Bausch + Lomb (BLCO) 2 Aug 232023 Q2 Earnings call transcript

Greetings. Welcome to the Bausch & Lomb Second Quarter 2023 Earnings Conference Call. [Operator Instructions]

I will now turn the conference over to your host, George Gadkowski. Sir, the floor is yours.

you. Thank and second everyone, results XXXX to call. conference welcome morning, quarter our financial Good call and are Mr. today's on Participating Chairman Chief Officer, Executive Brent Officer, Financial Saunders; and Mr. Chief Sam Eldessouky.

presentation a In will call on the of live to under available replay webcast, website Relations addition today's this the be slide Investor and our conference a of copy section.

at begin, presentation you information. legend forward-looking ask ratios. that beginning today take the I moment the We information. like read contains non-GAAP remind to presentation, contains would we financial our contains Before you measures our to a as and that of important presentation would forward-looking it This

For more presentation our website. Non-GAAP to presentation. reconciliations refer information can be posted please on the about the measures ratios, found X to the and Slide of in these appendix

guidance required is guidance not not law generally of the effective policy is disclosure. public unless in update to It through or Finally, guidance presentation quarter, as by our following this other only. today than affirm broadly to disseminated update and until the financial

it's With over Brent. call to to the turn pleasure my that,

you, for Thank and thank everyone, you, joining us George, today.

My themes focus on the define performance progress. will that and remarks quarter, two

Lomb for last Let's and matter no the Slide on right Since I an us see specialty, one customers. leader as X. the + on industry people matter jump significant rooting spent want of consistent, time road our are from in directly once country, hearing again. update, No the was Bausch theme to

clear quarter. we during last covered also Two areas challenges for our improvement and speak to made directly were call

products new supply to we bring need First, steady market. of a to

entire supply which of have customers chain. means products access upgrading to across need consistent we global Second, supply to our ensure portfolio, our a

needs news. fixing. We know Here's the good what

efficient. & products to see a large Bausch As I've an live are employees offer scale But by is expansive helping our eye infrastructure global commercial people only motivated better, a address of competitive mission before, approximately day all care XX,XXX it's We There Lomb every advantage footprint. we needs. that and when said better. have

a service, the without it challenge great to any streamline right and on do of how and you experience with location, of is, but what orders get an and to question restaurant dining Think time. food fails customers love? our The clientele losing like loyal ideal

Let's take Last a full quarter, unveiled realize Bausch multiyear progress. Lomb's to accelerate on few look roadmap growth, am in I up at to potential. Highlights by the free to what in our a data We're encouraged include plan the we're building, competencies. just but early including digital next-generation I been resources + process, and we've new able focus months. to accomplish capabilities the organization flattening and our

We on aimed reporting, in a at our expense the I launched aligned with strategy. board roles and also field. We've solidified an protocols new on meeting put initiative team. the burden, inefficiencies sales including and leadership our in quick talent to focus new creating reducing wins team, IT bringing areas, several and employee-driven administrative in our support

and talented tend solution. like but be a They what to our gets understand to roadmap want needs of ask and lot we team be motivated Complex employees, change a have the of to that part projects it. fixed

that several full key currency happy, a a revenue they first especially across be on all make delivered trends encouraged increasing to change, basis, and would growth CEO very am I of influence quarter. markets, our demand in in amidst performance quarter. by perfectly segments And clear, And my solid this growth. will constant future and all proud XX% outperformance any

to We and improve customers Lynchburg, lens as center, our But example. we use Virginia products deliver how we I'll my what's us consumers. is contact simply, focus put on an To and holding our distribution to it make back? business, to new to a way manual move the were forced to have. the that growth we spare a you I'll to XX-year-old upgrade good system that a digitized details, needed significant working. problem from of in facility essentially need given

The to quickly facility execute orders. behind problem processing in technical is, the and falling issues we led didn't

have of prominent the out end in sorted is last self-imposed year, of quarter, tireless a by not What in did issue negative business. impact employees, certainly the We chain we the expect we thanks the the but Lynchburg to our only one. financial the to experience things efforts to faced Lynchburg our most happened supply

be we self-inflicted may need things eliminate control, some to to outside business. While our our negative impacts of

Sam ongoing supply the deeper will very Despite I'm on. challenges, our which go quarter, second with pleased

and good Brent, you, morning, everyone. Thank

noted Before today as constant will growth call, be expressed on focused comments last most a earnings our currency basis. in I begin, we of my on

financial our reported second year. reflects basis the all growth Slide to of quarter, company to XX% compared a strong XX% across revenue we our the quarter segments. In prior billion saw on results Total a $X.XXX now Turning and of three X. for revenue, basis on constant currency growth the on

to is driving strategy revenue The investments to making are continue the Our strong in invest we're the performance. growth business.

look We new as this forward to we on products will potential. and launching execute reaching to strategy, continue our full

for As in and the challenge remains portfolios. lens supply us, Brent surgical specifically mentioned, a

