Bausch & Lomb Corp
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
BLCO$19.99+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001860742-24-000018
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0001860742-25-000008
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 303 previous paragraphs and 256 current paragraphs.
165 unchanged; 62 reworded; 21 added; 62 removed; 14 previous and 8 current paragraphs rearranged.
Tables are not compared: 13 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
In addition, we have a number of other key pipeline products that we are in the process of developing and anticipate initiating clinical studies on certain of these products beginning throughout 2025.
Current report
During 2025, the Company acquired Whitecap Biosciences LLC ("Whitecap Biosciences"). The acquisition is expected to expand the Company's clinical-stage pipeline, as Whitecap Biosciences is currently developing two innovative therapies for potential use in glaucoma and geographic atrophy.
Current report
Prior to 2025, certain strategic acquisitions that we had entered into included the following:
Current report
•Acquisition of Elios Vision - In December 2024, we acquired Elios Vision, Inc. ("Elios Vision"). Elios Vision, a privately held company, is the developer of the ELIOS® procedure, the first clinically validated, minimally invasive glaucoma surgery procedure using an excimer laser. The U.S. submission of this product is being planned and we expect this acquisition to then bolster the Company's glaucoma treatment portfolio.
Current report
Voluntary Recall of enVista Intraocular Lenses
Current report
On March 27, 2025, the Company announced a voluntary recall of certain enVista IOL products. The recall was in response to an increased number of reports of toxic anterior segment syndrome (TASS), and included all lots of the following enVista IOL products: enVista Aspire, enVista Aspire Toric, enVista Envy and enVista Envy Toric, as well as enVista monofocal and enVista monofocal Toric IOL models in the U.S. On April 24, 2025, the Company announced that it, with the assistance of experts and advisors, had completed its investigation into the matter and determined that the issue stemmed from raw material used in certain lots that was delivered by a different vendor.
Current report
In response to the investigation, the Company has implemented enhanced inspection protocols for IOLs, as well as more explicit standards for how the monomers that make up its lenses are prepared by vendors. With these new processes in place, the Company has returned to full production of all enVista IOLs. In the following weeks, the Company will return to full market supply in the U.S. The timing for market reentry in other countries will be determined on a case-by-case basis in collaboration with health authorities.
Current report
Macroeconomic Conditions
Current report
The Company is monitoring ongoing policy changes being made by the Trump administration, including those related to existing trade agreements and imposition and implementation of new tariffs and the counter-duties, counter-tariffs and/or other counter-measures implemented in response by other countries. Some of these policies have targeted countries in which we do business and sectors in which we do business, including pharmaceuticals. Given the international scope of our operations, any sanctions, export controls, tariffs, trade wars and other governmental actions could have an adverse effect on our business, financial condition, cash flows and results of operations. Similarly, adverse economic and geopolitical conditions impacting our customers in these countries or uncertainty about global economic conditions or the geopolitical environment could cause a decline in our share price and could also result in purchases of our products to decline, which would adversely affect our revenues and operating results.
Current report
As of the date of this filing, the current state of recent tariffs, counter-tariffs and other trade restrictions is fluid and continuously evolving; however, the Company is monitoring the status and believes that, building on its existing revenue stream from products manufactured in-country (which in certain key regions, such as the US and EU, represent a significant portion of the overall revenue), it has certain potential actions that could be taken in response to such tariffs, counter-tariffs and other trade restrictions to help to mitigate their overall impact to the Company and its business. These actions may include strategic inventory stocking, leveraging its global footprint to shift manufacturing and optimizing existing capacity to in-source manufacturing.
Current report
The United States did not announce plans to enact the tax measures under the two-pillar plan. On February 1, 2023, the U.S. Financial Accounting Standards Board indicated that they believe the minimum tax imposed under pillar two is an alternative minimum tax, and, accordingly, deferred tax assets and liabilities associated with the minimum tax would not be recognized or adjusted for the estimated future effects of the minimum tax but would be recognized in the period incurred. On January 20, 2025, the Trump Administration issued an executive order declaring the Inclusive Framework has no force or effect in the U.S. absent congressional action, and directing the U.S. Department of Treasury to: (i) investigate whether any non-U.S. countries are not in compliance with any U.S. tax treaty or have implemented or are likely to implement tax rules that are extraterritorial or disproportionately affect U.S. companies, which may include actions or taxes imposed under Pillar One or Pillar Two, and (ii) develop options for “protective measures” in response to any such noncompliance or tax rules. In addition, legislation has been introduced in the U.S. Congress that would increase U.S. tax rates on non-U.S. companies and investors if their home jurisdictions impose discriminatory or extraterritorial taxes on U.S. companies. We cannot predict whether the U.S. will adopt any such protective measures or whether any such legislation will be adopted, or whether or how any non-U.S. countries may change their tax laws, including with respect to taxes imposed under Pillar One or Pillar Two, in response to the executive order, any action taken thereunder or the legislation described above. It is possible that any changes in U.S. or non-U.S. tax law could have material adverse effect on our future tax liabilities and our effective tax rate.
Current report
The Pharmaceuticals segment revenue was $267 million and $267 million for the three months ended March 31, 2025 and 2024, respectively, as the increased sales for MIEBO®, driven by its continued positive momentum since launching, was offset by gross-to-net pricing pressures, primarily attributable to XIIDRA® and declines in the U.S. generics business. The Pharmaceuticals segment revenue performance included an increase in volumes of $24 million, offset by: (i) a decrease in net realized pricing of $22 million and (ii) the unfavorable impact of foreign currencies of $2 million.
Current report
Cost of goods sold was $481 million and $423 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $58 million, or 14%. The increase was primarily driven by: (i) an inventory reserve charge of $15 million related to the voluntary recall of certain enVista IOL products and (ii) higher volumes.
Current report
Acquired in-process research and development costs in 2025 relates to the acquisition of Whitecap Biosciences, as previously discussed.
Current report
Operating (Loss) Income
Current report
The Surgical segment profit was a loss of $7 million for the three months ended March 31, 2025, as compared to a profit of $11 million for the three months ended March 31, 2024, a decrease of $18 million. The decrease was primarily due to: (i) higher cost of sales as a result of an inventory obsolescence charge of $15 million related to the voluntary recall of certain enVista IOL products and (ii) higher selling expenses, partially offset by the increase in revenues.
Current report
Net cash used by operating activities was $25 million for the three months ended March 31, 2025, as compared to net cash provided by operating activities of $41 million for the three months ended March 31, 2024, a decrease of $66 million, and is primarily attributable to the decrease in our operating results, including the $28 million of acquired in-process research and development payments in 2025, as previously discussed.
Current report
Recent Financing Activities
Current report
•factors associated with the recent voluntary recall of certain of our enVista IOL products, includingthe timing of market reentry and return to full market supply, the success of the enhanced inspection protocols and more explicit standards for third party suppliers we have implemented for IOLsand any additional actions that may be taken by the company and/or applicable regulatory authorities with respect to the recall or as part of the return to market of these products;
Current report
•risks associated with the imposition of and adverse changes to the U.S. duty, tariff and other trading policies, and the counter-duties, counter-tariffs and/or other counter-measures implemented in response by other countries, which are expected to increase our manufacturing, distribution and other operational costs due to the higher duties and tariffs and the increased economic risks and uncertainties to the global economy as a result of such tariffs and counter-tariffs and the potential trade wars and global supply chain issues that may be triggered by the tariff changes and changes in consumer habits as a result;
Current report
•risks associated with the potential actions the Company may take in response to such tariffs, counter-tariffs and other trade restrictions in order to help mitigate their impact on the Company and its business, results of operations and financial condition, including the risk that such potential actions may not be successful in mitigating the impact in the manner anticipated or at all and the costs and other risks that may be incurred in taking such actions. There can be no assurance that any such actions will be successful in mitigating the impact of the applicable tariffs, counter-tariffs or other trade restrictions;
Removed paragraphs (62)
Previous report
Supply Chain
Previous report
Over the past few years we had experienced supply chain challenges, which had caused disruptions in availability and delays in shipping. We therefore implemented actions to help mitigate those challenges, including strategically spot buying key components of inventory and securing multiple supply sources. While we will continue to monitor any future supply chain challenges, the actions taken to mitigate our previous challenges had resulted in higher cost of inventory, which in turn had put pressure on our margins, primarily within our surgical business.
