Bausch Health Responds to Rumors of a Potential Sale of Bausch + Lomb

Rhea-AI Summary

Bausch Health Companies (NYSE/TSX: BHC) has confirmed it is exploring potential sale options for its subsidiary Bausch + Lomb (NYSE/TSX: BLCO) as one of several alternatives to complete their separation. The statement was issued in response to a request from the Canadian Investment Regulatory Organization (CIRO) due to stock volatility concerns related to market rumors.

The company emphasized that while the Board of Directors has authorized management to explore a potential sale, no decision has been made to proceed with any particular transaction, and there is no guarantee that the process will result in a deal. The company stated it will not provide additional details until further disclosure becomes appropriate or necessary.

Positive

• Board authorization to explore strategic alternatives for Bausch + Lomb separation
• Proactive communication with regulators regarding market rumors

Negative

• No certainty of transaction completion
• Stock volatility concerns prompting regulatory inquiry

Insights

Financial Analyst

The confirmation of exploring a potential sale of Bausch + Lomb marks a significant strategic development for Bausch Health. This follows the company's long-standing intention to separate BLCO, with a sale being one of several options under consideration. The market's reaction to these rumors, prompting CIRO's intervention, underscores the materiality of this potential transaction. With Bausch + Lomb's strong presence in eye health and a market cap around $5 billion, a sale could substantially impact BHC's capital structure and strategic direction. However, the statement's careful wording emphasizes that no decision has been made, managing market expectations while confirming the exploration phase of a potential deal.

Market Research Analyst

The unusual step of confirming deal exploration, prompted by CIRO's request due to stock volatility, signals significant market interest in this potential transaction. Bausch + Lomb's established brand position in the global eye health market makes it an attractive acquisition target. The timing of this exploration aligns with broader industry consolidation trends and could catalyze value realization for shareholders. The market's sensitivity to these rumors, as evidenced by the regulatory inquiry, suggests that investors view this as a potentially transformative move for both entities. The deliberate transparency in response to market speculation demonstrates proactive regulatory compliance while maintaining strategic flexibility.

LAVAL, QC / ACCESSWIRE / December 12, 2024 / Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC) (the "Company" or "Bausch Health"), a global, diversified pharmaceutical company enriching lives through a relentless drive to deliver better health outcomes, issued the following statement in response to a request from the Canadian Investment Regulatory Organization (CIRO):

"As previously disclosed, the Company believes that completing the full separation of its subsidiary, Bausch + Lomb Corporation (NYSE/TSX: BLCO) ("Bausch + Lomb"), makes strategic sense. The Bausch Health Board of Directors authorized management and management of its subsidiary, Bausch + Lomb, to explore a potential sale, which is one of several options being considered to complete the separation. That process is ongoing. No decision has been reached to proceed with any particular transaction, and there can be no assurance that it will result in a transaction.

While the Company normally would not comment on deal negotiations, CIRO requested confirmation of a potential sale process given stock volatility often associated with market rumors. Bausch Health does not intend to provide additional detail until further disclosure is appropriate or necessary."

Bausch Health is traded on both the New York Stock Exchange and Toronto Stock Exchange.

About Bausch Health
Bausch Health Companies Inc. (NYSE/TSX: BHC) is a global diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neurology, dermatology, medical aesthetic devices, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information, visit www.bauschhealth.com and connect with us on LinkedIn.

Forward-looking Statements
This news release may contain forward-looking statements within the meaning of applicable securities laws, including the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements about the potential sale or full separation of Bausch + Lomb. Forward-looking statements may generally be identified by the use of the words "will," "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "subject to" and variations or similar expressions. These statements are neither historical facts nor assurances of future performance, are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, Bausch Health can offer no assurance as to whether the full separation of Bausch + Lomb will occur (including as a result of a potential sale or otherwise) or the timing or approval of any such separation. Actual results are subject to other risks and uncertainties that relate more broadly to Bausch Health's overall business, including those more fully described in Bausch Health's most recent annual and quarterly reports and detailed from time to time in Bausch Health's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update any of these forward-looking statements to reflect events, information or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Investor Contact:
Garen Sarafian
ir@bauschhealth.com
(877) 281-6642 (toll free)

Media Contact:
Katie Savastano
corporate.communications@bauschhealth.com
(908) 569-3692

SOURCE: Bausch Health Companies Inc.

View the original press release on accesswire.com

FAQ

What is Bausch Health's plan for Bausch + Lomb separation as of December 2024?

Bausch Health is exploring multiple options, including a potential sale of Bausch + Lomb , to complete the full separation of the subsidiary. The process is ongoing with no specific transaction decided yet.

Why did BHC issue a statement about the Bausch + Lomb sale rumors?

BHC issued the statement in response to a request from the Canadian Investment Regulatory Organization (CIRO) due to stock volatility concerns associated with market rumors.

What options is BHC considering for Bausch + Lomb separation?

While a potential sale is one option being explored, the company indicated there are several options being considered to complete the separation of Bausch + Lomb.

Has BHC's Board approved the sale of Bausch + Lomb?

The Board has authorized management to explore a potential sale, but no decision has been made to proceed with any particular transaction.