BLCO - Earnings call transcript Q2 2024 | Bausch + Lomb Corporation

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Operator

Good morning, and welcome to Bausch + Lomb's Second 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 second 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 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.

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, will on performance, us dive a will highlighting George, provide the path help with joining sustainable deeper innovations our and of thank successful overview keep a my you, execution. going you're to on for summer. you, Thank profitable hope that high-level today's call. to of pack the separate close quarter I'll another favorite growth. and do part, enjoying the us a and Sam long-term I I'm from

success. be. of and won't for is our This our areas X There's formula to focus, no change there

ongoing QX XX% XX% QX has come and growth past in SKU XXXX, QX or revenue to second what process certain businesses an continue the continues is to XX% and What rationalization in geographies. we're growth currency selling where. it into and quarter. the year constant one-trick pony and makes category, but been more our remarkable, Our over XXXX dividends X% pay a in refine We're XXXX, slowly product hold is all surely. not impressive in progression that we will from a to

eye revenue but point Something that's undoubtedly capabilities now cultural excellence. focus helping our we hit inextricably linked or ] success those also consumers. relentless source that them how We're you're that get walls. selling it They and is know a patients and [ operational about make norm have talking and excellence fuel feels building our that not like and know Colleagues a is if on of the you're and our behind. where continuously growth our within operational we care to around a world in longing is the improving, products professionals, consistent hands selling falling

second the the Health In NV first and meaningful quarter lens, than premium step another towards approved further space. IOL the premium to of intraocular ongoing Canada milestones our a commitment May, in innovation. the as IOL the significant no player Look high-margin proof on enVista platform being enVista

introduction of dry week And U.S. + INFUSE daily we we proven Bausch Blink urgency innovative Three June, disposable NutriTears, and supplement contact clinically In When businesses eyes. an announced we're walking a company, being announced products lenses. across astigmatism so comes the just it nutritional Lomb for XX X over to later, for the distinct doing days. innovation with purpose. X walk launched and

facelift into invest heavily won't in not of move XXXX. tailor-made continue to trained with of stand guidance in of example and engaging our A second ] focus to activity the presentations proprietary provide our results the the of given and X right Sales a execution Phase our to prime to half Execute. majority the These digital time learning eye right The X. Phase X elements the earnings sales for in. we launches recently is roadmap care continue to slide, AI that We with a say is [ on is Phase machine of are include into Glimpse product platform doctor expected another to year critical but Pharma new they're uses a message flow component, coincide new Glimpse, Innovate early That's & X, has ensure been right the parts a professionals. the encouraging. and U.S. sales at on bringing the force which main

one thing, no stone unturned The last of as the is since I item recently drives we're mentioned operational least XXXX, world Buy-in around efficiencies buy-in Investing We new margin leads results. means and expansion. from ] has slide my flashy, bottom to in the streamline teams One leaving colleague belief leadership investing the quarter, line. is buoyed engagement our what the and to of results driving that in innovation another, survey improve on and XX,XXX stream last is operations [ we're people our hires impressive we a people. path. accelerated. from our steady fielded which first right

It's takeaways products a global in for when surgical and revenue each intention highlights. Pharmaceuticals constant you're products financial for and as Once by again, across packaging our good currency is of roughly of our be our A Xiidra pharmaceuticals. driven our Sam's I'll Three mix, to with list holistic a revenue revenue currency was at shown. than Look ] are [ our segment that Vision growth. like XX% a yourself business days continue the X Key revenue, clear growth Miebo business X% performance few XX% for opposed opportunities rolling Surgical, for site, expectations growth franchises manufacturing. successfully It's of these problem quarter. from to prime OTC, feel lens example organic made repeating XX% stealing completed have drive a strength. no At we've Tampa in our constant cover contract can the to process contact prescription, that out you risk a manufacturing thunder, with future growth. of each secondary further given represented products few year-over-year Care still exceeded invest Absence growth. impressive the shifts to and for

over it to turn provide will additional context. now who I'll Sam,

Osama Eldessouky

you, and everyone. morning, Thank Brent, good

Before my on note unless we expressed a please otherwise. growth currency that be specifically on indicated all will basis, focused comments constant begin, today

on our Slide to financial now Turning results X.

are to pleased and report another We geographies our quarter revenue solid all of of across product segments, franchises. growth key

broad-based We growth the are seeing in continue. business momentum our

Total quarter billion of company XX%. growth reflects the $X.XXX revenue of for

opportunity strategy remains second drive innovation. As The growth, and of the continues XXXX. of half us in and launches we're to our selling executing of the stream we're excited Brent operational mentioned, on and focus and product driving prioritizing excellence our on steady ahead about

quarter, headwind second the was million For $XX currency of a to revenue.

