Bausch+Lomb – NewCo and BHC

Bausch Health Cos Inc plans to spin off its eye health business into an independent publicly-traded company called Bausch + Lomb – NewCo.

Bausch Health Cos Inc plans the  spin-off, which will establish two separate companies that include:

  • Bausch + Lomb – NewCo, an eye health company built on the Bausch + Lomb brand.
  • BHC, a diversified pharmaceutical company with leading positions in gastroenterology, aesthetics/dermatology, neurology and international pharmaceuticals.

“We are committed to taking action to unlock what we see as unrecognised value in Bausch Health shares, and we believe that separating our business into two highly focused, stand-alone companies is the way to accomplish that goal,” said Joseph C. Papa, chairman and CEO of Bausch Health.

“Four years ago, we initiated a multi-phase plan, first to stabilize and then to transform Bausch Health into a company positioned to deliver long-term organic growth. We have divested approximately $4 billion of non-core assets, paid down over $8 billion of debt, resolved numerous legacy legal issues and managed a loss of exclusivity on an approximately $1.4 billion product portfolio, while also investing in R&D, new product launches­­ and core franchises with attractive growth opportunities. Our Board of Directors and management team have been working on alternatives over the last 12 months to determine how to best unlock value across our businesses, and we believe that the time is right to begin the separation process, so each business has greater flexibility to pursue strategic opportunities in their respective markets.”

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Bausch + Lomb – NewCo, which will consist of Bausch Health’s global vision care, surgical, consumer and ophthalmic Rx businesses, would have had 2019 revenue of approximately $3.7 billion. It is “well-positioned to continue delivering consistent organic revenue growth across the globe, with more than half of its sales outside of the United States,” according to a press release.

BHC, which would have had 2019 revenue of approximately $4.9 billion, will comprise a diversified portfolio of leading durable brands across the Salix, International Rx, Solta, neurology and medical dermatology businesses. Bausch Health has begun a process to determine the future executive leadership teams for each company, according to the release.

The company stated: “The timing of the anticipated spin-off will be tied to certain conditions and approvals, and the Company’s completion of several important actions, including the reorganisation of the reporting segments, which we expect to begin reporting in the first quarter of 2021.”

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