(RTTNews) - Bausch Health Co. Inc. (BHC) shares are rising on Thursday morning trade as the company plans to spin off eyecare business by the first quarter, next year. This will result in two separate companies - a pure-play eye-health company based on Bausch + Lomb brand, and a diversified pharmaceutical company. The new Bausch + Lomb - NewCo would have had 2019 revenue of approximately $3.7 billion, while the BHC, comprising of the Salix, International Rx, Solta, neurology and medical dermatology businesses, would have had 2019 revenue of approximately $4.9 billion. The transaction is expected to enable BHC to focus on expanding Gastroenterology, Aesthetics/Dermatology, Neurology and International pharmaceuticals.
On Thursday, the healthcare products company reported net loss of $326 million, wider than $171 million loss in the prior year. On an adjusted basis, earnings were $165 million. Revenue for the quarter declined 23 percent to $1.664 billion from $2.152 billion in the previous year. The revenue was impacted by around $500 million in second quarter due to the impact of COVID 19 pandemic. On an organic basis, revenues were down 21 percent.
Looking ahead to the full year, the company narrowed full-year revenue outlook to $7.80-$8.00 from previous range $7.80 -$8.20. On an adjusted basis, the company expects EBITDA of $3.15-$3.30 billion narrower than the previous view in range of $3.15-$3.35 billion.
BHC is currently trading at $21.60, up 10.95 percent from the previous close of $19.46.
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