Previous report
Our 2023 revenues were negatively impacted due to previously unfulfilled orders at our Lynchburg distribution facility. During the second quarter of 2023, we put into place a system upgrade; however, we incurred disruptions during the implementation of this upgrade, which resulted in slower than normal processing of certain orders, thereby negatively impacting our revenues for the three months ended September 30, 2023. We substantially resolved the Lynchburg implementation disruptions during the first quarter of 2024.
Previous report
The Pharmaceuticals segment revenue was $306 million and $174 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $132 million, or 76%. The increase was primarily driven by: (i) the XIIDRA Acquisition and (ii) the launch of MIEBO® in September 2023. This increase included: (i) incremental sales from the XIIDRA Acquisition of $92 million and (ii) an increase in volumes of $44 million, partially offset by: (i) the impact of discontinuations of $3 million and (ii) a decrease in net realized pricing of $1 million.
Previous report
Cost of goods sold was $464 million and $391 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $73 million, or 19%. The increase was primarily driven by: (i) costs of sales associated with acquisitions entered into subsequent to September 30, 2023, which includes the amortization of inventory step-up and (ii) higher volumes.
Previous report
Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) increased by $115 million, primarily driven by: (i) contribution associated with acquisitions entered into subsequent to September 30, 2023, (ii) the increase in volumes, including related to the launch of MIEBO® during September 2023 and (iii) the increase in net realized pricing, as previously discussed.
Previous report
Amortization of Intangible assets was $72 million and $47 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $25 million, or 53%, primarily due to assets acquired through acquisitions, as previously discussed.
Previous report
Operating income
Previous report
Operating income was $43 million and $40 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $3 million. This increase primarily reflects the increase in contribution, partially offset by increases in SG&A and amortization expense, each as previously discussed.
Previous report
The Vision Care segment profit was $201 million and $182 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $19 million, or 10%. The increase was primarily driven by: (i) increased contribution, driven by the increases in volume and pricing, as previously discussed and (ii) lower R&D expense to strategically position our portfolio within our consumer eye care business. The increase in contribution was partially offset by higher advertising and promotional expenses in our consumer eye care business driven by the Blink® OTC product line, acquired in July 2023.
Previous report
Interest expense was$100 million and$76 million for the three months ended September 30, 2024 and 2023, respectively, an increase of$24 million. The increase is primarily attributable to interest expense associated with our October 2028 Secured Notes and September 2028 Term Facility (each as defined and discussed in further detail, under Item “— Liquidity and Capital Resources — Liquidity and Debt — Long-term Debt”), partially offset by certain upfront financing commitment costs incurred in connection with the XIIDRA Acquisition during the prior period. See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements for further details regarding the October 2028 Secured Notes and September 2028 Term Facility.
Previous report
Net income (loss) attributable to Bausch + Lomb Corporation
Previous report
Net income attributable to Bausch + Lomb Corporation was $4 million for the three months ended September 30, 2024, as compared to a net loss attributable to Bausch + Lomb Corporation of $84 million for the three months ended September 30, 2023, an increase in our results of $88 million and was primarily due to: (i) the decrease in the provision for income taxes of $111 million and (ii) the increase in our operating results of $3 million, partially offset by the increase in interest expense of $24 million, each as previously discussed.
Previous report
Revenues
Previous report
Our revenues were $3,511 million and $2,973 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $538 million, or 18%. The increase was attributable to: (i) incremental sales attributable to acquisitions of $288 million, primarily within our Pharmaceuticals segment, (ii) increased volumes of $226 million across each of our segments and (iii) increased net realized pricing of $83 million, primarily driven by our Vision Care segment. The increase in revenues were partially offset by: (i) the unfavorable impact of foreign currencies of $52 million, primarily in Asia and Latin America and (ii) the impact of divestitures and discontinuations of $7 million, particularly the discontinuation of certain products within our Pharmaceuticals and Vision Care segments.
Previous report
Vision Care Segment Revenue
Previous report
The Vision Care segment revenue was $2,016 million and $1,881 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $135 million, or 7%. The increase was primarily driven by sales from our dry eye portfolio and Lumify® within our consumer eye care business and SiHy Daily lenses within our contact lens business. This increase included: (i) an increase in net pricing of $79 million, (ii) an increase in volumes of $75 million and (iii) incremental sales attributable to acquisitions driven by the acquisition of the Blink® Product Line in July 2023, partially offset by: (i) the unfavorable impact of foreign currencies of $42 million, primarily in Russia, Asia and Latin America, and (ii) the impact of discontinuations.
Previous report
Our 2023 revenues were negatively impacted due to previously unfulfilled orders at our Lynchburg distribution facility. During the second quarter of 2023, we put into place a system upgrade; however, we incurred disruptions during the implementation of this upgrade, which resulted in slower than normal processing of certain orders, thereby negatively impacting our revenues for the nine months ended September 30, 2023. We substantially resolved the Lynchburg implementation disruptions during the first quarter of 2024.
Previous report
Pharmaceuticals Segment Revenue
Previous report
The Pharmaceuticals segment revenue was $883 million and $529 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $354 million, or 67%. The increase was primarily driven by: (i) the XIIDRA Acquisition, (ii) the launch of MIEBO® in September 2023 and (iii) increased demand of certain products within our generics business. This increase included: (i) incremental sales from the XIIDRA Acquisition of $260 million and (ii) an increase in volumes of $116 million, partially offset by: (i) a decrease in net realized pricing of $12 million, (ii) the impact of discontinuations of $6 million and (iii) the unfavorable effect of foreign currencies of $4 million.
Previous report
Surgical Segment Revenue
Previous report
The Surgical segment revenue was $612 million and $563 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $49 million, or 9%. The increase was primarily driven by: (i) increased demand of consumables, (ii) increased system sales and (iii) increased demand of implantables, driven by our premium IOL portfolio. This increase included: (i) an increase in volumes of $35 million, (ii) an increase in net realized pricing of $16 million and (iii) incremental sales from acquisitions of $4 million, partially offset by the unfavorable effect of foreign currencies of $6 million.
Previous report
Operating Expenses
Previous report
Cost of goods sold was $1,369 million and $1,179 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $190 million, or 16%. The increase was primarily driven by: (i) costs of sales associated with acquisitions entered into subsequent to September 30, 2023, which includes the amortization of inventory step-up and (ii) higher volumes.
Previous report
Cost of goods sold as a percentage of Product sales was 39.1% and 39.8% for the nine months ended September 30, 2024 and 2023, respectively.
Previous report
Selling, General and Administrative Expenses
Previous report
SG&A expenses were $1,550 million and $1,253 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $297 million, or 24%. The increase was primarily attributable to higher selling and advertising and promotion costs, primarily attributable to XIIDRA®, the launch of MIEBO® within our Pharmaceuticals segment and Lumify® and the Blink®product line within our U.S. consumer business.
