Q1 2022 Bausch + Lomb Corp Earnings Call

June 8, 2022

Speaker 1: The the.

Speaker 1: The.

Speaker 1: [music]

Speaker 1: Good morning and welcome to the boshand lbs first quarter 2022 earnings call.

Operator 1: Good morning, and welcome to the Bausch + Lomb's Q1 2022 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Allison Ryan. Please go ahead.

Operator: Good morning, and welcome to the Bausch + Lomb's Q1 2022 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Allison Ryan. Please go ahead.

Operator: Good morning and welcome to the Bausch & Lomb first quarter 2022 earnings call.

Speaker 2: All participants will be inenlisten-only mode.

Speaker 2: Should you need assistance, Please signal a conference specialist by pressing the starkey, followed by zero.

Operator: All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero.

Speaker 2: After today's presentation, there will be an opportunity to ask questions.

Speaker 2: To ask a question. You may press star than one on your touchstone phone to withdraw your question. Please press star than two.

Operator: After today's presentation, there will be an opportunity to ask questions.

Operator: To ask a question you may press star then one on your touch tone phone to withdraw your question. Please press star then two.

Speaker 2: Please note this event is being recorded. I would now like to turn the conference over to Allison Ryan. Please go ahead.

Operator: Please note this event is being recorded. I would now like to turn the conference over to Allison Ryan. Please go ahead.

Allison Ryan: Thank you. Good morning, everyone, and welcome to our Q1 2022 financial results conference call. Participating on today's call are Chairman and Chief Executive Officer, Mr. Joe Papa, and Chief Financial Officer, Mr. Sam Eldessouky. In addition to this live webcast, a copy of today's slide presentation and a replay of this conference call will be available on our website under the Investor Relations section. Before we begin, we would like to remind you that our presentation today contains forward-looking information. We would ask that you take a moment to read the forward-looking statement legend at the beginning of our presentation as it contains important information. This presentation contains non-GAAP financial measures. For more information about these measures, please refer to slide 2 of the presentation. Non-GAAP reconciliations can be found in the appendix to the presentation posted on our website.

Speaker 3: Thank you, good morning everyone and welcome to our first quarter 2022 financial results conference call. Participating on today's call our Chairman and chiefs Executive Officer, MR Joe papa, and Chief Financial Officer, MR Sam elissui. In addition to this sllive webcast, a copy of todays slide presentation and a replay of this conference call will be available on our website under the Investor Relations section. Before we begin, we would like to remind you that our presentation today'today contains forward-looking information. We would ask that you take a moment to read the forward-looking statement legend at the beginning of our presentation, as it contains important information. This presentation contains non-GAAP financial measures. For more information about these measures, plethese refer to Slide two of our presentation. non-GAAP reconciliations can be found in the appendix, the presentation posted on our website. Finally, the financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter and to not update or affirm guidance other than the broadly disseminated public disclosure. With that, it is my pleasure to turn the call over to Joe.

Allison Ryan: Thank you. Good morning everyone and welcome to our first quarter 2022 financial results conference call. Participating on today's call our Chairman and Chief Executive Officer, Mr. Joe Papa, and Chief Financial Officer, Mr. Sam Eldessouky. In addition to this live webcast, a copy of today's slide presentation and a replay of this conference call will be available on our website under the Investor Relations section. Before we begin, we would like to remind you that our presentation today contains forward-looking information. We would ask that you take a moment to read the forward-looking statement legend at the beginning of our presentation, as it contains important information. This presentation contains non-GAAP financial measures. For more information about these measures, these refer to slide two of our presentation. Non-GAAP reconciliations can be found in the appendix, the presentation posted on our website. Finally, the financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter and to not update or affirm guidance other than broadly disseminated public disclosure. With that, it is my pleasure to turn the call over to Joe.

Allison Ryan: Finally, the financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter and to not update or affirm guidance other than through broadly disseminated public disclosure. With that, it is my pleasure to turn the call over to Joe.

Speaker 4: Thank you Allison, and thank you everyone for joining us today in the BCH alon first earnings call is a publicly traded company. I will begin with some comments about our vision for BCH alon, now that the I has been completed, and briefly discuss the first quarter highlights. timml SUI R CFO will then review the first quarter financial results in detail and discuss our 2000 and twenty-q guidance. Finally, I will conclude by discussing our product pipeline in upcoming catalyst before opening the line for questions. Before I get started, let me answer the Quest: if we provided the first quarter being our Al results on May tenth as part of bouchhealth, what is the objective for today's call?

Joe Papa: Thank you, Allison, and thank you everyone for joining us today in the Bausch + Lomb first earnings call as a publicly traded company. I will begin with some comments about our vision for Bausch + Lomb now that the IPO has been completed and briefly discuss the Q1 highlights. Sam Eldessouky, our CFO, will then review the Q1 financial results in detail and discuss our 2022 guidance. Finally, I will conclude by discussing our product pipeline and upcoming catalyst before opening the line for questions. Before I get started, let me answer the question. If we provided the Q1 B&L results on 10 May as part of Bausch Health, what is the objective for today's call? Simply stated, we want to provide greater clarity on B&L performance, our vision for B&L's future growth, and provide a forum to answer your questions.

Joseph Papa: Thank you, Allison, and thank you everyone for joining us today in the Bausch + Lomb first earnings call as a publicly traded company. I will begin with some comments about our vision for Bausch + Lomb now that the IPO has been completed and briefly discuss the Q1 highlights. Sam Eldessouky, our CFO, will then review the Q1 financial results in detail and discuss our 2022 guidance. Finally, I will conclude by discussing our product pipeline and upcoming catalyst before opening the line for questions. Before I get started, let me answer the question. If we provided the Q1 B&L results on 10 May as part of Bausch Health, what is the objective for today's call? Simply stated, we want to provide greater clarity on B&L performance, our vision for B&L's future growth, and provide a forum to answer your questions.

Joseph Papa: Thank you Allison, and thank you everyone for joining us today in the Bausch & Lomb first earnings call as a publicly traded company. I will begin with some comments about our vision for Bausch & Lomb now that the IPO has been completed, and briefly discuss the first quarter highlights. Sam Eldessouky, our CFO, will then review the first quarter financial results in detail and discuss our 2022 guidance. Finally, I will conclude by discussing our product pipeline in upcoming catalyst before opening the line for questions. Before I get started, let me answer the question: if we provided the first quarter B&L results on May 10th as part of <unk>, what is the objective for today's call?

Speaker 4: Simply stated. We wanted to provide greater clarity on BNL performance, our vision for BNL's future growth, and provide a formum to answer your questions.

Joseph Papa: Simply stated, we wanted to provide greater clarity on BNL performance, our vision for BNL's future growth, and provide a forum to answer your questions.

Joe Papa: Let's begin with slide four. With a nearly 170-year history as a leading eye health brand, Bausch + Lomb has always stood at the forefront of cutting-edge scientific and technological optical advancements. Today, we are more focused than ever on developing and offering new treatments to meet unmet eye health needs. Specifically, Bausch + Lomb is the most integrated eye care company operating today, the fastest-growing global contact suppliers in 2021, the company with the highest brand awareness in eye care, and a global leader in consumer health, outpacing US market growth by approximately 1.7 times since 2018. B&L also has critical mass with a commercial presence in approximately 100 countries. Over 80% of the world's population has access to Bausch + Lomb products.

Joseph Papa: Let's begin with slide four. With a nearly 170-year history as a leading eye health brand, Bausch + Lomb has always stood at the forefront of cutting-edge scientific and technological optical advancements. Today, we are more focused than ever on developing and offering new treatments to meet unmet eye health needs. Specifically, Bausch + Lomb is the most integrated eye care company operating today, the fastest-growing global contact suppliers in 2021, the company with the highest brand awareness in eye care, and a global leader in consumer health, outpacing US market growth by approximately 1.7 times since 2018. B&L also has critical mass with a commercial presence in approximately 100 countries. Over 80% of the world's population has access to Bausch + Lomb products.

Speaker 4: So let's begin with Slide four with a nearly 170 year history as a leading E health brand, booch L has always stood at the forefront of cutting edge scientific technological optical advancement, and today we are more focused than ever on developing and offering new treatment to meet unmet eye health needs. Specifically, booch Lam is the most integrated eye care company operating today, the fastest growing global contact suppliers in 2021, the company with the highest brand awareness and eye care and a global leader into consumer health, outpacing U's market growth by approximately one point seven time since 2018 being out. Also has critical mass, with a commercial presence in approximately 100 countries. Over 80% of the world's population has access to booch law products.

Joseph Papa: So let's begin with slide four. With a nearly 170 year history as a leading eye health brand, Bausch & Lomb has always stood at the forefront of cutting edge, scientific technological optical advancement, and today we are more focused than ever on developing and offering new treatment to meet unmet eye health needs. Specifically, Bausch & Lomb is the most integrated eye care company operating today, the fastest growing global contact supplier in 2021, the company with the highest brand awareness and eye care and a global leader into consumer health, outpacing U.S. market growth by approximately 1.7x since 2018. B&L also has critical mass, with a commercial presence in approximately 100 countries. Over 80% of the world's population has access to Bausch & Lomb products.

Joe Papa: Turning to slide five, we have outlined three key areas of strategic focus for this important point in Bausch + Lomb's development. One, accelerate growth in large addressable markets. Two, invest in categories that are growing faster than the overall eye health market. Three, expand into new product categories. As we look to the future as a publicly traded company, we see attractive opportunities for a pure play eye health company. We believe the company is well-positioned for growth in large, durable markets driven by new product and favorable megatrends or tailwinds, such as the increasing prevalence of myopia and diabetes, an aging population, and a growing middle class that are expected to continue driving demand for eye health products. In addition, we have the potential for margin expansion over the long term based on new product and supply chain efficiencies.

Joseph Papa: Turning to slide five, we have outlined three key areas of strategic focus for this important point in Bausch + Lomb's development. One, accelerate growth in large addressable markets. Two, invest in categories that are growing faster than the overall eye health market. Three, expand into new product categories. As we look to the future as a publicly traded company, we see attractive opportunities for a pure play eye health company. We believe the company is well-positioned for growth in large, durable markets driven by new product and favorable megatrends or tailwinds, such as the increasing prevalence of myopia and diabetes, an aging population, and a growing middle class that are expected to continue driving demand for eye health products. In addition, we have the potential for margin expansion over the long term based on new product and supply chain efficiencies.

Speaker 4: Turning to Slide 5, we have outlined three key areas of strategic focus for this important point in boouch L development: 1- accelerate growth in large addressable markets to investing categories that are growing faster than the overall high health market. And 3- expanded to new product categories. As we look to the future as a publicly traded company, we see attractive opportunities for a pure play E health company. We believe the company is well position for growth in large, durable markets driven by new product and favorable mega trends or tailwinds, such as the increasing prevalence of my opia and diabetes, an aging population in a growing middle class, that are expected to continue driving demand for health products. In addition, we have the potential for marg in expansion over the long term based a new product and supply chain efficiencies. Finally, as a publicly traded company, we expect to have balance sheet flexibility to expand investment in the business and additional strategic bolt-on product opportunities. We expected the spin off process, the initial public offering, with completed last month and important first step toward the spinoff boouch law. The spinoff is expected to be completing following the X pery of agreed upon lockups and the achievement of boouch health target net leverage ratios, subject to shareholder and necessary approvalments in other conditions. While the final date for compleion of the spin off has not yet been termed, the spinoff is expected to curb by the distribution of approximately 80% of the remaining B? He shares to boouch health care shareholders efparate from the spin off process. boouch health has the flexibility to monetizee an additional approximately 9% of boouch L shares, subject to market conditions and the expiry of agreed upon lockups.

Joseph Papa: Turning to slide 5, we have outlined three key areas of strategic focus for this important point in Bausch & Lomb's development: 1- accelerate growth in large addressable markets, 2- investing categories that are growing faster than the overall eye health market and 3- expand into new product categories. As we look to the future as a publicly traded company, we see attractive opportunities for a pure play eye health company. We believe the company is well position for growth in large, durable markets driven by new product and favorable mega trends or tailwinds, such as the increasing prevalence of myopia and diabetes and aging population in a growing middle class, that are expected to continue driving demand for eye health products. In addition, we have the potential for margin expansion over the long term based on new product and supply chain efficiencies. Finally, as a publicly traded company, we expect to have balance sheet flexibility to expand investment in the business and additional strategic bolt-on product opportunities. With respect to the spinoff process, the initial public offering was completed last month, an important first step toward the spinoff of Bausch & Lomb. The spinoff is expected to be completing following the expiry of agreed upon lockups and the achievement of Bausch Health's target net leverage ratio, subject to shareholder and necessary approvals in other conditions. While the final date for completion of the spinoff has not yet been determined, the spinoff is expected to curb by the distribution of approximately 80% of the remaining B&L shares to Bausch Healthcare shareholders. Separate from the spinoff process, Bausch Health has the flexibility to monetize an additional approximately 8.7% of Bausch & Lomb shares, subject to market conditions and the expiry of agreed upon lockups. Moving now to the first quarter highlights in slide six.

Joe Papa: Finally, as a publicly traded company, we expect to have balance sheet flexibility to expand investment in the business and additional strategic bolt-on product opportunities. With respect to the spin-off process, the initial public offering was completed last month, an important first step toward the spin-off of Bausch + Lomb. The spin-off is expected to be completing following the expiry of agreed-upon lockups and the achievement of Bausch Health's target net leverage ratios subject to shareholder, and necessary approvals, and other conditions. While the final date for completion of the spin-off has not yet been determined, the spin-off is expected to occur by the distribution of approximately 80% of the remaining B+L shares to Bausch Health shareholders.