As I discuss progress. we're but further, steps, remains this a medicating work will taking in

demand market strong. On the positive side, remains

to robust growth. continue improve a we drive supply, our As demand we to expect

having geographic EBITDA, to were $XX adjusted our million In mix. revenue currency We're currency approximately by impact the is larger currency footprint, which $XX headwinds and the headwinds seeing million driven resulting on and a quarter, foreign EBITDA. to adjusted

year the in recovery. XX% impacted negatively basis overall second soft approximately China, seeing points to grew currency the tangible to restrictions. the XXX signs quarter, growth. of constant prior business XX% Regarding quarter currency COVID China China contributed was by constant our that on a a we're relative quarter, In comparable basis,

remain time. will to We and continue the stable return consistent growth business will to over in our and progress monitor confident that China

growth lens on consumer a basis, grew currency both of Now by let's The Care Eye Vision in by by by the our and increased consumer Vitamins, constant on our basis, XX% $XXX franchises. Artelac driven and in revenue constant results a discuss business million segments. of led each LUMIFY, our XX% currency portfolios.

year the $XX XXXX. achieved the U.S., it We're in has successful XX% approximately prior momentum beauty also share of the LUMIFY compared building has of in Illuminations where LUMIFY had leading of XX%. of revenue record strong brand in and and launch grew by continued to the quarter a second its revenue the to equity LUMIFY launch LUMIFY market leveraging a globally Eye Canada, line. we're the million

Vitamins XX% Revenue in share a Eye grew PreserVision XX% with Ocuvite PreserVision the leader U.S. currency and market market basis. from on our be constant continues plus to franchise, by the

continue the PreserVision franchise. and to expand CoQXX OCUSorb of launches recent Our +

grew currency constant revenue portfolio consumer XX% by international a on Our basis.

demand Artelac, from grew Europe. mainly on a our by in constant key a Revenue brand dry basis, by franchise, higher currency driven in eye XX%

We in consumer launches, second including To year. in the have of support our the growth continued drive growth the we momentum, portfolio. to investments sustain half will on to focus

July, Blink strategic acquisition we In portfolio. announced to the our expand further of drop OTC eye

strategic While expect we're impact excited meaningful financial fit, the a to in results. XXXX we have don't our Blink about

a SiHy driven us. Reported launched market U.S. lens rolled the expand SiHy in by We large saw and to China, grew recently Daily growth lens we continue and which family. also in SiHy for In SiHy a in Daily from the quarter. out we in as the portfolio, XX% Daily multifocal is lenses X% strong the important revenue demand by quarter, currency the Daily our constant second

across Biotrue broad-based portfolio. legacy and grew a saw delivered XX%. the growth DLEs also brand, growth Daily X% constant We our On currency SofLens basis, by

warehouse lens a by our Brent new declined disruptions negatively Ultra was in in management quarter. system facility. the Lynchburg which impacted our family, impacted U.S. discussed, related revenue implementation This As the revenue to lens in upgrades to portfolio mainly

Excluding of the XX% growth revenue constant the have the disruptions, been currency impact approximately quarter. lens global in would

we steps We resume year level anticipate the of a and of will the disruptions half taking to there a processing. the continued work through normal second implementation. impact resolve the We're be as in order

now segment; mainly Implantables $XXX of quarter in grew XX% to consumables basis. basis. our second largest 'XX, a constant X% million, on currency by Moving declined category, QX a the portfolio, by driven on currency Surgical currency by packs. an surgical The increase revenue X% compared constant constant to was

XX% hold to the of growth impact One year. the offset on the EyeCee anticipate the in which in portfolio, currency, of the second Strong products partner continue We premium was in product hold up our constant IOL. by high-margin by the Standard a was IOL half

a U.S. our of up versus We're well XX% continuing training EyeCee executing including IOL, generated also and Revenue strong on a 'XX by to launch currency phased from launch, Premium has the QX the China from as in recovery associates basis, We're portfolio. constant the support Instruments investments in the which as to A market. interest make driven equipment contributions surgeons. was onboarding

supply to our strong, While portfolio surgical in remains work be in ability progress. continues our a to market demand

components, We anticipate various which margins. team spot supply measures, Our higher including year. throughout on strategic implement has of to led inventory cost the continues as mitigating to volatile and buying pressure we remain progress will the

U.S. segment by portfolios quarter, three major revenues the and XX%, In all Lastly, representing across TRxs all VYZULTA with currency growth XX%. constant business, strong grew up $XXX million, the with in revenue Rx were of performance markets. XX% Pharma our in

markets, portfolio quarter. revenue the performance actively major The competitors. we portfolio across leading currency was including continue to capitalize the XX% all supply international as markets, challenges grew in to constant strong XX% China. Generics major our faced all by broad-based by in U.S. across saw on international growth Growth

pleased have approval MIEBO. to We're received for FDA

prepared As to investments. launch we this quarter, the to we third expect make product dry additional eye in innovative

marketplace. say to launches you it XX As the to XX before, in newer ensure have heard takes approximately months are positioned well me

revenues let each line the items Slide some Now X. non-GAAP for covered that walk of segments, of we key through have on our me

