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Bausch + Lomb (BLCO) - 2024 Q3 - Quarterly Report
BLCOBausch + Lomb (BLCO)2024-10-30 20:32
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Financial Performance - Revenues for the three months ended September 30, 2024, were 1,196million,anincreaseof1,196 million, an increase of 189 million, or 19%, compared to 1,007millioninthesameperiodof2023[231].−TotalrevenuesforQ32024reached1,007 million in the same period of 2023[231]. - Total revenues for Q3 2024 reached 1,196 million, a 19% increase from 1,007millioninQ32023[236].−TotalrevenuesfortheninemonthsendedSeptember30,2024,were1,007 million in Q3 2023[236]. - Total revenues for the nine months ended September 30, 2024, were 3,511 million, an 18% increase from 2,973millioninthesameperiodof2023,drivenbyacquisitionsandincreasedvolumes[274].−VisionCaresegmentrevenuewas2,973 million in the same period of 2023, driven by acquisitions and increased volumes[274]. - Vision Care segment revenue was 2,016 million for the nine months ended September 30, 2024, a 7% increase from 1,881millionin2023,primarilyduetosalesfromthedryeyeportfolioandLumify[278].−Pharmaceuticalssegmentrevenueincreasedto1,881 million in 2023, primarily due to sales from the dry eye portfolio and Lumify[278]. - Pharmaceuticals segment revenue increased to 883 million for the nine months ended September 30, 2024, a 67% rise from 529millionin2023,drivenbytheXIIDRAacquisitionandthelaunchofMIEBO[279].−Surgicalsegmentrevenuewas529 million in 2023, driven by the XIIDRA acquisition and the launch of MIEBO[279]. - Surgical segment revenue was 612 million for the nine months ended September 30, 2024, a 9% increase from 563millionin2023,drivenbyincreaseddemandforconsumablesandimplantables[282].IncomeandExpenses−OperatingincomeforthethreemonthsendedSeptember30,2024,was563 million in 2023, driven by increased demand for consumables and implantables[282]. Income and Expenses - Operating income for the three months ended September 30, 2024, was 43 million, compared to 40millioninthesameperiodof2023,reflectingaslightincrease[231].−NetincomeattributabletoBausch+LombCorporationforthethreemonthsendedSeptember30,2024,was40 million in the same period of 2023, reflecting a slight increase[231]. - Net income attributable to Bausch + Lomb Corporation for the three months ended September 30, 2024, was 4 million, a significant improvement from a net loss of 84millioninthesameperiodof2023[231].−Selling,general,andadministrativeexpensesroseto84 million in the same period of 2023[231]. - Selling, general, and administrative expenses rose to 511 million for the three months ended September 30, 2024, up from 418millionin2023,reflectinganincreaseof418 million in 2023, reflecting an increase of 93 million[231]. - Research and development expenses were 84millionforthethreemonthsendedSeptember30,2024,slightlyupfrom84 million for the three months ended September 30, 2024, slightly up from 82 million in the same period of 2023[231]. - Interest expense increased to 100millionforQ32024,upfrom100 million for Q3 2024, up from 76 million in Q3 2023, primarily due to new debt associated with the October 2028 Secured Notes[268]. - Operating income decreased by 6million,or76 million, or 7%, to 75 million for the nine months ended September 30, 2024, from 81millionin2023[291].ProductDevelopmentandLaunches−Thecompanyhasapipelineofapproximately60projectsinvariousstagesofpre−clinicalandclinicaldevelopment,includingnewcontactlensesformyopiaandnext−generationcataractequipment[199].−ThecompanylaunchedSiHyDaily,asiliconehydrogeldailydisposablecontactlens,inover50countriesandplanstocontinueitsglobalrollout[201].−MIEBO,thefirstFDA−approvedtreatmentfordryeyediseasetargetingtearevaporation,waslaunchedintheU.S.inSeptember2023andapprovedinCanadainSeptember2024[202].−ThecompanyacquiredXIIDRA,anon−steroideyedropfordryeyedisease,fromNovartisinSeptember2023,enhancingitsdryeyefranchise[205].−TheacquisitionofTrukeraMedicalinJuly2024isexpectedtoexpandthecompany′spresenceinthedryeyemarketwithitspoint−of−caredeviceformeasuringtearosmolarity[205].−TheenVistaAspiremonofocalandtoricIOLslaunchedintheU.S.inOctober2023,withplansforEuropeanandCanadianlaunchesin2025[204].MarketandCompetitivePosition−Thecompany’sVisionCaresegmentincludesacomprehensiveportfolioofcontactlensesandconsumereyecareproducts,contributingtoitscompetitivepositionintheeyehealthmarket[193].