Joseph Papa: Finally, as a publicly traded company, we expect to have balance sheet flexibility to expand investment in the business and additional strategic bolt-on product opportunities. With respect to the spin-off process, the initial public offering was completed last month, an important first step toward the spin-off of Bausch + Lomb. The spin-off is expected to be completing following the expiry of agreed-upon lockups and the achievement of Bausch Health's target net leverage ratios subject to shareholder, and necessary approvals, and other conditions. While the final date for completion of the spin-off has not yet been determined, the spin-off is expected to occur by the distribution of approximately 80% of the remaining B+L shares to Bausch Health shareholders.

Joseph Papa: to expand investment in the business and additional strategic bolt-on product opportunities. With respect to the spinoff process, the initial public offering was completed last month, an important first step toward the spinoff of Bausch & Lomb. The spinoff is expected to be completing following the expiry of agreed upon lockups and the achievement of Bausch Health's target net leverage ratio, subject to shareholder and necessary approvals in other conditions. While the final date for completion of the spinoff has not yet been determined, the spinoff is expected to curb by the distribution of approximately 80% of the remaining B&L shares to Bausch Healthcare shareholders. Separate from the spinoff process, Bausch Health has the flexibility to monetize an additional approximately 8.7% of Bausch & Lomb shares, subject to market conditions and the expiry of agreed upon lockups. Moving now to the first quarter highlights in slide six.

Joe Papa: Separate from the spin-off process, Bausch Health has the flexibility to monetize an additional approximately 8.7% of Bausch + Lomb shares, subject to market conditions and the expiry of agreed upon lockups. Moving now to the Q1 highlights on slide 6. Q1 organic revenue growth of 5% was driven by our two largest segments, Vision Care and Surgical, which grew organically by 4% and 13% respectively, despite macro headwinds. Looking at the Q1 through the lens of our key areas of focus, Consumer Eye Care had an approximately 33% US market share in the Q1, demonstrating continued momentum in eye vitamins and LUMIFY. Our Daily SiHy lens market share doubled, and we expect annual US market growth of approximately 10% in this category from 2019 to 2030.

Joseph Papa: Separate from the spin-off process, Bausch Health has the flexibility to monetize an additional approximately 8.7% of Bausch + Lomb shares, subject to market conditions and the expiry of agreed upon lockups. Moving now to the Q1 highlights on slide 6. Q1 organic revenue growth of 5% was driven by our two largest segments, Vision Care and Surgical, which grew organically by 4% and 13% respectively, despite macro headwinds. Looking at the Q1 through the lens of our key areas of focus, Consumer Eye Care had an approximately 33% US market share in the Q1, demonstrating continued momentum in eye vitamins and LUMIFY. Our Daily SiHy lens market share doubled, and we expect annual US market growth of approximately 10% in this category from 2019 to 2030.

Speaker 4: Moving now to the first quarter highlights since Slide six.

Speaker 5: First quarter, organic revenue growth of 5% was driven by our two largest segments, vision care and surgical, which grew organabically by 4% and 13% respectively, despite macro headwinds. Looking at the first quarter through the lens of our key areas of focus: consumer I here had an approximately 33% U's market share in the first quarter, demonstrating continued momentum in iye vitamins and lumifi. Our daily SI high lens market share doubled and we expect annual U's market growth in approximately 10% in this category, from two thousand and nineteen cent to 2, 20 and 30. finally, we launched I here in the first quarter entering into a new product category with the first and only product used: the supercoridal space of the eye for patients with macular DEA associated with UV items.

Multiple speakers: First quarter organic revenue growth of 5% was driven by our two largest segments, vision care and surgical, which grew organically by 4% and 13% respectively, despite macro headwinds. Looking at the first quarter through the lens of our key areas of focus: consumer eye care had an approximately 33% U.S. market share in the first quarter, demonstrating continued momentum in eye vitamins and LUMIFY. Our daily SiHy lens market share doubled and we expect annual U.S. market growth of approximately 10% in this category from 2019 to 2030. Finally, we launched Xipere in the first quarter entering into a new product category with the first and only product use of the suprachoroidal space of the eye for patients with macular deema associated with uveitis. These impressive achievements are due to the sustained effort and dedication of the approximately 12,500 Bausch & Lomb employees around the world, whose hard work and ongoing contribution enabled us to execute on our key areas of focus and navigate external headwind in the first quarter, while completing an important milestone on the road to becoming an independent publicly traded company. And with that, I will turn the call over to Sam to cover the financial results in more detail. Thank you, Joe. I'm happy to be here on our first earnings call as a publicly traded companies to discuss our first quarter results.

Joe Papa: Finally, we launched XIPERE in Q1, entering into a new product category with the first and only product to use the suprachoroidal space of the eye for patients with macular edema associated with uveitis. These impressive achievements are due to the sustained effort and dedication of the approximately 12,500 Bausch + Lomb employees around the world whose hard work and ongoing contributions enabled us to execute on our key areas of focus and navigate external headwinds in Q1 while completing an important milestone on the road to becoming an independent, publicly traded company. With that, I will turn the call over to Sam to cover the financial results in more detail.

Joseph Papa: Finally, we launched XIPERE in Q1, entering into a new product category with the first and only product to use the suprachoroidal space of the eye for patients with macular edema associated with uveitis. These impressive achievements are due to the sustained effort and dedication of the approximately 12,500 Bausch + Lomb employees around the world whose hard work and ongoing contributions enabled us to execute on our key areas of focus and navigate external headwinds in Q1 while completing an important milestone on the road to becoming an independent, publicly traded company. With that, I will turn the call over to Sam to cover the financial results in more detail.

Speaker 4: These impressive achievements are due to the sustained effort and dedication of the approximately 12.5 thousand basouching law employees around the world, whose hard work and ongoing contribution enabled us to execute on our key areas of focus and navigate external headwind in the first quarter, while completing an important milestone on the road to becoming an independent, publicly traded company. And with that I will turn the call over to Sam to cover the financial results in more detail.

Speaker 5: on our key areas of focus and navigate external headwind in the first quarter, while completing an important milestone on the road to becoming an independent publicly traded company. And with that, I will turn the call over to Sam to cover the financial results in more detail. Thank you, Joe. I'm happy to be here on our first earnings call as a publicly traded companies to discuss our first quarter results.

Speaker 6: Thank you, Joe. I'm happy to be here on our first earnings call as a publicly traded company. Discuss our first quarter results.

Sam Eldessouky: Thank you, Joe. I'm happy to be here on our first earnings call as a publicly traded company to discuss our Q1 results. Before we go into the details, I would remind listeners that when we talk about organic revenue growth, we mean on a constant currency basis and adjusted to remove the impact of divestitures and discontinuations. Also, as a reminder, we now report our financial results in three segments: Vision Care, Surgical, and Ophthalmic Pharmaceuticals. Turning now to our results on slide seven. Our Q1 results continue to demonstrate the durability of our business and the benefits of an integrated eye health platform.

Speaker 6: Before we go into the details, I will remind listeners that when we talk about organic revenue growth, we mean on a constant-currency basis and adjusted to remove the impact of divestitures and continuations.

Sam Eldessouky: Before we go into the details, I will remind listeners that when we talk about organic revenue growth will mean on a constant-currency basis and adjusted to remove the impact of divestitures and discontinuations.

Speaker 6: Also as a reminder, we now report our financial results in three segments: vision care, surgical and atomic Pharmaceuticals.

Sam Eldessouky: Also as a reminder, we now report our financial results in three segments: vision care, surgical and optomic pharmaceuticals.

Speaker 6: Turning now to our results on Slide seven.

Speaker 7: Our first quarter results continued to demonstrate the the roability of our business and the bandthheads of an integrated eHealth platform.

Sam Eldessouky: Turning now our results on slide seven.

Sam Eldessouky: Our first quarter results continued to demonstrate the durability of our business and the benefits of an integrated eye health platform.

Sam Eldessouky: Our focus on commercial execution and investment continues to lead to strong demand across our key franchises, which is reflected in the total company revenue of $889 million for Q1, up 1% on a reported basis and up 5% organically. Strong momentum heading into 2022 enabled us to overcome two primary headwinds at the start of the year. First, unfavorable foreign currency exchange impacts of approximately $29 million in Q1. Second, headwinds of roughly $10 million from COVID-related lockdowns in China. Excluding the impact of China lockdown, organic revenue grew by 6% for the quarter. Overall, we believe the business is well-positioned to benefit from market dynamics.

Speaker 7: Our folksman. Commercial execution and investment continues to lead a strong demand across our key franchises.

Sam Eldessouky: Our focus on commercial execution and investment continues to lease strong demand across our key franchises, which is reflected in the total company revenue of $889 million for the first quarter, up 1% on a reported basis and up 5% organically.

Speaker 6: Which is reflected in the total company revenue: 889 million for the first quarter, up 1% on a reported basis and up 5% organically.

Speaker 6: Strong momentum heading into 2022 enable us to overcome two primary headwinds at the start of the year.

Sam Eldessouky: Strong momentum heading into 2022 enabled us to overcome two primary headwinds at the start of the year.

Speaker 6: First unfavorable foreign currency exchange impacts of approximately 29 million in the first quarter and second, headwinds roughly one million from COVID-19 related flag downs in China.

Sam Eldessouky: First, unfavorable foreign currency exchange impacts of approximately $29 million in the first quarter and second, headwinds over roughly $10 million from COVID-19 related flag downs in China.

Speaker 6: Excluding the impact of China lockdown, ororganic revenue grew by 6% for the quarter.

Sam Eldessouky: Excluding the impact of China lockdown or organic revenue grew by 6% for the quarter.

Speaker 8: Overall we believe the business is well positioned to benefit from market dynamics.

Sam Eldessouky: In the near term, we expect growth to be driven by the ongoing recovery in Surgical, continued growth in Vision Care led by daily SiHy market penetration and launches in additional countries, and our market leadership position in consumer eye health. Over the longer term, we expect growth to benefit from favorable mega trends in the market and new product launches in the ophthalmic business. Now I'll go into more detail on each of our segments. Revenue for the Vision Care segment, which includes contact lenses and consumer products, grew organically by 4% in Q1, driven by 7% reported and 8% organic growth in eye vitamins and 35% reported and organic growth in LUMIFY. Both products are the market share leaders in their categories.

Speaker 7: In the near term we expect growth to be driven by the ongoing recovery in surgical.

Sam Eldessouky: Overall, we believe the business is well positioned to benefit from market dynamics.

Sam Eldessouky: In the near term, we expect growth to be driven by the ongoing recovery in surgical, continued growth in vision care led by daily SiHy high market penetration and launches in additional countries, and our market leadership position in consumer eye health.

Speaker 6: Continued growth in vision, care led by dal high, high market penetration and launches in additional countries.

Speaker 6: continued growth in vision care led by daily SiHy high market penetration and launches in additional countries, and our market leadership position in consumer eye health.

Speaker 7: And our market leadership position. Consumer I health.

Speaker 7: And over the longer term we expect growth to benefit from favorable mega trends in the market and new product launches in T comic business.

Speaker 6: and our market leadership position in consumer eye health.

Sam Eldessouky: And over the longer term, we expect growth to benefit from favorable mega trends in the market and new product launches in dot comic business.

Speaker 6: Now I'll go into more detail on each of our segments.

Speaker 6: Revenue for division care segment, which includes contact lenses and consumer products, grew organically by 4% in the first quarter.

Sam Eldessouky: Now I'll go into more detail on each of our segments.

Sam Eldessouky: Revenue for the vision care segment, which includes contact lenses and consumer products, grew organically by 4% in the first quarter, driven by 7% reported in 8% organic growth in eye vitamins and 35% reported an organic growth in LUMIFY.

Speaker 7: Driven by 7% reported in 8% organic growth in I vitamins and 35% reported organic growth in LUMIFY.

Speaker 6: driven by 7% reported in 8% organic growth in eye vitamins and 35% reported an organic growth in LUMIFY.

Speaker 6: Both products are the market share leaders and their categories.

Sam Eldessouky: 41% organic growth in daily SiHy lenses, which we have now launched in 24 countries, and 19% and 22% organic growth in the Biotrue solutions franchise, which includes the BIOTRUE Hydration Boost and multipurpose solution. To leverage the brand platform, the BIOTRUE Hydration Boost was launched in 2021, and earlier this month, we launched the Biotrue Hydration Plus multipurpose solution in the US. Our goals for the remainder of the year are, one, to expand the market leadership position of our eye vitamin products and LUMIFY. Two, to continue the global rollout of the daily SiHy lenses. Three, to launch the daily SiHy multifocal lenses. Moving on to our surgical segment. Q1 revenue grew by 13% organically. The segment has had sustained positive momentum as the market continues working through the COVID-related backlog of elective surgeries.

Speaker 6: 41% reported an organic growth in daily high high lensers which we have now launched 24 countries. And 19% reported in 22% organic growth in the byiou solutions franchise, which includes the E hydration boost, a multipurpose solution.

Sam Eldessouky: Both products are the market share leaders in their categories.

Sam Eldessouky: 41% reported in organic growth in daily SyHi lenses, which we have now launched 24 countries and 19% reported a 22% organic growth in the BioTrue solutions franchise, which includes the eye hydration boost and multi-purpose solution.

Speaker 7: To leverage the brand platform. dihydration boost was launched in 2021 and earlier this month we launched a buy two hydration plus multipurpose solution in the U S.

Sam Eldessouky: To leverage the brand platform, the eye hydration boost was lanched in 2021 and earlier this month we launched a buy two hydration plus multipurpose solution in the U.S.

