BLOG: B+L is once again independent
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Let’s take a break from the dry eye disease market for a moment, shall we?
May 5 brought not only margaritas by the gallon but also the news that Bausch + Lomb* has completed its IPO and is once again a free-standing, publicly traded, stand-alone company that only does eye care. Led by long-time health care executive Joe Papa, B+L has been cut loose from all of the non-eye care divisions left over from the acquisition frenzy of the Michael Pearson Valeant days. Both the pharmaceutical and surgical sides of the company will now have easier access to investment capital as part of a public company.
You may have read something about this in the news. Pricing predictions ranged from $22 to $24 per share; the stock opened at $18, giving the new B+L a value in the $7 billion range. Does this matter? Should we be concerned that the opening price of the shares was lower than what was being shopped during the pre-launch “roadshow”? From everything I’ve read, this seems to reflect the present state of the markets more than it does the state of B+L. The lower price will have more of an effect on the finances of Bausch Health, the company that B+L leaves behind.
You’re on your own as to whether this makes B+L a more or less desirable investment.
What does this do for consumers, patients and the doctors who take care of them? Let me admit that I have a strong bias here, one that predates any business relationship that I have, or have had, with B+L by decades. You see, Bausch + Lomb is an iconic name and company with a very important place in the hearts of generations of families that have had a hand in eye care. Families like mine. My Dad spent his entire career in the ophthalmic manufacturing space. None of his companies ever directly competed against B+L, but the markets in which they did compete were all supported in some way by the businesses in which B+L did compete. In eye care, B+L is as important a brand as Coca-Cola, Ford or Disney.
The new B+L has some 400 products spread out over pharmaceutical, surgical and consumer (read: contact lenses) business units, with 100 more in development. We can expect to see some shuffling of executive teams, but it is likely that we will continue to see most of the faces we’ve become accustomed to over recent years. With access to capital available in the markets, a company devoted only to eye care should be able to maneuver more quickly and be more aggressive in pursuing cutting-edge developments in all areas of our world.
No matter what you think of either company, eye care is better if both Alcon and B+L are healthy. With this recent IPO, B+L has taken a large step in that direction, and for that we should all be happy and hopeful.
*I’ve been a consultant to B+L on and off over the years. At the moment, I am “on.”
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