BLCO - Earnings call transcript Q1 2024 | Bausch + Lomb Corporation

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Operator

Good morning, and welcome to the Bausch + Lomb's First Quarter 2024 Earnings Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to George Gadkowski, Vice President of Investor Relations and Business Insights. Please go ahead.

George Gadkowski

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 Brent Officer, Financial Saunders; and Mr. Chief Osama 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.

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

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

in by effective until to update and not today financial as to our disclosure. required this guidance update is broadly affirm The other is unless of law policy quarter presentation than It only. to guidance disseminated generally public or not the following guidance

pleasure it's to over Brent. that, the call to With turn my

Brenton L. Saunders

everyone, bit strategy. to George, which by growth first of frame, following joining Bausch familiar thank to Lomb. to by you, we'll of quite earnings X for now. my cover time you, Thank nearly return remainder quarter as and us. we Today highlight for you call our accomplished We've drivers + in year areas since drive that are and review focus the performance and a the These marks continue year. first

business the from growth basis saw revenue. a with line quarter, each units. constant to for We start thanks Let's outperformance on of our top currency XX%

business we're across other limited we or segments isn't region as of position performance. X drivers being delivered reporting words, solid enviable geographies. results our Our an not on of quality as reliant of growth In in to

we sell bearing make methodical improving things Our and is to how approach fruit.

our expansion latest Vivo network. our time. to offerings. to lens over own parties daily reliance returns on excellence plans Operationally, third reflected And Our in strides SiHy in we're within of continues launch ongoing contract renewed focus levels and we on our early making lessen contact challenge, while for is on service have motion improving a present manufacturing

to producing Finally, results. focus by prioritizing innovation returning our our on roots relentless tangible is

Aspire enVista strong Our market and planned for premium made launches steady IOL have stream entry, has a a IOL we XXXX. of

quarter, talent a infusion team, our that mentioned Last for R&D and hasn't let I up.

prominent recognizes we're make to continue hires what and scientific to pivot people building. We The our want of XXXX. community be part throughout

map indicator. The is takeaway from progress road slide the our main

X process maps forward, of focused to back. important always workforce along our remain to like tough While assuming an of company work + some I checked. embraced largely I'd world around a refreshed at follow this. opportunity some to to. caution for Phase human work, Under make from very accustomed decisions weren't undertaking if aspect Phase the against acknowledge achieve shying direction the for looking every After an and made it. obvious is box as the of Bausch met When to the a needed them. we how way and people means the clear we're only rewiring Lomb, we of the Instead prefer leadership road gearing effort but like on up colleagues in us. the stating order That team, of that while it's with potential, I sometimes I break full its to has every has quo, front X, challenge the Innovate XX,XXX complete. status a been Execute. rethink operating the in exhaustive look it rejoined away speed

had company We some our in faced. That relationships to urgent we I and in product built chain a Last jeopardize us same commercial to way. enough a our led we've and robust network was Underutilization flow. global clear needed about decades. challenges thoughtful the the reinvent We of but was customer inefficiencies setting, but back. May, supply holding not over

of to take addressed accomplish chain since. turning what the in with able head We proud months. a been the I'm days not into competitive understanding we've distribution and issues supply advantage XXX that manufacturing our on our would network years,

result, As of supply products. a a now more stable we have

Xiidra products. supply the most the offerings our sustained us introduction growth address position category with These some our the needs and augmented commitment new of to blaring in leadership. also acquired in of and and health, innovation We've for and demonstrate case of [indiscernible] eye

Our reinvention is products. prescribe eye resonating and use who professionals care with our the our most important audience, recommend

to year supply Annual my of priorities ago, experience our around X about the to In interaction, the products come opposite. our new and Surgery excitement efforts and our of and on Listening the My what recognized Learning services they've shared nearly was in exact and awareness important of rely holds + role for recent Bausch to clear. the increasingly appreciation Meeting lack deliver often was forefront. Society Their concerns customer Cataract Refractive market. every predictively came Tour future at to and bringing the American an solutions Lomb On

the of gets I'll give Sam a before specifics. brief financials overview into

driven for which, Surgical, our constant by currency XX% X% reflected segment shown revenue currency previously and growth here, Provision holistic business noted, Pharmaceuticals. in XX% growth our with performance strength, Care that's constant XX% was revenue Our as is for

at revenue, organic basis growth As revenue inside year-over-year still impressive Pharmaceuticals a our on XX%. showed

X-day increasingly Our in of to and category. PreserVision, in ongoing our and have enVista areas bolster key outperform that and family of notably, option units. preferred are most Brands holistic the LUMIFY excited for drive optometrists home demonstrated for opportunity, franchises expansion IOL high-margin that theme spread surgeons bottom consistent that the and continue a performers as given our line. growth INFUSE top business the across lenses

me let Now it over turn Sam. to

Osama Eldessouky

good Brenton, and you, Thank morning, everyone.