Previous report
Research and Development Expenses
Previous report
Amortization of Intangible Assets
Previous report
Other expense, net
Previous report
Operating Income
Previous report
Segment Profit
Previous report
Vision Care Segment Profit
Previous report
The Vision Care segment profit was $571 million and $503 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $68 million, or 14%. The increase was primarily driven by: (i) increased contribution, driven by the increases in pricing and volume, as previously discussed and (ii) lower R&D expense within our consumer eye care business. The increase in contribution was partially offset by higher advertising and promotional expenses in our consumer eye care business driven by Lumify®, Blink® OTC product line, acquired in July 2023 and Blink TMNutriTears®, which began launching in June 2024.
Previous report
Pharmaceuticals Segment Profit
Previous report
The Pharmaceuticals segment profit was $200 million and $167 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $33 million, or 20%. The increase was primarily driven by increased contribution, primarily driven by XIIDRA®and MIEBO®, partially offset by selling and advertising and promotional expenses related to MIEBO®and XIIDRA®.
Previous report
Surgical Segment Profit
Previous report
The Surgical segment profit was $28 million and $29 million for the nine months ended September 30, 2024 and 2023, respectively, a decrease of $1 million, or 3%, primarily due to the increase in revenues being offset by: (i) higher cost of sales and (ii) higher selling expenses.
Previous report
Non-Operating Income and Expense
Previous report
Interest Expense
Showing the first 40 of 62 passages. Open the source sections for the rest.
Reworded paragraphs (62)
Previous wording
Our accompanying unaudited interim Condensed Consolidated Financial Statements as of September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial statements, and should be read in conjunction with our Consolidated Financial Statements for the year ended December 31, 2023, which were included in our Annual Report on Form 10-K filed with the SEC and the Canadian Securities Administrators (the “CSA”) on February 21, 2024 (the “Annual Report”). In our opinion, the unaudited interim Condensed Consolidated Financial Statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair statement of the financial condition, results of operations and cash flows for the periods indicated. Additional Company information is available on SEDAR+ at www.sedarplus.com and on the SEC website at www.sec.gov. All currency amounts are expressed in U.S. dollars, unless otherwise noted. Certain defined terms used herein have the meaning ascribed to them in the accompanying unaudited interim Condensed Consolidated Financial Statements as of September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023.
Current wording
Our accompanying unaudited interim Condensed Consolidated Financial Statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial statements, and should be read in conjunction with our Consolidated Financial Statements for the year ended December 31, 2024, which were included in our Annual Report on Form 10-K filed with the SEC and the Canadian Securities Administrators (the “CSA”) on February 19, 2025 (the “Annual Report”). In our opinion, the unaudited interim Condensed Consolidated Financial Statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair statement of the financial condition, results of operations and cash flows for the periods indicated. Additional Company information is available on SEDAR+ at www.sedarplus.com and on the SEC website at www.sec.gov. All currency amounts are expressed in U.S. dollars, unless otherwise noted. Certain defined terms used herein have the meaning ascribed to them in the accompanying unaudited interim Condensed Consolidated Financial Statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024.
Previous wording
Bausch + Lomb develops, manufactures and markets a range of products, primarily in the areas of eye health, which are marketed directly or indirectly in approximately 100 countries. As a fully integrated eye health business, Bausch + Lomb has a comprehensive portfolio of approximately 400 products, which includes an established line of contact lenses, intraocular lenses (“IOLs”) and other medical devices, surgical systems and devices, vitamin and mineral supplements, lens care products, prescription eye-medications and other consumer products that positions us to compete in all areas of the eye health market.
Current wording
Bausch + Lomb is a leading global eye health company dedicated to protecting and enhancing the gift of sight for millions of people around the world—from the moment of birth through every phase of life. Our mission is simple, yet powerful: helping you see better, to live better. Bausch + Lomb develops, manufactures and markets a range of products, primarily in the areas of eye health, which are marketed directly or indirectly in approximately 100 countries. As a fully integrated eye health business, Bausch + Lomb has a comprehensive portfolio of approximately 400 products, which includes an established line of contact lenses, intraocular lenses (“IOLs”) and other medical devices, surgical systems and devices, vitamin and mineral supplements, lens care products, prescription eye-medications and other consumer products that positions us to compete in all areas of the eye health market.
Previous wording
Bausch + Lomb is a subsidiary of Bausch Health Companies Inc. (“BHC”), with BHC holding, directly or indirectly, approximately 88.2% of the issued and outstanding common shares of Bausch + Lomb, as of October 23, 2024. On August 6, 2020, BHC, announced its plan to separate our eye health business into an independent publicly traded entity, separate from the remainder of BHC (the “Separation”). This resulted in the initial public offering of Bausch + Lomb (the “B+L IPO”), and our common shares began trading on the New York Stock Exchange and the Toronto Stock Exchange, in each case under the ticker symbol “BLCO”, on May 6, 2022. The completion of the full Separation may be accomplished by the transfer of all or a portion of BHC’s remaining direct or indirect equity interest in Bausch + Lomb to its shareholders (the “Distribution”). The Distribution is subject to the achievement of targeted debt leverage ratios and the receipt of applicable shareholder and other necessary approvals and other factors and is subject to various risk factors. Bausch + Lomb understands that BHC continues to believe that completing the Separation makes strategic sense and that BHC continues to evaluate all relevant factors and considerations related to completing the Separation, including those factors described in BHC’s public filings. For additional information on the risks related to the Separation, see Item 1A. “Risk Factors — Risks Relating to the Separation” of our Annual Report.
Current wording
Bausch + Lomb is a subsidiary of Bausch Health Companies Inc. (“BHC”), with BHC holding, directly or indirectly, approximately 88% of the issued and outstanding common shares of Bausch + Lomb, as of April 23, 2025. Bausch + Lomb understands that BHC continues to believe that completing the separation of our eye health business into an independent publicly traded entity, separate from the remainder of BHC (the “Separation”), which may include the transfer of all or a portion of BHC’s remaining direct or indirect equity interest in Bausch + Lomb to its shareholders (the “Distribution”), the monetization of all or a portion of BHC’s ownership interest in Bausch + Lomb, the sale of the Company (a “Sale Transaction”) or a combination thereof, makes strategic sense and that BHC continues to evaluate all relevant factors and considerations related to completing the Separation, including those factors described in BHC’s public filings. The Distribution is subject to the achievement of targeted debt leverage ratios and the completion of the Separation is subject to the receipt of any applicable shareholder and other necessary approvals and other factors and is subject to various risk factors. For additional information on the risks related to the Separation, see Item 1A. “Risk Factors — Risks Relating to the Separation” of our Annual Report. There can be no assurance that the Separation will be consummated, the form any such consummated Separation would take or that a Distribution or Sale Transaction will occur as part of that Separation or that even if consummated, we will realize the anticipated benefits from the Separation.
Previous wording
Our team of approximately 850 dedicated Research and Development (“R&D”) employees is focused on advancing our pipeline and identifying new product opportunities and we believe we have a significant innovation opportunity today. We plan to develop and, where applicable, commercialize our global pipeline of approximately 60 projects, many of which are global projects being developed in and for multiple countries. These global and individual projects are in various stages of pre-clinical and clinical development, including new contact lenses for myopia, next-generation cataract equipment, premium IOLs, investigational treatments for dry eye, novel formulation for eye vitamins and preservative free formulation of eye drops, among others, that are designed to grow our portfolio and accelerate future growth.
Current wording
Our team of approximately 1,000 dedicated Research and Development (“R&D”) employees is focused on advancing our pipeline and identifying new product opportunities and we believe we have a significant innovation opportunity today. We plan to develop and, where applicable, commercialize our global pipeline of over 60 projects, many of which are global projects being developed in and for multiple countries. These global and individual projects are in various stages of pre-clinical and clinical development, including new contact lenses for myopia, next-generation cataract equipment, premium IOLs, investigational treatments for dry eye, novel formulation for eye vitamins and preservative free formulation of eye drops, among others, that are designed to grow our portfolio and accelerate future growth.
