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Bausch to spin off eye care business; misses expectations with wide Q2 loss

Last Updated Aug 6, 2020 at 5:18 am PDT

LAVAL, Que. — Bausch Health Companies Inc. says it plans to spin off its iconic eye care business into an independent publicly traded company.

The Quebec-based pharmaceutical company says the spin off of Bausch + Lomb would allow it to focus on its gastroenterology, aesthetics/dermatology, neurology and international pharma business.

The move comes after the former Valeant Pharmaceuticals sold about US$4 billion in non-core assets, paid down more than US$8 billion of debt, resolved many legacy legal issues and lost patent protection on about US$1.4 billion of products.

Bausch also announced that it lost US$326 million or 92 cents per diluted share in the second quarter, compared with a loss of US$171 million or 49 cents per share in the prior year as it felt the effects of the COVID-19 pandemic.

Its adjusted profit plunged 56 per cent to US$165 million from US$372 million in the second quarter of 2019. Revenues for the three months ended June 30 were US$1.66 billion, down from US$2.15 billion a year earlier.

Bausch was expected to report a net loss equal to 59 cents per share on US$1.79 billion of revenues, according to financial data firm Refinitiv.

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

This report by The Canadian Press was first published Aug. 6, 2020.

Companies in this story: (TSX:BHC)

The Canadian Press