be basis. focused growth on in today Before comments currency constant will we please that note my most begin, expressed of

pleased Turning of to now X. each solid revenue to on another of quarter across Slide franchises. product key segments growth and our report financial our We're results

strong Our for business XXXX, revenue of has in continued to reflects basis. currency the Total constant out on quarter off billion start a XXXX. we're coming $X.XXX company the XX% growth momentum of of a and

As the ahead previously as focused revenue to We're products. also to remain improvements and have growth about of our in supply make margin and sustainable growth expansion. launches executing our discussed excited opportunity and and with strategy XXXX the drive chain us new upcoming I we're Brent mentioned, on recent we and of continuing in

the Despite quarter, more revenue delivered headwinds, currency was first a of the currency than the quarter. $XX higher-than-expected to billion we in revenue. in million For headwind $X

of the discuss each Care first consumer by of results and quarter growth internationally, XX% The on and the lens our portfolios. increased segments. demonstrated currency basis currency on a in performance, in in with both constant the U.S. XX% million constant in Vision of QX. business revenue again growth contact consumer driven let's a both basis, $XXX Now by strong

We continue to vitamins, both grew currency. X% see franchises, growth by LUMIFY, constant grew the expressed in i key XX% and across quarter which including which in in our by the quarter,

XX% quarter from the million on the contact growth Our organic X%. consumer reported revenue by our in delivered revenue SiHy daily constant growth. lens and grew quarter, revenue XX% constant representing a XX% in was lenses eye currency dry currency The The in portfolio $XX basis.

to [indiscernible]. We're daily been SiHy rollout of and the we has launch the by daily now multifocal in SiHy this global the of solid has franchise and the family as the sphere. the SiHy the Japan launched continue upcoming further U.S. expand added of daily Our performance the growth excited and with lens

Moving to now the segment. Surgical

IOL in The First portfolio to quarter which surgical constant was we limited Stellaris portfolio of in solid The Lux been IOL quarter constraints. expand consumables with with growth up was the sales. basis. X% ICH, X% continue by of equipment grew portfolio a has from increase along supply currency driven by our continues a the currency with basis. in X% Implantables basis, the the revenue see made grew phased X% has lens currency. the demand. a enVista recent million, EDOF currency of on system on The launch a growth XX% packs Smart basis up currency for a $XXX quarter constant constant constant launch constant U.S. on driven by mainly where an by of mainly the on market was and entry Europe Aspire strong Revenue to premium

strategy focus retailing product to higher-margin continue on our and categories. upcoming We premium launches

next see the expect We revenue expansion. launches to and which a steady drive of number growth of stream anticipate margin sustainable will we these over years,

million represents to million for positive, in delivered remains revenue $XXX stronger The first was quarter, Miebo which and the making Xiidra $XX adoption. the currency XX%. investments segment the million the of Pharma delivered quarter. growth the incredibly to launch performance $XX drive quarter. in of constant the revenue committed in in we're revenue Lastly,

reestablish executing leader. we the Xiidra Xiidra on. our We a quarter, as in direct-to-consumer progress make realigned continue to the to force have in market back marketing turned investment The was strategy and field

Healthcare. results, resulting disruptions cyber noting to from Xiidra at Although the company's not material the worth that negatively the by performance was it's impacted the of attack overall Change

an scripts eye as a potential. I Brent the about delivering Xiidra exited this, their However, stress dry excited in and and want quarter us and together we that. improvement but on position leader to vendors. Miebo on elaborate saw we will transition we're as disease, other to in full

the the U.S. pharma other portfolio. we business generics grew X%. Xiidra, and and pharma by across basis, On Miebo a international Beyond saw grew of currency strong by XX% constant growth parts

the to the As entry into a during declined quarter. expected, market PROLENSA generic due

first points of 'XX. compared mainly Surgical items. Now Xiidra. $XX let the by we costs higher gross This margin margin in me approximately by was driven including adjusted revenue. for improvement the adjusted XXX business. million mix, XX.X%, was R&D to walk up quarter, inventory through driven key by In line favorable invested was or Adjusted balanced which non-GAAP the QX basis X% in was pressure of the The our some product first gross quarter

versus for operations $XX quarter flow $XX and which The the in quarter first interest the first adjusted expense was EBITDA effective of approximately $XXX cash was quarter EPS was was rate million Adjusted CapEx $XX quarter million, tax the Net the quarter, represents $X.XX. XXXX. XX%. quarter growth was million. for million. XX% First the from was Adjusted for

on to our now XX. guidance Slide XXXX Turning

XX%. currency of strength risk the raising the constant from year growth to have to seen The of momentum the our a reflects approximately to broad-based XX% XX% and quarter. range our XX% range first revenue are guidance of we full We business in a

billion. Our the incremental to previous currency $X.X absorbs guidance. billion $XX approximately guidance of range now $X.X of relative in range million our revenue XXXX to remains This headwinds