million of the segments. again of solid increased both growth in discuss results consumer performance revenue QX. let's the strong by and contact consumer our quarter XX%, business demonstrated growth with Care's second lens by The driven Now X% in of each businesses. $XXX in Vision

with XX%. we In both see and We consumer brands strong daily across FRP in our $XX key Contact portfolios and up SiHy consumer Daily in solid quarter, across saw way. performance were franchises. the by was revenue dry lens organic the X%, Eye the XX% grew key eye continued to growth the growth delivered quarter, XX%, and and of geographies. our Lumify In the Vitamins million with growth revenue growth

to the in Daily the The product announced quarter. to And as strong off we strong of mentioned, momentum SiHy have recently expand launch We in are XX% launch growth continuing the SiHy family. the toric with is Daily SiHy start. a Brent see Daily the to

up the was in revenue U.S. across XX% growth lens with and quarter broad-based markets Contact XX%. international up the

the with system positive we international in We're growth have We we growth in to upgrade performance seeing saw Lynchburg the recently from the resumed which U.S. revenue QX. us. regions, also a solid Outside across contributed behind which China, now initiative the our in trajectory all direct-to-consumer early results solid strong U.S., launched.

segment. Surgical the to now Moving

X%. we Implantables standard revenue performance category was of Consumables, product saw quarter up $XXX broad-based quarter In XX%. of million, largest X%. in in in QX, up the IOLs our surgical by our a X% our the at grew product IOLs quarter, our each with categories. increase an X% X grew growth premium with Second

Our strong market enVista enVista perform IOL Aspire early platform lines with entry. continued to well has making a

to of enVista trifocal of with the Envy lens Canada. cadence the launches approval continue expect We the recent in IOLs

was driven mainly Stellaris equipment XX%, from by sales. up system Revenue

surgical the the same. in business strategy remains Our

despite We customers margins. margin are term due to which delivering growth we in also by near the with products absorbing focusing higher on our some consistent previously We're supply premium continuing a spot products the of base, to launch discussed. pressure to

launches expect and growth revenue margin to a these number expansion. continue to steady years of stream over the of We drive sustainable next

quarter. organically. Lastly, the in or which quarter, million $XX [ million revenue the in $XXX in Pharma the segment represents XX% of growth ] was for delivered Miebo XX% revenue

performance variability Miebo continued IQVIA the and address work we to data. the in with investments Miebo to drive the TRx pleased of some are We growth, committed exceptional strong to remain and continue the growth. we launch to with TRx making its

commercial revenue of second about We in approximately market the build continue access million at XX% Xiidra and $XX Medicare XX%. coverage delivered to at quarter. with

in to in with field marketing the earlier force strategy in our continue year. realignment We progress make executing investments direct-to-consumer campaigns steady the the and

force Miebo improving us seen Xiidra cyber quarter. a eye realignment leader Change in attack first TRx as and in the dry and following the trends have position sales the We together Xiidra Healthcare disease.

position includes expand long-term key and will leading to growth. As highlight, strategy our Brent building blocks drive our

strong growth parts saw across U.S. business. of generics pharma the other Miebo Both grew Xiidra, Beyond we and XX%. by and also pharma international

due entry in this expected, year. to a to decline Prolensa continued generic of As QX

as the products. was basis XX.X%, on 'XX. to some margin continue Now to Slide in let higher transition the through items mainly non-GAAP QX walk me strategy mix our gross by The up quarter to for key driven which second adjusted product was gross line Adjusted points X. margin compared was margin increase of we XXX

margin We in contact to the in This contributing by production also higher costs was inventory saw by strong driven lens efficiencies. pressure a Surgical. output business, our balanced

adjusted In we million quarter, or $XX in second approximately X% the revenue. R&D of invested

QX cash quarter for $XX interest million. the XX% was Adjusted $XX Second adjusted $XX million. EBITDA 'XX. was was CapEx $X.XX. And expense finally, flow operations from adjusted versus million quarter for which was quarter was million, Net represents the EPS $XXX growth and

now to Turning Slide our on XX. guidance XXXX

We the momentum broad-based the our guidance seeing and to revenue are strong and EBITDA year reflect business. raising we're adjusted in full

our $X.X billion guidance billion We of a a currency updated launch of performance. In full a are XX%. $X.X a eye million, constant $XXX for from to to full million reflects year to strong to which to $X.X range range revenue XX% billion of $X.X $XX approximately raising million a year a year to billion. portfolio, raise full range of reflects we revenue revenue $XXX are guidance to dry guidance raising Miebo our growth The of our range from

to million $XXX We million million. are approximately $XXX updating our revenue guidance for Xiidra to previous $XXX from

Our revised in trends. Xiidra realignment cyberattack guidance reflects force an TRx of year. in the the recently, we impact Healthcare have More Change earlier and improvement the field the seen Xiidra

to continue benefits growth and one the having synergistic of the Miebo see and prospects Xiidra portfolio. We in

two As XXXX, we Xiidra head be factors that into we'll watching on closely.

though headwind Act, through we health at [indiscernible] ensuring to have to time. potential access Reduction of impact for plans growth strategy TRx it's Inflation the as possible. as too our are many coverage while early second, First, the And quantify drive patients this to

$XX the For currency headwinds approximately to we million year, expect to full revenue. continue of