As XXXX QX standalone and & taxes second not reported results occurred interest the does the as Along entity. run operations rate IPO fully the costs. expense reflect our same quarter in not and a a in did May lines, Bausch XXXX, Lomb our results basis standalone fully reflect also of 'XX reminder,

was mentioned, previously have was results. the this to compared Adjusted we which 'XX. and comparability for margin XXXX QX between XX.X%, flat quarter As impacted gross XXXX

headwinds + EBITDA that $XX adjusted year the given were not million. IPO. standalone quarter, fully Lomb impacted May quarter Bausch 'XX reflects costs, EBITDA by million the Adjusted was Second prior of currency reflected approximately $XXX also timing in of of the

$XX million strategy are to in investing second We'll our to increasing invested launches to launches 'XX, in support to We're R&D ensure an QX full we 'XX our on they additional investments In to and in committed R&D. reaching compared their the upcoming product and 'XX. potential. quarter, focus continue

Additionally, portfolios. our were and surgical second challenges, lens particularly in our by impacted negatively margins quarter chain supply

business, disruption of level normal at order led to the lens the availability limited system In surgical the impacted our processing. the business, components a costs. facility higher In of upgrade has Lynchburg

expense reflecting the for Net interest interest approximately the environment. million, $XX rate was quarter current

of approximately 'XX, did structure. million standalone expense interest For capital comparability net $XX in purposes, reflect our the lower not fully QX

adjusted was working with tax an was investment inventory in quarter the the by and for the year in 'XX. mitigate cash line launches mainly is operations full used is driven growing Adjusted in our $XX quarter. second The expectations This to EPS was rate potential flow build, $X.XX. the quarter second X%, which Adjusted by to sales. a disruptions strategic supply and million in capital support for

approximately flow build higher timing million. Year-to-date, been impacted payments. the was of by also the expense has inventory interest cash strategic and Adjusted $XX

$XX million. was CapEx quarter Second

to our Turning a growth now constant X.X%. billion, rate $X of X.X% to range revenue guidance raising of approximately to We're on XX. a to billion XXXX currency guidance XXXX reflects for which $X.XX our Slide

the for Based the on $XX a rates, to currency we impact expect negative year. of headwinds current full million approximately revenue exchange on have

very year, performance perspective on responsible the reflects in we're our guidance of first the the year. of the remainder the a strong pleased While with half

the volatility chain performance the with strong demand our the and resolving this supply their creates. balancing and progress are potential work market of We in challenges

there As and challenges, portfolios. address done surgical particularly action to consistent be have our of lens mentioned, recognize taken work is more and to patients. supply to our provide to we in supply We customers level

'XX It from in of in growth QX year. as the is recovery we benefited also important to level that were performance China, signs of the softer seeing note prior

consumer the acquisition not have our July enhance expect our further financial line acquisition to of for XXXX. the portfolio excited product results overall do Blink, impact meaningful we with we're While on a to

the XIIDRA June, I at would expected customary conditions of end and close the and to closing is XXXX. approvals regulatory of to by to note that announced the end also we transaction subject like

Our impact anticipated of financing. the this and transaction guidance does not any reflect related

product XXXX launches. continue chain commitment for $XXX to reflects are million our We of in maintaining adjusted range million. adjusted guidance quarter EBITDA $XXX The our EBITDA invest to in pressure in absorbs guidance our the the the incurred second to and supply

We year headwinds of full expect currency to $XX approximately million. EBITDA adjusted

gross although expect rounded discussed. adjusted by to basis, is driven a to approximately supply that the slight On we pressures be unfavorability I've XXXX chain already some there XX%, margin continue our

our in $XXX In to for interest anticipate guidance, other approximately terms and year. of revenue be investments assumptions we of underlying million key R&D be X% the expense to approximately full

expected is CapEx be tax to X% approximately $XXX full roughly million. rate is adjusted Our year and

mentioned, between be results I mind the by As of already IPO. impacted timing also that for the in comparability keep will XXXX year, XXXX and May the full the B&L 'XX

challenges, to the Overall, we first growth overcome more We enhancing to the and excited of done strong pleased year volatility to work consistent we're the across half in our to and the continue segments be are related supply performance. our the of deliver of with XXXX, recognize all half portfolio. in back to there's

support our drivers investments increase strategy we reflects launches profitable to to that become growth. guidance XXXX of in expect business will the Our important

I back call to you, will now turn Brent. the And

Sam. Thanks,

Let's our the talk Blink, exclusively from pharmaceuticals. been if horizon. announced That be acquisition XIIDRA what's farther recently on the truth. about we're on With and we've couldn't asked of focused

While surgical being lenses best to company, on committed everything in between. and the care focused equipment from we to contact business, we're our pharma are growing eye

our The all see products of you here represent businesses.