full to be million. year, we the For currency $XX approximately estimate headwinds

our revenue. in approximately to maintaining for are generate guidance $XXX million We Xiidra

revenue approximately of Our XXXX. for $XX guidance in Miebo to million continues be

to EBITDA. Shifting adjusted

approximately $XX adjusted of maintaining of $XXX range in to EBITDA million, currency are absorbing headwinds. the million XXXX We our guidance while million $XXX for

continues focus margin on Our to expansion. remain sustainable

expansion focus excellence mix expect maintaining driven be our our We mainly to by and efforts to strategy continue on drive cost the discipline. our to shift products, high-margin to operational to

investments make to to with years continue in of to and fully the XXXX we sustainably margin of recent value capture expect multiple As the build upcoming on growth we our launches. potential the over expansion us, ahead

the seasonality is natural would QX call. business. we our I noted earnings emphasize reflect once Our results phasing there And in again our during last that

We expect results year remainder of QX business our be throughout build the to highest. expected to the with the

that any As last drive part EBITDA enter our onetime should guidance It may reflect to be [indiscernible] I arrangements. payments we we do not collaborations our into as that such continue innovation, with of upfront adjusted call, during made noted as mentioned be Partners. may earnings pipeline

expense be the full X% key revenue terms interest actions XXXX. we R&D of approximately will noted monitor expect XX%. of as continue anticipate the of said, to That assumptions quarter, interest to approximately on to remainder be million investment rates underlying our to We as X% adjusted in last year. to and for we Fed other approximately guidance, margin gross be $XXX In for

full We XX% to expect continue year be rate approximately is roughly million. to adjusted CapEx to be our tax $XXX and expected

strategy our and business and we're delivered start solid a drive summarize, results sustainable quarter, to We strong the remain XXXX. committed the in to off to growth expansion. margin in To

call And back Brent. turn to the now I'll

Brenton L. Saunders

Sam. Thanks,

some and the OTC differentiated including offering. XXXX highlight a Let's growth upcoming launch drivers, of new

million. $XX As Miebo of Sam promise has revenues mentioned, shown significant QX with

Just this and X, anticipated approximately other today, of X by top last than Medicare week, sooner July to starting quarters providers learned covering will jump begin roughly coverage X the X we for Miebo, that's midyear XX% means the that X will population.

we're is innings, years Miebo eye excitement and early around real cornerstone of While become we will expect in this to come. our a franchise medication dry for

There to. in performance some also Xiidra interpret consider. which color Sam on I'll add X contributing to are touched to QX, how factors

entire territories First, in we force February. new early field realized our with established

the were forward. we seeing faces, going new pay will dividends expect prescribers most developing relationships While

deductibles in fewer prescriptions, faced quarter, patients naturally you're familiar which all the with. first a Second, in highest results the cycle

did incident the was Third, Bausch there disrupted. a material involved a brand. to Xiidra are effect the nonquantifiable while + in Lomb, on signs rehabilitate impact there not All continue encouraging access Change reenergize given as said, we that and Healthcare was have to patient

Our for to seek the most that prominence year progresses and treatment more prescribed comprehensive has for as We've and commitment the sufferers made dry underdiagnosed sales and in evaporative making eye options a significant as investment condition. Miebo disease Xiidra, eyes in approach the a inflammatory will increase chronically labor. dry

which and a from a suffering address the to eyes Nutritears, X treatment dry who little X weeks. For pharmaceutical might nutritional symptoms as to Blink daily eyes, of in as formulated supplement new X introduce we're the not is option, require intervention, to excited different dry million

prefers those already eye a solution. to daily supplements, could who taking For we're drops, be convenient Nutritears

on a franchise, few growing the the surprise. that addition While Nutritears in supplements unproven, Nutritears. met data. science are anticipate endpoints we secondary The anchored by primary bringing which is to week, as is evaluating next efficacy addition We're months often our of endpoints, Nutriceutical latest be Nutritears, we a study and shouldn't the relies come to PreserVision. a which study clinical announced safety of will options launch will Last new to the results in which in consumers. company when both grounded

we're dry With Nutritears, industry-leading resting the clearly opposite. of future on when the of eye considering platform, not our like our the laurels addition

from potential, but not a blend for and close. addressed even prescription market the not treating us will offerings and comes OTC Given repeating something if to pack, eye there Simply that have is dry put, when commonly separates soon common everyone of issue. it the it's our

that new the the will on portfolio into focused premium with IOLs. products, strengthen of increasingly offerings Keeping anticipate theme ophthalmic meaningful to and on responsive entry surgical the technology surgeons. precipice our We needs is we're of of a high-margin these cutting-edge that evolving

Lux year. to started an in enVista IOL available expected expected to We Our is extended the Envy U.S. for later in U.S. study launch Life in we a plan enrolling enVista in And Europe, be trifocal launch XXXX. with brand depth [indiscernible] this and clinical focus XXXX. of

takes to launch are widen familiar premium fourth commitment renewed Our offerings our IOL hold. reflected on as our slide which innovation to continues

last results future for buy-in extending we to from announced approval path in around a of a by the Just colleagues we're the be our work LUMIFY and heading The warranted, preservative-free, week, our burn reach. stakeholder example world. its but harnessing right XX,XXX FDA by Significant remains, around prime is brand's optimism continues validated the momentum direction. feedback

the open for let's Operator, line questions.