EBITDA. adjusted to Shifting

guidance reflect $XXX a $XXX million We business year EBITDA $XXX are of a raising million from to $XXX the our performance. range of to strong range to adjusted million to million full

our investments product is robust significant business across growth. The to deliver portfolio continues our made and off in the paying and have launches. and broad-based We strategy

As potential we're future. the making portfolio investments today our of maximize the Brent in previously highlighted, has the will

there including will products, sustainable of expect driver important margin Miebo, long many runway, be a have expansion launch to and come. for growth Our and years an we

to other the adjusted X% key are last to revenue. of compared And for X% to of to our range in about raising we our R&D XX.X% we to underlying as margin of our guidance, be XX% XX%. investments guidance a terms In continue quarter, to previous expectation of noted assumptions gross expect

to partners As discussed, EBITDA into we external such approximately our the adjusted agreements enter of previously In expect to million pipeline in to collaboration quarter, innovation. charges agreements. drive related absorbed we IPR&D have we with $X

second adjusted IPR&D related these the as look we It in should our be are any previously of noted, forward, entering agreements that agreements XXXX. not guidance. As we anticipate to additional included in charges EBITDA into I mentioned, half

year. to interest approximately expect continue expense full million be to $XXX We the for

Fed monitor to rates for continue XXXX. interest the will We actions of on remainder

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

growth. business The with deliver the and strong quarter. To summarize, the we're performance very continues in pleased broad-based to

to year momentum back future for I'll turn revenue the drive growth half now expect XXXX to margin expansion. the of positions and solid of performance strong We business And and in second the a Brent. the call

Brenton L. Saunders

Thanks, Sam.

dry to on future. recently education environmental undertreated underdiagnosed factors let's massively Now eye help condition, an on in the and focus and to awareness an continues drive unbranded which campaign We launched of worsen the U.S. agent population. based

approximately with goal from campaign million around U.S. appropriate. The facilitate dry interventions or experience dry who pharmaceutical symptoms professionals care recommend as living eye, In XXX eye fact, help of the treatment occasional and with are of discussions XX to is million disease. frequent to eye options adults OTC solutions can

not debate. company and offers Lomb, No these options of up for it's than more Bausch +

June We of offerings. continue to expand being Blink the those launch most recent NutriTears. example The

could Xiidra care and let new eye long-term bit growth. and in be adverse quarter covered patients that dry the While highlight generate volumes. a professionals blocks uptake, our a performance particularly me Miebo early appealing building clinically may to to for reaction quite flagship proven understandably to drops. second interest. few They're expectations speaks from consumer excited of are products option have Sam it's be portfolio for both, eye and but for eye treatment updated who too report the a

We Miebo as the will products, conversions the vehicle, medications preferred invest dry more and new in creative which are both for which when and and new campaign. inflammatory reaching disease, primary unbranded sales into options our and starts especially coupled in the wide consumers to will With reflected than we Xiidra talk our of ways share. treatment respectively. campaigns show awareness evaporative direct-to-consumer shared you'll action, in drive prescribers continuing Perhaps for force is turn greater eye quality underway as and data market efforts. engaging reach we'll New these be important to marketing with willingness each see our soon and

our so As expand with steady pot. U.S., of unlimited the potential. eye We've dry the a SiHy in line increases, out awareness offerings is at to will leading continue seemingly launch position we globally in recent rounded Daily leads our does the category product infused and Toric our

out performance the however, long each clearly uptake, fitting solely and that's reflected SiHy our in currency as and is fuel growth our quickly other Daily wearer, in an look how listen spread don't growth lenses are told comfortable steady relying and I anyone you by a will business these replacement lens word from our which it, a XX% But shot. instead maintained at well, how As [ take INFUSE That the options. notice numbers. isn't for who Daily my constant in helped around frequent not revenue difference growth the including the a continuing constant SiHy approximately averaged or XX% revenue We're growth with last believers XX% overall with the quarter basis. of In currency XX% performance. patients We've on growth in we've year, a lens our currency portfolio team customers ] in portfolio, XX% second constant and XX% U.S. globe on internationally. and in making

growth their Opel, new for with care the consistent Care growth digital Debt, full our We taxes that to [ professionals to consumer United easier and ] [ revenue make eye marketplace ] business. the patients be products States. Vision it augmented access our of and expect from in launch will

industry to category consumer are leadership evolving staying to we there offense it by to on address comes in sales, our guarantees certainly plan While maintain no when this needs.

