(RTTNews) - Bausch Health Companies Inc. (BHC, BHC.TO) announced Thursday it intends to spin off its eye health business into an independent publicly traded entity from the remainder of Bausch Health.
In pre-market activity, Bausch Health shares gained 20 percent to trade at $23.32.
The spinoff will establish two separate companies, such as a fully integrated, pure play eye-health company built on the iconic Bausch + Lomb brand, as well as a diversified pharmaceutical company.
The new Bausch + Lomb - NewCo will consist of Bausch Health's global vision care, surgical, consumer and ophthalmic Rx businesses. It would have had 2019 revenue of approximately $3.7 billion.
Further, BHC will comprise a diversified portfolio of durable brands across the Salix, International Rx, Solta, neurology and medical dermatology businesses. It would have had 2019 revenue of approximately $4.9 billion.
The timing of the anticipated spinoff will be tied to certain conditions and approvals, and the Company's completion of several important actions, including the reorganization of the reporting segments, which it expects to begin reporting in the first quarter of 2021.
The transaction is expected to enable BHC to focus on expanding Gastroenterology, Aesthetics/Dermatology, Neurology and International pharmaceuticals.
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