Operator

question comes Morgan with The Patrick first Instructions] [Operator from Wood Stanley.

Keonhee Kim

I got Amazing. just couple. a

different last kind share the sounds all certainly and rather the divisions that? that is thing breadth the across that Am over guess across quarters the message. right different like the a X. composition been lines I has out of on I you like has i.e., So geographies. a sort growth forward, of of jumped the few that of sub That the the gains bulk going expect guess I than

Brenton L. Saunders

Yes.

Patrick, theme. Thank on So Yes, it's a think Brent. you I you. hit

and innovation reenergizing when cycle. we first for most talked think launch the had and about our invested year a ago call also a I refocusing about robust ago, I year ready while I new organization, earnings joined probably over and product in the got

excluding plus performance Latin these Europe, Consumer X%; Pharma me X, plus plus currency. lenses look XX, so Xiidra you if XX. plus Asia geographies, all are this in XX, give plus plus at let America you Consumer, plus contact XX, X plus plus numbers quarter. the and X%; Surgical XX And the just some constant U.S.

everything. think right, businesses high-quality I the all world. most around the you that's you the pretty world, So is do of way And broad, growth across our make across the that

to focus in customer in reinvest how out our make center the of product put sales to the execution. You to your company forces on people figure how most and to and really how the universe at important promotion, the

what that that's so reenergized and we expect our doing And continue. we're to in company,

Patrick Wood

a just curious, the I of in as pickup when see a there start just launch year really a is year. that. strong of a reason second then one. we the through there's the that growth there refill sequential conservatism? Miebo? move you you relative between things the And year first is Miebo, guide, any shouldn't little to for I'm I'm of like bit mean, noise a lot But this Amazing. continued quarters of rates of start product thinking the at and Or

Brenton L. Saunders

Yes.

you're right. you with quarters try products way, -- right, just So Miebo Patrick, this ask we just even are we've and where it to to in but had remind didn't answer When it. about want you I both X market. Look, the Xiidra, me think let about of

as look on we deliver. We're the confidence of with an the think the is think in execute just So I it's well. numbers work lot really off of gave But Xiidra early, and you, first execution, we're year focus I start as I right, just can Miebo, And we we right? our amazing think can to progress. you still have that a a at quarter by I in

too early the just And conservatism so to first up just but right? think there, maybe there's some quarter. call I it's yet, It's it

new brand We have for a us. field

new have technology. We

reps patterns with have physicians. new call We new seeing

an but execution lot there's on you too like, to basis get to a lot before a there's focus So excited.

Patrick Wood

Love it. feels better. [indiscernible]

Brenton L. Saunders

better. It's It it. appreciate I you. much Thank Yes. is.

Operator

from is Fargo. The next Biegelsen question Wells with Larry

Unknown Analyst

calling year. It's on start a Congrats in for good Larry. [indiscernible] the to

on touched this just Brent One Just on and briefly. X questions. Xiidra

to you And prescription should first and previously, How How the confidence you we that $XXX You we get talked do million? What look volume pieces kind I get there? prescription do for that the see QX what talked affect you growth sales. $XXX stabilizing second to gives of in about half kept out? million in and your about trends? maybe half. think you guidance that play in returning those that of

Brenton L. Saunders

Yes.

if Change in was Xiidra So I as in I you a -- away load with as progress. Lei, the mentioning and change that Change, And And still It on And and quickly the impact I cards Xiidra about were to pharmacy the still is went price. the we're We not And Patrick, I went you from Miebo to had first think in use took full And when work Miebo TSAs a as the pharmacy. see team just of the it was And look administration question. worked in Novartis product you said, use patients appreciate know, as excited moved pay as quarter. performance had but -- patients at to doctors script and list we super and soon Xiidra. said hard because couldn't very is transition down, down, physicians. We weeks. the weeklies mess change administrative trends use for for few and that frustrated to significant script, the at Blink. only went manage that as effect the copay to does full Healthcare or right? Change. I for

second We brand-new with seasonality, new to going see quarter. the quarter. so field first And Xiidra then a had the come with in that back do difficult expect quarter in new territories and couple that patterns. call And force first a

you I we're ready aggressive say, a at call the that But not it guess look down. And so million to this guidance little point. $XXX could yes, at looks and

that. to we team absolutely commitment, our and meeting to think to do is focused on their I continue want invest

a go quarter. the So think happening improvement fourth with in see a we the of lot quarter. as I sequential we second into and you'll have things third And Xiidra

in of So quarter quarter take and really But don't execution. performance I why feet once we've and color I question, ask absent on may to realignment. people get that sales We to Xiidra to force you want next you the clean give we're fire willing the and it. year, focus want get not up, but take Miebo change better in our down. the we'll hold seen first some to we update