Previous wording
•Lumify® (brimonidine tartrate ophthalmic solution, 0.025%) - An OTC redness reliever eye drop that significantly reduces redness to help eyes look whiter and brighter, revealing eyes’ natural beauty. To date, we have launched and acquired the right to launch Lumify® in various countries. A new line extension formulation, Lumify® Preservative Free, for which the New Drug Application (“NDA”) was approved by the U.S. Food and Drug Administration (the “FDA”) in April 2024, is anticipated to begin launching in the first quarter of 2025.
Current wording
•Lumify® (brimonidine tartrate ophthalmic solution, 0.025%) - An OTC redness reliever eye drop that significantly reduces redness to help eyes look whiter and brighter, revealing eyes’ natural beauty. To date, we have launched and acquired the right to launch Lumify® in various countries. A new line extension formulation, Lumify® Preservative Free, for which the New Drug Application (“NDA”) was approved by the U.S. Food and Drug Administration (the “FDA”) in April 2024, began launching in the first quarter of 2025.
Previous wording
•MIEBO® (perfluorohexyloctane) (formerly known as NOV03) – In December 2019, we acquired an exclusive license from Novaliq GmbH (the “Novaliq License”) for the commercialization and development in the U.S. and Canada of MIEBO® for the treatment of the signs and symptoms of dry eye disease (“DED”). MIEBO® launched in the U.S. in September 2023 and was approved in Canada during September 2024. MIEBO® is the first and only FDA-approved treatment for DED that directly targets tear evaporation and the addition of MIEBO® will help build upon our strong portfolio of integrated eye health products.
Current wording
•MIEBO® (perfluorohexyloctane ophthalmic solution) (formerly known as NOV03) – In December 2019, we acquired an exclusive license from Novaliq GmbH for the commercialization and development in the U.S. and Canada of MIEBO® for the treatment of the signs and symptoms of dry eye disease (“DED”). MIEBO® launched in the U.S. in September 2023 and was approved in Canada during September 2024. MIEBO® is the first and only
Previous wording
•enVista® – We are expanding our portfolio of premium IOLs built on the enVista® platform with enVista® Aspire® (Monofocal Plus), enVista® Envy TM Trifocal and enVista Beyond TM (extended depth of focus (“EDOF”)) optical designs with two options: non-Toric and Toric for astigmatism patients. enVista® Aspire® monofocal and toric IOLs with Intermediate Optimized optics launched in the U.S. during October 2023 and we anticipate launching in Europe and Canada in 2025. enVista® Envy TMlaunched in Canada in June 2024 and the U.S. launch is in-process, after receiving FDA approval in October 2024. We anticipate launching enVista® Envy TM in Europe in 2025. We anticipate launching enVista® Beyond TM in the U.S. in 2026.
Current wording
•enVista® – We are expanding our portfolio of premium IOLs built on the enVista® platform with the following:
Previous wording
•Acquisition of XIIDRA® – In September 2023, the Company acquired XIIDRA®, the first and only non-steroid eye drop specifically approved to treat the signs and symptoms of dry eye disease focusing on inflammation associated with dry eye, and certain other ophthalmology assets from Novartis Pharma AG and Novartis Finance Corporation (together with Novartis Pharma AG, “Novartis”) (the “XIIDRA Acquisition”). The XIIDRA Acquisition complements and grows our existing dry eye franchise.
Current wording
•Acquisition of XIIDRA® – In September 2023, the Company acquired XIIDRA®, a non-steroid eye drop specifically approved to treat the signs and symptoms of dry eye disease focusing on inflammation associated with dry eye, and certain other ophthalmology assets from Novartis Pharma AG and Novartis Finance Corporation (together with Novartis Pharma AG, “Novartis”) (the “XIIDRA Acquisition”). The XIIDRA Acquisition complements and grows our existing dry eye franchise.
Previous wording
The Biden administration has imposed U.S. sanctions and export controls against Russia and Belarus in response to the ongoing war. These sanctions temporarily impacted our ability to distribute our U.S. manufactured contact lenses and our U.S. surgical products to Russia and Belarus. However, in response to these sanctions, we applied for licenses with the U.S. Department of Commerce’s Bureau of Industry and Security for both Russia and Belarus and we have all licenses, or other applicable governmental authorizations, necessary to allow us to sell the applicable currently sanctioned products in each of these countries.
Current wording
The former Biden administration imposed U.S. sanctions and export controls against Russia and Belarus in response to the ongoing war. These sanctions temporarily impacted our ability to distribute our U.S. manufactured contact lenses and our U.S. surgical products to Russia and Belarus. However, in response to these sanctions, we applied for licenses with the U.S. Department of Commerce’s Bureau of Industry and Security for both Russia and Belarus and we have all licenses, or other applicable governmental authorizations, necessary to allow us to sell the applicable currently sanctioned products in each of these countries. In April 2025, the Trump administration extended the sanctions imposed by the former Biden administration for an additional year and has also indicated that it may impose additional sanctions against Russia if negotiations are not commenced respecting a ceasefire or possible end to the conflict in Ukraine.
Previous wording
To date, the challenges associated with the Russia-Ukraine War and related sanctions from the U.S., EU and elsewhere have not yet had a material impact on our operations; although, as noted above, we continue to review recent EU sanctions and are still assessing their impact on our operations.
Current wording
To date, the challenges associated with the Russia-Ukraine War and related sanctions from the U.S., EU and elsewhere have not yet had a material impact on our operations; although, we continue to review recent and proposed sanctions imposed by the EU, US and others to assess their impact on our operations.
Previous wording
Our revenues attributable to Russia, Ukraine and Belarus, in the aggregate, were approximately 3% of our total revenues for, both, the nine months ended September 30, 2024 and year ended December 31, 2023. In addition, we do not have any research or manufacturing facilities in Russia, Ukraine or Belarus. While we have been monitoring this conflict, and will continue to do so as this conflict continues to evolve, we are unable to predict the impact of this conflict on the Company’s business.
Current wording
Our revenues attributable to Russia, Ukraine and Belarus, in the aggregate, were approximately 3% of our total revenues for, both, the three months ended March 31, 2025 and year ended December 31, 2024. In addition, we do not have any research or manufacturing facilities in Russia, Ukraine or Belarus. While we have been monitoring this conflict, and will continue to do so as this conflict continues to evolve, we are unable to predict the impact of this conflict on the Company’s business.
Previous wording
The conflict between Israel and Hamas began during October 2023 and has since expanded to include other countries and militant groups and continues to impact the region. Our revenues attributable to the impacted regions for the nine months ended September 30, 2024 and year ended December 31, 2023 were less than 1% of our total revenues in each period. Sales in Iran are covered by a general OFAC license. While we have been monitoring this conflict, and will continue to do so as this conflict continues to evolve, we are unable to predict the impact of this conflict on the Company’s business.
Current wording
The conflict between Israel and Hamas began during October 2023 and has since expanded to include other countries and militant groups. Our revenues attributable to the impacted regions for the three months ended March 31, 2025 and year ended December 31, 2024 were less than 1% of our total revenues in each period. Sales in Iran are covered by a general OFAC license. While we have been monitoring this conflict, and will continue to do so as this conflict continues to evolve, we are unable to predict the impact of this conflict on the Company’s business.
