Core Viewpoint - Bausch + Lomb Corporation is refinancing its outstanding term B loans with a new tranche of Replacement Term Loans amounting to $2,802,125,000, aimed at extending maturity and reducing interest rates on existing loans [1]. Financial Summary - The Replacement Term Loans will refinance all outstanding term B loans due in 2031 and 2028, with a maturity date of January 15, 2031, which extends the maturity of the First Incremental Term Loans from September 29, 2028 [1]. - The applicable margin for the Replacement Term Loans is set at 3.75% per annum for loans referenced to term SOFR and 2.75% per annum for loans referenced to the alternate base rate, representing a reduction of 0.50% and 0.25% per annum for the respective loans [1]. Transaction Timeline - The transactions related to the Replacement Term Loans are expected to close in the first quarter of 2026, although there are no guarantees that they will be completed as planned [2]. Company Overview - Bausch + Lomb has a long-standing mission to enhance eye health and improve the quality of life for individuals globally, with a diverse product range including contact lenses, prescription products, and surgical devices [3].

Group 1 - Bausch + Lomb Corporation (NYSE:BLCO) has seen an 8.59% increase in share price recently, but Wall Street maintains a cautious outlook on the stock [1] - The company presented its growth strategy on November 13, targeting a compound annual growth rate (CAGR) of 5% to 7% through 2028, driven by product launches and overall growth [2] - Bausch + Lomb aims for an adjusted EBITDA of around 23% by 2028 while reaffirming its guidance for 2025 [2] Group 2 - Analysts have mixed ratings on Bausch + Lomb, with Barclays reiterating a Hold rating and a price target of $17, while Bank of America Securities maintains a Sell rating with a price target of $13 [3] - Concerns have been raised regarding the company's optimistic growth projections, which some analysts believe reflect only a best-case scenario and may be overestimated [4] - The growth targets are heavily reliant on execution rather than innovation, increasing the associated risk [4] Group 3 - Bausch + Lomb is recognized as a leading company in eye health, focusing on products such as contact lenses, pharmaceuticals, and surgical equipment [5]

Group 1 - The article does not provide any specific content related to company or industry analysis [1]

Group 1 - Silver Point Capital initiated a new position in Bausch + Lomb Corporation, acquiring approximately 2.6 million shares valued at around $38.7 million as of the end of the quarter [2][6] - The new stake represents 2.8% of Silver Point's reported assets under management (AUM) as of September 30, indicating a significant investment in Bausch + Lomb [3][8] - Bausch + Lomb's stock price was $16.95, reflecting a 13% decline over the past year, contrasting with the S&P 500's 13% increase during the same period [3][4] Group 2 - Bausch + Lomb operates in the eye health sector, offering a range of products including contact lenses, lens care products, ophthalmic pharmaceuticals, and surgical devices across three segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals, and Surgical [5] - The company reported a 7% revenue growth to $1.3 billion in the third quarter, with adjusted EBITDA rising to $243 million, while also reaffirming full-year revenue guidance [8] - Despite the revenue growth, Bausch + Lomb experienced a net loss of $28 million compared to a net income of $4 million in the previous year [8]

Financial Data and Key Metrics Changes - The company is focused on achieving financial excellence, particularly improving EBITDA margins to align with or exceed competitors [4][5] - A three-year plan was announced, targeting a revenue growth rate of 5%-7% and a consistent margin improvement of approximately 200 basis points per year [12][56] Business Line Data and Key Metrics Changes - The Vision 27 program aims to enhance operational excellence and gross margins, with thousands of employees involved in various projects [5][7] - The contact lens market is experiencing a slowdown, with growth around 4%, but the company is growing faster than the market [23][24] Market Data and Key Metrics Changes - The company noted a slowdown in the Asian markets, particularly in China, which is affecting overall growth [23][24] - The bifurcation in consumer spending is evident, with lower-end consumers feeling more financial pressure compared to middle and high-income consumers [24] Company Strategy and Development Direction - The company is prioritizing organic growth over M&A, with a focus on enhancing its existing pipeline and improving its balance sheet [15][16] - Innovation is a key focus, with new products like Project Halo aimed at addressing significant consumer issues in the contact lens market [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its targets, citing recent sales growth and margin improvements as indicators of progress [10][56] - The company is optimistic about the future, expecting to see continued growth and innovation leading to a stronger market position [5][10] Other Important Information - The company is committed to improving its liquidity and addressing its ownership structure, which is currently 88% owned by Bausch Health [11] - The pipeline is projected to generate over $7 billion in potential revenue, highlighting significant growth opportunities [54] Q&A Session Summary Question: What components contributed to the 5%-7% revenue long-range plan? - Management acknowledged the difficulty in predicting future performance but expressed confidence in their balanced guidance based on current market conditions [12][13] Question: How does the company view tuck-in M&A? - The company currently does not require M&A for its three-year plan, focusing instead on organic growth and improving its balance sheet [15][16] Question: What is the expected timeline for new product launches? - The company anticipates launching new products, including a bioactive contact lens, by 2028, with clinical studies ongoing [19][22] Question: How is the company managing its R&D budget? - The company is increasing its R&D budget to approximately 7.5% of revenue, focusing on programs that promise the best returns [36][38] Question: What is the outlook for the dry eye market? - Management believes they have the best portfolio for treating dry eye, with Xiidra and Miebo positioned as leading products in the market [40][41]