Unknown Analyst

helpful. super guidance. That's the question second Okay. is My on

implies double math somewhere was sales QX, the Our low that digits. in in growth your organic

maybe growth seems to organic the to Your rest year, imply the would a mid- guidance high that for closer to of bit or single mid- slow digit.

math? just what you So from confirm the QX rest to the of year? one, And two, can flows that

Osama Eldessouky

organic This growth, is really, focus Xiidra Sam. And the I'm to on and on here. going

Brent business, we said, as that pharma about XX%. XX%, it already about on of So Xiidra from constant get million. you to $XX currency was about when growth a think touched

for quarter, we this points overall put currency. XXX constant Our that. basis up is performance to Xiidra XX% contribution about

if increasing about guidance, the organic at full XX% if XX% for Xiidra, struck with guidance So XX% take that that Xiidra out. of you of of And the year. you when on you year the midpoint the gets and take you roughly about look math guidance just about you to our XX%, full do you X% now had that

puts and in So we're seeing -- throughout we're year, with early for the there's the really quarters. and the momentum carrying year, but any still X next momentum the as -- the takes us forward carrying the

Unknown Analyst

Okay.

sounds year. perhaps from like it for organic X% in the growth QX full XX% conservatism going So to some there's

Osama Eldessouky

the X we're given seeing think the all the we're about what Brent of the in Lei, the business, in we're excited again, and we're how performance how the we're just year. here what really But base we're year, Well, early just went about the about businesses seeing still excited Brent through Miebo, fact very as rest balanced regions. we terms we're across said, our of seeing in in

Brenton L. Saunders

Yes.

I stay tuned. think

are let's we where first. adjust. the see we second in and quarter But may execute then Let's

Operator

Young from Jefferies. Li is question with next Your for today

Young Li

$XXX right. of sales from sales you cross-selling coming potential dry between number much million X for benefits and wanted integrated X, from hear eye. early the outperformance combined the I Miebo the integrated see Good Pharma. the an has 'XX. is largest about changed. now force? the to have I impacts How bit heard that on revenue force in more of to the little the But comment a All Maybe Great. Xiidra

Brenton L. Saunders

Young. Yes, great it's question, a

force I mentioned, eye in you look the think shot how in component key the and long dry field as integrated the market inflammatory option has where is only dry branded it's RESTASIS and the Miebo to cyclosporine, where this goal market. eye by strategy Xiidra evolved, when And force us a dry of evaporative for to some really at sea category is a a versus And of field and reformulated. our the is you the win win. it's including largest

We for have both of patients dry the types option eye. type best of for either

really product so And to has And there the in we're space, the in the the there. inflammatory we best winning only competition And the have think town inflammatory. for then of Xiidra is and compete game cyclosporin in I products.

And the in They've a field some our data February. weeks. in field are But been early just reps results late so are promising. were anecdotal, for few trained very

encouraged. the third So fourth I'm quarter see of in year. play I second, very think we But out the it have and to

I think executing. great we strategy a have team the and is

Young Li

the for the year Maybe to relative industry, and of helpful. some does comments pricing especially up contact can on very there Are daily quarter? supply lingering for supply contact on general the impact dynamics if to growth That's SiHy? and rest the you Great. right. Any and when for more catch demand, distribution lenses turning make [indiscernible]. impact Lynchburg first All lens in still any

Brenton L. Saunders

Yes.

Lynchburg Lynchburg. for shipping resolved. is think orders. start is thanks question. the well, all So the Look, It me -- with let I

back in Lynchburg. to Now on par we're fairness,

year. technology hopefully, We in do see efficiency. that did this need to we Now not new the in there. investment on supply an at get through But of And Lynchburg pull the remainder make is we a point. drag that

there. the news that's good So

dailies in performance on were quarter. basis, we As a the constant XX% at our look up currency

impressive to modalities. spread world, of really have gearing across the U.S. seeing still the launch we we're multifocal then performance, and still up Rest the We the So really for and to launch toric launches and in World. broad-based wherever starting fair, and we're we're that be launching

and of a launches within of a of like coming lot So lot performance lot family still a there, products. to that great

I is in think I lens that I the probably particularly say or the multifocal. best thing thing the would the third category, second the is -- would

optometry and are We both feedback consumers from hearing community. the tremendous positive

we that's So price pricing, product. of we a because in particular of And have winner pricing hold we to I environment. have terms increases stable, very we're respect think supply-constrained I as the relatively been around With think a that the modest look, trying in to quality world. real

us, it's not taking And accounts, on share. customers. about so about a for it's about taking It's price winning market

