

start large me very NOVXX eye let So dry in a the It's market. market.

billion, if market, closer Specifically, are order in but magnitude net we've billion. very $X down $X go somewhere to numbers sales a you the first of Obviously, to -- comment. probably gross large

Americans, the Importantly, grow to it's and at level. double-digit it continues around million XX

symptoms dry the XX. large delighted we see early gland eye that signs the clinical shown of improvement opportunity that have I'm growing we've significant meibomian we rather data, to and And in market at So Number we look with dysfunction. our here disease as two, that associated of say statistically significantly. is and day

So that work. for help opportunity the about to patients a a And we as us, sometimes a significant to we significant, -- category X means the approved eye up importantly, FDA, the months current products months what their take patients that's help in can to are think, by we to disease. X number of number if dry think out of with is

number patients realize to early a exciting help XX, as a help give as revenue of got opportunity we very you've that. day patients that from a if can So think that opportunities the makes product and it

think, $X out we're the happening with So of we're We at and news approximately Good us current to excited in capabilities world size this quick signs Health about United relief of the capabilities important for a our disease, has category. of look there eye of we sales, has billion in net around billion Bausch approach market, pharmaceutical the a of what's portfolio and that, place. the States. Lomb ability excited Bausch that for this the the + this $X we We've gross dry large of largest to footprint and got team is already on the about is show a capabilities the one will players business, product very it. symptoms sell -- basis. what's large the the in how

to We as business our us by us is the business, all Bausch successful footprint business. say that The the We've having so Lomb other contact + have as integrated in a capability product and business, seen launched platform from products, in have businesses to with of an that real consumer an be thing think differentiates LUMIFY well of lens seen in capability us we as I examples I is we we capability surgical a as that example. in for important we've the life new pharma think a the that footprint that think it. to very help integrated

second part we that. continuing your of On the work biosimilar are was on update, Lucentis to question

there us the FDA about that the announced has is a -- asked submission. question have is that We

to the is Our that working relative FDA on seeking. question a asked of this information some partner, the been who's has

it's the the more a to the in product It's category of We product not X/X the look a opportunity that on near and that. and we'll product opportunity that filing, and FDA filing biosimilar filed biosimilar comments get States. be large FDA bringing work the Lucentis forward is forward that, to $X-plus in in for we us, to with forward of United future. about have -- a comment is Lucentis United billion the But to big take States. about the are going back is when in terms revise with exactly clearly, more and opportunity. very specifics with move that our we'll on But

Operator

[Operator Instructions] from And your is next with coming JPMorgan. question Robbie Marcus

Robbie Marcus

up are think structure quarter. plans? capital and company Bausch. deleverage? -- the if What on to I parent to or from was where the going do contingency on just the the question Wanted follow plans to the plan you it address able the Congrats first spin first forward about -- the How your able are is company Bausch isn't

Joe Papa

Sure.

do have out take add how one, Let we Number me Sam one, laid plans the for will we this. that anything. can specifically

spin X.Xx. Health do our has and a and keep we to publicly, as want Bausch stated will as that And once do think to full Bausch X.X or Health, Bausch Bausch will we gets stated about be the clear. point, that Lomb agreed profile to to we time + we'll most comments that through we a of leverage Bausch separation get of we've today Health be think our But to that. Health, As plans I that to

As variables think be to couple to different there's that consider we that going question. we in have of about that a question,

think X.X%. finally, more Health The an when delevering. first, this That as the will continues [Sulfa] that they then consideration course, Health will B&L remaining be to the have and the to obviously, continues business Health, delever. our also of their opportunity Health And a be an opportunity of of the business, the It obviously Bausch another about Bausch capabilities, pay for improve to there's monetizes to way performance, will be as debt. Bausch Bausch B&L that will also that be we'll to of will value the improve also down is as performance performance perform,

in all So happen. to clearly, make we the that have plans place

want what think do really we in could don't plan that don't a As I would to to We happen if do have place they there, happen that. to speculate what delever. on

at expect Bausch multiple of the we'll business companies stated delever but we view, planning have point as all forward do, business, to absolutely be look able a that from as course, Of different we publicly. move scenarios that we've we're to to going