and premium Surgical and consumer we first is Canada preservative-free in like rollout was ] to launch eye June worth Adam with continue critical our will appeal expansion the drops, expectations, previously, in the Where another shared outperform maintaining toward additional of in in we East [ of our consumers. leveraged established the like the an as products a upcoming importance pending there Busche of component Lumify trajectory business. Lumify and critical continued category Steady introduce brand reminder eye believe future. to example growth While being Europe latest an repeating. A the sell ] it's current Artilec [ in subset on I've which products of world. important geographic the prime business. important our lens June of it we've cadence our milestone is to awareness popularity an approvals and implanted the are around high-margin I've that in the spoken the intent. IOL Dr. step X, player a Lumify transition for When countries about served but enVista Middle

later for ophthalmologist be That's positive I least. and first Europe sign we U.S. playing space, the home XXXX. point launch product XXXX, perspective will We're at to status an and with we're to in been a depth study the in IOL meetings nearing making. from question clinical a patient launch this with available development, the premium U.S. expected an frequently year. extended a In in anxious focus and drive plan we we've at Beyond, win enVista in the a Envy get launch brand slide to is expect closed sales. to industry business in We of accordingly IOL LuxLife We in and manufacturing invest

pharmacy path let's for which both about line the the drumbeat continues Significant is forward and externally. and to of continues to work Operator, build, year into questions. future Over other businesses, aren't come patients improving professionals, eye consumers with launches words, cut That the had is In steady the full past remains product inventory; to also addressing heading. of have filling realize products in open unmet that the these the and only XXXX, and launches sake year, care excitement is potential, second where internally our new rely we've eye across drumbeat steady half of on. align rather, for but our that clear. health but a our shelves we're not or needs why

Operator

[Operator Instructions] question Jefferies. first from from coming Young today The Li is

Young Li

for on the Great. key top all you right. I out beat broad level, line, The All products. was start I'll guess the really high bit EBITDA, called a strong Brent. maybe across around, geographies, segments, strength quarter also

you wanted this hear hate but profile CEO better a has a Your somewhat bit from this of double-digit been now. turnaround, sustainability you been What just more to little than And going call XXXX? expected? a maybe when rejuvenation perspective still growth a expectations for I attention? I versus use joined, than thoughts You've maintain the on growth? it can in broad-based the can to year your how -- what's

Brenton L. Saunders

Yes.

for you thank So question. the

you're right. So

there think this before, commented I our happening today, where that we our I turnaround/rejuvenation company. is on are think a inside do I've absolutely strategy working. is but

We dividends. excellence. on things the world, relentlessly, like huge get with of think I moving the And sales are in operational with focused launch people direction I'd those the sales to word excellence XX,XXX good motivation happen, direction, enthusiasm I execution, around this paying on you all and execution testament. use and is are a excellence, that's think clear really and When and same both

holistic, you line top Overall, pharma, So here, a X%; constant right? constant just just XX%. numbers, growth; currency off currency right? it's XX% organic some up As consumer, X%; surgical, up rattle I'll up as point proof up XX%; said, XX%; lens,

up XX% Asia, Canada, East, XX%; regions, Europe, In up and Turkey, X%; up U.S., terms Africa, of up XX%. up XX%; up XX%; LATAM, Middle

globe I in on unit execution we it's every you proof -- have. focus the so the that just And business and it's think point around see a a

in for right? that it's reinforce a And I view, and Once you it's driver to future. a culture continue my proven it, career, at sustainable, create work executional absolutely where think the excellence from that, and stand can of today, it's my it -- real we you be point of

and some have long more. These consumer of holding the into have of decade brands or our cases new that in move in or great support decades power other of launches, strategy lens a products products. phase cases, these we contact building a that to innovation tail a last brands are patent As protection, are for forever that there's on this continuing product next

a there's I'm so excited portfolio, durability future. and And of the in the lot for

the we have a world end have. I'll I great our is and strategy -- combination a with and Again, executing, think great team So that's around to

Young Li

the expectations. uptick Appreciate recently the the I right. on to the a while summer, mean All fairly the for summer drugs June. we noticeable that. Great. in sequential were started follow-up, above other in by launched growth, guess just performance, weekly Miebo I some our eye seasonality. It's during impacted scripts XX% impressive see of

in your refills been bit sales in outperforming Is and have the really checks you expectations, maybe how bit a team a about little talk the Miebo. integrated positive ECP quarter? performance about Our little the guidance on talk Can maybe trends increase, internal doing? second the is it

Brenton L. Saunders

Yes. Sure.

And I see force. well to they're peak point, pharma's first force. of up, exact hard this ago, obviously, AI-based as think, this great can the really U.S. we So the We sales. for think sales, for what And it now the integrated to the I well. in quarter, our say a $XXX doing. our call United just sales team, would into team a honestly, launch, see has the term I up credit few the strong we in field potential revenue then for proud pharmaceutical the I weeks launched in I execution forecast new field mentioned year. Glimpse, at quarters the peak tool I caught million States. our the peak we lot but of Very over a But it's X would significantly as us. call Miebo, long for

about excited that. very So

I just in XX% we're we'll making and more is focus year next those on have roughly for continue is stop The commercial to in look, pretty suspect great quarters to X care in, coverage decline to progress right? about, X XX% quarters access. X We quarters. numbers managed Medicare And what, execution. starting coverage gain impressive team to

here a great I support and and think it. a behind And runway great ECP so product long