Some will point But they support all to our is eye and approach are be steady significant, while contributors. health. matter others holistic the

the launches history and which these active the + catalyst launch XXX-year Bausch one Lomb. of timing a of in as The serve upcoming product years expect launch XXXX, well. as will matters be Recent of XXXX we for will most

While there's launch excited patients. potential the month full from for typically new cycle realize economic products, and our industry and about to an month to XX to innovate we're XX trajectory positioning ability

is products we these market and expect bringing critical significantly something we're How improve to to on.

look be contributor we're Let's an out a rolling important we how expect years what to come. take at for to

to an event an MIEBO to from learned also truly this and leverage the later to opportunity and bring for teams launch market. The launches. be will apply this company we've the product past have hard exciting so quarter worked infrastructure our It's what

comes setting critical The forward. when are and help for MIEBO's their launch is team blueprint success true, establish up nice-to-haves, it factors to especially This excellence we success. imperatives, a field for and for the introduction going will preparedness

the treatment ripe data consider when suffers phones and undertreated, staring significant timing for you treatment. better, category a an be prescription population, using eye disease, we jarring. and have innovation is and not go-to-market An a options. is The could Dry more This is eye the time refresh disease XX% for from as aging being spent disease a is at population opportunity. that and approach dry true of underdiagnosed is dry tablets. estimated new U.S. eye especially is The representing

eye. evaporation. eye the other are options different In Dry treating which to and XIIDRA FDA-approved is focus medicines dry treatment are targets on eye similar disease needs. multifactorial, these with inflammation needed. is only means MIEBO for other also first treatment dry different different associated that and medicines directly disease, words,

is of portfolio on prescribers our customary and options, subject other patient will complement XIIDRA, needs. based provide existing to regulatory approval which drive Our closing unique and different with acquisition conditions, treatment

in launch Moving to in vision multifocal U.S. business; challenges Lynchburg our theme. and silicone our a exceptional, we chain last single performance We presence lens supply growth spherical Care distribution all the launched have our markets. was from despite means, Vision quarter, our now hydrogel in continuing center, China major

potential. and June. the aside, excited there, an we our As in investment chance to about a China visit had I made this market talent I'm

year-over-year creating provide have numbers growth highest Rounding LUMIFY revenue, with We a plans basis. to on more brands. its saw currency consumer out a in franchises ever strategically and XX% more business and quarterly Artelac options we continue of with OTC saw constant reported both for and similar places. expand our highlights; truly international for offerings growth goal

address third surgical, growth these component parties to In with an continues strong, remained to We're providing supply options a product our availability market. working but more chain. while in demand challenges, impacting be issue

in premium launch high-margin calendar impressive worth it's the into highlighted including pointing but category. launch I IOL new our contributions several out products company-wide XXXX, earlier, well surgical

our of performance which on But themes wins to chain lot a the spent highlighting I reiterate that issues, I'll the That's reshape our plan our second speaks the resiliency and reflected employees. we realize Lomb Despite progress. put two constant the we and it. revenue quarter; and Bausch supply more of to the ongoing overcome challenges we've face metrics. define our currency + time several board, financial ambitious clearly to other But and the in in I'm made in progress full potential. XX% our growth plans interested

level and of reward worth but I'm seen. than by I've it. is encouraged Change words, is speak commitment hard, the the louder Actions already

Operator, let's for line questions. open the

Instructions] Citi. first Joanne from coming question at Your [Operator for Wuensch is today

morning. impact then surgical there challenges there my in pass you What to or the Good market pretty And on. a thank have that of question. And I is XX% timing couple. and I'll Supply much hydrogel and a lenses, think the impressive. way is do is resolution? to for up growth the Daily quantify you expansion? and one market or how going second on silicone cannibalization is of share maybe that

Joanne. Thanks Great.

with let's the So supply on challenges. question deal first

I of our feel and Yesterday, our a new say, chain. supply get do customers patients look, head chain, us our a First, suspect and supply will in the place I can confident that it supply to of execute I ability very I'd products year to a announced where with two tough very all bringing across to I we improve in think and we're to take our businesses. our experienced or in probably grader, I'm a ability

more other and issues, FDA componentry health supply. delivery issues, regulatory have don't This we authority is products and said, of being about That issues.

solving. situation, is that on fixable that very we're a one and focused so And

but take absolutely solvable. will it some time, So

want quantifying, you to... In Sam, do terms of

morning. good chain Joanne, surgical the the will they I parts different. because that two you lens the mentioned, Sure. business supply into and break are

what is were trying be about vendors to supply supply to I doing second also that validate And the marketplace availability sufficient doing spot business. we've of components. we're is, to been buy. we've what think - the you will surgical So find to the a been demand when the support we've refer through, talking working able in about we surgical, been what the that seeing in as And

market, I the cost, it find first on the margin, whatever higher this I the buy acquiring in that highlighted acquiring is and supply quarter, spot And and the basically putting is a in we pressure that's quarter. again which highlighted

the of So the you'll we through on impact the see you as inventory comes that in see margin the year, as go the impact pressure. and