Operator

The is from Joanne Wuensch Citi. from next question coming

Joanne Wuensch

your first want divide just well between new revenue at anything you specifically, little growth you growth how bit point you reported growth we to? United And to lenses of also unit it. congrats geography coming on to contact any growth call. lens this outside a revenue from the But on tend time spend is as well I of look much States market, organic pull And to as or the of way even as want sort apart U.S. fits? in of as can versus cannibalization the the older can your

Joe Papa

Sure.

on start that question. me Let

the of our terms to U.S. date First what is at a it, and chance latest been let's growth, versus had we've -- call we've at foremost, business share somewhere, the of show OUS. growing from I looking think been We've X% U.S. somewhere looking in was XX.X%. our up to

to been growth U.S. show we've daily of both growth products, the infused Ultra predominantly product. product, the behind in So very able significant Biotrue our now our then newer importantly, the some our and SiHy

the our we've well in our about up growth we share of terms thing I of -- cannibalization. existing brand to been our actually INFUSE at products than seen I competitors, the business. first of in has terms contact growth from This of lens question in as new where thing our SiHy as the to -- the the U.S. we've on our picked or expected. up the as So on the patient looking significant we're comes performance, from talk cannibalization our think, would products. into about Probably I we've very starts daily INFUSE overall some Remarkably, second talk in our probably have is that's What pick come what the especially really INFUSE product. product lower

been with we've as a other the very from It's has seen daily we've expected. been come happy and cannibalization. A than we've imagine, lower SiHy lenses. large from would So you what

Importantly, to what the it on out has a launch contact The there or the have we outside existing Ultra One prior current issue products the lens still believe day, problem we the causing dryness. SiHys problem of call infused daily the been our U.S.

is cold their our wear our day of the we how think with day Ultra we be putting the the to INFUSE of long. very formulation products that We high able ability things outside to an X the product moisturizers were into protectant important all we will with One get and patients and response launch of we electrolytes the successful United or that's of part States. terms in do from by

in the have see We know growth. we I've business the XX% of for got United the lens data questions in States, daily When sets we about of have the where there We that we growing INFUSE fit in SiHy example, best we U.S. clearly most launched have dramatically. market share. market I terms So think contact the

it's billion we So obviously, billion in from product to that's $X XXXX. category up a think $X for very positive States, as like the about us United going category by a about

far your has is and what up some to it come about for the business. question. means majority so but we'll probably cannibalization There we're our starts older new best of be from pick excited So patient products answer where the will brands, and it competitive

Sam Eldessouky

the the lockdown. buy-through certain X% organically we include about to you'll earnings just but softness Joanna, the roughly the to see deck, grew in X% this about organically, add what said, China products grew did And we've seen information also on quarter the Joe and our that notwithstanding in in

Operator

from Your next coming question from Chickering is Bank. Deutsche Pito

Pito Chickering

Back through pressures. the able in prices increase able percentage December offset were impacting price those you consumers prices forward, And if going for inflation to still on quantify you increases increase continues those confident your to on see and January to to you that is are portfolio what of demand? to demand? passing help you that for you also, us Can inflationary increases were any these impact had keep can negative

Joe Papa

Great question.

start Let's historical. with

pharmaceutical portfolio. in take frame, product We took ballpark we correct That on mid-single the in January pricing. was time did that prescription XXX% You're our pricing digits.

X% I net even you pricing with reductions, when going use not just cetera. realize you take take pricing, offset an X% let's to to that clear gross to some as that if additional you're example, you're a going have to et X% to pricing, want at be a -- Now

prescription our business, on yes. pricing take did we So

we we pricing not March in we really business. the in did the January, took took pricing the the on action realized case, addition, actual that In consumer there And consumer our business, but timing. in on see until

of X X into approximately to that months process. to give time to We build have retailers, their

the in did seen have the that what prescription consumer as both did demand categories. until side, of not the diminution pricing but not of that So March, both the we we saw on aspects really for we either as any of those occur see well

pass on price. So be able we that continuing are to to

took take that On area other we the on did mid-singles in in there that ballpark occur lens contact time frame. the pricing also January that and where business, vision pricing did areas we

real. forward, Now do something as It's that we to take go we look the question inflation is going pricing. think on to are to additional

from We prices we've different have in taken the demand the really seen not a past.