Operator

from is Patrick Wood Morgan The from question next Stanley. coming

Patrick Wood

There's pretty 'XX is, which for and what It's ] very X implies some the key given world, stocked. the wave, slightly half. The prudence? very lot busy et launches, slightly second morning just the from build so learnings slightly of the had that's function is strategically have of that's that stuff more cetera, unknowns and maybe just I'll stuck growth a, a pipeline in out going sounds obviously, then, first to make of of cetera, innovation the more to going is kind holistically, are the you approach but just you good a second in same? HX well. guide launch The et 'XX in of keep for it slower the approach? wave of half What in change going the [ the your on the next been you've b, sort market the and or the of

Brenton L. Saunders

Yes.

turn So me the the question, for of Look, we're to I over techniques Sam answer to and let different the and mode second the pull. levers ask first adjusting a think it in learning -- part Patrick. constant part, I'll

think lot of launches do. early so were with I some these yet that there's a to

ECPs are aware to NutriTears. medical among We're we have really, clinically Blink great at the We also I data a I quarter look lot as ads. launch fourth to community formula When on and just community, of learning. in get sure some the like will on that that of lever. our at team sales for we're working ECP to has somewhere creative make Blink here's The our using retail one stocking DTC eye closer impressive in dry the Miebo and phase be a a big take proven the and a pharma think, excitement team Let's retailers, been plan we of Miebo. right, the NutriTears, the that affairs big force out turning

the consumption. Now drive teams we've it got to to to turn consumer over

+ something long businesses people that Lomb And it. so across happened of embracing are time and hasn't working here a really technique at that in Bausch is

of and there's and pharma so lot and surgical, pharma, consumer a Vision And cross between Care. learnings pharma

great just proud team. very being of work done. a there's So the lot of I'm

go. as you But Sam, do part? learning first the constantly So want and improving take to we

Osama Eldessouky

Patrick, you was for Sure. us, constant about QX XX%. about when currency think

the and that what think XX% sort the it guidance this was that about our about the imply implied. we you of in does the organically QX, terms and end think you of anywhere for XX% to guidance you of that if guidance midpoint for high morning half, second half If the that then for updated suggests about the sort to take range of of between of second X%

again, So in the seeing continues that balance. us QX we've seen we're on with momentum that

have multiple and in outcomes, guidance our second the know, half and between balanced with of first we're terms view guidance the you half. As

Operator

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

Craig Bijou

some are there I guess with the some side the start to business, maybe lens and the of on equipment contact the specifically performance surgical I just in want and can specifically business with strong and the how taking the SiHy on new contact of talk drivers lenses, new share you you're seeing market What about Daily growth? and the launches, you fit just of some there? maybe

Brenton L. Saunders

Yes.

really, lens, in growth. XX% with So basis, U.S. a execution internationally. really strong on constant team's On contact currency I'm the the XX% very the and impressed

it up we across XX%. all lens So look portfolio The XX%. growth, FRP see you up at regions. you see SiHy When

way balanced And across so great execution in portfolio. a the

share. execution, we start And see taking way I as on it look, so is the we focus

about digits. You're growing market. the We're still the in than mid-single faster market a growing talking that's

exactly are you hard we that so And coming where to taking see It's from. share. share is But it pinpoint happening.

I a example, continue right? world, to and think U.S., good We're launching, the just have is news right, the INFUSE, product like around the the modalities you in the launch when you for for ECP quick. and really It time ] then the It on toric Chair fit. and right? reception easy outcomes. saves outstanding, the eye truly and great fits vision [ the An the is

great area for multiple even me for and future. that's an more continues in exciting contact So exactly where what -- to on and R&D it's is we're you exciting. working on projects lens internal multiple in new platforms to strength want And hear we R&D the have

of in lenses for formula combination a So I innovation, us. continued us great that's for and very and great products, see execution and future bright contact a it's the for success

Craig Bijou

margin Great. may you with previously. you updated EBITDA you to or revenue ask lower on guidance. I raised little what or than the guidance slightly be the bit if your saw what also can But implied And guided I along you think a

just even help us comments upside margin then understand that the maybe opportunity So any the of for can you rest on and the EBITDA be year? have great. would potential you 'XX

Brenton L. Saunders

Yes.

of launches, get make to So and one of, so durable trajectory. Sam. behind they them these let remind of we're sure off then right we going But 'XX having start are 'XX I you with long ahead would to I the turn and launches, that particularly it many that lives just on over thing think have products consistently and invest years of the said I'll me to

So when you seeing see like put when upward. We're the look great fire, the to curve around world. continue on big Miebo, And the bend of you gasoline uptake it INFUSE to launches you execution. see want you great to at

that portal. it. our be for It rolled We Opel, a to invest team the we we're in businesses out execution. going to ECP great team I new execute could other in tool Glimpse, really continued there. September new behind launches We're and ] in huge our as modality the pharma DTC a potentially will [ to really be, addition that new U.S. consumer launch continue investing to called around think, platform best-in-class

about NutriTears of Blink wasn't X lot We huge NutriTears even a we and Blink well. a potential so plan. investment as from And in launch went concept products, to in in months, behind see

that's to But do the payoff the lot comes for investment this right of in I thing And in years. out Sam... So the launches and think business.

