Bausch + Lomb’s current enterprise developments have been for prescription merchandise. However the lion’s share of its income comes from shopper product gross sales, and the corporate is additional broadening its over-the-counter presence by buying a Johnson & Johnson line of eye drops for $106.5 million.
The acquisition brings to Bausch + Lomb the Blink product line, which spans six eye drops and call lens drops for rewetting and lubricating the attention. Vaughan, Ontario-based Bausch + Lomb mentioned it’s going to finance the acquisition with money available.
J&J is divesting Blink eye drops comes because it will get out of the enterprise of promoting shopper merchandise. The corporate positioned its shopper merchandise property in a subsidiary, Kenvue, that raised $3.8 billion in an IPO in Could. J&J remains to be Kenvue’s majority shareholder, however going ahead, legacy J&J will deal with growing and commercializing medicine and medical gadgets. The Blink eye drops don’t match that technique, so J&J determined to discover a new house for them.
[Updated: The following two paragraphs added with comment from J&J.] The Blink merchandise had been offered by Johnson & Johnson Imaginative and prescient, a subsidiary. In an announcement issued Friday, the corporate mentioned it’s repeatedly evaluating its eye well being portfolio, which can proceed to fabricate, promote, and distribute contact lens options.
“Whereas we’ll proceed to advocate the significance of treating and relieving dry eye signs, we consider the Blink eye drops can be a mutually useful match with Bausch + Lomb, as a part of their dry eye portfolio,” the corporate mentioned within the assertion.
Blink eye drops are among the many many OTC merchandise accessible for individuals affected by dry eye illness. When these merchandise don’t work, sufferers search for aid from prescription merchandise. Bausch + Lomb has two new ones. In Could, the FDA authorised Meibo, a prescription eye drop that works by decreasing the tear movie evaporation that contributes to dry eye illness. Final week, Bausch + Lomb reached a $1.75 billion take care of Novartis that features the acquisition of Xiidra, a prescription dry eye illness product that treats the situation by decreasing irritation within the eye.
“There’s a rising want for relieving the signs of dry eyes and dry contact lenses, and OTC merchandise are sometimes the primary choice shoppers select,” John Ferris, government vp, shopper, Bausch + Lomb, mentioned in a ready assertion. “The addition of Blink expands our strong portfolio of OTC eye care manufacturers, enabling us to offer extra decisions for shoppers and eye care professionals.”
Bausch + Lomb’s Imaginative and prescient Care enterprise section, which incorporates shopper eye care and call lens merchandise, generated $2.3 billion in income in 2022, a 63% enhance over the prior yr, in keeping with the corporate’s annual report. The corporate mentioned 63% of the section’s income comes from shopper eye enterprise whereas 37% comes from the contact lens enterprise.
Picture: Emile Wamsteker/Bloomberg, by way of Getty Photos
