Bausch and Lomb (BLCO) Chairman and CEO Brent Saunders, a seasoned veteran with a history of orchestrating multi-billion dollar healthcare deals, has definitively stated that the contact lens maker will not be pursuing a sale in 2025. This announcement comes on the heels of a failed attempt to take the company private earlier this year.
Saunders, speaking on Yahoo Finance’s Opening Bid podcast, emphasized the company’s ambitious growth plans for 2025 and beyond. He stated that Bausch and Lomb is currently focused on internal operations and maximizing performance, rather than seeking a buyer. While he acknowledged that “you can never say never,” he expressed strong doubt about restarting the deal process in the near future.
Earlier this year, Bausch and Lomb explored a potential sale to a consortium of private equity firms, including TPG and Blackstone. However, negotiations ultimately fell through, reportedly due to disagreements on valuation. Despite this setback, Bausch and Lomb maintains its long-term goal of fully separating from parent company Bausch Health Companies, which currently holds an 88.4% stake.
Saunders believes that potential buyers underestimated the value of Bausch and Lomb’s robust product pipeline. He highlighted the company’s investments in innovative technologies for contact lenses, dry eye relief, and surgical products. He noted a general skepticism toward R&D, but felt the discount applied to Bausch and Lomb’s pipeline was excessive.
Saunders boasts an impressive track record of successful mergers and acquisitions in the pharmaceutical industry. His past deals include the $8.7 billion sale of Bausch and Lomb to Valeant Pharmaceuticals in 2013, the $25 billion sale of Forest Laboratories to Actavis in 2014, and the $70 billion acquisition of Allergan in 2014. He also oversaw the $63 billion sale of Allergan to Abbvie in 2020 before returning to Bausch and Lomb as CEO in 2023. Notably, Brett Icahn, son of activist investor Carl Icahn, and hedge fund manager John Paulson currently serve on the Bausch and Lomb board alongside Saunders.
Bausch and Lomb’s recent financial performance reinforces Saunders’ confidence in the company’s standalone potential. Fourth-quarter sales exceeded expectations, reaching $1.28 billion, a 9% year-over-year increase. This growth was primarily driven by a strong performance in the vision care segment, with contact lens sales increasing by 17% in the US and 11% internationally. Adjusted earnings per share also beat analyst forecasts.
Looking ahead, Bausch and Lomb projects full-year sales between $4.95 billion and $5.05 billion, in line with Wall Street estimates. The company also anticipates its dry-eye business will surpass $1 billion in sales this year. Saunders highlighted a promising new biomimetic contact lens currently in development, which mimics the biology of the eye and could revolutionize the industry by 2027. This innovation, he believes, further strengthens the company’s future prospects. He expressed hope that clinical trials would confirm the lens’ potential to improve eye health and comfort, potentially setting a new standard of care in the field.
