BUSINESS: Financial Bausch Health Reports Sales Gain, Executive Promotions and Plans for IPO of Medical Aesthetics Business Unit By Staff Wednesday, August 4, 2021 12:24 AM LAVAL, Quebec—Amid a flurry of announcements Tuesday, Bausch Health reported a significant increase in sales for its second quarter, disclosed its plans for an initial public offering of its medical aesthetics business (which it is calling Solta Medical) and announced some new executive roles for the C-suite following the previously announced spinoff of the Bausch + Lomb eye health business. The company’s executives noted that the previously announced plan for a B+L public offering would occur “after Oct. 1,” and after some internal targets (some related to debt) are achieved.In its second quarter, the overall Bausch Health business reported total sales of $2.1 billion, which compares with $1.66 billion in the year-ago period. This was a sales increase of $436 million, “which was primarily due to higher volumes resulting from the positive impacts of the recovery from the COVID-19 pandemic,” the company said. Excluding the favorable impact of foreign exchange and the impact of divestitures and discontinuations, revenue increased organically by $380 million, or 23 percent. In the Bausch + Lomb eye health segment, revenue totaled $934 million, which compared to $677 million for the year-ago quarter of 2020, or an increase of $257 million (or 38 percent). Excluding the favorable impact of foreign exchange and the impact of divestitures and discontinuations, the Bausch + Lomb segment increased revenue organically by approximately 33 percent, which the company said was “primarily due to higher sales resulting from the positive impacts of the recovery from the COVID-19 pandemic.” The global vision care business saw a "strong recovery" in the quarter, with a 56 percent increase in organic revenue compared with the year-ago period. This was driven by a ramp-up in the U.S. market and rebounds in the international segment, partially offset by continued COVID-19 impact in some territories, according to Bausch's announcement. The U.S. market saw 103 percent organic revenue growth, driven by the launch of Infuse and the continued ramp of the astigmatism line extensions for Biotrue ONEday and Bausch + Lomb ULTRA, the company said. At the corporate level, Bausch Health reported a net loss of $595 million, which compares with a net loss of $326 million for the same period in 2020, an unfavorable change of $269 million. “The change was primarily due to the unfavorable change in our operating results coupled with a decrease in the benefit from income taxes,” the company said in its announcement. The adjusted net income (non-GAAP) for the second quarter was $352 million, a reversal from adjusted net income of $165 million for the second quarter of 2020. “Our second-quarter 2021 results demonstrate impressive overall company growth as our businesses continue to recover from the COVID-19 pandemic,” chairman and chief executive officer Joseph C. Papa said in the announcement. “We saw strong performance with market share gains for many of our leading brands and strong cash flow generation in the quarter, which has enabled us to make great strides in reducing our debt.” In addition, Bausch announced a plan to pursue an initial public offering for the Solta Medical business, which the company said is “an important step in the previously announced spinoff of the Bausch + Lomb eye health business.” In the end, the planned financial transactions will result in the creation of three attractive companies: Bausch + Lomb, a pure-play, integrated eye health company; Bausch Pharma, a global diversified pharmaceuticals business; and Solta Medical, a leading global provider in medical aesthetics, the company said. “We remain committed to unlocking value across these three attractive businesses as soon as possible,” Papa added. Bausch also announced a series of new executive assignments. They include: Thomas J. Appio was appointed CEO of Bausch Pharma, effective upon separation of the Bausch + Lomb eye health business. Appio joined the company from Bausch + Lomb in 2013, and under his leadership the organization has experienced accelerated growth in revenue and profitability within many of its international businesses. Previously, Mr. Appio served 23 years with Schering-Plough in a wide range of leadership and operations responsibilities. Additionally, Robert Spurr has been appointed president of the U.S. market for Bausch Pharma effective upon separation of Bausch + Lomb. Spurr currently serves as president of the Salix Pharmaceuticals business. He joined Bausch Health in 2018 as senior vice president, market access and commercial operations. Robert N. Power has been appointed chairman of Bausch Pharma effective upon separation of Bausch + Lomb. Power has served as a member of the Bausch Health board of directors since 2008. He was previously a faculty member at The Wharton School of Business, University of Pennsylvania.