VAUGHAN, Ontario - Bausch + Lomb Corporation (NYSE/TSX: BLCO), a prominent eye health company trading near its 52-week high of $21.69, today announced the acquisition of Elios Vision, Inc., the developer of a novel minimally invasive glaucoma surgery (MIGS) procedure. According to InvestingPro data, BLCO has demonstrated strong momentum with a 38% price return over the past six months, though current valuations suggest the stock may be slightly overvalued. The ELIOS™ procedure, which utilizes an excimer laser, is the first of its kind to be clinically validated and does not require implants.
This strategic move expands Bausch + Lomb’s glaucoma treatment portfolio, which already encompasses pharmaceutical and surgical solutions. Luc Bonnefoy, president of Surgical at Bausch + Lomb, emphasized the importance of this acquisition in meeting the growing needs of patients, citing an expected 47% increase in glaucoma prevalence from 2020 to 2040.
MIGS is recognized for its safety and efficiency in lowering intraocular pressure, with a quicker recovery time compared to other surgical methods. It is particularly advantageous as it can be performed alongside cataract surgery, a common occurrence given that more than 19% of cataract surgery patients also suffer from glaucoma or ocular hypertension.
Professor Ike K. Ahmed, MD, from the University of Toronto and Moran Eye Center, highlighted the ELIOS system's precision and tissue-friendly approach. He also noted the potential for improved patient care through the synergy of cataract and MIGS surgeries.
Elliot Friedman, former Elios Vision chairman and CEO, expressed confidence that Bausch + Lomb's global reach would help establish the combined cataract and glaucoma treatment as a new standard of care. The ELIOS technology is CE marked and currently available in the European Union, with Elios Vision pursuing approval from the U.S. Food and Drug Administration.
Bausch + Lomb, with a history dating back to 1853, has a significant global presence, employing approximately 13,000 people across nearly 100 countries. The company's comprehensive product range spans contact lenses, eye care products, and ophthalmic surgical devices.
The acquisition is based on a press release statement and is subject to the usual risks and uncertainties, including those discussed in Bausch + Lomb’s filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators.
Leerink Partners acted as the exclusive financial advisor, and Wilson Sonsini Goodrich & Rosati provided legal counsel to Elios Vision during the acquisition process.
In other recent news, Bausch & Lomb Corporation has been making headlines due to its financial performance and analyst ratings. The company reported a substantial 19% year-over-year increase in third quarter revenues for 2024, reaching $1.196 billion. This growth was primarily driven by products such as Miebo and Xiidra, and the contact lens segment, particularly SiHy Dailies, which saw a 79% year-over-year increase.
On the heels of these robust results, Bausch & Lomb raised its full-year revenue guidance for 2024. The company also secured $400 million in new term loans, providing it with additional financial flexibility. Despite these positive developments, both Citi and Morgan Stanley (NYSE:MS) downgraded Bausch & Lomb's stock, citing various reasons including the stock's significant appreciation over the past year.
In terms of analyst notes, H.C. Wainwright upgraded Bausch & Lomb's stock price target to $23.00 from the previous target of $22.00, while Stifel maintained a Hold rating with a consistent price target of $19.00. These recent developments highlight Bausch & Lomb's strategic focus on high-margin products and operational efficiency, which have contributed to its growth and financial leverage.
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