Financial Data and Key Metrics Changes - The company is focused on achieving financial excellence, particularly improving EBITDA margins to align with or exceed competitors [5][6][11] - A three-year plan was announced, targeting a revenue growth rate of 5%-7% [13][15] - The company aims for a net leverage of 3.5 times by 2028 [18] Business Line Data and Key Metrics Changes - The Vision 27 program is designed to enhance operational efficiency and gross margins across various business lines [6][11] - The contact lens segment is expected to grow faster than the market, with a new bioactive platform, Project Halo, set to launch in 2028 [21][27] - The dry eye product portfolio, including Xiidra and Miebo, is positioned as the gold standard in the market [52] Market Data and Key Metrics Changes - The contact lens market has slowed to about 4% growth, influenced by economic conditions in Asia, particularly China [28][29] - The company anticipates a recovery in the contact lens market, projecting growth to return to 5% or higher by 2026 [29] Company Strategy and Development Direction - The company is committed to organic growth, with no M&A planned in the three-year strategy [18] - Focus on innovation is critical, with a deep pipeline of products expected to drive future growth [90] - The company aims to leverage its existing infrastructure for new product launches to maintain high margins [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation into a high-performance competitor, emphasizing the importance of innovation and operational excellence [5][6] - The management highlighted the need for a disciplined approach to spending as growth resumes [9][11] - The company is optimistic about the aging population's demand for premium IOLs, viewing it as a growth driver [89] Other Important Information - The company is focusing on enhancing its R&D efficiency, aiming to allocate more resources towards product development rather than administrative costs [50] - The introduction of new products like Lumify Luxe and the expansion of the PreserVision brand are seen as significant growth opportunities [44][46] Q&A Session Summary Question: How should investors think about the liquidity of Bausch + Lomb given its ownership structure? - Management acknowledged the 88% ownership by Bausch Health and indicated that both boards are committed to addressing liquidity issues, though the timeline is uncertain [12] Question: What are the components of the 5%-7% revenue long-range plan? - Management explained that the guidance is based on current market conditions and internal capabilities, with a balanced approach to growth [13][15] Question: How does the company view tuck-in M&A opportunities? - Management stated that no M&A is needed at this time, focusing instead on organic growth and improving the balance sheet [18] Question: What is the expected timeline for the new bioactive contact lens material? - The new product is expected to launch in 2028, with ongoing clinical studies providing positive data [24][27] Question: How does the company plan to manage its R&D budget? - The company is increasing its R&D spending to about 7.5% of revenue, focusing on high-potential programs [48][50] Question: What is the outlook for the dry eye market? - Management believes they have the best portfolio for dry eye treatment, with Xiidra and Miebo positioned as leading products [52] Question: What is the growth outlook for the surgical business? - The surgical business is expected to grow steadily, driven by an aging population and consistent demand for IOLs [89]

Core Insights - Bausch + Lomb is positioning itself as a leading company in eye health, emphasizing a commitment to innovation and improvement in standards of care [1][2] - The company has undergone significant operational changes since 2023, focusing on not accepting the status quo and enhancing decision-making processes [2] - The current product pipeline is described as the strongest and most forward-looking in the company's history, grounded in scientific research and a clear purpose [3]