Osama Eldessouky

is strategy building to of And outlined what I'll up just us, we're on repeating start because it's from Craig, reflect of growth -- game bit the what's the said it, which Brent a for we our long because one beginning the 'XX, maybe is of on and really sustainable theme which playing here. 'XX it's very important the

you about have margin launches line be how They thinking growth the we're able the be sustainable the in that them how margin drive we So go products as invest to and drive them can of forward that we take we to to margin. and ahead long a of top have. runway a and

just midpoint I'll now XX.X% done and think our So guidance, what when had about on margin. on our XX.X%, to have reflect about roughly we That's what we you XX.X%. before when guidance range now compared about restructure with relatively EBITDA midpoint you focus

call So same we're the sort of range range it about within the it's -- thinking. of I how still still of

scheme what's top view grand and and our a things margin 'XX. is EBITDA still what the view, on in and from we're larger So strategy for of our holding line we're

Operator

from next Citibank. question Joanne will The come Wuensch from

Unknown Analyst

on then and your lowered what is potentially little guidance. launch launch Can Anthony you Xiidra the This just second from out? is in And for Xiidra maybe of rolling any just guidance. expectations lower into into detail Xiidra I you more guidance Can of want the maybe start half? are you go about how is cannibalization the a the with talk I And just bit Miebo? Joanne. launch saw the to

Brenton L. Saunders

Yes.

our So important in very is a leadership part great Xiidra dry eye. question. of Look,

said, we that's the of having both Change That board. Miebo incredibly our early think kind of stop-start of of I lot player -- have quarter the Miebo the the an situation like and and both and a environmental, Healthcare success strategically being first control did a Xiidra across in with is outside having situation. the Xiidra established a having drives important

growth if we that weeks year-over-year happened month I great at data. getting you think back and what in in a the July reset saw on quarter, I we're that second team X And in within to quarter. IQVIA getting TRx, happened and stabilization first so expect from But if third look the the followed about vendors the scripts quickly quarter. great to you co-pay good recovering was see job in focus. board very growth and that continue of did you or new starting a

growth. goal So TRx Xiidra, is our

growth. deal, we mid-single-digit when about talked think did the we I

to And and right a you I basis. continued TRx think as But that look a see from managed I have TRx we some long to forward, like on growth. care. about the in being 'XX said, continue Inflation Reduction Act that's for think pressure runway unknowns,

launched that's to market the What is XX% about In issue. is expanding, see. terms of the since market cannibalization, we what Miebo exactly I an happening that's wanted you and expansion of don't think see

massive pushing think as do going you're across options DTC, starting see kind quarter. in And to we're really tool of continue then but that's course, Miebo Xiidra fourth a prescription of to very numbers. one DTC and It's undertreated continuing And lot the And to a then, And you of it, you're already and market month. a going for to a I new so OTC has from great that OTC. improved talked to early we about positioned DTC see to started uniquely expansion. leader gave And We considering in and penetration. push market market we the of options, opportunity are grow. drive

Blink have Blink then on NutriTears. potentially We and maybe even air

a a lot spectrum. have opportunity we and consumers think they and different where pay of patients attention of across to lot the I media consume to So hit

drive better we strategically, don't market think be here. so could growth really And any positioned to I

Joanne Wuensch

And [ talk half cadence second, for in you just expectations helpful. operating? about ] the of year margin can growth your Very back in the

Osama Eldessouky

Yes.

half, you we're what at think were -- look again, the what our be margins -- in of just to think first I XX%. we we as going first performed shy about half roughly

second about the guidance we As margin. suggests on with that half have you the the acceleration an think and midpoint

start Just cadence. a specifically, as about beginning seasonality previous just seasonality talk have for And think the good calls. with you much low But you how -- for you our the launches our always probably this to about up is through for of [ We is before start highest. and factor in QX starting private going is of we point the this that in QX more half investments because I lining of launches, how a would QX to everyone QX we're and it about and for see actually the QX think year, the a the XXXX the our reminder behind us. emphasized talk year. lowest, you as with ] we're second as

Operator

Marcus question from JPMorgan. next The from is coming Robbie

Robert Marcus

Brent, upside 'XX much there line of commitment to and line? a our be top investment bottom in after line the the of circle heavy Great. follow-up. that let period? and your absorb any just this I able to top into And expectation made delivering to going the you be back quarter. heavy margin ahead. that, be have drop investment the 'XX investment Should is to about I a Nice through comments wanted is be upside to the and reinvested Or you'll

Brenton L. Saunders

no, as it's question. these not -- put is of the the Yes. a to to continue behind steady improved great all No, appropriately launches. we margins have a each It's invest to plan not And of cadence upside into reinvestment.