Lynchburg center Brent is The upgrade the distribution and center in remarks, we've distribution earlier U.S. related and that that the discussed in the to we second mentioned done the our prepared issue in that's the

lens The impact about XXX it of prepared business. that, I my remarks basis points the quantified for in

we've our We our this in so business results excluding, seen at roughly million the in as quarter, which EBITDA, XXX XX% basis we then So that's growth lens was absorbed been would've impact X%, in the that about about absorbed of, our that $XX points. well.

see fits ODs of we Yes. And when into the patients deeper lens. important product the XX% a is, about think I and switching coming the very products. product what's other data, other infused X/X from think great our being that have from sourced When at with or do look switches. I there, see from new seeing our obviously, modalities or from consumers get we most we're respect rest that is we SiHy good volume about there into you the and to to patients infused support Daily and we line,

marketplace. have launch into it big obviously the the overall product new, specialty we'll as U.S. year launched well-received major think moving you I in - that great markets there following in like in And the which then picture multi a have well. Toric anytime the So all world. do we But now a We've launched really the is some product. just and around the the next is cannibalization versions we're now higher-margin the multifocal, the

entire roll out strong portfolio take So bit competitive I there a world, little offering. around a but will is to the think those very the

Thank you.

Next question, operator.

coming Your is question Markets. Capital Miehm for Douglas next today at from RBC

question deal Thank probably your that But and you. around know this around And I that not product do good performance morning. out and the disengaged until I we're close pickup a trying market at of prescription garner My but moment, hands to of know share, is force. question sales XIIDRA down seeing of a not we're expecting in are with And have later dealing rates. And XX%. year. more the the a I they're this - a we

$XXX being? you talking So secondly, first whatever sales hearing you is exit talked question starting base of million if revenue force? as XXXX $XXX are X% are growth, about we then any in a or from were is, about ended - XXXX, And turnover you from we in originally from up that when million

Yes.

So Look, the customary question. said, to owned look think and is have is towards close being for history product of to subject normal the the the clearly, of the and the do at Novartis the product thanks you this expect I That in to by that closing category. year. we end it is - conditions,

a several somewhat months. for drug Takeda for last launched the Novartis, was to and this then sale openly Shire sold sold held by to So

of or any looks look, sales in enthusiasm probably just there force something that a little think bit nature. So is human at lack nature, human this group, I that's like and energy

about And benefits therapeutic are doctors. better to get talk so to excited for look the we closed ways deal and to the

solution. We to sensitive eye put know diagnosed million some a in with disease, yet are XX dry million with related people prescription roughly category. promotionally only There United is and it X.X patients data States treating category. a the I the

dynamics, we about is treatment - then ownership saw long I have look The brand growth. TRx. a what to X% excited just very to the in option at I'll I'm metric is with important MIEBO. lastly, most little differentiated complement still physicians a for And And bringing Novartis winded. of And while so we're TRx when those we're tracking

doing until solid me, most And metric track, think to so a that we close they're I there. the and important job is to

you. Thank

Larry Fargo. Your next at question is coming from Wells Biegelsen

taking Congrats Two on Good on morning. the me. on for quarter one Thanks Brent questions. and XXXX. here Sam. for a MIEBO, One nice

adoption could just start happy stronger as XIIDRA view MIEBO, puts the would What a XIIDRA on like? look at benchmark. mean takes we've and how to the are your success of So in of looked I what launch Brent, some or at was you say be mean would launch. XIIDRA million product a weaker, $XXX and to of time been same peak. XX% about be successful about I post ramp MIEBO

So are question, Sam. of of just that's about I the then first follow-up my a kind and how MIEBO, you ramp thinking had for

Sure.

different So eye we not and what MIEBO, as competitive launch category. very think informative, would a inflammatory call markets the right XIIDRA That's perhaps dry probably at I look are at into but disease. for eye dry we different looking launched the on. These XIIDRA little a is associated products category.

new You new it strong other late-stage entries in you've and dry products and had launch, a since had development several - launched, for RESTASIS, eye. when very you had inflammatory

in different Most is hand, the of issues. are different for treatment different and drug tear other tear evaporation evaporation. tear the on related the only eye sufferers and a part a patients we dry have MIEBO, modality, evaporation, market for

in say, have numbers, In I and with very very access care sales we're do with product. successful to round position through. longer launch, disappointed work didn't think would quite longer. about takes $XXX would I peak a great opportunity we're we excited so an be it. I good take But if we time. see But to And this exceeding a over Managed think million be ramps I very

giving provide That's What And just but for wondering to guidance about parts. to some things super are revenues. moving million are for XXXX, XIIDRA, to could how XXXX? $XXX consider? you're Sam, a if I'm million helpful. think a you obviously, in not lot the maybe there $XXX of of framework

talked I want XX% think to if that's still about about I accretive. being confirm true. you've that just

versus, it, on mean the launch, PROLENSA $X highlight? it loss MIEBO would next anything right exclusivity, Does call based year. of to the about revenues, now in $X.XX parts? valuation 'XX. EPS Street's to with Is Blink and obviously, $X.XX about primarily all year I you modeling that up, sum just there seem the the right moving this is

could just Thank you So hoping framework you. provide some there?