Summary of Bausch + Lomb Investor Day Company Overview - **Company**: Bausch + Lomb (NYSE: BLCO) - **Event**: 2025 Investor Day held on November 13, 2025 Key Industry Insights - **Market Growth**: The eye care market is durable and growing at mid-single digits, with Bausch + Lomb expecting a compound annual growth rate (CAGR) of 5%-7% through 2028 [19][22] - **Consumer Trends**: Increasing consumer interest in self-care, an aging population, and a rise in eye conditions, particularly dry eye, are driving market growth [51] Core Company Strategies - **Financial Excellence**: Emphasis on driving execution, controlling costs, and expanding margins to create sustainable value through 2028 and beyond [16][17] - **Innovation Focus**: A robust pipeline of breakthrough products is expected to deliver significant value beyond 2028, with over 60 active programs in various stages of development [18][34] Financial Targets - **Revenue Growth**: Expected above-market revenue growth with a target of 5%-7% CAGR through 2028 [19][22] - **Margin Expansion**: Targeting an adjusted EBITDA margin of 23% by 2028, reflecting a 600 basis points improvement from 2025 guidance [20][21] - **Cash Flow Generation**: Anticipating cash flow conversion to exceed 50% by 2028, with strong progress already noted in Q3 results [20][28] Product Portfolio Highlights - **Consumer Business**: Strong performance with a 5%-7% CAGR expected, driven by brands like PreserVision, Lumify, and Blink [23][51] - **Pharmaceutical Leadership**: Market leader in dry eye disease with brands Mibo and Xiidra, focusing on innovative treatments [24] - **Surgical Innovations**: Premium IOL portfolio and new product launches are driving growth in the surgical segment [24] Key Product Innovations - **PreserVision AREDS3**: A new formulation targeting all stages of age-related macular degeneration (AMD), expected to launch in 2026 [54][55] - **Lumify Lux**: A new version of the popular redness reliever incorporating hyaluronic acid for enhanced user experience [60][61] - **Blink Triple Care**: An advanced OTC dry eye drop formulation combining hyaluronic acid with nano-emulsion lipids for long-lasting hydration [64] R&D and Innovation - **R&D Transformation**: Significant restructuring to enhance capabilities, focusing on groundbreaking innovations and faster market delivery [33][34] - **Pipeline Potential**: Aiming for peak sales of $7 billion from the current pipeline, with a focus on disruptive innovations rather than incremental improvements [30][31] Market Position and Competitive Advantage - **Leadership in Consumer Eye Health**: Bausch + Lomb is the number one global consumer eye health company, outperforming peers in growth [51][52] - **Brand Trust**: Strong consumer trust in brands like PreserVision, Lumify, and Biotrue, which are highly recommended by eye care professionals [52] Conclusion - Bausch + Lomb is positioned for significant growth through innovative product development, strong financial management, and a commitment to improving eye health standards. The company is confident in its ability to deliver above-market growth and expand profitability through disciplined execution and strategic investments in R&D.

Financial Targets and Growth - Bausch + Lomb projects a constant currency revenue CAGR of 5-7% from 2025-2028[18] - The company aims for an adjusted EBITDA margin of approximately 23% by 2028, excluding acquired IPR&D, representing a 600 bps increase from 2025[18, 38] - Bausch + Lomb targets double-digit adjusted EPS growth from 2026-2028, excluding acquired IPR&D[18] - The company anticipates an adjusted cash flow from operations to adjusted EBITDA conversion of approximately 50% in 2028[18] - Bausch + Lomb aims to reduce net leverage to approximately 35x by the end of 2028[18] Pipeline and Innovation - The company's pipeline has a potential peak sales of approximately $7 billion[40] - AREDS3 vitamins are expected to expand the AMD market, with a franchise peak sales of approximately $600 million[50] - Lumify Luxe, with enhanced comfort, is projected to have franchise peak sales of approximately $450 million[50] - A dual-action DED eye drop is expected to launch in approximately 2029, with peak sales of approximately $07 billion[55] - A first neurosensory agent for OSP is expected to launch in approximately 2030, with peak sales of approximately $14 billion[55]

Core Message - The company is outlining a three-year plan aimed at achieving profitable growth and improving financial margins by approximately 600 basis points over the next three years [2][4]. Financial Strategy - The plan includes a focus on financial excellence, with a commitment to grow above market rates and enhance margins through various initiatives [2]. - The company aims to modernize its manufacturing footprint, which has been described as somewhat outdated, to create efficiencies in manufacturing and supply chain [5]. Business Segments - The surgical segment is expected to be the largest contributor to margin expansion, particularly through the introduction of higher premium intraocular lenses and implants [4]. - The company is also focusing on a diverse product mix across its consumer, pharmaceuticals, and surgical businesses to drive higher-margin products through its pipeline and R&D efforts [3]. Capital Allocation and M&A - The company is adopting a disciplined capital allocation approach, with a focus on small M&A and licensing, primarily for intellectual property to develop new medicines or products [6]. - There is a commitment to achieve a leverage ratio of three to three and a half times by 2028, aiming for an investment-grade credit rating [6]. Impact of Tariffs - Tariffs are impacting the company by approximately 40 basis points of margin this year, equating to about $20 million, primarily due to reciprocal tariffs affecting exports to China and Europe [7][8]. - The company is planning to shift some production from the U.S. to Europe and Asia in response to these tariffs [9][10]. Future Outlook - The company is preparing for a long-term environment of tariffs, indicating that it is planning around a new baseline for revenue impacted by tariffs [12]. - There are ongoing concerns about myopia in children due to screen time, and the company is developing a contact lens specifically designed for kids that incorporates therapeutic correction [20].