−VisionCaresegmentrevenueincreasedto81 million in 2023[291]. Product Development and Launches - The company has a pipeline of approximately 60 projects in various stages of pre-clinical and clinical development, including new contact lenses for myopia and next-generation cataract equipment[199]. - The company launched SiHy Daily, a silicone hydrogel daily disposable contact lens, in over 50 countries and plans to continue its global rollout[201]. - MIEBO, the first FDA-approved treatment for dry eye disease targeting tear evaporation, was launched in the U.S. in September 2023 and approved in Canada in September 2024[202]. - The company acquired XIIDRA, a non-steroid eye drop for dry eye disease, from Novartis in September 2023, enhancing its dry eye franchise[205]. - The acquisition of Trukera Medical in July 2024 is expected to expand the company's presence in the dry eye market with its point-of-care device for measuring tear osmolarity[205]. - The enVista Aspire monofocal and toric IOLs launched in the U.S. in October 2023, with plans for European and Canadian launches in 2025[204]. Market and Competitive Position - The company’s Vision Care segment includes a comprehensive portfolio of contact lenses and consumer eye care products, contributing to its competitive position in the eye health market[193]. - Vision Care segment revenue increased to 684 million in Q3 2024, up 6% from 648millioninQ32023,drivenbydryeyeportfoliosalesandSiHyDailylenses[241].−Pharmaceuticalssegmentrevenuesurgedto648 million in Q3 2023, driven by dry eye portfolio sales and SiHy Daily lenses[241]. - Pharmaceuticals segment revenue surged to 306 million in Q3 2024, a 76% increase from 174millioninQ32023,primarilyduetotheXIIDRAacquisitionandMIEBOlaunch[243].−Surgicalsegmentrevenueroseto174 million in Q3 2023, primarily due to the XIIDRA acquisition and MIEBO launch[243]. - Surgical segment revenue rose to 206 million in Q3 2024, an 11% increase from 185millioninQ32023,attributedtohigherdemandforconsumablesandimplantables[244].DebtandFinancialObligations−AsofSeptember30,2024,theprincipalamountsoutstandingundertheMay2027TermFacilityandSeptember2028TermFacilitywere185 million in Q3 2023, attributed to higher demand for consumables and implantables[244]. Debt and Financial Obligations - As of September 30, 2024, the principal amounts outstanding under the May 2027 Term Facility and September 2028 Term Facility were 2,444 million and 495million,respectively[315].−TheCompanyissued495 million, respectively[315]. - The Company issued 1,400 million aggregate principal amount of 8.375% Senior Secured Notes due October 2028, with interest payable semi-annually starting April 1, 2024[325]. - The weighted average stated rate of interest for the Company's outstanding debt obligations as of September 30, 2024, was 8.34%[330]. - The Company expects to make interest payments of approximately 130millionandmandatorydebtamortizationpaymentsof130 million and mandatory debt amortization payments of 8 million for the period October 1, 2024, through December 31, 2024[335]. - The amortization rate for the May 2027 Term Facility is 1.00% per annum, or 25million,payableinquarterlyinstallments[323].−TheamortizationratefortheSeptember2028TermFacilityis1.0025 million, payable in quarterly installments[323]. - The amortization rate for the September 2028 Term Facility is 1.00% per annum, or 5 million, payable in quarterly installments[324]. Risks and Challenges - The company faces risks related to adverse economic conditions, including inflation and potential recession, which could impact revenues and margins[350]. - The introduction of generic and biosimilar competitors poses a risk to the company's branded products and market share[357]. - The company is committed to obtaining and maintaining sufficient intellectual property rights to protect its products from competition[358]. - The impact of geopolitical conflicts, including those in Russia and Ukraine, is being closely monitored as it may affect sales and operations[356]. - The company faces risks related to potential work stoppages, economic factors, and compliance with extensive regulations, which could impact operations and financial performance[359]. - The company must navigate uncertainties in drug development, including the success of clinical trials and regulatory approvals, which could impact the commercialization of its products[359]. Strategic Initiatives - The Company plans to refinance its debt upon full separation and transition to a longer-term capital structure[332]. - The company anticipates continued improvement in operational efficiency and plans to enhance cash and working capital requirements for the remainder of 2024 and beyond[348]. - Expected revenues for the company's products, including XIIDRA, are anticipated to grow, with specific R&D and marketing expenditures outlined[348]. - The company is actively managing challenges post-IPO, including potential conflicts of interest and the complexities of operating as an independent entity[350]. - The company is focused on maintaining strong relationships with healthcare professionals and ensuring favorable formulary status for its products[356].