Bausch Health Companies Inc. BHC has announced that its eye care business, Bausch + Lomb Corporation is going public in the United States and Canada.
Bausch + Lomb has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission. The move relates to its previously announced intention to separate its eye health business.
Bausch + Lomb has also filed a preliminary long form base PREP prospectus with the securities regulatory authorities in Canada (other than Quebec) relating to a proposed initial public offering (IPO) of its common shares concurrently in the United States and Canada.
Bausch + Lomb is the leading global eye health business of Bausch Health Companies, Inc. Its comprehensive portfolio of more than 400 products includes contact lenses, lens care products, eye care products, ophthalmic pharmaceuticals, over-the-counter products and ophthalmic surgical devices and instruments.
Bausch + Lomb intends to raise $100 million through the IPO.
The business generated revenues of $2.7 billion in the first nine months of 2021, up from $2.5 billion in the year-ago period.
We remind investors that in August 2020, Bausch Health Companies announced that it intends to spin off its leading eye health business into an independent publicly traded entity. The business was acquired in 2013 for $8.7 billion in cash.
The stock has gained 1.3% in the past year against the industry’s decline of 31.4%.
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After the completion of this offering, BHC will continue to indirectly own a majority of the stake in the company.
Earlier, the company also announced that it will launch an IPO for its Solta Medical business.
Solta is a leading global provider in medical aesthetics with innovative and effective skin rejuvenation and body contouring solutions.
The separation of these businesses should improve strategic focus and enhance financial transparency to better enable stakeholders to value each business independently.
Bausch beat on earnings in the third quarter but missed on sales. Nevertheless, management stated that many businesses continue to recover from the COVID-19 pandemic.
Zacks Rank & Stocks to Consider
Bausch currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare space are Regeneron Pharmaceuticals REGN, Alkermes ALKS and Vir VIR. While Vir and Alkermes sport a Zacks Rank #1 (Strong Buy), Regeneron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings estimates for Vir have moved up $6.81 in the past 30 days for 2022. VIR is up 3.1% in the past year.
Earnings estimates for Alkermes have moved up a cent for 2022 in the past 30 days for 2022. ALKS is up 13% in the past year.
Earnings estimates for Regeneron have moved up $1.30 for 2022 in the past 90 days for 2022. REGN is up 18.9% in the past year.
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