Speaker 7: Our goals for the remainder of the year are: 1- to expand our mortgage leadership position of our i-vitamin products and LUMIFY.

Sam Eldessouky: Our goals for the remainder of the year are: 1- to expand the market leadership position of our eye vitamin products and LUMIFY, 2- to continue the global rollout of the Syhi lenses, and 3- to launch the daily SyHi multipurpose lenses. Moving on to our surgical segment.

Speaker 6: toue to continue the global rollout of the delca high lenses.

Speaker 6: And trees. Launch them the E sihigher multipoker lters.

Speaker 6: 2- to continue the global rollout of the Syhi lenses, and 3- to launch the daily SyHi multipurpose lenses. Moving on to our surgical segment.

Speaker 8: Moving on to our surgical segment.

Speaker 6: and 3- to launch the daily SyHi multipurpose lenses. Moving on to our surgical segment.

Speaker 6: First quarter, revenue grew by 13% organically.

Speaker 6: The segment has had tosustain causive momentum as the market continues working through the COVID-related backlog of elective surgeries.

Sam Eldessouky: First quarter revenue grew by 13% organically. The segment has had sustained positive momentum as the market continues working through the COVID-related backlog of elective surgeries.

Sam Eldessouky: Growth was mainly driven by increased demand for implantables, including our enVista IOL franchise, consumables in the cataract and retina procedures, and by the entry of the LuxSmart IOL into the premium IOL category in international markets. Finally, the Ophthalmic Pharmaceuticals segment Q1 revenue of $155 million reflected a decline of 3% on an organic basis. We're pleased to see the strong performance in the international optho business, which represents approximately 43% of the segment. Organic revenue in international markets grew by 16% compared to the prior year quarter, mainly driven by strong performance in Europe and Asia. This growth was offset by 14% organic revenue decline in the US.

Speaker 6: Growth was mainly driven by increased demand for implantables, including our Investor iowells franchise.

Sam Eldessouky: Growth was mainly driven by increased demand for implantables, including our enVista IOL franchise consumables in the cataract and <unk> procedures and by the entry of the LuxSmart IOL into the premium IOL category in international markets. Finally, the optomic pharmaceutical segment, first quarter revenue of $155 million reflected a decline of 2% on an organic basis.

Speaker 7: Consumables in the cataract and rite-up procedures.

Speaker 6: And by the entry of the luxsmart Iowa into the premium Iowa category in international markets.

Speaker 6: and by the entry of the LuxSmart IOL into the premium IOL category in international markets. Finally,

Speaker 8: By away.

Speaker 6: The ptomic pharmaceutical segment, first quarter revenue of 155 million reflected a decline of 3% on an organic basis.

Speaker 6: the optomic pharmaceutical segment, first quarter revenue of $155 million reflected a decline of 2% on an organic basis.

Speaker 7: Were pleas to see the strong performance in the international opshoto business.

Speaker 7: Which repres approximately 42% of the segment.

Sam Eldessouky: We're pleased to see the strong performance in the international opto business which represents approximately 43% of the segment. Organic revenue in international markets grew by 16% compared to the prior year quarter, mainly driven by strong performance in Europe and Asia.

Speaker 6: Organic revenue in international markets grew by 16% compared to the prior year quarter, mainly driven by strong performance in Europe and Asia.

Speaker 6: which represents approximately 43% of the segment. Organic revenue in international markets grew by 16% compared to the prior year quarter, mainly driven by strong performance in Europe and Asia.

Speaker 7: This growth was offset by 14% organic revenue decline in the U S.

Speaker 6: While we continue to see TRx growth in our key promoter brands, including by lta TRx growth of 44% in the quarter.

Sam Eldessouky: While we continued to see TRX growth in our key promoter brands, including Vyzulta TRX growth of 44% in the quarter, the portfolio was impacted by the tail end of LOE products, and high rebates due to generic competition. We continue to transform the Ophthalmic Pharmaceuticals portfolio following the impact of the Lotemax LOE. At the end of March, we were pleased to have launched XIPERE. We see this launch as a key first step on the path to transforming the portfolio, followed by NOV03, which we expect to launch in 2023. We believe the new product launches will provide the ophthalmic segment with a stronger foundation to drive growth in the quarters and years ahead, and will allow us to leverage the scale and investment we have made in the commercial organization. Turning now to slide 8.

Sam Eldessouky: This growth was offset by 14% organic revenue decline in the U.S.

Sam Eldessouky: While we continue this TRX growth in our key promoter brands, including Vyzulta TRX growth of 44% in the quarter, the portfolio was impacted by the tail end of LOE products and high rebid to due to generic competition.

Speaker 7: The portfolio was impacted by the tail end of LOE products and high rebates to due to generic competition.

Speaker 6: the portfolio was impacted by the tail end of LOE products and high rebid to due to generic competition.

Speaker 6: We continue to transform the atomic pharmaceutical portfolio following the impact of the lower MAC LOE.

Sam Eldessouky: We continue to transform the ophthalmic pharmaceutical portfolio following the impact of the <unk> LOE.

Speaker 7: At the end of March we were pleased to have launched D peer. We see the launch as a key first step on the path to transforming the portfolio.

Sam Eldessouky: At the end of March, we were pleased to have launch Xipere. We see this launch as a key first step on the path to transforming the portfolio.

Speaker 8: Followed by Noble 3, which we expect to launch in 2020. -three.

Speaker 8: We believe the new product launches will provide the Opto segment with a stronger foundation to drive growth in the quarters and years ahead and will allow us to leverage the scale and investment we have made in that commercial organization.

Sam Eldessouky: Followed by <unk>, which we expect to launch in 2023. We believe the new product launches will provide the optho segment with a stronger foundation to drive growth in the quarters and years ahead and will allow us to leverage the scale and investment we have made in that commercial organization. Turning now to slide eight.

Speaker 7: Turning out to side eight.

Sam Eldessouky: With strong business fundamentals, in Q1 2022, we continued our long-term strategy by investing behind our product launches and supporting our R&D pipeline, now withstanding the impact of macro market conditions. Our adjusted EBITDA in the first quarter was $170 million. Our total adjusted gross margin for the quarter was approximately 61%, which is 130 basis points lower than Q1 2021, largely driven by product mix and macro headwinds, including inflation pressure, higher commodity prices driven by the Russian war in Ukraine, and supply chain challenges. Higher SG&A spend in Q1 can be attributed mainly to increased investment in our product launches, including the Daily SiHy lenses and the return to more normalized level of spend to continue the momentum seen during the recovery from COVID to position us for market share gains.

Speaker 7: With strong business fundamentals. In Q1 point point-qw, we continued our long-term statchge by investing behind our product launches and supporting our RND pipeline, nowwithstanding the impact of macro market conditions.

Sam Eldessouky: With strong business fundamentals in Q1 2022, we continued our long-term <unk> by investing behind our product launches and supporting our RND pipeline, now withstanding the impact of macro market conditions.

Speaker 8: Our adjusted EBITDA in the first quarter was one hundred and seventy million.

Speaker 8: Our total adjusted gross margin for the growth is approximately six-to-one percent.

Sam Eldessouky: Our adjusted EBITDA in the first quarter was $170 million. Our total adjusted gross margin for the growth is approximately 61% which is 130 basis points lower than Q1 2021, largely driven by product mix and macro headwinds, including inflation pressure, power commodity prices driven by the Russian war in Ukraine and supply chain challenges.

Speaker 6: Which is 130 basis points lower than Q1 2021, largely driven by product mix and macro headwinds, including inflation pressure power, commodity prices driven by the Russian war in Ukraine and supply chain challenges.

Speaker 6: which is 130 basis points lower than Q1 2021, largely driven by product mix and macro headwinds, including inflation pressure, power commodity prices driven by the Russian war in Ukraine and supply chain challenges.

Speaker 8: Higher sgen spending in Q1 can be attributed mainly to increased investment in our product launches, including the delishigh highlenders, and the return to more normalized level of spend. To continue the momentum change during the recovery from COVID-19 position us for market share gains.

Sam Eldessouky: Higher SG&A spend in Q1 can be attributed mainly to increased investment in our product launches, including the daily SyHi lenses and the return to more normalized level of spend to continue the momentum seen during the recovery from COVID-19, position us for market share gains.

Speaker 6: including the daily SyHi lenses and the return to more normalized level of spend to continue the momentum seen during the recovery from COVID-19, position us for market share gains.

Speaker 7: Ir pendended the quarter versus first quarter, point twenty-one increased to roughly 9% of sales.

Sam Eldessouky: R&D spend in the quarter versus Q1 2021 increased to roughly 9% of sales. This increase is mainly due to the timing of projects to accelerate our ability to execute on our R&D pipeline. We will expect full-year R&D spend in the range of 7% of revenue. Foreign exchange and COVID-19 lockdowns in China resulted in headwinds of roughly $15 million to Q1 adjusted EBITDA. Moving on to slide 10. Cash flow from operations of $3 million in Q1 was negatively impacted by the timing of settlement of certain intercompany balances between Bausch + Lomb and Bausch Health. We do not anticipate that these timing factors will have a significant impact on cash flows from operations in future quarters. In the quarter, CapEx was approximately $42 million, which includes investment in our lens manufacturing facilities.

Sam Eldessouky: R&D spend in the quarter versus first quarter 2021 increased to roughly 9% of sales.

Speaker 7: This increase is mainly due to the timing projects to accelerate our ability to execute an RND pipeline.

Sam Eldessouky: This increase is mainly due to the timing of projects to accelerate our ability to execute in our RND pipeline.

Speaker 6: We will expect full year ear inde pending that range of 7% of revenue.

Speaker 7: Finally foreign exchange and COVID-19. Lockdowns in China resulted in headwinds of roughly 15 million to Q1 adjusted EBITDA.

Sam Eldessouky: We will expect full year R&D spending in the range of 7% of revenue.

Sam Eldessouky: Finally foreign exchange and COVID lockdowns in China resulted in headwinds of roughly $15 million to Q1 adjusted EBITDA.

Speaker 9: Moving out to spby ten.

Speaker 8: Cash flow from operations of three million in the first quarter was negatively impacted by the timing of settlement of cern intercompany balances between functional L and bouch health.

Sam Eldessouky: Moving on to slide 10. Our cash flow from operations of $3 million in the first quarter was negatively impacted by the timing of settlement of certain inter-company balances between Bausch & Lomb and Bausch Health.

Speaker 7: We do not anticipate that these timing factors will have a significant impact on cash flows from operation in future quarters.

Sam Eldessouky: We do not anticipate that these timing factors will have a significant impact on cash flows from operation in future quarters. In the quarter, cash flow was approximately $42 million, which includes investment in our lens manufacturing facilities.

Speaker 7: In the quarter, capital was approximately 42 million, which includes investment in our landens manufacturing facilities.

Sam Eldessouky: Subsequent to Q1 2022, and in conjunction with the IPO, we launched and closed on a credit agreement for $2.5 billion. Our goal is for the debt to be investment-grade rated at the time of the spin-off and continue to invest in the business and further enhance our flexibility to operate going forward. Now turning to our guidance on slides 12 and 13. Our revenue guidance for 2022 is a range of $3.75 billion to $3.8 billion, representing between 4% and 5% organic revenue growth, while absorbing the impact of China lockdown. We estimate foreign exchange headwinds to be approximately $160 million for the full year.

Speaker 8: And subsequent to Q1 2022 and, in conjunction with diipo, we launched, enclosed on the credit agreement for two point five billion.

Sam Eldessouky: And subsequent to Q1 2022 and, in conjunction with our IPO, we launched, enclosed on a credit agreement for $2.5 billion.

Speaker 8: Our goal is for the debt to be investment-grade rated at the time of the spinoff and continue to invest in the business and further enhance our flexibility to operate going forward.

Sam Eldessouky: Our goal is forward the debt to be investment-grade rated at the time of the spin-off and continue to invest in the business and further enhance our flexibility to operate going forward.

Speaker 10: Now turning to our guidance on Slide 12 and thirteen.

Speaker 7: Our revenue guidance for 2022 is a range of three point seven five billion to three point eight billion.

Sam Eldessouky: Now turning our guidance on slides 12 and 13.

Sam Eldessouky: Our revenue guidance for 2022 is a range of $3.75 billion to $3.8 billion, representing between 4% and 5% organic revenue growth while absorbing the impact of China lockdown. We estimate foreign exchange headwind to be approximately $160 million for the full year.

Speaker 7: Re presenting between 4% and 5% organic revenue growth.

Speaker 7: While absorbing the impact of China like down.

Speaker 6: representing between 4% and 5% organic revenue growth while absorbing the impact of China lockdown. We estimate foreign exchange headwind to be approximately $160 million for the full year.

Speaker 6: We estimate foreign exchange headwind to be approximately 16 million for the full year.

Speaker 6: while absorbing the impact of China lockdown. We estimate foreign exchange headwind to be approximately $160 million for the full year.

Sam Eldessouky: We expect the headwinds from China COVID policies and lockdowns that we saw in Q1 to continue to have an impact in Q2, and we expect that will normalize into H2 2022. Our adjusted EBITDA guidance for 2022 is a range of $740 to 780 million. This represents approximately 5% base performance growth over full year 2021 pro forma adjusted EBITDA, with divestitures and excluding the impact of currency. Our adjusted EBITDA guidance also includes approximately 100 basis points of inflation pressure. We estimate foreign currency exchange headwinds to be approximately $30 million for the full year. Interest expense is expected to be approximately $150 million on an annual basis. Adjusted tax rate expected to be approximately 12%.

Speaker 8: We expect the headwinds from China, co with policies and likedowns that we saw in Q1, to continue to have an impact in Q2 and we expect that to normalize into the second half of 2020 -two.