We each investment very a ROI every do at the time one I we make, in of detail Sam and thinking analysis. careful and so return. considerable great And look a that spend amount through

shareholders. particularly so we our And run for view our my is this company stakeholders,

sure every so KPIs want investment each point with the to view And and metrics make of and right appropriately around right done is we one. the

absolutely, we're is and improvement time. long sustainable over committed both revenue margin on expansion the basis part our margin growth Very so important to a And strategy of for term.

absolutely, so want we sure way. right we the that to do And make that

Osama Eldessouky

reflect steady in have you we up 'XX line have 'XX to margin back if to that as also We how in again, 'XX. of just Robbie, year-over-year. we about margin, a think you what improvement up on top ensuring is steady we a And I go we margin forward. growth And may add said if terms with 'XX, to improvement focus set our a and set if back Brent it's sustainable

that's through runway have given many of given that terms making of especially in assets of the sure a we're in investing the long as going think philosophy them. ahead to be same I this thinking we the start that fact --

those maximizing is a of the us. value driver for key So assets

So steady drive margin. the value sure we assets those making that continue of and that growth and maintain to

Robert Marcus

follow-up flow And quarter. on full Great. what flow year the And million How next color expect year? in we here? the cash of we as was into should terms to do cash free a cash for flow that, $XX maybe free in any minus think conversion about

Osama Eldessouky

Yes.

I you first as use either than be quarter capital. results you're source we're before, the half, of as mentioned of are mode, think tend about about a you So These more of usually, benefits for the growth capital, mode a flow. cash of working our in when working especially to when in our and growth

our June, a December a of $XXX is That all of since just reference, million. really ] So you to accounts capital about that's feeding growth. contemplates that give working capital. And roughly to consumption the working [

So element keep we in mind. that's to that one have

The the is inventory. other part

lever right like now, supply we billion Our make as what be. products. inventory. using would use lever that to an a than challenges through area higher of have talked through And able we But we're $X inventory roughly we to manage inventory a sure that, bit seeing about to again, that to I also about 'XX. is supply where we be of able the little that think is it our a we're That's steady to be the

a that, it negative. at I million. from to the about think cash point when think probably breakeven year-to-date, When running free running think we're So we're We're are when about roughly you going full right, about overall be this cash you you're about year, was for to $XX flow, slight flow a negative. perspective, from a

doing that thinking also our the around key of we're is accelerating CapEx. things One

in and beyond. will we our we're what continue think growth and to for accelerating lens business, that Daily need our 'XX growth capacity talking we're the about You've the SiHy in about and that seen and to

So we're doing here speak those we investments today. as

going have think of a I cash flow that's on So for year. level impact to the this

Brenton L. Saunders

I that make just turnaround Eye that you're rely And tools on lose our could the you world that had break morning, earlier or we think But in a a service in trust. could around surgery, this you're in place I if add, can tenets to I'll you professionals and one expecting the about customers, us. work do surgical, can't do, and surgery make cataract care we If and call, out Yes. can't to the to on most the put particularly, whether we deliver right? of important we sure do point strategy, Robbie, customer rejuvenation. we to talked we the was or and that the the surgeon most product need where forever you is

And in hands. that our And was customers' use the abate sure has build we -- products that, finally I'm proud team you what dealing customer pulling that we're because do time. able surgical in we work and As expect now intentionally in in the out and pick But to make we that, can the see over do was growth with to get stocks first as of so cash, it of to products. we the work chose or unavailable not right to been thing absolutely a we the that to business, can that term, through, really inventory daily through our of short right? through servicing

And and so or we term, that unlocking that was a but X. short cash, important. It out year was should come of to in detrimental it's

Operator

Miehm question RBC coming Markets. Douglas Capital from from is next The

Douglas Miehm

that. circle there. of on readjustment, that Just wanted in things you're couple was to back And we've respect significant of part second you introduction And I was a early pickup, to believe A QX? themselves? or maybe that contemplating may been about that the that -- where any a you're IQVIA. for And are update drug when as with keeping contribution DTC strength July, the of expand it to thing given on potential know, some be there's there in potential ahead that mentioned suggesting just of Miebo. Miebo you I little to sampling eye those you on the seen is an could want numbers talked just

Brenton L. Saunders

Yes.

there. a the of finally and a part to approved roll answer little didn't well, we -- approved, asked FDA, get sample did us fall. second finally they question. told They this and that an extension, expect Let delay ask. by the out me they extension They the little The needed was we it but for

And the little it. sample. pretty on think more that made some Sam, in good. to want on be they're adjustments to are how to Miebo, expect IQVIA, there'll adjustments there. cover detail? you to out there some still Miebo, Xiidra, a I they're track best But news be good working respect So I do on think But I With

Osama Eldessouky

little add TRx of me year, a here. seeing always we're overall, since if Miebo about to seeing QX we've and tracking Miebo the year, for this, little Let per been And general, color X trend variability. get about also a bit beginning you week. -- back the of of in you you even a launch. TRxs more this what bit positive to last when you're go averaging you're back But X,XXX in going

sharp When is prepared XX,XXX. in what you we that in have XX.X, go up mainly remarks of my And increase little on that QX about last What QX -- sort about focused TRxs we've variability a a think the is couple for IQVIA. of seen of the on seen weeks. know comments bit in about we You've recently seen and was my to there. there's

be What seen positive that the as through reconcile growth. seen think able through. [indiscernible] to differences. in trying trending, very sharp still last is you a well steady work we've the we've as IQVIA to always increase IQVIA a that know still the working the in of trend to team and couple serve without we're I as just tend weeks we But to which work out

Douglas Miehm

as talk can discount, Excellent. XX% of a material now When about Brent. being to you what question quality float Miebo having a the a with and execution and XXX% some opportunity for follow-up, in the more the given at trading a company ultimately year, few And for fairly maybe think right an especially this you philosophical this the other things, at the us especially about is company point? float this Okay.