Previous wording
On October 8, 2021, the Organisation for Economic Co-operation and Development (“OECD”)/G20 inclusive framework on Base Erosion and Profit Shifting (the “Inclusive Framework”) published a statement updating and finalizing the key components of a two-pillar plan on global tax reform originally agreed on July 1, 2021, and a timetable for implementation by 2023. The timetable for implementation has since been extended to 2024 or, with respect to certain components of the plan, to 2025. The Inclusive Framework plan has now been agreed to by 147 OECD members, including several countries which did not agree to the initial plan. Under pillar one, a portion of the residual profits of multinational businesses with global turnover above €20 billion and a profit margin above 10% will be allocated to market countries where such allocated profits would be taxed. Under pillar two, the Inclusive Framework has agreed on a global minimum corporate tax rate of 15% for companies with revenue above €750 million, calculated on a country-by-country basis. On October 30, 2021, the G20 formally endorsed the new global minimum corporate tax rate rules. The Inclusive Framework agreement must now be implemented by the OECD Members who have agreed to the plan, effective in 2024. Many members of the Inclusive Framework have either introduced or announced their intention to introduce certain components of the global minimum tax in line with the model rules for fiscal years beginning on or after December 31, 2023. For example, on December 15, 2022, the European Union member states unanimously adopted the directive to implement pillar two rules. According to the directive, the member states were expected to enact pillar two rules into domestic law in 2023, with certain elements becoming effective for fiscal years beginning on or after December 31, 2023. On August 4, 2023, Canada released draft legislation to enact certain components of the pillar two proposals into Canadian law as the Global Minimum Tax Act (“GMTA”), which was enacted on June 20, 2024. The GMTA is generally aligned with the model rules proposed by the OECD and is effective for fiscal years beginning on or after December 31, 2023. The United States did not announce plans to enact the tax measures under the two-pillar plan. On February 1, 2023, the U.S. Financial Accounting Standards Board indicated that they believe the minimum tax imposed under pillar two is an alternative minimum tax, and, accordingly, deferred tax assets and liabilities associated with the minimum tax would not be recognized or adjusted for the estimated future effects of the minimum tax but would be recognized in the period incurred. The OECD has published model rules and other guidance with respect to pillar two, which are generally consistent with the agreement reached by the Inclusive Framework in October 2021. On February 1, 2023, the Inclusive Framework released a package of technical and administrative guidance on the implementation of…
Excerpt shortened here; the source contains the full paragraph.
Current wording
On October 8, 2021, the Organisation for Economic Co-operation and Development (“OECD”)/G20 inclusive framework on Base Erosion and Profit Shifting (the “Inclusive Framework”) published a statement updating and finalizing the key components of a two-pillar plan on global tax reform originally agreed on July 1, 2021, and a timetable for implementation by 2023. The timetable for implementation was extended to 2024 or, with respect to certain components of the plan, to 2025. The Inclusive Framework plan has now been agreed to by more than 140 OECD members, including several countries which did not agree to the initial plan. Under Pillar One, a portion of the residual profits of multinational businesses with global turnover above €20 billion and a profit margin above 10% will be allocated to market countries where such allocated profits would be taxed. Under Pillar Two, the Inclusive Framework has agreed on a global minimum corporate tax rate of 15% for companies with revenue above €750 million, calculated on a country-by-country basis. On October 30, 2021, the G20 formally endorsed the new global minimum corporate tax rate rules. The Inclusive Framework agreement must be implemented by the OECD Members who have agreed to the plan, effective in 2024. Many members of the Inclusive Framework have either introduced or announced their intention to introduce certain components of the global minimum tax in line with the model rules for fiscal year beginning on or after December 31, 2023. For example, on December 15, 2022, the European Union member states unanimously adopted the directive to implement pillar two rules. According to the directive, the member states were expected to enact pillar two rules into domestic law in 2023, with certain elements becoming effective for fiscal years beginning on or after December 31, 2023. On August 4, 2023, Canada released draft legislation to enact certain components of the pillar two proposals into Canadian law as the Global Minimum Tax Act (“GMTA”), which was enacted on June 20, 2024. The GMTA is generally aligned with the model rules proposed by the OECD and is effective for fiscal years beginning on or after December 31, 2023. The OECD has published model rules and other guidance with respect to pillar two, which are generally consistent with the agreement reached by the Inclusive Framework in October 2021. On February 1, 2023, the Inclusive Framework released a package of technical and administrative guidance on the implementation of pillar two, including the scope of companies that will be subject to the Global Anti-Base Erosion Rules, transition rules, and guidance on domestic minimum taxes that countries may choose to adopt, among other topics. On December 18, 2023, the OECD announced plans to release additional guidance on model rules and to start the peer review process in 2024. On June 17, 2024, the OECD published further administrative guidance to clarify the operation of the model rules. On January 15, 20…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
The U.S. federal and state governments continue to propose and pass legislation designed to regulate the health care industry. Many of these changes focus on health care cost containment, which result in pricing pressures relating to the sales and reimbursements of health care products. The Biden administration and Congress continue to focus on health care cost containment which could result in legislative and regulatory changes that may negatively impact our businesses.
Current wording
The U.S. federal and state governments continue to propose and pass legislation designed to regulate the health care industry. Under the former Biden administration, many of these changes focused on health care cost containment, which resulted in pricing pressures relating to the sales and reimbursements of health care products and could result in legislative and regulatory changes that may negatively impact our businesses. We are monitoring potential health care-related legislative and regulatory changes that may be proposed and passed or otherwise pursued under the Trump administration.
Previous wording
Certain of our products face the expiration of their patent or regulatory exclusivity, following which we anticipate generic competition of these products. Following a loss of exclusivity (“LOE”) of and/or generic competition for a product, we would anticipate that product sales for such product would decrease significantly shortly following the LOE or entry of a generic competitor. Where we have the rights, we may elect to launch an authorized generic (“AG”) of such product (either ourselves or through a third party) prior to, upon or following generic entry, which may mitigate the anticipated decrease in product sales.
Current wording
Certain of our products face the expiration of their patent or regulatory exclusivity over the next five years, following which we anticipate generic competition of these products. Following a loss of exclusivity (“LOE”) of and/or generic competition for a product, we would anticipate that product sales for such product would decrease significantly shortly following the LOE or entry of a generic competitor. Where we have the rights, we may elect to launch an authorized generic (“AG”) of such product (either ourselves or through a third party) prior to, upon or following generic entry, which may mitigate the anticipated decrease in product sales.
Previous wording
Prolensa® began facing LOE in the fourth quarter of 2023, which accounted for approximately 1% of our total revenues in 2023. While we expect our risk of LOE to be limited over the next five years, this could change based on, among other things, successful challenge to our patents, settlement of existing or future patent litigation and at-risk generic launches. We believe the entry into the market of generic competition generally would have an adverse impact on the volume and/or pricing of the affected products, however we are unable to predict the magnitude or timing of this impact.
Current wording
While we expect our risk of LOE to be limited over the next five years, this could change based on, among other things, successful challenge to our patents, settlement of existing or future patent litigation and at-risk generic launches. We believe the entry into the market of generic competition generally would have an adverse impact on the volume and/or pricing of the affected products, however we are unable to predict the magnitude or timing of this impact.
Previous wording
In addition, the PreserVision® U.S. formulation patent expired in March 2021, but a patent covering methods of using the formulation remains in force into 2026. PreserVision® products accounted for approximately 7% and 7% of our total revenues in 2023 and 2022, respectively. PreserVision® is (or was) the subject of certain ongoing and past patent infringement proceedings. While the Company cannot predict the magnitude or timing of the impact from the PreserVision®patent expiry, this is an OTC product and thus, the impact is not expected to be as significant as the LOE of a branded pharmaceutical product.
Current wording
In addition, in connection with our Lumify®, PreserVision®, Vyzulta®and Lotemax®SM products, we have commenced ongoing infringement proceedings against potential generic competitors or other potential infringers in the U.S. If we are not successful in these proceedings, we may face increased generic competition for these products. The PreserVision® U.S. formulation patent expired in March 2021, but a patent covering methods of using the formulation remains in force into 2026. PreserVision® products accounted for approximately 6% and 7% of our total revenues in 2024 and 2023, respectively. While PreserVision® and Lumify®are (or were) the subjects of certain ongoing and past patent infringement proceedings, the Company cannot predict the magnitude or timing of a LOE impact from PreserVision®and Lumify®as these are OTC products, and thus, the impact is not expected to be as significant as the LOE of a branded pharmaceutical product.