Sam Eldessouky: We expect the headwinds from China, COVID policies and lockdowns that we saw in Q1, to continue to have an impact in Q2 and we expect that to normalize into the second half of 2022.

Speaker 11: Our adjust EBITDA guidance for 2022 is a range of 74 million to seven hundred and eighty million.

Sam Eldessouky: Our adjusted EBITDA guidance for 2022 is a range of $740 million to $780 million. This represents approximately 5% base performance growth over full year 2021 pro-forma adjusted EBITDA with <unk> and excluding the impact of currency. Our adjusted EBITDA guidance also includes approximately 100 basis point of inflation pressure. We estimate foreign currency exchange headwinds to be approximately $30 million for the full year.

Speaker 11: This represents approximately 5% base performance growth over full year 2021. perforformma adjusted EBITDA.

Speaker 8: With spenges and excluding the impact of currency.

Speaker 11: Our adjusted EBITDA guidance also include the approximately 100 basis point of inflation pressure. We estimate foreigncurrency exchange headwinds to be approximately three million for the full year.

Sam Eldessouky: With <unk> and excluding the impact of currency. Our adjusted EBITDA guidance also includes approximately 100 basis point of inflation pressure. We estimate foreign currency exchange headwinds to be approximately $30 million for the full year.

Speaker 8: Interest expense is expected to be approximately 15 million on annual basis.

Speaker 11: Adjusted tax rate expected will be approximately of 12%.

Sam Eldessouky: Interest expense is expected to be approximately $150 million on an annual basis. Adjusted tax rate expenses will be approximately of 12% and we expect full year adjusted free cash flow to be approximately 50% of adjusted EBITDA.

Sam Eldessouky: We expect full-year adjusted free cash flow to be approximately 50% of adjusted EBITDA. This guidance is consistent with the overall guidance provided by the Bausch Health in their earnings call on 10 May. In summary, we're pleased with our momentum in Q1 as we continue to recover from the global impacts of COVID-19 and navigate various macroeconomic factors. We believe the results reflect the flexibility and resilience of our business and portfolio. Across our segments, we're in a strong financial position to execute on our current strategy and continue to find ways to enhance the integrated Bausch + Lomb. Now back to you, Joe.

Speaker 8: And we've had full year adjusted free cash flow to be actimately 50% of adjusted EBITDA.

Speaker 6: and we expect full year adjusted free cash flow to be approximately 50% of adjusted EBITDA.

Speaker 6: This guidance is consistent with the overall guidance provided by the boa shel in their earnings call in May time.

Sam Eldessouky: This guidance is consistent with the overall guidance provided by the Bausch Health in their earnings call in May.

Speaker 6: In summary, we're pleased with our momentum in Q1 as we continue to recover from the global impacts of COVID-19 and.

Sam Eldessouky: In summary, we're pleased with our momentum in Q1 as we continue to recover from the global impacts of COVID-19 and navigate various macroeconomic factors. We believe the results reflect the flexibility and resilience of our business and portfolio.

Speaker 7: And navigate various macroeconomic factors. We believe the results reflect the flexibility and resilience of our business and portfolio.

Speaker 6: And navigate various macroeconomic factors. Who believe the results reflect the flexibility and resilience of our business and portfolio.

Speaker 7: Across our segments. We're in a strong financial position to execute our current strategy and continue to find ways to enhance. They integrate B Chin now back future.

Sam Eldessouky: Across our segments, we're in a strong financial position to execute our current strategy and continue to find ways to enhance and integrate Bausch & Lomb. Now back to you, Joe.

Joe Papa: Thank you, Sam. I will now discuss our product pipeline and the upcoming catalysts that we expect to drive our business results. Beginning with LUMIFY on slide 15. Here we have illustrated an example of the power of our fully integrated eye care platform to successfully launch, promote, and drive the performance of our products. In the case of LUMIFY, we began with a highly differentiated product. After launching it in May 2018, LUMIFY became a $100 million brand in 2021. Today, it is the #1 redness relief category in the US, with approximately 46% market share and the #1 physician-recommended brand.

Joseph Papa: Thank you, Sam. I will now discuss our product pipeline and the upcoming catalysts that we expect to drive our business results. Beginning with LUMIFY on slide 15. Here we have illustrated an example of the power of our fully integrated eye care platform to successfully launch, promote, and drive the performance of our products. In the case of LUMIFY, we began with a highly differentiated product. After launching it in May 2018, LUMIFY became a $100 million brand in 2021. Today, it is the #1 redness relief category in the US, with approximately 46% market share and the #1 physician-recommended brand.

Speaker 4: Thank you, VAM. I will now discuss our product pipeline in the upcoming catalyst that we expect to drive our business results, beginning with LUMIFY on Slide 15. here we have illustrated an example of the power of our fully integrated E care platform to successfully launch, promote and drive the performance of our product. In the case of woman I, we began with a highly differentiated product. After the launching it in May of 2018, became a $1 million brand in 2021. today, it is the number one redis reli category in U's, with approximately 46% market share, and the number one physician recommanded brand. Our team was able to drive education and awareness of the product by collaborating with I care professionals, while driving awareness with a strong television, public Relations and social media presence. These efforts, along with a 97% customer satisfaction rate, helped to drive patient demand, which we re able to meet through our ongoing partnerships with retailers like Walmart and CVS and through e-commerce channels.

Joseph Papa: Thank you, Sam. I will now discuss our product pipeline and the upcoming catalyst that we expect to drive our business results, beginning with LUMIFY on slide 15. Here we have illustrated an example of the power of our fully integrated eye care platform to successfully launch, promote and drive the performance of our product. In the case of LUMIFY, we began with a highly differentiated product. After the launching, it in May of 2018, LUMIFY became a $100 million brand and 2021. Today it is a number one redness reliever category in the U.S. with approximately 46% market share and the number one physician recommended brand. Our team was able to drive education and awareness of the product by collaborating with eye care professionals, while driving awareness with a strong television, public relations and social media presence. These efforts, along with a 97% customer satisfaction rate, helped to drive patient demand, which we are able to meet through our ongoing partnerships with retailers like WalMart and CVS and through e-commerce channels.

Joe Papa: Our team was able to drive education and awareness for the product by collaborating with eye care professionals while driving awareness with a strong television, public relations, and social media presence. These efforts, along with a 97% customer satisfaction rate, help to drive patient demand, which we are able to meet through our ongoing partnerships with retailers like Walmart and CVS, and through e-commerce channels. We expect to take a similar, integrated approach to launching our next wave of new products, including NOV03, our dry eye disease product. Turning now to slide 16 for an illustration of how we're able to address an unmet market need with our daily disposable silicone hydrogel lenses. In response to patient concerns about contact lens dryness, in August 2020, we launched INFUSE daily SiHy lenses into the fastest-growing contact lens category.

Joseph Papa: Our team was able to drive education and awareness for the product by collaborating with eye care professionals while driving awareness with a strong television, public relations, and social media presence. These efforts, along with a 97% customer satisfaction rate, help to drive patient demand, which we are able to meet through our ongoing partnerships with retailers like Walmart and CVS, and through e-commerce channels. We expect to take a similar, integrated approach to launching our next wave of new products, including NOV03, our dry eye disease product. Turning now to slide 16 for an illustration of how we're able to address an unmet market need with our daily disposable silicone hydrogel lenses. In response to patient concerns about contact lens dryness, in August 2020, we launched INFUSE daily SiHy lenses into the fastest-growing contact lens category.

Speaker 4: We expect to take a similar approach and integrated a similar approach to launching our next wave of new products, including Noah 3, our dry E disease product.

Speaker 4: Turning now to Slide 16 for an illustration of how we're able to address an unmet market need with our daily disposable Silicon hydrogel lenses. In response to patient concerns about contact lens dryness, in August 2020 we launched INFUSE daily SI lenses into the fastest growing contact lens category. Infuse that the first in only daily styhigh lens with a next-generation material INFUSE with probolence technology to help minimize symptoms of contact lens dryness, the lens doing exceptionally well with patients who experience contact lens dryness. In fact, 94% of patient surveys agree that INFUSE contact lens do not feel dry and that they can comfortably wear INFUSE lenses all day long.

Joe Papa: INFUSE is the first and only daily SiHy lens with a next-generation material infused with ProBalance Technology to help minimize symptoms of contact lens dryness. The lens is doing exceptionally well with patients who experience contact lens dryness. In fact, 94% of patients surveyed agreed that INFUSE contact lenses do not feel dry and that they can comfortably wear INFUSE lenses all day long. Moving to XIPERE on slide 17. XIPERE is the first and only therapy available in the US that utilizes the suprachoroidal space to treat patients suffering from macular edema associated with uveitis, which is the leading cause of vision loss in people with uveitis. FDA approval of XIPERE was based on results from a pivotal Phase III trial of 160 patients with a best corrected visual acuity or BCVA primary endpoint.

Joseph Papa: INFUSE is the first and only daily SiHy lens with a next-generation material infused with ProBalance Technology to help minimize symptoms of contact lens dryness. The lens is doing exceptionally well with patients who experience contact lens dryness. In fact, 94% of patients surveyed agreed that INFUSE contact lenses do not feel dry and that they can comfortably wear INFUSE lenses all day long. Moving to XIPERE on slide 17. XIPERE is the first and only therapy available in the US that utilizes the suprachoroidal space to treat patients suffering from macular edema associated with uveitis, which is the leading cause of vision loss in people with uveitis. FDA approval of XIPERE was based on results from a pivotal Phase III trial of 160 patients with a best corrected visual acuity or BCVA primary endpoint.

Speaker 4: Moving to the zpe on Slide 17, zpeia is the first in only therapy available, the? U us that utilizes the superparidal space to treat patients suffering from macur DEA associated with uvitis, which is a leading calause of vision loss of people with uvitis. Fda approval of Zia was based on results from a pivotal base three trial: 160 patients with a best corrected visual ACQUITY, or B cva, primary eny. As you can see from the chart on the right, the primary fp andpoint was the proportion of patients whom V cva had improved by at least 15 letters from baseline after 24 weeks a follow-up. We are particularly excited about the innovative Microinjector which offers unique access to the back of the I and enables targeted delivery and compartmentalization of the medication.

Joseph Papa: XIPERE on slide 17 is the first and only therapy available in the U.S. that utilizes the suprachoroidal space to treat patients suffering from macular edema associated with uveitis, which is a leading cause of vision loss of people with uveitis. FDA approval of XIPERE was based on results from a pivotal phase three trial of 160 patients with a best corrected visual acuity or BCVA primary end point. As you can see from the chart on the right, the primary efficacy end point was the proportion patients whom BCVA had improved by at least 15 letters from baseline after 24 weeks of follow up. We are particularly excited about the innovative micro injector which offers unique access to the back of the eye and enables targeted delivery and compartmentalization of the medication. Moving on to slide 18, I want to spend a minute on the market opportunity for an investigation of new class of dry eye therapy. NOV03 is a potential first in class treatment for dry eye disease associated with Meibomian Gland Dysfunction.

Joe Papa: As you can see from the chart on the right, the primary FFT endpoint was the proportion of patients in whom BCVA had improved by at least 15 letters from baseline after 24 weeks of follow-up. We are particularly excited about the innovative micro injector, which offers unique access to the back of the eye and enables targeted delivery and compartmentalization of the medication. Moving on to slide 18. I want to spend a minute on the market opportunity for an investigational new class of dry eye therapy. NOV03 is a potential first-in-class treatment for dry eye disease associated with meibomian gland dysfunction. Consistent, statistically significant efficacy, safety, and tolerability has now been demonstrated in 2 phase 3 trials. The charts on slide 18 show the efficacy endpoints for the second phase 3 trial.

Joseph Papa: As you can see from the chart on the right, the primary FFT endpoint was the proportion of patients in whom BCVA had improved by at least 15 letters from baseline after 24 weeks of follow-up. We are particularly excited about the innovative micro injector, which offers unique access to the back of the eye and enables targeted delivery and compartmentalization of the medication. Moving on to slide 18. I want to spend a minute on the market opportunity for an investigational new class of dry eye therapy. NOV03 is a potential first-in-class treatment for dry eye disease associated with meibomian gland dysfunction. Consistent, statistically significant efficacy, safety, and tolerability has now been demonstrated in 2 phase 3 trials. The charts on slide 18 show the efficacy endpoints for the second phase 3 trial.

Speaker 4: Moving on to Slide 18, I want to spend a minute on the market opportunity for an investigational new class of dry eye therapy.

Speaker 4: Novo three is a potential first-in-class treatment for dry eye disease associated with my bowiine gland dysfunction.

Speaker 12: Consistent statistically significant efficacy, safety and tolerability has now been demonstrated in two Phase three trials.

Joseph Papa: Consistent statistically significant efficacy, safety and tolerability has now been demonstrated in two phase three trials. The charts on slide 18 show the efficacy endpoints for the second phase three trial. Importantly, all primary and secondary endpoints were achieved, including statistically significant changes from baseline as early as day 15. We are ecstatic with the results of these two phase three studies and believe that NOV03 has a potential to be a major future growth driver for our business. We anticipate our working towards filing an NDA for NOV03 in the coming weeks.

Speaker 5: The charts on Slide 18 show the efficacy endpoints for the second Phase three trial. Importantly, all primary and secondary endpoints were achieved, including statistically significant changes for baseline as early as day 15. we are ecstatic with the results of these two Phase three studies and believe that Noah three has the potential to be a major future growth driver for our business. We anticipate our working towards filing an NDA for Novo three in the coming weeks.