There's in question. lot one unpack a to just

picture you still think a by do guidance a early in me business. we're back to and of just of today, not we've that. I'm think So factors But going here let I the to about And And big to our will - in framework. about XXXX will the step maybe anchor start seen from have couple start there's in I quarter. I probably think give fundamentals what second and/or

business three We've seen portfolio seen across is significant. strong performance in all the We've demand segments. the in our

So we we expect would that. continue as that will I strong into the about excited are demand very us, XXXX. go forward of with momentum

if you at that's a for us this We're also But rate material XIIDRA. look line. seeing to that with be to data suggest Blink's top anywhere is $XX the the between acquisition, we mentioned Blink year. million that available, million and Blink run going will is not $XX impact

and start portfolio great from brand things our will - start that we to folded we that portfolio that as which do confident expect continue growing to consumer hand, team's put So getting it our they in I'm with, there. in

our around, I'll the XIIDRA, expectations and talked mid-single the own point franchise. sort from about call we once it, digits, of the starting we brand

able through work that. be we'll So to

building on think how So positive the we we in of will forward. portfolio side terms as that's the all go

that's able quarter steady fixable some to be in time business. from lens that's pressure I not supply qualifying chain. have all the it of the talked within be balance that seeing a we've because was one to fixable. get we've I the seen different we're happened to surgical because spot about, about at buy with putting and been the state the I a will on margin work consistent supply. believe chain It elements supply to going take the it talking and that to vendors,

just also forward. the factored So here that thinking as into being we go

today. when based this sort So we of XXXX you them or break how components together, and know think look model I that's put on point about your at at those would what

so much. Thanks

question is Miksic Barclays. next at Your from coming Matt

you Brent. I that impressive maybe about a top questions. of say, maybe you product start position feat which right Sam slate investment of that's about? so? XX the one Thank taking of months if then if behind could in wanted initially, launches out here So the I wanted on to And or timing? driving find new bit to those a those for heaviest where you'll on spend some the mid-next that you you do next year talked little you're early follow-up. Hi really launches, the in six congrats the launches, a to to products talk line. making do the - or months in to of provide leverage some And have of new level sort to you the of be around And Brett think color

Sure.

over I'll investments it are in we'll be in MIEBO maybe making globally. INFUSE SiHy launch to Sam. start So and our and turn the Daily Clearly, two biggest

clearly, we intend quarter. product in MIEBO, third So to the quarter, launch this the

Clearly, for, something it, an investment significant launch, very that So order let's months, cycle in that. XX excited you're months, in we're in magnitude. any call about pharmaceutical XX of

patients. good here We're launching, and response the in has INFUSE now from States. United and been seeing we're multifocal the optometrists then globally really launching And

a So that as pharmaceutical the same generally cycle of investment encouraged there. very And kind product. follows

color So the other big launches? two those are any Sam, on ones. commentary or

you it. covered think I No,

there of 'XX the segments. see launches, and as three we'll XX now back because that of be all behind across refer important I outlined we included see one. MIEBO sort launches launches Slide those And would sort it product in to we I be deck, those And - will will nicely the think investing 'XX. a the we definitely, for in all you very the

And in said until it launch, it anywhere launch XX to think prepared you about that, potential. takes I its before as just months when and started remarks I've the is getting probably XX between referenced my that

launches. So as any we period, that's of it think where for the investment about those

Great.

and is we middle P&L up And leverage any this, should the we a leverage the though outperform, sure in think other expect not read-through continue that significant so even leverage a of now? for to right about be you're just folks I'm terrific, sort 'XX but I'm just guiding be because have may the muted. on shouldn't of be year, way also that growth these picked to next bit hearing for something costs more to Is fair is obviously 'XX, that looking

Yes.