I seen that's like, discounting Lynchburg by of others, some inventory Unfortunately, of but lot reasons don't a not the have for trade. think or a we we've the have in because lot we inventory. they because of

So everything ship. we can we can sell, sell, ship, everything we we

as And position so continue I to think happens what business. we we're I'm share that in to a excited solid pretty and see take and grow part our of

Operator

from JPMorgan. Robbie is Marcus Your next with question

Robert Marcus

hoping you underlying plan? Xiidra look How tease were? what inside for is I could could did compare that at the versus how margins you Maybe any me. the out give And first, us way integration was ones financial your going. reported Two versus

Brenton L. Saunders

Yes.

and So Sam I'll take the second. the can address maybe first part,

mentioned we field complete. at forces fully the earlier, of So as end I -- the realigned integrated February. and the is integration We

So they've that been And in they think, a -- to went, I weeks multiple and patients. and to of happy physicians have excited. a and ago. care met that eye treat for them, many happened few the dedicated treatment are with incredibly company be just I've options team energized really well, and is

points, we DTC and We've technologies. moving. our are on call focused the improving as And got well, that so I now online back our think

of We lot programs have a speaker happening.

of the And sales force I and regularly. so a and there's a lot it hear excitement quite lot of lot energy, from from of focus a customers.

it's to it's all But have a Novartis. happened. we we that's in remember, think few just performs with I since So see were a But weeks TSAs good. because

had we of with or And now behind that have those that move more of had so things sense is or didn't quickly if TSAs, urgency, we lots but we would We us. change. to stick perhaps faster with more

on our we now control can destiny, and own focus we execution. So

you want Sam, to? do

Osama Eldessouky

you our to when the think And was margins. part about Rob, to your start mix shifting on strategy your in second Xiidra, our higher part of overall products question, really as of

that XXX play point the quarter gross XX%, you coming see because Xiidra of is this the the basis margin So beat the out of that out our that with financials referenced in of mix. earlier, with almost half I

the see you'll gross year into margin. benefit that So

In the on that think mid-XXs. about I way I overall -- that the terms we of in roughly margins disclosed it's Xiidra, past

still to as I year, is the expand the number, be about probably that throughout progress think will should that same high that and we XXs.

Robert Marcus

in cash in think came flow any Great. flow. And do on throughout we cash quarter. on It And just about more the flow? full free year How negative then 'XX? generation cash free guidance X free

Osama Eldessouky

Yes.

the operations, for so $XX That's cash about was So adjusted it million. from was positive. roughly quarter cash

think things mind. a expenditure to of in I keep couple of timing capital bit is the is tricky. little One a

to year when So the it's probably about more you think or you million about probably roughly $XX full expenditure. about think guide so just a capital of We it CapEx. think of in quarter

QX. terms flow than a I That adjusted CapEx run little for in cash flow being cash from operations with was there So bit in think heavier we positive of our -- QX. usual said, a rate started from

going Surgical Xiidra. and of that's we're be here. step just the And inventory also to see in specific 'XX mind, as billion, to a There's to in to in because in strategic $X.X terms X terms doing continuing up there's buildup But we're that about billion business, working we into are Right manage capital, just inventory. 'XX. a we're elements up that in, inventory acquisition especially our over now, We of inventory. $X of with what of the come -- wrap of keep coming in there's down our

Operator

Joanne from next is Wuensch with Your Citi. question

Joanne Wuensch

you ask, Can contact -- gave contact. what I I wanted away please to

where there? How market, contact the market of going? on how you lens are be viewing that? ONEday state market on and + share lens maybe the are silicone Lomb products On union your you viewing may Bausch a the And

Brenton L. Saunders

Yes.

think as So said daily now the our the around U.S. our is to a XX% the franchise. -- now think sphere look as you momentum I the the launched in there launch we're of multifocal strong important pretty but SiHy launch lot constant as globally preparing performance And have in a I earlier, growth in currency the at and world, I mentioned, have are we with we market, is in toric spot I to because for continue we

the looking and look should expect that at be share. to than do able you So growth at we you're better as mid-single-digit gain that market, I and

our great so market And we to position. share a we a go have current product. given way long have I to But think gain

We have great of mix a products.

around relationships with ECPs the great have world. We the

brand have + of We a and heritage. Bausch a Lomb great in lot

the a on execution lot the but say to modalities Ultra And that's outside in a quarter So first INFUSE U.S. particularly focus. on focus the how growth. to XX% other I'm daily U.S. our and And and branded it's real delivered real daily launching team SiHy around in the like, the is at proud

So let's deliver and hope on stay they their momentum. customer and that can focused execution to continue

Operator

The next with Vijay from Evercore question ISI. Kumar is

Vijay Kumar

I guess X sort margin-related of questions.

that down. half? you step annual the FX Or First, mentioned gross in maybe, of margin implies is I impact? Is a back causes the the million Was down margin I on FX? guidance step that a gross outperformance of think something incremental QX, function the Sam, to what gross margins about the in $XX that -- think headwinds.