Brenton L. Saunders

we is let's is on own a on what regular say our can I we control our execution. what focus question. Great team Yes. this to basis control and can here

not I'm to think to you. I read going so numbers And

a spend look the it I I team to that will -- but not when it it heating time out confident and see on and much the Clearly, that time is of quarter, execution. but when will expectation that my is second demonstrate we I the separation, is something happen, that think, but quarter, And for focusing about control. advice pinpoint frustrating, will. happen, thinking try my can't I'm it's think I clearly float you this line at quarter, first

Operator

Matt Miksic from is Barclays. next from The question coming

Matthew Miksic

hear you Can Great. me okay?

Brenton L. Saunders

ahead. go Let's

Matthew Miksic

Terrific.

couple a of So follow-ups.

or run? get market then long terms have maybe lenses. how update penetration you dailies, are this contact of try guess just terms I follow-up. an on in mix First to to where And can of in or I on one just

Brenton L. Saunders

Yes.

for Daily Day inning The INFUSE growth So If in portfolio to it Dailies maybe fair, well, And for was driver The still and the -- product, modality last literally We're just modalities the world. launching go, right? the or toric have Daily in the there, still of from lens key game, have we're the ULTRA second the SiHy, I that of what tremendous data. early One We I the mentioned But multifocal The U.S. runway modalities the lead we're think about to still we're before around long is is be in to quarter. in a I another U.S. toric. a the few the the the And is we that that around launching up outside market see XX% driving huge us which in growth very think were we and world. both just is was baseball in innings. days. consumers enthusiasm launch ECPs. still we these for

team. absolute our launch I be portal ECPs. And our launch. tested working ability has beautiful in DTC there and by weeks. behind in We And about sell new it investment the it, the invest amazing and portal previewed around direct-to-consumer sales done going very we've We're together few interface, simple. to proud to did team with tremendous to a a job, We it's slick, designed purpose and our ] a execution. consumer China ECP with Opel really is just China it's in And continue super to [ -- an reps customers an a that but exciting in of an U.S. it country. We

a to a a runway growth long come. So of lot early innings long go to way and and super saying of

Matthew Miksic

helpful. just super then Surgical. on And maybe That's

position pretty lenses, advanced maybe to of of those you to in share there key a side technology could of and the for ramp if terms in some growth of types sort parts or and strategies had about technology of greater other surgical into amp You on you talk it's just the steady of getting the whether product up deeper sort enabling plan market. flow can what employ portfolio higher the

Brenton L. Saunders

Surgical Absolutely. real Yes. is priority. a

because real strategy constant I think relationships XX%, the equipment when the through hindered up around to equipment being consumables in a But that. been in able others, and part consumables. up what implantables basis, you shortages we've and not perhaps then us place up past And to currency of implantables look at build has is drive has basic and the and placing X%. X% solved quarter, equipment execution and

Stellaris And we and there features so we surgeons, innovation to really have and particularly work more happening the now continuing can We're which of really innovate, functionality equipment is lot get important and important. out door. and for a around

like moving XX%... And the second IOLs of premium to Sam, monofocal gives is part me quarter, equipment well, the And that premium is so which strategy seeing the we going great great to number growth IOLs. hope the in that in work from premium lenses the was growth saw

Osama Eldessouky

XX%.

Brenton L. Saunders

Aspire, premium at The is Plus it's incredibly our received. you being monofocal When is toric, growth. monofocal, look XX% great reception, just which launched. which when is well early a adoption

outside platform Lux early really strong Our off the a start. is to U.S.

in the soon we're and 'XX. Our this the just just trifocal and beginning, here is that for half launch in U.S. lenses, expect in year. approved the of approval waiting we in was Canada, study And very the EDOF

right around the surgical aspects service world the come. the up with we're So to great innovation on customers our all lining

so really And I as that see important. business

innovation one. to business. I other future platform about the the of the across look believe excited I growth, pretty to last at areas continue and surgical drive remain was We that

Operator

Yes.

for Sorry, correct. Brent, closing you, to Over remarks.

Brenton L. Saunders

Great. the Well, participating call. all for thank in you

a you. Thank of all forward look great out continuing Another great drive to call customers and we around team great momentum you keep for world. execution, we And service around to the in our quick updated to delivery great as focus the business our to world and proceed. this

Operator

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

may You disconnect. now

Bausch + Lomb (BLCO) 31 Jul 242024 Q2 Earnings call transcript