Previous wording
Our unaudited operating results for the three and nine months ended September 30, 2024 and 2023 were as follows:
Current wording
Our unaudited operating results for the three months ended March 31, 2025 and 2024 were as follows:
Previous wording
Our revenues were $1,196 million and $1,007 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $189 million, or 19%. The increase was attributable to: (i) incremental sales attributable to acquisitions of $96 million, primarily within our Pharmaceuticals segment, (ii) increased volumes of $81 million across each of our segments and (iii) increased net realized pricing of $20 million, primarily driven by our Vision Care segment. The increases in revenue were partially offset by: (i) the unfavorable impact of foreign currencies of $5 million, primarily in Latin America, and (ii) the impact of divestitures and discontinuations of $3 million, particularly the discontinuation of certain products within our Pharmaceuticals segment.
Current wording
Our revenues were $1,137 million and $1,099 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $38 million, or 3%. The increase was attributable to: (i) increased volumes of $63 million across each of our segments and (ii) incremental sales attributable to acquisitions of $6 million, within our Surgical segment. The increases in revenue were partially offset by: (i) the unfavorable impact of foreign currencies of $19 million, (ii) decreased net realized pricing of $11 million, driven by our Pharmaceuticals segment and (iii) the impact of divestitures and discontinuations of $1 million, related to the discontinuation of certain products within our Vision Care segment.
Previous wording
The Vision Care segment revenue was $684 million and $648 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $36 million, or 6%. The increase was primarily driven by sales from our dry eye portfolio within our consumer eye care business and SiHy Daily lenses within our contact lens business. This increase included: (i) an increase in volumes of $24 million and (ii) an increase in net pricing of $16 million, partially offset by the unfavorable impact of foreign currencies of $4 million, primarily in Latin America.
Current wording
The Vision Care segment revenue was $656 million and $635 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $21 million, or 3%. The increase was primarily driven by the performance of SiHy Daily lenses and Ultra within our contact lens business and sales from our dry eye portfolio within our consumer eye care business. This increase included: (i) an increase in volumes of $25 million and (ii) an increase in net pricing of $10 million, partially offset by: (i) the unfavorable impact of foreign currencies of $13 million and (ii) the impact of divestitures and discontinuations of $1 million.
Previous wording
The Surgical segment revenue was $206 million and $185 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $21 million, or 11%. The increase was primarily driven by: (i) increased demand of consumables, (ii) increased system sales and (iii) increased demand of implantables, driven by our premium IOL portfolio. This increase included: (i) an increase in volumes of $13 million, (ii) an increase in net realized pricing of $5 million and (iii) incremental sales from acquisitions of $4 million, partially offset by the unfavorable effect of foreign currencies of $1 million.
Current wording
The Surgical segment revenue was $214 million and $197 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $17 million, or 9%. The increase was primarily driven by: (i) increased demand of implantables, driven by our premium IOL portfolio, (ii) increased demand of consumables and (iii) increased equipment sales. This increase included: (i) an increase in volumes of $14 million, (ii) incremental sales from acquisitions of $6 million and (iii) an increase in net realized pricing of $1 million, partially offset by the unfavorable effect of foreign currencies of $4 million.
Previous wording
Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 35.7% and 28.0% for the three months ended September 30, 2024 and 2023, respectively, an increase of 7.7% percentage points, and is primarily attributable to the increase in rebates from XIIDRA®and MIEBO®.
Current wording
Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 39.3% and 36.7% for the three months ended March 31, 2025 and 2024, respectively, an increase of 2.6% percentage points, and is primarily attributable to the increase in rebates from our dry eye portfolio, including XIIDRA®and MIEBO®.
Previous wording
Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) increased by $346 million, primarily driven by: (i) contribution associated with acquisitions entered into subsequent to September 30, 2023, (ii) the increase in volumes, including related to the launch of MIEBO® during September 2023 and (iii) the increase in net realized pricing, as previously discussed. These increases were partially offset by the unfavorable impact of foreign currencies.
Current wording
Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) decreased by $19 million, primarily driven by: (i) the inventory reserve charge related to the voluntary recall, (ii) the decrease in net realized pricing and (iii) the unfavorable impact of foreign currencies.
Previous wording
Cost of goods sold as a percentage of Product sales was 38.9% and 38.9% for the three months ended September 30, 2024 and 2023, respectively.
Current wording
Cost of goods sold as a percentage of Product sales was 42.5% and 38.7% for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
SG&A expenses were $511 million and $418 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $93 million, or 22%. The increase was primarily attributable to higher selling and advertising and promotion costs, primarily attributable to XIIDRA® and the launch of MIEBO®.
Current wording
SG&A expenses were $563 million and $504 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $59 million, or 12%. The increase was primarily attributable to: (i) higher selling and advertising and promotion costs, primarily attributable to MIEBO®and (ii) higher business transformation costs (discussed below).
Previous wording
R&D expenses were $250 million and $244 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $6 million, or 2%, primarily due to certain products in development, as previously discussed.
Current wording
R&D expenses were $86 million and $82 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $4 million, or 5%, primarily due to certain products in development, as previously discussed.
Previous wording
Amortization of Intangible assets was $220 million and $160 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $60 million, or 38%, primarily due to assets acquired through acquisitions, as previously discussed, partially offset by fully amortized intangible assets no longer being amortized in 2024.
Current wording
Amortization of Intangible assets was $67 million and $74 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $7 million, or 9%, primarily due to fully amortized intangible assets no longer being amortized.
Previous wording
Operating income for the nine months ended September 30, 2024 and 2023 was $75 million and $81 million, respectively, a decrease of $6 million, or 7%. This decrease primarily reflects the increases in SG&A and amortization expense, partially offset by the increase in contribution, each as previously discussed.
Current wording
Operating loss was $83 million for the three months ended March 31, 2025, as compared to operating income of $6 million for the three months ended March 31, 2024, a decrease in our operating results of $89 million. This decrease primarily reflects the increase in SG&A and decrease in contribution, each as previously discussed.
Previous wording
Segment profit is based on operating income after the elimination of intercompany transactions. Certain costs, such as Amortization of intangible assets and Other expense, net, are not included in the measure of segment profit, as management excludes these items in assessing segment financial performance. Segment profit is a measure of operating performance of our reportable segments and may not be comparable to similar measures reported by other companies. Segment profit is a performance metric utilized by the Company’s CEO, who is the Company’s Chief Operating Decision Maker, to allocate resources to and assess performance of the Company’s segments. See Note 17, “SEGMENT INFORMATION” to our unaudited interim Condensed Consolidated Financial Statements for a reconciliation of segment profit to Income before provision for income taxes.
Current wording
Segment profit is based on operating (loss) income after the elimination of intercompany transactions. Certain costs, such as Amortization of intangible assets and Other expense, net, are not included in the measure of segment profit, as management excludes these items in assessing segment financial performance. Segment profit is a measure of operating performance of our reportable segments and may not be comparable to similar measures reported by other companies. Segment profit is a performance metric utilized by the Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker, to allocate resources to and assess performance of the Company’s segments. See Note 17, “SEGMENT INFORMATION” to our unaudited interim Condensed Consolidated Financial Statements for a reconciliation of segment profit to Income before provision for income taxes.
Previous wording
The Surgical segment profit was $13 million and $9 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $4 million, or 44%, primarily due to the increase in revenues, partially offset by higher cost of sales and higher selling expenses.
