Bausch + Lomb (BLCO) Citi Annual Global Healthcare Conference 2025 summary

Strategic transformation and operational focus

• Leadership prioritized selling excellence, operational improvements, and innovation to revive growth post-separation, with a recent shift toward financial excellence and margin improvement.

• Vision 27, a comprehensive program launched in 2025, targets operational efficiency, gross margin gains, and EBITDA margin alignment with peers by 2028.

• Margin expansion and sales growth outpacing the market have been observed, with a three-year plan emphasizing consistent annual improvements.

• R&D investment has increased, with a focus on reallocating resources from maintenance to high-impact programs, leveraging AI and efficiency tools.

• Ownership structure remains a topic, with 88% still held by Bausch Health, though both boards are committed to resolving this over time.

Product innovation and pipeline highlights

• Project Halo introduces a novel bioactive contact lens material, aiming to address end-of-day dryness, with launch targeted for 2028 and minimal capital expenditure.

• Consumer products like Blink and Lumify are experiencing strong growth, with new delivery systems and formulations in development, including Lumify Luxe and AREDS 3.

• The dry eye portfolio, featuring Xiidra and Miebo, is positioned as market-leading, with a first-in-class combination therapy in phase II development.

• Glaucoma pipeline includes a promising alpha-2 agonist eye drop, with phase II-B data expected in late 2026, potentially offering both IOP control and neuroprotection.

• Surgical business rebounded quickly from a recall, with enVista Envy and upcoming enVista Beyond (EDOF) lenses expected to drive growth.

Market dynamics and financial outlook

• Contact lens market growth has slowed to around 4%, mainly due to economic headwinds in Asia and bifurcated consumer sentiment, but is expected to recover by 2026.

• IOL market growth remains robust, driven by aging demographics and demand for premium products, with reimbursement pressures as a key variable.

• Three-year revenue growth guidance is set at 5%-7%, with margin improvement of roughly 200 basis points annually, totaling 600 basis points by 2028.

• Margin gains are expected from product mix shifts, manufacturing efficiencies, and SG&A leverage, particularly as the company exits its dry eye launch phase.

• The pipeline represents over $7 billion in potential revenue, though most near-term growth is based on existing products and operational execution.