that to part We will to we is look It's do this at facing. of need part inflationary that look something this. an our continue from believe we're at

and everywhere at a with all improve get reduce polymers, face a at That's to cost resins We've obsolescence, thinking can challenge we the other about at this we to it of we're an thinking forward want I yield, inflationary ahead from simply take see a we're we the instituted as purchase manufacturing though, aspects for as energy, get we than to inflationary Project as do look rather a now to to inflationary the Beyond pressure. P&L looking what the like to the this program to actual how the refer shipping. different response, clear our to everything it. enhancement. be not also, ahead of want we very to continue price, through be and stands CORE. like entire go-forward from CORE pressures optimization of things responding terms in Project that the to future, rebates as because all obviously, just looking pricing we're try do other revenue and for we're additional aspect, selling and price about the on move to We discounts to

through going And want of ahead that. we Project going think trying add to So as I us we're we to to is help get of you forward. what CORE get to this ahead that think said? anything Sam,

Sam Eldessouky

[indiscernible]

Joe Papa

please. question, Next

Operator

Cecilia Furlong from The next Stanley. Morgan with question is coming

Cecilia Furlong

equipment in you're outlook? just ask this then in in QX also especially I environment, capital your of how on capital, terms globally contemplated that And to for specifically demand would front, balance days wanted you the just product seeing I to as launch through bit initial the of that more the a XIPERE, terms of how love in hear on this well growth? year as you're about thinking about of what

Joe Papa

Sure.

capital start the on plan. me Let

you One on to to Slide of the refer things of presentation. I want #XX our

As was year There of top absolutely we specifically has been them ago, a And the and that we X.X%. that did the up XX%. up of was was one company, show was a all products also versus have as demand the for And the shows XX surgical -- It increased flat. capital implant equipment. consumables. demand

and actual our surprising the stated, has we capital but see business, we slowed us. not bit. had for do implantable did that, marketplace. seeing It's of see the down as business. what part through we of we're way work clearly that growth the side demand did we expected the in we consumables the So we to surgical in overall It's of little increased the see a demand will as currently the some our improve that But issues

response clear when the would information showed rate in response really is data use corrected on As very But excited our acuity patients is increased the We we're dramatically. presentation. it visual to page relate XIPERE, XIPERE. about has rate. what best response rate our you specific The the very, for

control can XX.X%. that versus XX.X% a we the group had only improvement see You had

reason is the product. initial favorable feedback very why launch the of getting that we're the from So

clear, to to product really that Now additional is inject be a want to requires I space. training into the how suprachoroidal that be clear this to

think product. this XX% an bought we're a of almost gotten because of a overall we've So million training thinking or of of of that this this one The as that's But macular that they've who've edema going opportunity. very that's some market from our that that clearly $XXX take actual that. terms is is reception to time. clearly used than U.S. we the uveitis being things opportunity But of that, response seen less X/X good about the physicians in about

more by stay excited reimbursement in future. patients get about excited to products the to we importantly, And happen, launch. the we more tuned for to initial is the about for we we're have future to may And So helping suprachoroidal say suprachoroidal space especially the that, as hope product. how utilizing in additional think this more platform space. a additional the about the be that with really we're most But that

Operator

Sachs. The is from question coming Hazan Amit with Goldman next

Unidentified Analyst

is Phil cash strong, sheet, broader ask question Balance strong for Amit. I I'd free picture as This a on flow very thought well. generation.

+ help allocation a some maybe the company then additional just in future things debt interested Lomb play for the of with on prior to I think to capital on delever? and is out how the depending questions. Bausch with I'm if touch company burdening potentiality the priorities parent

Sam Eldessouky

It's of I'll a couple years. in of focus question. start good what with sort allocation. done have where last we I also we the and just capital will are the on

investment. the years, we the pretty X% good to about CapEx, we're between And our We've have we investment we $XXX we the million. with built we about support future attention of for next go in in B&L think business billion ensure to when of the to products see million the that our invested doing. we today R&D into think that that the CapEx of very about seeing to forward and we invest right as now, capacity us in business it forth, investments, terms are $XXX of important we're additional growth about half were able and in was market. us we'll for million turning was bring since to be us And of level we're number R&D go what $XXX came continue past XXXX. I the About what spend as in that our of for launches And $X we enable number platform to same for billion of about years. to to our the about to sales need allow in are $X able launches roughly that about thinking to building that to

think I investment key you'll plasma for our in So that find be that a priority us.