Joe Papa: Importantly, all primary and secondary endpoints were achieved, including statistically significant changes from baseline as early as day 15. We are ecstatic with the results of these two phase III studies and believe that NOV03 has the potential to be a major future growth driver for our business. We anticipate and are working towards filing an NDA for NOV03 in the coming weeks. On slide 19, we present some of the near-term pipeline opportunities for the surgical segment. First, our enVista premium IOL and Lux premium IOL expansions offer new opportunities in a $1.4 billion market that is growing at a 7% compound annual growth rate. We're also working on a 3D microscope that is expected to launch later this year and will integrate with our iIntelligence clinical decision support software.

Joseph Papa: Importantly, all primary and secondary endpoints were achieved, including statistically significant changes from baseline as early as day 15. We are ecstatic with the results of these two phase III studies and believe that NOV03 has the potential to be a major future growth driver for our business. We anticipate and are working towards filing an NDA for NOV03 in the coming weeks. On slide 19, we present some of the near-term pipeline opportunities for the surgical segment. First, our enVista premium IOL and Lux premium IOL expansions offer new opportunities in a $1.4 billion market that is growing at a 7% compound annual growth rate. We're also working on a 3D microscope that is expected to launch later this year and will integrate with our iIntelligence clinical decision support software.

Speaker 11: On Slide 19 that we present some of the near-term pipeline opportunities for the surgical segment.

Joseph Papa: On slide 19 that we present some of the near-term pipeline opportunities for the surgical segment. First, our Envista® Premium IOL and Lux Premium IOL expansions offer new opportunities in a $1.4 billion market that is growing at a 7% compounded annual growth rate. We are also working on a 3D microscope that is expected to launch to later this year and will integrate with our eyeTelligence™ integration clinical decision support software.

Speaker 4: First our invista premum iool and lux premium iiool expansions offer new opportunities in a $1.4 billion market that is growing at a 7% comp on the annual growth rate. We are also working on three D microscope that is expected to launch to later this year and will integrate with our I intelligence clinical decision support software finally.

Joe Papa: Finally, the TENEO Excimer Laser for refractive surgery expected to be the first significant LASIK innovation in the US in more than a decade. The TENEO laser has been well received and is widely adopted in more than 50 markets around the world as one of the more versatile lasers available with a compact footprint. Slide 20 captures the next generation of surgical innovation, including a new market opportunity with the Femto laser, which fully integrates into the cataract workflow for operating room efficiency. The LASIK flap laser, which complements TENEO for refractive surgery, and the Stellaris Elite combined cataract retina platform with redefined fluidics and efficient advanced lens removal technology and integration with our iIntelligence software.

Joseph Papa: Finally, the TENEO Excimer Laser for refractive surgery expected to be the first significant LASIK innovation in the US in more than a decade. The TENEO laser has been well received and is widely adopted in more than 50 markets around the world as one of the more versatile lasers available with a compact footprint. Slide 20 captures the next generation of surgical innovation, including a new market opportunity with the Femto laser, which fully integrates into the cataract workflow for operating room efficiency. The LASIK flap laser, which complements TENEO for refractive surgery, and the Stellaris Elite combined cataract retina platform with redefined fluidics and efficient advanced lens removal technology and integration with our iIntelligence software.

Speaker 4: The toao xmer laser for refractor surgery- expected to be the first significant lasic innovation in the? U's and more than the decadees the today lateraser has been well received- is widely adopted more than 50 markets around the world as one of the more Verse of the lasers available, with a compact bookotprp.

Joseph Papa: Finally, the Teneo™ Excimer Laser for Refractive Surgery is expected to be the first significant lasic innovation in the U.S. in more than a decade. The Teneo™ laster has been well received. It is widely adopted more than 50 markets around the world as one of the more versatile lasers available with a compact footprint. Slide 20 captures the next generation of surgical innovation, including a new market opportunity with the Femto Laser, which fully integrates into the cataract workflow for operating room efficiency.

Speaker 5: Slide 20 captures the next generation of surgical innovation, including a new market opportunity with the femfo laser, which fully integrates into the cataract workflow for operating room efficiency.

Speaker 4: The lasic flap laser which complements nail for refractive surgery, and the 22 X combined cataract re platform with redefined touitics as efficient advanced lend removal technology and integration with our eye intelligence software. To summarize, on Slide 21 we have illustrated eye health ecosystem which boch on operates in the power of an integrated platform that uniquely positions boch to serve icare need. boch on has the highest brand awareness of any eye care company. boch on has long standing relationships with iye health professionals, as well as key retailers and e-commerce channels that reach a fraud consumer base.

Joseph Papa: The LASIK Flap Laser which complements TENEO for refractive surgery, and the 202X combined cataract retina platform with redefined fluidics, efficient advanced lens removal technology and integration with our eyeTelligence™ software. To summarize, on slide 21 we have illustrated the eye health ecosystem which Bausch & Lomb operates in the power of an integrated platform that uniquely positions Bausch & Lomb to serve eye care needs. Bausch & Lomb has the highest brand awareness of any eye care company. Bausch & Lomb has long standing relationship with eye health professionals, as well as key retailers and e-commerce channels that reach a broad consumer base.

Joe Papa: To summarize, on slide 21, we have illustrated the eye health ecosystem which Bausch + Lomb operates in. The power of an integrated platform that uniquely positions Bausch + Lomb to serve eye care needs. Bausch + Lomb has the highest brand awareness of any eye care company. Bausch + Lomb has long-standing relationships with eye health professionals as well as key retailers and e-commerce channels that reach a broad consumer base. B&L is a fully integrated eye health company that offers a comprehensive portfolio of more than 400 products to meet significant patient and consumer needs, spanning everything from contact lenses, lens and eye care products, ophthalmic pharmaceuticals, over-the-counter products, and ophthalmic surgical devices and instruments. B&L serves our patients and consumers throughout all phases of their lives, developing and offering new treatments to meet unmet eye health needs and, importantly, help people see better to live better.

Joseph Papa: To summarize, on slide 21, we have illustrated the eye health ecosystem which Bausch + Lomb operates in. The power of an integrated platform that uniquely positions Bausch + Lomb to serve eye care needs. Bausch + Lomb has the highest brand awareness of any eye care company. Bausch + Lomb has long-standing relationships with eye health professionals as well as key retailers and e-commerce channels that reach a broad consumer base. B&L is a fully integrated eye health company that offers a comprehensive portfolio of more than 400 products to meet significant patient and consumer needs, spanning everything from contact lenses, lens and eye care products, ophthalmic pharmaceuticals, over-the-counter products, and ophthalmic surgical devices and instruments. B&L serves our patients and consumers throughout all phases of their lives, developing and offering new treatments to meet unmet eye health needs and, importantly, help people see better to live better.

Speaker 4: Being nounced is a fully integrated ihealth companies that offers a comprehensive portfolio of more than 400 products to meet significant patient and consumer needs, to exp ING everything from contact lenses lenses, IHE product, outbic Pharmaceuticals over the counterproduct and up ll surgical devices and instruments.

Joseph Papa: B&L is a fully integrated eye health company that offers a comprehensive portfolio of more than 400 products to meet significant patient and consumer needs, expanding everything from contact lenses, lens and eye care products, ophthalmic pharmaceuticals, over the counter product and ophthalmic surgical devices and instruments.

Speaker 4: beingnnow serves our patients and consumers throughout all phases of their lives, developing and offering new treatments to meet unmet eHealth needs and importantly, help people see better to live better.

Joseph Papa: B&L serves our patients and consumers throughout all phases of their lives, developing and offering new treatments to meet unmet eye health needs and importantly, help people see better to live better.

Joe Papa: With that, operator, let's open up the line for questions.

Joseph Papa: With that, operator, let's open up the line for questions.

Speaker 4: With that operator. Let's open the line for questions.

Speaker 1: We will now begin the question and answer session.

Operator 2: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. Finally, please limit yourself to one question per turn. At this time, we will pause momentarily to assemble our roster. The first question comes from Ken Cacciatore with Cowen and Company. Ken, please go ahead.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. Finally, please limit yourself to one question per turn. At this time, we will pause momentarily to assemble our roster. The first question comes from Ken Cacciatore with Cowen and Company. Ken, please go ahead.

Multiple speakers: With that, operator, let's open the line for questions. We will now begin the question and answer session. To ask the question, you may press star, then one on your touch tone phone.

Speaker 13: To ask the question. You may press star, then one on your touchst phone.

Speaker 2: If you are using a speaker phone, Please pick up your handset before pressing the keys.

Operator: If you are using a speaker phone, please pick up your handset before pressing the keys.

Speaker 5: To withdraw your question. Please press star, then two.

Speaker 2: Finally Please lend yourself to one question per turn at this time. We will pause momentarily to assemble our roster.

Operator: To withdraw your question, please press star, then two.

Operator: Finally, please limit yourself to one question per turn. Tt this time, we will pause momentarily to assemble our roster.

Speaker 1: The first question comes from Ken catuortory with coon and company.

Speaker 13: Ken ple, no A. Yeah, Thanks so much. Thanks for all the fundamental discussion. I'm actually going to save my one question for a nonfundamental Joe. Lots of questions still coming in on the, the 90% holdings that B H, C has, the B L C o, and I know it's easier to understand the likely passth forward and as the facts and patent win it's, it's less clear to everyone what the options are for B a, C in a law. So not sure that you'll be able to discuss it, but can you talk about that 90% - I know you've broken it about, there's some that could be sold in the near term- and 80% - the remaining if you talk about the potential ramifications in the in the event of as the facts and launch as as you could best describe them, for folks. Thanks so much.

Operator: The first question comes from Ken Cacciatore with Cowen and Company.

Ken Cacciatore: Yeah, thanks so much. Thanks for all the fundamental discussion. I'm actually gonna save my one question for a non-fundamental. Joe, lots of questions still coming in on the 90% holdings that BHC has of BLCO. I know it's easier to understand the likely path forward in a Xifaxan patent win. It's less clear to everyone what the options are for BHC in a loss. Not sure that you'll be able to discuss it, but can you talk about that 90%? I know you've broken it out. There's some that could be sold in the near term and 80% still remaining. Can you talk about the potential ramifications in the event of a Xifaxan launch as you could best describe them for folks? Thanks so much.

Multiple speakers: Ken, please go ahead. Thanks so much. Thanks for all the fundamental discussion. I'm actually going to save my one question for a non-fundamental. Joe, lots of questions still coming in on the 90% holdings that BHC has of BLCO. and I know it's easier to understand the likely path forward and as a facts and patent win, it's less clear to everyone what the options are for BHC in a <unk>. So, not sure that you'll be able to discuss it but can you talk about that 90%? I know you've broken it out. There's some that could be sold in the near term and the 80% still remaining. If you talk about the potential ramifications in in the event of as facts and launch as, as you could best describe them for folks? Thanks so much.

Speaker 1: Ok Thank you can for the question. Let me just maybe back up the Li and get to towards the actual question that you're getting to, number one as we think about this the, the path forward for us is clear. We've always stated that we would. Our strategy would we utilize 20% of the B value to pay down the det of health. We've done now the initial 10 plus percent for the I P out. The remaining actually will turn out the 9% will be monetized by he to reduce their debt. They have the flexibility to do that. As to the question on the factx issue, and let me say one more, the remaining 80%, as I said, we will be utilized and will go directly to the shareholders of health. Just to be clear on the remaining 80%, that will be that direct spin of that, 80% will go to the shareholders of shel. So that's how how that will play out. On the question of facts, and I have the first fore say, we continue to expect to when we have an intellectual property of 20 plus patent and our legal team felt more confident at the end of the TRI versus thatat the start of the trial. So all that continues to be something that we have. Look that managed our way through that. one of the outside advisers that we've utilized has looked through all this and everyone you know from a legal point of view is reviewed it in fact I P D, an independent company that was a pending at the trial. Look that and expect that we will prevail. As to your question no, on this factx, nor which loss. Let me get to that. As any company would, you'd expectfact, we always evaluate multiple scenarios for the business for planning purposes than we have done that. But I have to say we continue to expect to win, and probably that and not expectly any further. On that comment, obviously that's something that health will need to continue to look at in terms of process, but we do expect to win.

Joe Papa: Okay. Thank you, Ken, for the question. Let me just maybe back up a little bit and get towards the actual question that you're getting to. Number one, as we think about this, the path forward for us is clear. We've always stated that we'd utilize 20% of the Bausch + Lomb value to pay down the debt of Bausch Health. We've done now the initial 10-plus percent for the IPO. The remaining actually will turn out to be 8.7% will be monetized by Bausch Health to reduce their debt. They have the flexibility to do that. As to the question on the Xifaxan issue, and let me say one more thing.

Joseph Papa: Okay. Thank you, Ken, for the question. Let me just maybe back up a little bit and get towards the actual question that you're getting to. Number one, as we think about this, the path forward for us is clear. We've always stated that we'd utilize 20% of the Bausch + Lomb value to pay down the debt of Bausch Health. We've done now the initial 10-plus percent for the IPO. The remaining actually will turn out to be 8.7% will be monetized by Bausch Health to reduce their debt. They have the flexibility to do that. As to the question on the Xifaxan issue, and let me say one more thing.

Joseph Papa: Okay. Thank you, Ken, for the question. Let me just maybe back up a little bit and get to towards the actual question that you're getting to. Number one, as we think about this, the path forward for us is clear. We've always stated that we would- our strategy- we'd utilize 20% of the Bausch & Lomb value to pay down the debt of Bausch Health. We've done now the initial 10%+ for the IPO. The remaining actually will turn out the 8.7% will be monetized by Bausch Health to reduce their debt. They have the flexibility to do that. As to the question on the XIFAXAN ® issue, let me say one more- sorry, the remaining 80%, as I said, will be utilized and will go directly to the shareholders of Bausch Health. Just to be clear on the remaining 80%, that will be that direct spend of that 80% will go to the shareholders of Bausch Health. So that's how- how that will play out.

