BUSINESS: ICYMI Growth in Vision Care Helps Boost Bausch + Lomb's Overall Performance in the Second Quarter By Staff Friday, August 5, 2022 12:33 AM VAUGHAN, Ontario—Bausch + Lomb Corp. (NYSE/TSX: BLCO) reported Thursday that its second-quarter revenue increased 1 percent (on a reported basis) to $941 million, and approximately 6 percent organically, “driven by strong performance in vision care and surgical segments.” The year-ago revenue total was $934 million. Foreign exchange had an unfavorable impact on revenues of $46 million in the second quarter, the company noted. In the vision care segment, revenue totaled $589 million in the second quarter, which compares with $556 million in the second quarter of 2021, an increase of $33 million, or 6 percent. Excluding the unfavorable impact of foreign exchange of $29 million, the segment increased organically by approximately 11 percent compared with the second quarter of 2021, primarily due to higher sales of Lumify (brimonidine tartrate ophthalmic solution 0.025%), the Biotrue solutions franchise and Ocuvite + PreserVision, partially offset by decreased sales in the contact lens business in China (driven by COVID-19 lockdowns that continued into the second quarter of 2022), according to the company’s announcement. Bausch + Lomb was partially spun off by Bausch Health in an early May transaction, which raised about $630 million, as VMAIL reported. “In the second quarter, Bausch + Lomb delivered strong results that demonstrate the advantages of our integrated eyecare platform, the durability of our leading brands and the ability of our teams to simultaneously execute on business performance and drive innovation,” Joseph C. Papa, chief executive officer, said in the company’s announcement. (Note, Papa recently announced his intention to step down as the company’s CEO once a successor is named.) “Our consumer business performed exceptionally well with three of our leading franchises—Lumify, Biotrue solutions and PreserVision vitamins—each achieving a record-high market share in its respective category,” Papa said. On the bottom line, B+L reported net income (GAPP basis) of $5 million and adjusted EBITDA (non-GAAP) of $182 million. The company said it achieved cash flow from operations of $156 million. In the year-ago quarter, net income totaled $44 million, with the decline in the recent quarter “primarily due to an increase in interest expense and … decrease in operating results," partially offset by a favorable change in the provision for income taxes, B+L said. Operating income was $56 million for the second quarter of 2022, which compared with $58 million a year ago, a decrease of $2 million. The change was primarily driven by an increase in selling, general and administrative (SG&A) expenses mainly due to inflationary impacts on transportation costs, R&D investment and cost of goods sold, partially offset by a decrease in amortization of intangible assets and an increase in revenues. In the surgical segment, revenues were $184 million, compared with $185 million in the year-ago period, or a decrease of $1 million. Excluding the unfavorable impact of foreign exchange of $11 million and the impact of divestitures and discontinuations of $3 million, the segment increased organically by approximately 7 percent, primarily due to increased sales of consumables and intraocular lenses. B+L said it is “continuing to maintain a disciplined approach to cost management and leverage its infrastructure.” In addition, B+L reaffirmed its 2022 full-year revenue and adjusted EBITDA (non-GAAP) guidance ranges. According to the announcement, B+L achieved the following advances in its product pipeline: Launched Revive custom soft contact lenses in the U.S. Launched Xipere (triamcinolone acetonide injectable suspension), a therapy that uses the suprachoroidal space to treat patients suffering from macular edema associated with uveitis, in the U.S.; additionally, Xipere received its permanent J-code, a reimbursement code used by commercial insurers and government payers, which became effective for provider billing on July 1, 2022. Submitted a New Drug Application to the Food and Drug Administration for NOV03 (perfluorohexyloctane), an investigational treatment with a proposed indication of treating the signs and symptoms of dry eye disease associated with Meibomian gland dysfunction. Launched Biotrue Hydration Plus Multi-Purpose Solution in the U.S. Bausch + Lomb Infuse/Ultra One Day daily disposable silicone hydrogel contact lenses are now available in approximately 25 countries, including recent launches in Cyprus and Norway. Launched Lumify (brimonidine tartrate ophthalmic solution 0.025%) in Canada. Enrolled first patient in a study evaluating the safety and efficacy of the Technolas Teneo excimer laser in the U.S. for laser-assisted in situ keratomileusis (LASIK) vision correction surgery for hyperopia with astigmatism. Entered into strategic agreements with Sanoculis, an Israel ophthalmic medical device start-up company, designed to address unmet needs in glaucoma, including an equity investment in Sanoculis, an exclusive European distribution agreement for Sanoculis Minimally Invasive Micro Sclerostomy ("MIMS), which is an innovative minimally invasive surgical procedure for the treatment of glaucoma, and an option agreement to purchase all of the assets of Sanoculis.