a on margin very primary have think that - focused significant sustainable goal a of time. goal And expansion expansion. ours point. we leverage Look, achievable in goal, great a Clearly, or is So the we're is to business. is in margin

there? do so color you provide Sam, around want our And some maybe, thinking to

expanding we where as the product accelerate And LUMIFY important for And about really expansion, expand and of and Yes. the us, see which and the expansion is pretty business, portfolio. growth and to today, we want our us. accelerate of the appreciate where such understand a our Ben fundamentals - we continue good sustainable talked goal and you from is and taking to build we're focused progression said, that's as to our margin expansion. margin that consumer and to a very growth a the here factor on product on start provide margin And brand actions within we're is is - many we're for LUMIFY, it of the to

combining shifting which premium - that product, of which of to shifting MIEBO, well, more launches portfolio the we're the category, into is and products. of the And the that will in putting And and premium in a surgical pharmaceutical. because side, seeing higher-margin as with more more of type that more we're

as continue expect a move we provide margin that forward. positive we the So will to on impact

in My just because it's of side, is, both terms one Matt, it's comments here, the not investment sides. expectation with the

be but you're expansion through - So this cycle. start investment until potential, you to actually margin the full going the see seeing expansion, going not margin we're we'll

get a that Right, margins. We've funnel, a to continue the it's we invest provide focus the to of got to but to right? margin, kind like have aware be we to have to that on greater products need

we're it's of front very on. mind and So something focused

your like a these different efforts variety someone like now helpful. on of are side, pretty competitors of a one at aware. strategy drops therapeutic is that portfolio and about One coming that, solid what rolling you're clinicians is on I'm to of ways that is you is that as out of device And device solutions. as with just some sort That's well? bridging, and super eye providing - the market clinic then is that against kind and on are things solutions talk manufacturers follow-up Can that a sure dry the

there's eye obviously I we and make innovations. those keep Look, to we sure want Yes. and a of the on particularly keep in And very category a steady innovation close stream for patients. - physicians

some that a none could patients. that that for are are solutions or perhaps like. effective side, But the rise more super device niche interesting technologies emerging think for there the are think I and level or I in be the sufferers impressive severe yet On to category

that's the mainstay do innovation of the but we see keep I a marketplace, in for side and pharmaceutical for the options products, but an important. that on we be Different is markets, option a the quite And competitive providing it, most physicians coming excited treatment we're and patients. both variety And and so of potentially eye spectrum, for think, lot the inflammatory there could patients, a side will you disease. of have options and inflammatory I evaporative on different think

so color. the you for much Thank

question Marcus JPMorgan. at Your from Robbie next is coming

good quarter. exactly from is lot pharma, revenue Great. just a growth Thank before, pharma launches, what first the a do pharma there's coming where Congrats is incremental but taking the did you one, Maybe of pipeline quarter Two for most side. the from was, But along we're in your I company. deal big of comment of, on pharma and the just not the on lines question. forget it something you for you the a made a Brent, me.

company, what just the you're view your how your your two & maybe kind on, of investments? about future on about the So between give you're managing R&D thoughts Lomb Bausch is us thinking spending and thinking how and

Robbie question. Thanks, Yes. for the Yes.

view plan of also means that a we when into being best health strong eye most get care I I as surgical Care a growth, us business, the company, business, strong And - of can having view And expansion, I start and want driving don't a four as best eye health we pharmaceutical an consumer company. profitable a then Vision company, I to our strong the businesses innovating realm but the heritage clearly, think being a margin eye to mean us and So strong pharmaceutical think company. all I the are business, business.

will did When of about we our you deal think about non-pharma. pharma, that roughly even But I just get be say why business, business a that so would a pharma. closes, in still X/X big the pharmaceutical when be XX% because people

And myopia for a health that so potential we like important when space, that look strong it's vision the need in care, very we is perhaps do around issue at places solving unmet world. eye the it's the huge in

accommodating Surgical, IOLs near to I or adjustable a moving premium important and really in patients great and into or is between. think, vision we far, give IOLs were

I there's opportunity, lot so for of opportunity a of lot bringing innovation. for solutions. a And think, There's

pharmaceuticals, development drops, With not we're the be of we in house. respect only in expertise R&D house. we're of Care. in pharmaceuticals. Vision to solutions from development deep R&D, In fair, and then a I to a surgical, It's contact perspective research more it's think real is have true lenses, And a more

kind innovations care. And idea our pharma, on across to vision the not but our think most impactful of is principle look surgical I eye necessarily business, organizing health, the care. focus at that's or eye look, So as

moving helpful. surgical, me. pricing, But growth business businesses. in in follow-up versus OTC the we versus versus maybe pharma, how lenses? a should about in pieces Clearly, Very And for lots volumes the of versus think different

great a Look, absolutely look it's at very that's I question. something closely. Yes,

from QX price. was growth our me really of not impressive think I majority the to consumer The from in QX was volume, team.

few historically, quarters, a seen we've price, inflation. result think a last of I of lot the as

price foreseeable I for moderating obviously, moderate that's think will and the future. take think, I the ability to

we're see need that's consumer and job to great here, healthy, so and volume to be really quarter. what see starting a they kudos did to And this to driving the on volume, we team

Thanks a lot.