Joe Papa: The remaining 80%, as I said, will be utilized, and it will go directly to the shareholders of Bausch Health, just to be clear on the remaining 80%. That will be, that direct spin of that 80% will go to the shareholders of Bausch Health. That's how that will play out. On the question of Xifaxan, I have to first and foremost say we continue to expect to win. We have intellectual property of 20+ patents. Our legal team felt more confident at the end of the trial versus at the start of the trial. All that continues to be something that we have looked at, managed our way through that.

Joseph Papa: The remaining 80%, as I said, will be utilized, and it will go directly to the shareholders of Bausch Health, just to be clear on the remaining 80%. That will be, that direct spin of that 80% will go to the shareholders of Bausch Health. That's how that will play out. On the question of Xifaxan, I have to first and foremost say we continue to expect to win. We have intellectual property of 20+ patents. Our legal team felt more confident at the end of the trial versus at the start of the trial. All that continues to be something that we have looked at, managed our way through that.

Joseph Papa: On the question of XIFAXAN®, and I have the first formost say we continue to expect to win. We have intellectual property of 20+ patents. Our legal team felt more confident at the end of the trial versus at the start of the trial. So all that continues to be something that we have looked at, managed our way through that. one of the outside advisers that we utilized have has looked through all this and everyone you know from a legal point of view has reviewed it. In fact IPD, an independent company that was attending at the trial, looked at it and expect that we will prevail. As to your question no, on this XIFAXAN® / Norwich loss, let me get to that. As any company would, you'd expect we always evaluate multiple scenarios for the business for planning purposes and we have done that. I have to say we continue to expect to win and probably that, and not speculated any further on that comment. Obviously that's something that Bausch Health will need to continue to look at in terms of process, but we do expect to win.

Joe Papa: One of the outside advisors that we've utilized have looked through all this, and everyone, you know, from a legal point of view has reviewed it. In fact, IPD, an independent company that was attending at the trial, looked at it and expects that we will prevail. As to your question, though, on this Xifaxan Norwich loss, let me get to that. As any company would, you'd expect, we always evaluate multiple scenarios for the business, for planning purposes, and we have done that. I have to say, we continue to expect to win, and I'll probably leave it at that and not speculate any further on that comment. Obviously, that's something that Bausch Health will need to continue to look at in terms of process, but, we do expect to win.

Joseph Papa: One of the outside advisors that we've utilized have looked through all this, and everyone, you know, from a legal point of view has reviewed it. In fact, IPD, an independent company that was attending at the trial, looked at it and expects that we will prevail. As to your question, though, on this Xifaxan Norwich loss, let me get to that. As any company would, you'd expect, we always evaluate multiple scenarios for the business, for planning purposes, and we have done that. I have to say, we continue to expect to win, and I'll probably leave it at that and not speculate any further on that comment. Obviously, that's something that Bausch Health will need to continue to look at in terms of process, but, we do expect to win.

Speaker 10: Thank you.

Ken Cacciatore: Thank you.

Speaker 1: The next question is coming from Craig bjou with Bank of America. Craig your line of life, Please go ahead.

Operator 2: The next question is coming from Craig Bijou with Bank of America. Craig, your line is live. Please go ahead.

Operator: The next question is coming from Craig Bijou with Bank of America. Craig, your line is live. Please go ahead.

Multiple speakers: Thank you. Your next question is coming from Craig Bijou with Bank of America. Craig, your line is live. Please go ahead. Great. Good morning guys. Thank you for taking the questions and congrats on getting the IPO done. I wanted to ask about top line guidance. So obviously, 5% organic growth in the Q1, your full year guidance of four to five suggests, you know, a slight slow down. So just wanted to ask: is that simply conservatism? Is that China? Is there something else that we should be thinking about? And then you know how should we think about the quarterly cadence of that guidance? And, you know, from a segment perspective, should we think about growth of each of the segments similar to what we saw in Q1? Sam? Craig, good morning, and I'll take this question.

Craig Bijou: Greg, good morning, guys. Thank you for taking the questions and, congrats on getting the IPO done. I wanted to ask about top-line guidance. Obviously 5% organic growth in Q1. Your full year guidance of 4% to 5% suggests, you know, slight slowdown. Just wanted to ask, is that simply conservatism? Is it China? Is there something else that we should be thinking about? Then, you know, how should we think about the quarterly cadence of that guidance? You know, from a segment perspective, should we think about growth of each of the segments similar to what we saw in Q1?

Speaker 14: The great good morning guys. Thank you for taking the questions and congrats, I get the I P o done. I wanted to ask about top line guidance. So obviously 5% organic growth in the Q1, your full year guidance of four to five suggest.

Speaker 15: You know slight slowdown.

Speaker 15: So just wanted to ask: is that simply conservatism? Is that China? Is there something else that we?

Speaker 15: Should be thinking about and then you know how should we think about the quarterly cadence of that guidance and.

Speaker 15: Know from a segment perspective.

Speaker 15: Should we think about growth?

Speaker 16: Of each of the segments similar to what we saw in Q1.

Speaker 1: cragood morning. I'll take this question. So the way I would think about is our guidance from a 4- 5% itselfall refers to as a balanceced guidance. We factor in what we have been seen so far in Q1 from China. We saw that lockdown in China did have an impact on us. rup there about one million. The impact continues with us in Q2 still early in the second quarter. We did in complete second quarter. The good news is right now we understand that the Chinese dollance have opened up the market. Things are coming. Impact in normal still not one hundred percent. That will have to see how month of jewe playsout that. We had the month of April and may shutdown. So our guidance of 4- 5% anticipate what we've seen in the month of April and may as well from shutdown in China. When you step back and you think about just our phasing in general, we tend to be more revenue on the second half than the first half of the year. That's in general. So we think about the cadence of our phasing. We would expect that we will ramp up with more into into Q3, Q4 from a phasing point of view than what you've seen in Q1 in and Q2 from us. That's a normal basis to you just have to factor in the anomaly of China which we again wasve seen in Q1 and Q2.

Joe Papa: Sam?

Joseph Papa: Sam?

Sam Eldessouky: Craig, good morning, and I'll take this question. So the way I would think about it is, our guidance from 4% to 5% is I'll refer to as a balanced guidance. We factor in what we have been seeing so far in Q1 from China. We saw the lockdown in China did have an impact on us of roughly about $10 million. If that impact continues with us in Q2, still early in the second quarter, we didn't yet complete second quarter. The good news is, right now we understand that the Chinese government have opened up the market. Things are coming back to normal. Still not 100%, but we'll have to see how the month of June plays out, that we had the month of April and May shut down.

Multiple speakers: So the way I would think about is, our guidance from a 4-5% I'll refer to as a balanced guidance. We factored in what we have been seeing so far in Q1 from China. We saw that lockdown in China did have an impact on us of roughly about $10 million. The impact continues with us in Q2. It's still early in the second quarter. We didn't yet complete the second quarter. The good news is right now we understand that the Chinese government has opened up the market. Things are coming back to normal, still not one 100%. We will have to see how the month of June plays out but we had the month of April and May shutdown. So our guidance of 4-5% anticipates what we've seen in the month of April and May as well from shutdown in China. When you step back and you think about just our phasing in general, we tend to be more revenue on the second half than the first half of the year. That's in general. So when we think about the cadence of our phasing, you would expect that we will ramp up with more into Q3/Q4 from a phasing point of view than while you've seen in Q1 and Q2 from us. That's on a normal basis. You just have to factor in the anomaly of China, which we again was seen in Q1 and Q2. I think doing- I'd add to Sam comment- is just to put a little bit more perspective on that- that back to school contact lens business is something that we see in that third quarter/fourth quarter. That's part of what we see in some of the commentary that Sam is making on how we're looking at the seasonality of our business. There is some third quarter, fourth quarter pick up as kids go back to school and they get their contact lenses, but that's probably the only thing I had. I think everything else's was agreement. Operator, next question, please. Certainly. The next question is from Larry Biegelsen with Wells Fargo. Larry, your line live. Please go ahead. Good morning. Thanks for taking the question. So, I'll ask just one big picture question.

Sam Eldessouky: Our guidance of 4% to 5% anticipates what we've seen in the months of April and May as well from shutdown in China. When you step back and you think about just our phasing in general, we tend to be more revenue on the H2 than the H1 of the year. That's in general. When you think about the cadence of our phasing, you would expect that we will ramp up with more into Q3, Q4 from a phasing point of view than what you've seen in Q1 and Q2 from us. That's at a normal basis. You just have to factor in the anomaly of China, which we again were seeing in Q1 and Q2.

Multiple speakers: you would expect that we will ramp up with more into Q3/Q4 from a phasing point of view than while you've seen in Q1 and Q2 from us. That's on a normal basis. You just have to factor in the anomaly of China, which we again was seen in Q1 and Q2. I think doing- I'd add to Sam comment- is just to put a little bit more perspective on that- that back to school contact lens business is something that we see in that third quarter/fourth quarter. That's part of what we see in some of the commentary that Sam is making on how we're looking at the seasonality of our business. There is some third quarter, fourth quarter pick up as kids go back to school and they get their contact lenses, but that's probably the only thing I had. I think everything else's was agreement. Operator, next question, please. Certainly. The next question is from Larry Biegelsen with Wells Fargo. Larry, your line live. Please go ahead. Good morning. Thanks for taking the question. So, I'll ask just one big picture question.

Speaker 17: I think doingill I'd add to Sam comment is just to put a little bit more perspective on that back-to-school contact lens business is something that we see in that D quarter fourth th quarter. If that's part of what we see in some of the commentary that Sam was making on on how we're looking at the seasonality of our business. There is some third quarter, fourth quarter pick up as gets go back to school and they get their contact on is. But that's probably the only thing I'd add. I think everything else'is.

Joe Papa: I think the only thing I'd add to Sam's comment is just to put a little bit more perspective on that back-to-school contact lens business is something that we see in that Q3, Q4. That's part of what we see in some of the commentary that Sam was making on how we're looking at the seasonality of our business. There is some Q3, Q4 pickup as kids go back to school and they get their contact lenses, but that's probably the only thing I'd add. I think everything else was agreement. Operator, next question, please.

Joseph Papa: I think the only thing I'd add to Sam's comment is just to put a little bit more perspective on that back-to-school contact lens business is something that we see in that Q3, Q4. That's part of what we see in some of the commentary that Sam was making on how we're looking at the seasonality of our business. There is some Q3, Q4 pickup as kids go back to school and they get their contact lenses, but that's probably the only thing I'd add. I think everything else was agreement. Operator, next question, please.

Speaker 18: Group agreement.

Speaker 10: Operating next question Please.

Speaker 19: Certainly the next question is from Larry diggelson with Wells Fargo Larry, or line of life, Please go ahead.

Operator 2: Certainly. The next question is from Larry Biegelsen with Wells Fargo. Larry, your line is live. Please go ahead.

Operator: Certainly. The next question is from Larry Biegelsen with Wells Fargo. Larry, your line is live. Please go ahead.

Larry Biegelsen: Good morning. Thanks for taking the question. I'll ask just one big picture question. Just at a high level, Joe and Sam, how are you thinking about Bausch's organic growth and margins beyond 2022? Joe, upfront, you said one of the goals of this call, you know, was to talk about, you know, growth, long-term growth for the company. The guidance implies an EBITDA margin of about 20% this year. You know, how are you thinking about the pathway back to, I think, you know, your EBITDA margin in 2019 was about 24%. Thanks for taking the question.

Speaker 20: Good morning. Thanks for taking the question. So I'll ask just one big picture question, just at a high level: Jill and Sam, how are you thinking about banshe's organic growth and margins beyond twent thousand and 22? Joe up front, you said one of the goals of this call, you know, was to talk about, you know growth, long term growth for the company the, the guidance in life, an EBITDA margin of about 20% this year. How are you thinking about the pathway back to and make you know, your EBITDA margin in 2019 was about 20, four percent. Thanks for taking the question.

Multiple speakers: Just at a high level, Joe and Sam, how are you thinking about Bausch's organic growth and margins beyond 2022? Joe, up front, you said one of the goals of this call you know was to talk about you know growth, long-term growth for the company, the guidance <unk>, an EBITDA margin of about 20% this year. You know, how are you thinking about the pathway back to and think, you know, your EBITDA margin in 2019 was about 24% cent. Thanks for taking the question. I'll start, Sam, and then you can add to it. First and foremost, I think the important point I want to make is on the strategic question of what we're planning to do: number more. We plan had to continue the momentum in our current portfolio. Last- 2021, Bausch & Lomb finished with the fastest growing contact lens business. We grew at about 18% in 2021 as an example. So, try to continue that momentum with all of our products in our portfolio is our first strategic direction.

Joe Papa: I'll start, Sam, and you can add to it. First and foremost, I think the important point I wanna make is on the strategic question of what we're planning to do. Number one, we plan to continue the momentum in our current portfolio. In 2021, Bausch + Lomb finished with the fastest growing contact lens business. We grew at about 18% in 2021 as an example. Try to continue that momentum with all of our products in our portfolio is our first strategic direction. Number two, as we've said publicly, we plan to invest in categories in eye health that are growing faster than the overall eye health business.