Osama Eldessouky

parts. X it's So

is So the billion about $X.XX higher a think have rest number of the the and the the out I you sitting product earlier, referred elements an Surgical. play same is of for gross That in in on call you it One seeing as has mix first seen the with balance in the inventory that it, that's margin of to that about part of year component inventory. keep because improvement our mind margins, that the to we're we've

quarters, spot talking surgical been in we've where been be business. of buy, number to components on our about last So recall if we we've you supply ensure have buying to our sufficient the able that

You're seeing but P&L. higher you're the time cost of the that X%, inventory of bleed will through a growth seeing the that also that in in take and to

that be will a of XX% for the that full we're So offsetting benefits mix. That's will gross that around margin that the element an stayed some seeing product from why we be year. here

Brenton L. Saunders

build as would for I I supply relates here very we Surgical. it to decision to And Yes. Sam, add, intentional if product inventory, made a can specifically

hanging surgery. you a know, can't leave you before surgeon As

I regain is possible And sales so the to going and but off and X to relationships, cash. things to prioritize arrived we business. That and when relationships Sam decided paying is customers and confidence of respect hurting in supply Surgical wherever to I is that were our customer with it margin.

And was over hope intentional an but prioritize resolve to it so that is decision we something customers. time, to

Osama Eldessouky

headwind, part offset our was down improvement we've $XX in currency an second question your of that of in performance the currency your on initial guidance. headwind EBITDA, in incremental by of in seen that was Vijay, our terms million And Yes.

strengthened with So we absorbed of in headwind. the essence, -- that really, performance $XX the million EBITDA

Vijay Kumar

X for That's Sam. you. Brent, helpful,

the marketing-related is said spend 'XX? in revenue I And start sort to in is think $XX down we you've expect spend much this onetimer go How of past, launch-related the million above leverage levels seeing in margin Miebo should those contribution fiscal guidance. to on well of of the spend?

Brenton L. Saunders

Yes.

Miebo question. Miebo great So out until performance. expect to to to see more Look, invest drug how profitability figure traditionally, going Miebo for behind That early too invest said, margins time. and new around do I some improving do We we're in we you being years. it's around improve 'XX see over launches behind think

see for to into 'XX so And is low get as time. And point, going And have XXXX XXXX, margin you're look, Miebo long a we we'll real 'XX, contribution. the and improvement. we see

and significant really company a the over margin become can to it term. contributor long so And profitability the

towards. building we're what that's so And

drug. You only to launch chance get X a

X get set curve. to a chance You only

adoption ever, Miebo You see than strong we in off Miebo. we're curve to the Xiidra. want don't to I hoped. in struggles really a We want have right? put very we rehabilitating a think better start, that and had position that And even good We in profitability

that's I and always see say you highest on build so over When profitability sometimes on sale smoke fire, gasoline and launches. peak this time. pharmaceutical in And you biggest a pour you it -- how said say it I'll before, I've the because again.

Operator

Matt question from Miksic next is Your with Barclays.

Brenton L. Saunders

Hi, Matt.

Matthew Miksic

Sorry about that.

that things what's you of of the have at investing course, appetite that strategically, be in this or you post be paying activity? Just there's making strategic could. X before important seems X in push investing across I the I businesses and for would. if kind kind And out driving of have that know the next decision the lots plans off? was on could kind maybe time months I an follow-up, Xiidra just you to And decision last other year, leverage then of What XX wondering of strategic spin? your to in the investment, if or lower XX

Brenton L. Saunders

Yes.

So just have TRxs work a you're I did investment Matt. big from we to We on Xiidra, like right, goes while it Xiidra we beyond because on bet product the our make establishing Xiidra sales, into more Xiidra. actual position to say, have our And do still benefited as in and of having because have also that goes market will options OTC to Miebo things and presence clearly the of Xiidra. launch benefit

have a of solutions want we in a and innovation of We be loud voice very more for a and share driver category, to patients.

do. lot it. Xiidra, execution on to actual of strategically, lot with like That's I a think So about work to a how

launches as business, as a the launches think our continuing really at priority important I contact the business, I support lens the right times. now mentioned few investing is we investing behind to top look in

lot, and the is really a tremendous. and Monofocal our has launch behind. Plus, end roughly important, something surgical launched the surgeons in very but implanting at feedback mode the full and lenses We've which enVista right XXX last spoken got haven't which really been of Aspire, now, trained We -- investing is we're Aspire year

doing ready we're that, launch we're the to Europe. As Lux around getting upgrades

is the to quarter have the fourth trifocal, or in the which thereabout. perhaps We close Envy roughly Aspire launching

studies extended great focus. so of the we're is to going And investing our for that depth in be a and lens, enVista beyond