Current wording
The Vision Care segment profit was $176 million and $178 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $2 million as the increase in revenue was offset by higher cost of sales, driven by our international contact lens and consumer eye care businesses, and higher selling expense.
Previous wording
The Pharmaceuticals segment profit was $69 million and $53 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $16 million, or 30%. The increase was primarily driven by increased contribution, primarily driven by XIIDRA®and MIEBO®, partially offset by selling and advertising and promotional expenses related to MIEBO® and XIIDRA®.
Current wording
The Pharmaceuticals segment profit was $11 million and $53 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $42 million. The decrease was primarily driven by higher selling and advertising and promotional expenses related to MIEBO®and gross-to-net pricing pressures, primarily attributable to XIIDRA®.
Previous wording
Interest expense was $301 million and $184 million for the nine months ended September 30, 2024 and 2023, respectively, an increase of $117 million. The increase was primarily attributable to: (i) interest expense associated with our October 2028 Secured Notes and September 2028 Term Facility (each as defined and discussed in further detail, under Item “— Liquidity and Capital Resources — Liquidity and Debt — Long-term Debt”), (ii) interest expense related to the outstanding balance under our Revolving Credit Facility (as defined and discussed in further detail, under Item “— Liquidity and Capital Resources — Liquidity and Debt — Long-term Debt”) and (iii) increased interest expense associated with the May 2027 Term Facility (as defined and discussed in further detail, under Item “— Liquidity and Capital Resources — Liquidity and Debt — Long-term Debt”), partially offset by certain upfront financing commitment costs incurred in connection with the XIIDRA Acquisition during the prior period. See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements for further details regarding the May 2027 Term Facility and the Revolving Credit Facility.
Current wording
Interest expense was$94 million and$99 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of$5 million. The decrease is primarily attributable to: (i) lower interest rates on our May 2027 Term Facility and September 2028 Term Facility (each as defined and discussed in further detail, under Item “— Liquidity and Capital Resources — Liquidity and Debt — Long-term Debt”) and (ii) a lower outstanding balance under our Revolving Credit Facility (as defined and discussed in further detail, under Item “— Liquidity and Capital Resources — Liquidity and Debt — Long-term Debt”), partially offset by interest expense on our May 2027 Incremental Term Facility (as defined and discussed in further detail, under Item “— Liquidity and Capital Resources — Liquidity and Debt — Long-term Debt”). See Note 10, “FINANCING ARRANGEMENTS” to our unaudited interim Condensed Consolidated Financial Statements for further details regarding our financing arrangements.
Previous wording
Foreign exchange and other primarily includes translation gains/losses on intercompany balances and third-party liabilities and the gain/loss due to the change in fair value of foreign currency exchange contracts. Foreign exchange and other was a net loss of$5 million and $3 million for the three months ended September 30, 2024 and 2023, respectively.
Current wording
Foreign exchange and other primarily includes translation gains/losses on intercompany balances and third-party liabilities and the gain/loss due to the change in fair value of foreign currency exchange contracts. Foreign exchange and other was a net loss of$6 million and $0 for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
Benefit from income taxes was $66 million for the three months ended September 30, 2024, as compared to a provision for income taxes of $45 million for the three months ended September 30, 2023, a favorable change of $111 million. The change in income taxes was primarily related to: (i) a change in the jurisdictional and seasonal mix of earnings and (ii) discrete tax effects of: (a) a reduction of certain tax attributes recorded in the previous year and (b) the filings of certain tax returns.
Current wording
Provision for income taxes was $31 million and $73 million for the three months ended March 31, 2025 and 2024, respectively, a decrease of $42 million. The change in income taxes was primarily related to: (i) a change in the jurisdictional and seasonal mix of earnings and (ii) discrete tax effects of: (a) a tax benefit recorded on acquired assets, (b) the quarter to date impact of the enVista recall and (c) the filings of certain tax returns.
Previous wording
Net loss attributable to Bausch + Lomb Corporation for the nine months ended September 30, 2024 and 2023 was $314 million and $206 million, respectively, a decrease in our results of $108 million, and was primarily due to: (i) the increase in interest expense of $117 million and (ii) the decrease in our operating results of $6 million, partially offset by the decrease in the provision for income taxes of $9 million, each as previously discussed.
Current wording
Net loss attributable to Bausch + Lomb Corporation was $212 million and $167 million for the three months ended March 31, 2025 and 2024, respectively, a decrease in our results of $45 million and was primarily due to the decrease in our operating results of $89 million, partially offset by the decrease in the provision for income taxes of $42 million, each as previously discussed.
Previous wording
Net cash used in investing activities was $227 million and $1,974 million for the nine months ended September 30, 2024 and 2023, respectively, a decrease of $1,747 million and was primarily driven by payments related to acquisitions during the nine months ended September 30, 2023 of $1,892 million primarily related to the XIIDRA Acquisition, the acquisition of the Blink®Product Line and the acquisition of AcuFocus, each as previously discussed, partially offset by an increase in purchases of property, plant and equipment during the nine months ended September 30, 2024. Payments related to acquisitions during the nine months ended September 30, 2024 of $47 million primarily related to the acquisition of Trukera Medical, as previously discussed, and certain other investments.
Current wording
Net cash used in investing activities was $116 million and $57 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $59 million and was primarily driven by an increase in purchases of property, plant and equipment during the three months ended March 31, 2025.
Previous wording
Net cash provided by financing activities was $32 million and $1,992 million for the nine months ended September 30, 2024 and 2023, respectively, a decrease of $1,960 million. The decrease is primarily attributable to less borrowings of debt. For the nine months ended September 30, 2024, issuances of long-term debt, net of discounts were $125 million, representing borrowings under the Revolving Credit Facility. For the nine months ended September 30, 2023, issuances of long-term debt, net of discounts were $2,180 million, related to the September 2028 Term Facility, the October 2028 Secured Notes and borrowings under the Revolving Credit Facility (each as defined below).
Current wording
Net cash provided by financing activities was $31 million and $12 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $19 million. The increase is primarily attributable to net borrowings under the Revolving Credit Facility (as defined below). For the three months ended March 31, 2025, issuances of long-term debt, net of discounts were $50 million, representing borrowings under the Revolving Credit Facility. For the three months ended March 31, 2024, issuances of long-term debt, net of discounts were $75 million, related to borrowings under the Revolving Credit Facility (each as defined below), offset by $50 million of repayments under the Revolving Credit Facility.
Previous wording
Our primary sources of liquidity are expected to be our cash and cash equivalents, cash collected from customers, funds as needed from our Revolving Credit Facility, and issuances of other long-term debt, additional equity and equity-linked securities. We believe these sources will be sufficient to meet our current liquidity needs for the next twelve months, from the date of issuance of the Condensed Consolidated Financial Statements included elsewhere in this Form 10-Q, and be sufficient to support our future cash needs, however, we can provide no assurance that our liquidity and capital resources will meet future funding requirements.
Current wording
Our primary sources of liquidity are expected to be our cash and cash equivalents, cash collected from customers, funds as needed from our Revolving Credit Facility, and issuances of other long-term debt, additional equity and equity-linked securities. We believe these sources will be sufficient to meet our current liquidity needs for the next twelve months, and be sufficient to support our future cash needs; however, we can provide no assurance that our liquidity and capital resources will meet future funding requirements or, as discussed in the Forward-Looking Statements section of this Form 10-Q, of our ability to comply with, or if necessary, obtain a waiver or amendment of, the financial and other covenants contained in our Amended Credit Agreement.
Previous wording
We regularly evaluate market conditions, our liquidity profile, and various financing alternatives for opportunities to enhance our capital structure. If opportunities are favorable, we may from time to time enter into new financing arrangements, refinance the Credit Facilities (as defined below) or repurchase debt, or issue additional equity and equity-linked securities.