Speaker 8: Off starts and you to add to it first and importantment. I think the the important point I want to make is is on the strategic question of what we're planning to do number more we plan to continue the momentum in our current portfolio. Less 20 20 one should finished with be fastest growing contact lens business. We grew about 18% in two thousand and 20 one as an example try to continue that momentum with all of our products. In our our portfolio is our first strategic direction number two as we've said publicly we plan to invest in categories in I help and they're growing fastaster than the overall I health business. The good news for us is that we're going tohave a chance to launch new products in as the daily side. highlens is we've now launched about 20 four countries. We have more coming on board every every quarter and then we expect also launch the the the multi focal product daily side high. These daily highlines will also add to both on the revenue side and the growth side on the margin and I'll get to that just a second. But as we go into the faster growing categories like daily side highs which we believe will growth certainly more than double digit. We're going into the premium I swe've launched our more outside. The U's V have some additional and vist OL premium's coming forth and also looking at the opportunity to entintothe dry I market. All these new products in the faster growing categories will help us to expand on these margins and the growth as what we are planning and then finally we're going into some brand. New categories for us we're going to enter into the digital surgical ecosystem. We're looking at by IO similar some brand new categories. For us we just launch by peer the first and only product available in the U's that utilizes the super cororido injection therapy allowing us to to help patients who have acular deem associated the I So. All those new products are going to be helping us to drive the overall growth and then importantly with new products opportunity for margin enhancement. A simple example as patients progress from the opportunity with a.

Joseph Papa: I'll start, Sam, and you can add to it. First and foremost, I think the important point I wanna make is on the strategic question of what we're planning to do. Number one, we plan to continue the momentum in our current portfolio. In 2021, Bausch + Lomb finished with the fastest growing contact lens business. We grew at about 18% in 2021 as an example. Try to continue that momentum with all of our products in our portfolio is our first strategic direction. Number two, as we've said publicly, we plan to invest in categories in eye health that are growing faster than the overall eye health business.

Joseph Papa: Number two: as we said publicly, we plan to invest in categories in eye health and they're growing faster than the overall eye health business. The good news for us is that we're going to have a chance to launch new products as the daily SyHi lenses we've now launched in about 24 countries. We have more coming on board every every quarter and then we expect also launched the, the multi focal product daily SyHi. These daily SyHi lenses will also add to both on the revenue side and the growth side on the margin, and I'll get to that just a second. But as we go into these faster growing categories like daily SyHis, which we believe will grow certainly more than double digit, we're going into the premium IOLS. We've launched our Premium Lux Smart. Outside of the U.S. we have some additional Envista® Premium IOLs coming forward and also looking at the opportunity to enter the dry eye markets. All these new products in the faster growing categories will help us to expand on these margins.

Joe Papa: The good news for us is that we're gonna have a chance to launch new products in the as the daily SiHy lenses. We've now launched in about 24 countries. We have more coming on board every quarter. Then we expect also to launch the multifocal product, that daily SiHy. These daily SiHy lenses will also add to both on the revenue side and the growth side on the margin. I'll get to that in just a second. As we go into these faster growing categories like daily SiHys, which we believe will grow certainly more than double digit, we're going into the premium IOLs. We've launched our LuxSmart outside the US.

Joseph Papa: The good news for us is that we're gonna have a chance to launch new products in the as the daily SiHy lenses. We've now launched in about 24 countries. We have more coming on board every quarter. Then we expect also to launch the multifocal product, that daily SiHy. These daily SiHy lenses will also add to both on the revenue side and the growth side on the margin. I'll get to that in just a second. As we go into these faster growing categories like daily SiHys, which we believe will grow certainly more than double digit, we're going into the premium IOLs. We've launched our LuxSmart outside the US.

Joe Papa: We have some additional enVista IOLs, premium IOLs coming forward, and also looking at the opportunity to enter the dry eye market. All these new products in the faster growing categories will help us to expand on these margins and the growth as what we are planning. Then finally, we're going into some brand new categories for us. We're gonna enter into the digital surgical ecosystem. We're looking at biosimilar, some brand new categories for us. We just launched XIPERE, the first and only product available in the US that utilizes the suprachoroidal injection therapy, allowing us to help patients who have macular edema associated with uveitis. All those new products are gonna be helping us to drive the overall growth. Then importantly, with new products come opportunity for margin enhancement.

Joseph Papa: We have some additional enVista IOLs, premium IOLs coming forward, and also looking at the opportunity to enter the dry eye market. All these new products in the faster growing categories will help us to expand on these margins and the growth as what we are planning. Then finally, we're going into some brand new categories for us. We're gonna enter into the digital surgical ecosystem. We're looking at biosimilar, some brand new categories for us. We just launched XIPERE, the first and only product available in the US that utilizes the suprachoroidal injection therapy, allowing us to help patients who have macular edema associated with uveitis. All those new products are gonna be helping us to drive the overall growth. Then importantly, with new products come opportunity for margin enhancement.

Joe Papa: A simple example, as patients progress from the opportunity with going from the monthly lens to the daily lens, to a daily SiHy lens, that's a higher price point for patients, which in the long term allow us to achieve better margins. Also on that margin question, as we get more experience, we know that our yield on the daily SiHy will get stronger all the time. Usually when you first come out with a product at a facility on a line, you know, you'll get about a 60% yield in the first year. That'll gradually go to 70%, 80% yield, and then up to 90%+ yield, as you get more experience with. That also helps to contribute to the margin. The margin story will be driven by these new products.

Joseph Papa: A simple example, as patients progress from the opportunity with going from the monthly lens to the daily lens, to a daily SiHy lens, that's a higher price point for patients, which in the long term allow us to achieve better margins. Also on that margin question, as we get more experience, we know that our yield on the daily SiHy will get stronger all the time. Usually when you first come out with a product at a facility on a line, you know, you'll get about a 60% yield in the first year. That'll gradually go to 70%, 80% yield, and then up to 90%+ yield, as you get more experience with. That also helps to contribute to the margin. The margin story will be driven by these new products.

Speaker 10: A going from the monthly lens to the daily lens, to a daily side highland. That's a higher price point for patients which in the long term allow us to achieve better margin. And then also on that margin question, as we get more experience we know that our yield on the daily will get stronger all the time. Usually when you first come out with a product on a FAC, at a facility, on a line you know you'll get about a 60% yield in the first year. That will gradually go to 70, 80% yield and the 90 plus percent yield as we get more experience with that also helps the contribute to the margin. So the margins story we driven by these new products, the margin story will be driven as we get more experience with the side high, daily land as we're launching it and at the higher price point. That will all hel to contribute to the overall margin story and help us to get to levels that we were in the past. Think one specifically and if I can just add two things Joe said and again, the launches is a very critical part in terms of how we think about where we are today and where we're heading the future, because I think there's number of critical launches across whole three segment are going to be very informed for us as we move forward from growth on the top line as well, us from a margin contribution. So see and division care, surgical and with optimology, having that coming out this year and three coming out next year also. The base business in itself is in a very durable standing right now. I think we have couple of number of our key brands are doing performing very well. We highlight some of them and the preferred marks such as the vitamin, little by with. Also the international o the business which is growth, organic growth of upough to 16%. So we have very good fundamental elements of the business. How we think about the cost structure as we go forward here is: we had in 2020 two it's a year where we stepped up our investment to position ourselves for the launches and to support the growth that we're seeing in our existing portfolio, and also stepped it up for.

Speaker 5: Marg and then also on that margin question as we get more experience. We know that our yield on the daily high will get stronger all the time usually when you first come out with a product on a FAC at a facility on a line. You know you'll get about a 60% yield in the first year that will gradually go to 70 80% yield and the to 90 plus percent yield as youwe get more experience with that also helps the contribute to the margin. So the margin story we driven by these new products the margin story will be driven as we get more experience with the side high daily land thatas we're launching and at the higher price point that will all help to contribute to the overall margin story and help us to get to two levels that we were in the past's I think want to specifically if I can just add two things Joe head and again the launches is a very critical bar in terms of how we think about where we are today and where we're heading into the future because I think the number of critical launches.

Joe Papa: The margin story will be driven as we get more experience with the SiHy daily lens as we're launching it, and at the higher price point. That will all help to contribute to the overall margin story and help us to get to levels that we were in the past. Sam, anything you wanna add specifically?

Joseph Papa: The margin story will be driven as we get more experience with the SiHy daily lens as we're launching it, and at the higher price point. That will all help to contribute to the overall margin story and help us to get to levels that we were in the past. Sam, anything you wanna add specifically?

Sam Eldessouky: Yeah. Larry, if I can just add two things to what Joe said. Again, the launches is a very critical part in terms of how we think about where we are today and where we're heading into the future, because I think there's number of critical launches across all three segments that are gonna be very important for us as we move forward from growth on the top line as well as from a margin contribution. You see it in the vision care, surgical, and with the ophthalmology having XIPERE coming out this year and NOV03 coming out next year. Also, the base business in itself is in a very durable standing right now. I think we have couple of number of our key brands are doing, performing very well.

Sam Eldessouky: We highlight some of them in the prepared remarks, such as the vitamins, the LUMIFY, with, you know, also the international optics business, which is showing growth, organic growth of roughly 16%. We have very good fundamental elements of the business. How we think about the cost structure as we go forward here is we had in 2022, it's a year where we stepped up our investment to position ourselves for those launches and to support the growth that we're seeing in our existing portfolio, and also stepped it up for the standalone company to allow B&L to operate as a standalone company. As we go forward beyond 2022, we don't need that step change in our cost structure as we move forward.

Speaker 6: The standalone company to operate to allow be an operatedor stand-one company as we go for beyond 2022. We don't need that step change in our cost structure as we move forward. So what that means is that sent is to a leverage from a cost structure that we have the infrastructure, that buildills right now, that will be able to be scaled both on the commercial front as well as the overall company and that all will help centms of achieving our margin expansion as we go forward.

Speaker 6: Growth that we're seeing in our existing portfolio and also stepped it up for.

Speaker 6: The endalone company to operate to allow be an enough operated standalone company as we go forward beyond 2022. We don't need that stepf change in our cost structure as we move forward. So what that means is that sent is to a leverage from a cost structure that we have the infrastructure that spills right now that will be able to be scaled both on the commercial front as well as the overall company and that also will help incentiive of achieving our margin expansion as we go forward.

Sam Eldessouky: What that means is that translates to a leverage from a cost structure that we have the infrastructure that's built right now that will be able to be scaled both on the commercial front as well as the overall company. That all will help us in terms of achieving our margin expansion as we go forward.

Larry Biegelsen: Thank you.

Speaker 10: It operatate. Next question, Please certainly. Your next question is coming from Y conesia, from googgen. Hey partners. Yeah, your line is large, Please go ahead.

Joe Papa: Operator, next question, please.

Joseph Papa: Operator, next question, please.

Operator 2: Certainly. Your next question is coming from Yatin Suneja from Guggenheim Partners. Yatin, your line is live. Please go ahead.

Operator: Certainly. Your next question is coming from Yatin Suneja from Guggenheim Partners. Yatin, your line is live. Please go ahead.

Speaker 8: Thank itoperat. Next question, Please. Certainly your next question is coming from Y genicia, from googgenhe partners. Yeah, your line is large. Please go ahead.

Larry Biegelsen: Hi, guys. Thank you for taking my question. Can you just touch a little bit on the market opportunity for NOV03? What sort of infrastructure build will it require? How big is the market? Obviously, there is a relevant comp there as stated, so just trying to understand your strategy there. Also, if you can provide a little bit color on Lucentis biosimilar. What's the update there? Thanks.

Yatin Suneja: Hi, guys. Thank you for taking my question. Can you just touch a little bit on the market opportunity for NOV03? What sort of infrastructure build will it require? How big is the market? Obviously, there is a relevant comp there as stated, so just trying to understand your strategy there. Also, if you can provide a little bit color on Lucentis biosimilar. What's the update there? Thanks.

Speaker 21: Thank you for taking my question. Can you just touch a little bit on the market opportunity for nothree? What sort of infrastructure build will it require? How big is the market? Obviously there is a relevant calm there. Rest is just trying to understand your strategy there. Then also, if you can provide a little bit color on the Lo cent, past number's, the update there.

Speaker 9: I thank you for taking my question. Can you just touch a little bit on the market opportunity for no, the? What sort of infrastructure build with it acquire? How big is the market? Obviously there is some better than Cal there. Is it just trying to understand your strategy there? Then also, if you can putllvout a little bit color on the centers bpassion, what's the update toest? Sure, So let me start on that. And the no 3, dry eye market. It's a very large market. Specifically, we've the gross sale numbers are in the order M to the three billion dollars. Obviously, if you go down the net some probably close to $2 billion. But a very large market. First time it importantly it's 17 million Americans and it continues to grow at around the double digit level. So large market growing rather significantly. Number 2: the opportunity we see here.