our our portfolio. have cash We those From back what acquisitions leverage for stand-alone strategic in infrastructure, think structure are our side we where balance commercial of on the where mainly reflect to and marketplace infrastructure, deployed even part very as capital important going some acquisitions, B&L. raised we'll our they're also about we step be it now we sheet acquisitions, opportunity just terms billion a IPO. a basis, to us within we $X.X It's and deploy on about bolt-on we bulk scale the can can the as that the products about to towards by of did B&L, debt of as able type further, of be than the now some within we talk on we putting or we and of in into of and

B&L to and we a wanted how from wanted forward, be going will able we we the get to on structured what we investment-grade an as spin-off. think I sufficient focused be structure we ensure to rating capital that do

about focus to thought all think where balance sheet. our grade plays move forward as and important factor from to where on us. investment the a how going continue And we about in to we are for how B&L's we an we're of the thought be capital we able a the structure I to for leverage are of and in that terms we So -- thinking from sort

Joe Papa

the to market the strong the population. just to population we It's there's with of that more Sam said on know patients you that eye of myopia health myopia If XX about epidemic XXx XX% out that We way thinking I its there because from the to bit over health I we is under people going can to XX, add than age a in XX% eye it's got XX% of is this, worth And example. thinking know said, a population age moved that of see what using the as little agree you're is excellent the an increase. opportunity. everything whether tailwinds, an with about

now suggesting think are side, we've So good the reasons invest about or All think diabetes. referenced time conversation that part we a eye to the we the whether a markets health, we opportunities business the growth. new it's going on think it's grow of on are organic products investing know this well opportunity prior in in side the to inorganic those in in X% market M&A to to allocation assets additional to then these of can this grow have business at capital or And development, on top we X%. as We above with question. as that, bolt

that's growth to we chance at So And inorganic market grow above think opportunities. a growth bolt-on organically, or then rate.

there do we're magnitude, of multibillion-dollar are don't Order want doing us. the opportunities think company some not we past to is had think the Bausch I future. some great do that transactions, because the opportunity We billion transactions. we had, the issues a chance of But additional that do to but X bolt-ons + have to there debt in parent Lomb total for of for think this you

from interested areas and in those ophthalmology spaces of thinking that we areas X some think allocation in the forward. surgical interested view, are point in prescription assets bolt we're Specifically are be the of a going in on about space also the capital areas we you the do additional to would

Operator

is Jefferies. Zach final come from Weiner Your question from

Zach Weiner

in you that to you about the on I wanted XX% hit have. market guys that regions share just talked

U.S.? that broadly share? get expanding on more color you the that ultimately it any can set Just think you that And where do across

Joe Papa

have great the XX% where we I U.S., was In in be share Yes. of XX% data that specific we the want INFUSE the to an our terms a to data question. products. to absolutely U.S. get have of It's on able sets. specific been that fit

have to just yes. on expand answer and contact increased us to that SiHy one also we've lenses there's may Look the be this daily capacity sets but opportunity in at opportunity our globally. we an as do as States, do clarity. opportunities to absolutely looking market categories -- But making for samples how introduce now across believe the to continue we'll broad So fit the we're additional or lines that, United we

XXXX, in approximately As had I markets. X we of end said, launched at the

to in up XX launch of Daily markets of SiHy we're about terms lens. Now our the

of So market move opportunities INFUSE. the to forward move share us to to grow with continue to

States, year $X billion, Importantly, grow is daily in important though, maybe billion think to billion from market $X $X.X comment. just going the make by somewhere We one XXXX-XXXX. about the closer United to SiHy last to

about to $X.X billion to it We international from $X.X about billion. is grow portion the think also of going

Daily call close something looking $X the you're a lenses SiHy billion So on growing it, billion globally. at from $X.X market to to

So a contact some in we that the that's a products why SiHy daily are believe we're that on with challenges current excited forward are to of ability infused portfolio lens about this come addressing the available, delivers of has based feedback certainly, this our been to chance the the patient And we've area dryness of because on too. for show patients it, outstanding contact predominantly formulation. of had lens that

more So products. expand a INFUSE for -- with more as sets with clearly, taking look our future we at the opportunity out absolutely our fit capacity, we and go

you getting and the day, That future. Q&A everyone. a concludes forward We you in to thank you much today. -- very and look question. Thank for our joining. So great presentation for Have very the to back near talking much

Operator

conference Thank has attending you now for The concluded. presentation. today's

disconnect. now may You

Bausch + Lomb (BLCO) 8 Jun 222022 Q1 Earnings call transcript