Current wording
We regularly evaluate market conditions, our liquidity profile and various financing alternatives for opportunities to enhance our capital structure. If opportunities are favorable, we may from time to time enter into new financing arrangements, refinance the Senior Secured Credit Facilities (as defined below) or repurchase debt, or issue additional equity and equity-linked securities.
Previous wording
On May 10, 2022, in connection with the B+L IPO and in order to properly capitalize our business, Bausch + Lomb entered into a credit agreement (the “Credit Agreement”, and the credit facilities thereunder, the “Credit Facilities”). Prior to the September 2023 Credit Facility Amendment (as defined below), the Credit Agreement provided for a term loan of $2,500 million with a five-year term to maturity (the “May 2027 Term Facility”) and a five-year revolving credit facility of $500 million (the “Revolving Credit Facility”).
Current wording
On May 10, 2022, in connection with the B+L IPO and in order to properly capitalize our business, Bausch + Lomb entered into a credit agreement (the “ Original Credit Agreement”). The Original Credit Agreement provided for a term loan of $2,500 million with a five-year term to maturity (the “May 2027 Term Facility”) and a five-year revolving credit facility of $500 million (the “Revolving Credit Facility”). As of March 31, 2025, the principal amount outstanding under the May 2027 Term Facility was $2,431 million and the stated rate of interest under the May 2027 Term Facility was 7.67% per annum. The remaining mandatory quarterly amortization payments for the May 2027 Term Facility were $50 million through March 2027, with the remaining term loan balance being due in May 2027. As of March 31, 2025, the Company had $160 million of outstanding borrowings, $36 million of issued and outstanding letters of credit and remaining availability, subject to certain customary conditions, of $304 million under its Revolving Credit Facility. The stated rate of interest for borrowings under the Revolving Credit Facility at March 31, 2025 ranges from 7.16% to 7.17% per annum.
Showing the first 40 of 62 pairs. Open the source sections for the rest.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
FDA-approved treatment for DED that directly targets tear evaporation and the addition of MIEBO® will help build upon our strong portfolio of integrated eye health products.
Current report — wording carried from elsewhere
◦enVista Aspire® monofocal and toric IOLs with Intermediate Optimized optics were launched in the U.S. during October 2023 and in Europe in January 2025 and the Canada launch is in process.
Current report — wording carried from elsewhere
◦enVista Envy TMlaunched in Canada in June 2024 and the U.S. and Europe launches are in-process.
Current report — wording carried from elsewhere
◦enVista Beyond TM (extended depth of focus (“EDOF”) is anticipated to launch in the U.S. in 2026.
Current report — wording carried from elsewhere
See the section entitled “Risk Factors” included in our Annual Report, for additional information on the risks associated with tariffs.
Current report — wording carried from elsewhere
While many jurisdictions in which the Company operates have adopted the global minimum tax provision of Pillar Two effective for tax years beginning in January 2024, the Company has concluded that there is minimal impact to its 2025 tax rate due to the accounting for the tax effects of intercompany transactions. The Company expects that there is risk that the impact of the global minimum tax and other changes in tax law in jurisdictions in which it operates may eventually result in an increase to its overall effective tax rate.
Current report — wording carried from elsewhere
On November 1, 2024, Bausch + Lomb entered into an additional incremental term loan facility secured on a pari passu basis with the Company’s existing May 2027 Term Facility and September 2028 Term Facility. This incremental term loan facility was entered into in the form of an incremental amendment (the “November 2024 Credit Facility Amendment”) to the Initial Amended Credit Agreement (the Initial Amended Credit Agreement, as amended by the November 2024 Credit Facility Amendment, the “Amended Credit Agreement”) and consisted of borrowing $400 million of new term loans with a maturity of May 2027 (the “May 2027 Incremental Term Facility” and, together with the September 2028 Term Facility and May 2027 Term Facility, the “Term Facilities”; the Term Facilities, together with the Revolving Credit Facility, the “Senior Secured Credit Facilities”). As of March 31, 2025, the principal amount outstanding under the Incremental Term Facility was $398 million and the stated rate of interest under the May 2027 Incremental Term Facility was 7.67% per annum. The remaining mandatory quarterly amortization payments for the May 2027 Incremental Term Facility were $18 million through December 2026, with an additional amortization payment of $7.5 million due in March 2027 and the remaining term loan balance being due in May 2027.
Current report — wording carried from elsewhere
Canadian and/or U.S. federal income tax purposes (including whether or not an advance ruling from the Canada Revenue Agency and/or the Internal Revenue Service will be sought or obtained), the ability of the Company and BHC to satisfy the conditions required to maintain the tax-free status of the Distribution (some of which are beyond their control), other potential tax or other liabilities that may arise as a result of the Distribution, the potential dis-synergy costs resulting from the Separation, the impact of the Separation on relationships with customers, suppliers, employees and other business counterparties, general economic conditions, conditions in the markets the Company is engaged in, behavior of customers, suppliers and competitors, technological developments, as well as legal and regulatory rules affecting the Company’s business. In particular, the Company can offer no assurance that the Separation, Distribution and/ or a Sale Transaction will occur at all, or that any such transactions will occur on the timelines or in the manner anticipated by the Company and BHC;
Rearranged previous paragraphs (14)
Previous report — wording carried elsewhere
In addition, in connection with our Lumify®, PreserVision®, Vyzulta®and Lotemax®SM products, we have commenced ongoing infringement proceedings against potential generic competitors or other potential infringers in the U.S. If we are not successful in these proceedings, we may face increased generic competition for these products.
Previous report — wording carried elsewhere
R&D expenses were $84 million and $82 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $2 million, or 2%.
Previous report — wording carried elsewhere
Nine Months Ended September 30, 2024 Compared to the Nine Months Ended September 30, 2023
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The following table presents segment revenues, segment revenues as a percentage of total revenues and the period-over-period changes in segment revenues for the nine months ended September 30, 2024 and 2023.
Previous report — wording carried elsewhere
Constant Currency Revenues and Constant Currency Revenue Growth (non-GAAP)
Previous report — wording carried elsewhere
The following table presents a reconciliation of Revenues to constant currency revenues (non-GAAP) and the period-over-period changes in constant currency revenue (non-GAAP) for the nine months ended September 30, 2024 and 2023. Constant Currency Revenues (non-GAAP) and Constant Currency Revenue Growth (non-GAAP) are defined in the previous section titled “Constant Currency Revenues and Constant Currency Revenue Growth (non-GAAP)”.
Previous report — wording carried elsewhere
Cash Discounts and Allowances, Chargebacks and Distribution Fees
Previous report — wording carried elsewhere
Provisions recorded to reduce gross product sales to net product sales and revenues for the nine months ended September 30, 2024 and 2023 were as follows:
Previous report — wording carried elsewhere
Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 35.9% and 28.2% for the nine months ended September 30, 2024 and 2023, respectively, an increase of 7.7% percentage points, and is primarily attributable to the increase in rebates from XIIDRA®and MIEBO®.
Previous report — wording carried elsewhere
Cost of Goods Sold (exclusive of amortization and impairments of intangible assets)
Previous report — wording carried elsewhere
See Note 8, “INTANGIBLE ASSETS AND GOODWILL” to our unaudited interim Condensed Consolidated Financial Statements for further details related to the Amortization of intangible assets.
Previous report — wording carried elsewhere
Other expense, net for the nine months ended September 30, 2024 and 2023 consists of the following:
Previous report — wording carried elsewhere
The following table presents segment profits, segment profits as a percentage of segment revenues and the period-over-period changes in segment profits for the nine months ended September 30, 2024 and 2023.
Previous report — wording carried elsewhere
See Note 14, “INCOME TAXES” to our unaudited interim Condensed Consolidated Financial Statements for further details.