question from America. Craig is Your of coming for today Bijou next at Bank

Good a related I'll topics, And I I guess, just Thanks questions. a congrats upfront. morning, quarter. for to the just, strong that on somewhat guys. questions taking ask couple have of

similar there may guess, or or in and potentially impact Lynchburg in a are facility risk guidance, like and about think we facilities supply that I that Brent, is of in other then those chain supply half? there should your related, bringing you're upgrade contemplating, I quality or improving on comments aware need impact update that we there? that significant a the the how assumed challenges expectation what's better with guess, the And a challenges put an So of be leader, out worse? or get second new the that should could that have chain

Sure.

with I of business I'm our I think grader, something confidence. to earlier. is, a I'm going about tough way start So level the said and

high our ability in And have force. high so for and have I example, R&D levels, the our sales of ability in very our very confidence I in confidence to level capabilities. to execute execute to in clinical but our confidence right? we time the have very right When chain, the really products working supply have it can I at comes hard, cost that team don't deliver and good we a on

spot would Surgical, componentry than higher out prices So of example, at we're as much otherwise. we in buying lots Sam said, for

our can't we in with Now issue have a an microchip. issue that the make a because an one plants, issue third-party isn't supplier of necessarily have we

hostage or our And multiple so facilities or upgrading qualifying so get about multiple about one us we isn't this vendors it's supplier. capital, investing by supplies, held stuck don't or

And basis Sam capital-intensive system. upgrade and you boxes impact that - our at about a quarter. self-inflicted the so We U.S. The system quantified when to of is the and business, facility the issues. a was up And down stacking wound, didn't an it right? points wasn't materialize necessarily. of that can't you But foul, on the XXX business, had lot Lynchburg right? a have contact growth lens ship tried particularly that's in the which It customers, goes a

an It's you take will massive problem. not fix And level managing fix invested is of tackle satisfied not it. well that I'm up when talking all the plants. experienced suppliers, So It's the to going a we of additional need with It's a more or fresh but add about and I we're way. - third-party getting but two at about coming year sleeves roll leader, issue about on capital becomes it's This need into and third-party got about right. senior process. the those we're it capital, completely, things, - suppliers. or and a just with, things up our - We've having our very to to look think qualifying we're

Sam, know, other don't any I color...

I XX%. things our No. And highlight I'll prepared is gross about holding is in you; we're - our terms remarks, still Craig, I how a to about in question approximately it margin of around of about margin. thinking talked couple here that your my for guidance, one said gross

there a seeing But pressure it bit I that so been have that XX% that fact on of some of commented XX%, might strong out or the we're very coming be XX%. might because that rounding little also a down that's a

out there we're seeing, is side. talked of coming that what So about surgical on a and that's the pressure we

it lost chain, In that about taking time I there's on it's you able think what think terms from of just you when back work step and not and through supply to doing work the potentially we're to is us this, - we outcomes $XXX and out supply of ranges in that guidance our terms the million range of outcomes will factored come those in And chain. within to thinking and of multiple outcome the ranges the million. $XXX of there's be

and think to hard scenarios, scenario There's Again, that baked try through the out. that in. pinpoint thinking those it's we as can through range. we're scenarios, specifically So that play multiple was one to

what into baked guidance already thinking been that's we're So our of terms in range.

Great. guys. Thanks

for question. time one more have We

Your is Stanley. from Morgan at coming next Wood question Patrick

that you Amazing. keep eat-off asset time it's the given quite very early How lens given within and lens, of market? a the How premium know share coverage. to partial, do astigmatic little and that stage, Thank I running bit you there? the the very one one, it's potentially unique but of take out. much. AT-IOL in that Quite a general a sort is guess, specific going about feedback feel IC-X, I it Apthera to capacity launch I'll the initial a

implanted with at for and I'm some it, and very I of important have you surgeons us early was small can impressive and a I phenomenal that Small surgeons. think feedback, the and a small for start. been tell or of do it's for group I of surgical positive the patients have enthusiastic surgeons lens, right, conference have hands, KOLs, trained a just glad very it's but physicians about the product that very a you major because patients, U.S. asked response. top and group

key there to exciting I The a an and the and who the early, lens. more do think segment is But the outcome, is solution, need a perhaps is patients fit, with comfortable for incredibly real economic getting but initial days surgeons middle-of-the-road perfect that trained of and market ICA eat-off outcomes.

the rest significant a So could our of on I U.S. surgical X, But in just phased be this product. launch product be or year the think portfolio. bullish and remain the With in pretty a to it a the really launch, optimistic will in world. I

thanks excited launch. I'm particular that for pretty about question. the So

you. Thank Amazing.

to just eye And mentioned, for currency best I and quarter a year I we think highlight Thanks performance few in the quite the team execute has the roadmap health worked world. company and progress, as I'll I attending, up strong our create we deliver. against certainly, hard who testament our is in a your maybe to so as continue quarter, I - think, to do you to is, revenue put the for operator, quarter Well, this this a very thank closing XX% questions. constant and Great. growth say words. mean, everyone

and to we again, you updated. you look So your for keeping forward thank time,

and today's disconnect your you at participation. this Thank This your time. may you conference, lines for concludes