well. lot as a there do to So

all future consumer, few robust to So be lenses, excellence margin the all for want really will new businesses, years, and products over to board, sustained higher way, and years contact have continue as really improvement the a including by pharma, to a margin we surgical have coming all of And B+L. our cycle company next product the which products, come. launch have they're these our the across support

never XX dealing after relatively doing look to innovation. collaborations, we being in we have stream year, taking what sure a product and R&D beyond That investments investing we're + like it. are of the after steady is investing new results in? Lomb We're stream cycle decade. innovation We're years And repeat and see have to partnerships, said, And that the launches health Bausch -- we're create how of to organizational is decade we for you a path continue in smaller what today. And we to we launches technology pause have with. of year at company the the make a

priority term. And focus so that's key our the and short for

Matthew Miksic

That's helpful. super

Brenton L. Saunders

Do you have question, another Matt?

Matthew Miksic

Yes.

just I of You touched seems follow the had that, on a kind to know I the side. the some of here some Surgical up things -- on on to be is that you had get to needle it just some ramp be to of And -- space move to where a in the I want launches. the longer of to competitively. you Surgical sort

of some back year. had half this You in coming the

the of XX XX more think lifting sort you talked give year, exit in meaningfully were that quarters? this us a start XX, you've should of the there? to map lifting next a next to a build bit of you the of business months, that the of for Or sort results couple is products of road If we meaningfully to and months show investments the about that XX or as new

Brenton L. Saunders

Yes.

tax are It's currency right. portfolio. quarter, particularly you the XX, if in look you're move think But I offering, numbers, implants equipment up up constant look, to and we XX, a X%. saw the the to the as XX-month more you of IOLs premium up more X%. of build X% These the complete

margins we're will is a look take to come our manufacturing transition particularly working including IOLs, our with that that much through. being At capabilities really working our execution said, And through of time consider distribution as work premiums, still we of think mentioned, And tactical margin. and I nice and by at and some full mentioned, is mix, expensive I X Sam But as inventory, offer chain higher the they better time, so at team supply One margins. to Surgical. things there's to same team. as then as get and a range we to improving profitability

business, next, much think XX time. the a and see we're so said, steady become over going months, in more I you as to improvement over you'll And that XX, competitive

So be an hard a right lot to the dedication. But not We're track. of right early, on on sensation. lot and the work I'm but It's overnight excited track. about we're going it's a think we're it, of but I

Operator

We question. question comes for with And last RBC. have Miehm time Doug X from your

Douglas Miehm

Miebo. do of like to I'm side, you how has question with on My to terms be drug. are wondering going think Medicare the covering commercial things getting looking Brent, And formularies are in launch there then Yes. But providers as the mentioned that top I X QX? follow-up, going the you that very, a for outperformance very strong and capability the have do thing? sort what on manufacturing Miebo be looks of just it's here wondering, to in to the given provide a

Brenton L. Saunders

Yes.

So great question.

so. the over other top will or plans Medicare So correct just you, the to month of covering X begin Miebo next

flip about a of -- clarify, give doesn't switch that to And over so coverage not just that the an the will and XX% into Medicare us second takes half build policies local That's to but of implemented, a Medicare schedule coverage. team year. It some going get on we're really time The there. getting overnight. a job ahead did carriers change and great like

And throughout On continue should commercial, we're that the to as there. and so lot a XX% well, year. to about like improve

say that's X it. we outcome we good in And XX%, -- a to coverage to But that feel I really don't it's get have unprecedented, about launch, to into see want categories quarters want broad-based XX% -- a it's until so both that but coverage. do to great

So some start. but a great there, to work do

capability manufacturing third-party a it In made Miebo for supplier. has Miebo, terms of

to them have with been coverage. improve working We

facilities. We are our going to own transition to

to is being up ability And our ramp to own packaging months, Tampa fact, facility. speak transitioned produce. our start we to as XX, next XX it the will In over

for is X have want of we'll So supply, product to be sources important what which you an Miebo. like really

my no The with job think launch arrival. the sample. the There mention a done thing would great we've a without been prior has to was I team other I sample Miebo planned -- is

in well. we've we should been the And that working so year hard as to a and sample, half the back of have get

think was factors the it an about for on was February. that So execution the success force done I late sales were front as us key Miebo,

good And progress. made was coverage. running. so We've they're getting off and It

We the commercial the was XX-XX to a Medicare half about some do, sample getting into there. And going but back of work check trial. it and big year, getting have the about still then

that's And so coming, too.

So we to and continue like franchise. million but great performance excited get build as first and about quarter, invest $XX lot a in the to the and

Doug. thanks, So

businesses, execution So for about keeping all do forward. much. quarter I'll nature We just performance, our customers on we the the first conclude absolutely focused and feel you stay business good all -- look forward you joining so broad-based our by geographies, driving everyone Thank us. performance we really of thanking and the to updated to staying and and continue as

Operator

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

You may now disconnect.

Bausch + Lomb (BLCO) 1 May 242024 Q1 Earnings call transcript