Speaker 8: So let me start on that and the no both three dry market. It's a very large market. specificantically we, the gross sales number ERS, are in the order man to the three billion dollars obviously, as to go down the net some pro $2 billion, but a very large market. First comment: importantly, 17 million Americans and it continues to grow at around the double digit level. So large market growing rather significantly number to the opportunity we see here is that we our clinical data and I'm delighted to say that we have statistically significant improvement in the signs and symptoms of dry I DIS E associate my boom name gland, this function and we've shown that as early as day 15. So for us that's a significant, we think, opportunity to help a number of patients if we are approved by the F D a, help a significant number of patients with their dry disease. And importantly, as as we think about you know what that means is the current products out in the category can take sometimes up the three months, the six months to work. So if we've got a product that and help patients as early as day 15, we think that makes a very exciting opportunity to help a significant number of patients and and realize the revenue opportunities from that. So we're excited about the size of the market large: three billion gross sales, two billion. Proximate that basis we look at what's happening with the current players out there and our abilities to show the quick relief of the signed and symptoms of dry disease. We're excited about good news for us is that basion law has the a a very large capabilities footprint to to sell this products in the United States. We've got capabilities already team in place. bas on has one of the largegest portfolio around the world of this, the capabilities in the pharmaceutical business, and that we think is what's important for how we will approach this category. The other thing that I think I have to say that we think differentiates bas law is by by us having an integrated footprint in all of the business ES, So that we have a capabil in consumer business, a capabilility in the contact lens business of capabililityand the surgical business as well as our pharma business. We think that integrated footprint is very important for us from the platform help us to be success. New products- and we've seen it, ve seen real life example of that as we launched our UL ly product as an example. On the question. Second party of your question was sentus by similar update. We our continuing to work on that. We have announced that there is a question that is the F D a asked about the submission. Our partner expering who's working on this has been asked. The question rel to some of the information at the F? D seeking. We are going to take the F D a comments on that work with the F D a to revise our filing and will be back with more specific in terms of filing on that product exactly when we'll we'll get thatproduct file and move for with the opportunity. But clearly the by similar opportunity is very large in the United States it's sixxed plus billion dollar.

Joe Papa: Sure, let me start on the NOV03 dry eye market. It's a very large market. Specifically, the gross sales numbers are in the order of magnitude of $3 billion. Obviously, as you go down to net, somewhere probably closer to $2 billion, but a very large market, first comment. Importantly, it's 17 million Americans, and it continues to grow at around the double-digit level. Large market growing rather significantly. Number two, the opportunity we see here is that we looked at our clinical data, and I'm delighted to say that we have statistically significant improvement in the signs and symptoms of dry eye disease associated with meibomian gland dysfunction, and we've shown that as early as day 15.

Joseph Papa: Sure, let me start on the NOV03 dry eye market. It's a very large market. Specifically, the gross sales numbers are in the order of magnitude of $3 billion. Obviously, as you go down to net, somewhere probably closer to $2 billion, but a very large market, first comment. Importantly, it's 17 million Americans, and it continues to grow at around the double-digit level. Large market growing rather significantly. Number two, the opportunity we see here is that we looked at our clinical data, and I'm delighted to say that we have statistically significant improvement in the signs and symptoms of dry eye disease associated with meibomian gland dysfunction, and we've shown that as early as day 15.

Speaker 5: Is that we look at our clinical data and I'm delighted to say that we have statistically significant improvement in the signs and symptoms of dry eye disease associated my boom main glandthis function and we've shown that as early as day 15. So for us that's a significant, we think- opportunity to help a number of patients if we are approved by the F? D a help a significant number of patients with their dry eye disease. And importantly- as as we think about you know what that means is the current products out in the category can take sometimes up the three months of six months to work. So if you've got a product that can help patients as early as day 15, we think that makes it a very exciting opportunity to help a significant number of patients and and realize the revenue opportunities from that. So we're excited about the size of the market- large: three billion gross sales, two billion approximately net basis. We look at what's happening with the current players out there and our ability to show the quick.

Joe Papa: For us, that's a significant, we think, opportunity to help a number of patients if we are approved by the FDA, help a significant number of patients with their dry eye disease. Importantly, as we think about, you know, what that means is, you know, the current products out in the category can take sometimes up to three months to six months to work. If you've got a product that can help patients as early as day 15, we think that makes it a very exciting opportunity to help a significant number of patients and realize the revenue opportunities from that. We're excited about the size of the market, large, $3 billion gross sales, approximately $2 billion on a net basis.

Joseph Papa: For us, that's a significant, we think, opportunity to help a number of patients if we are approved by the FDA, help a significant number of patients with their dry eye disease. Importantly, as we think about, you know, what that means is, you know, the current products out in the category can take sometimes up to three months to six months to work. If you've got a product that can help patients as early as day 15, we think that makes it a very exciting opportunity to help a significant number of patients and realize the revenue opportunities from that. We're excited about the size of the market, large, $3 billion gross sales, approximately $2 billion on a net basis.

Joe Papa: We look at what's happening with the current players out there and our ability to show the quick relief of the signs and symptoms of dry eye disease. We're excited about it. Good news for us is that Bausch + Lomb has a very large capabilities, a footprint to sell this product in the United States. We've got capabilities already a team in place. Bausch + Lomb has one of the largest portfolio around the world of this the capabilities in the pharmaceutical business, and that we think is what's important for how we will approach this category.

Joseph Papa: We look at what's happening with the current players out there and our ability to show the quick relief of the signs and symptoms of dry eye disease. We're excited about it. Good news for us is that Bausch + Lomb has a very large capabilities, a footprint to sell this product in the United States. We've got capabilities already a team in place. Bausch + Lomb has one of the largest portfolio around the world of this the capabilities in the pharmaceutical business, and that we think is what's important for how we will approach this category.

Joe Papa: The other thing that I think I have to say that we think differentiates Bausch + Lomb is by us having an integrated footprint in all of the businesses so that we have a capability in consumer business, a capability in the contact lens business, a capability in the surgical business, as well as our pharma business. We think that integrated footprint is very important for us as a platform to help us to be successful with new products. We've seen it. We've seen real-life examples of that as we launched our LUMIFY product, as an example. On the second part of your question was Lucentis biosimilar update. We are continuing to work on that. We have announced that there is a question that the FDA has asked us about the submission.

Joseph Papa: The other thing that I think I have to say that we think differentiates Bausch + Lomb is by us having an integrated footprint in all of the businesses so that we have a capability in consumer business, a capability in the contact lens business, a capability in the surgical business, as well as our pharma business. We think that integrated footprint is very important for us as a platform to help us to be successful with new products. We've seen it. We've seen real-life examples of that as we launched our LUMIFY product, as an example. On the second part of your question was Lucentis biosimilar update. We are continuing to work on that. We have announced that there is a question that the FDA has asked us about the submission.

Speaker 5: We have announced that there is a question, that is, the F? Da has asked us about the submission. Our partner expering, who's working on this, has been asked the question relative to some of the information that the F? Da is seeking. We are going to take the F? Da comments on that, work with the F da to revise our filing and we'll be back with more specifics in terms of filing on that product exactly when we'll we'll get that product file and move forward with the opportunity. But clearly the biosimilar opportunity is very large in the United States. It's a six -plus billion dollarproduct category in the United States. The sentus is not the sentens- about a third of that, but it's a big opportunity for us and look forward to bring for to bio similar. Have more to comment about that in the near futureok.

Joe Papa: Our partner, expert who's working on this, has been asked a question relative to some of the information that the FDA is seeking. We are going to take the FDA comments on that, work with the FDA to revise our filing, and we'll be back with more specifics in terms of filing on that product, exactly when we'll get that product filed and move forward with the opportunity. Clearly, the biosimilar opportunity is very large in the United States. It's a $6-plus billion product category in the United States. Lucentis is about 1/3 of that, but it's a big opportunity for us, and we look forward to bringing forward a biosimilar, and have more to comment about that in the near future.

Joseph Papa: Our partner, expert who's working on this, has been asked a question relative to some of the information that the FDA is seeking. We are going to take the FDA comments on that, work with the FDA to revise our filing, and we'll be back with more specifics in terms of filing on that product, exactly when we'll get that product filed and move forward with the opportunity. Clearly, the biosimilar opportunity is very large in the United States. It's a $6-plus billion product category in the United States. Lucentis is about 1/3 of that, but it's a big opportunity for us, and we look forward to bringing forward a biosimilar, and have more to comment about that in the near future.

Speaker 22: Product category in the United States and listiccentus is not listicensse- about a third of that. But it's a big opportunity for us and look forward to bring for to bio somewhere. Have more to comment about that in the near future.

Yatin Suneja: Thank you.

Speaker 10: Thank you.

Speaker 10: Thank you that remind. Ladies and gentle, if you'd like to join the que at any time, you can still press star one on your telephone T pad to anser the queue once again. Ar one to enter the Q to ask the question. And your next question is coming from robie Marcus with jc Morgan. robieyour line life, Please go ahead. Yes, thanks for taking the question to grat on your first quarter.

Operator 2: Thank you. As a reminder, ladies and gentlemen, if you would like to join the queue at any time, you can still press star one on your telephone keypad to enter the queue. Once again, that's star one to enter the queue to ask a question. Your next question is coming from Robbie Marcus with J.P. Morgan. Robbie, your line is live. Please go ahead.

Operator: Thank you. As a reminder, ladies and gentlemen, if you would like to join the queue at any time, you can still press star one on your telephone keypad to enter the queue. Once again, that's star one to enter the queue to ask a question. Your next question is coming from Robbie Marcus with J.P. Morgan. Robbie, your line is live. Please go ahead.

Speaker 10: Thank you, mind. Ladies, gentlemanif you'd like to join the you any time, you can still press a Star one on your telephone. Keep pad to answer the queue once again, a AR one to answer the Q to ask question. And your next question is coming from robie Marcus with J C Morgan. robie, your live life, Please go ahead. Yeah, thanks for taking the question. Can grt on your first quarter? Wanted to just follow up on- I think it was the first question about the spin from aboutouch. You know what are the plans. If the parent company is able, the vouch company is able, to thedeleverage, how do you plan to address the capital structure going forward and where the contingency plans?

Yatin Suneja: Yeah, thanks for taking the question. Congrats on your Q1. Wanted to just follow up on, I think it was the first question about, the spin from Bausch. You know, what are the plans if the parent company isn't able or the Bausch company isn't able to deleverage? How do you plan to address the capital structure going forward, and what are the contingency plans? Thanks.

Robbie Marcus: Yeah, thanks for taking the question. Congrats on your Q1. Wanted to just follow up on, I think it was the first question about, the spin from Bausch. You know, what are the plans if the parent company isn't able or the Bausch company isn't able to deleverage? How do you plan to address the capital structure going forward, and what are the contingency plans? Thanks.

Speaker 23: Wanted to just follow up on- I think it was the first question about the spin from bouch. You know what. What are the plans? If the parent company is able, or the basouch company is able, to deleverage, how do you plan to address the capital structure, going forward and wear the contingency plansthank.

Speaker 1: Now let me- let me take that one fam good, I think number one we have specifically laid out that the plans for how we will do this, as we've St publicly, our plans will be that as we think through the Bo health- and I want to keep most of our comments today aboutch L to be clear- But as we think about Bo ch? He health house, as stated and agreed, that we we will do a full separation or spin at the time that Bo ch health get to a leverage profile of six point five, six point seven times, and once we get to that point, we will do that as we think about that question. There's going to be a couple different variables that we have to consider in that question. The first, obviously is the performance of B? ch health. As ch health continues to improve their performance, that will be an opportunity to pay down more debt. It also will be the performance of the B in L business, of course, as be in lcontinues to perform, there will have an opportunity to improve our capabilities and that will also when Bo health monetizes the remaining eight point 7% theret. That obviously will be another way to delever. And then finally, the value of the SL of business. That also will be consideration for for B ch health as they think about this delevering. So clearly we have all the plans in place to make that happen. As to what could happen there, I really don't want to speculate on what would happen if they 't delever. We do think that we have a plan in place to do that, of course, as all companies.

Joe Papa: All right. Let me take that one. Sam can add anything. Number one, we have specifically laid out the plans for how we will do this. As we've stated publicly, our plans will be that as we think through the Bausch Health, and I wanna keep most of our comments today to Bausch + Lomb, to be clear. But as we think about Bausch Health, Bausch Health has stated and agreed that we will do a full separation or spin at the time that Bausch Health gets to a leverage profile of 6.5, 6.7 times. Once we get to that point, we'll do that. As we think about that question, there's gonna be a couple different variables that we have to consider in that question.

Joseph Papa: All right. Let me take that one. Sam can add anything. Number one, we have specifically laid out the plans for how we will do this. As we've stated publicly, our plans will be that as we think through the Bausch Health, and I wanna keep most of our comments today to Bausch + Lomb, to be clear. But as we think about Bausch Health, Bausch Health has stated and agreed that we will do a full separation or spin at the time that Bausch Health gets to a leverage profile of 6.5, 6.7 times. Once we get to that point, we'll do that. As we think about that question, there's gonna be a couple different variables that we have to consider in that question.

Speaker 1: Let me let me take that with stand good I think number one we have specifically laid out that the plans for how we will do this as we 've. St publicly our plans will be that as we think through the bowch health and I want to keep most of our comments today to boouch L to be clear. But as we think about bowch health boouch health house as stated and agreed that we will do a full separation or spin at the time that bowch health gets to a leverage profile of six point five six point seven times and once we get to that point we will do that as we think about that question there's going to be a couple different variables that we have to consider in that question. The first obviously is the performance of boouch health as bowch health continues to improve their performance that will be an opportunity to pay down more debt. It also will be the performance of the B N L business of course as B L.

Joe Papa: The first, obviously, is the performance of Bausch Health. As Bausch Health continues to improve their performance, that will be an opportunity to pay down more debt. It also will be the performance of the B&L business, of course. As B&L continues to perform, we'll have an opportunity to improve our capabilities, and that will also, when Bausch Health monetizes the remaining 8.7%, that obviously would be another way to de-lever. Finally, there's the value of the Salix business that also will be a consideration for Bausch Health as they think about this de-levering. Clearly we have all the plans in place to make that happen. As to what could happen there, I really don't wanna speculate on what would happen if they don't de-lever.

Joseph Papa: The first, obviously, is the performance of Bausch Health. As Bausch Health continues to improve their performance, that will be an opportunity to pay down more debt. It also will be the performance of the B&L business, of course. As B&L continues to perform, we'll have an opportunity to improve our capabilities, and that will also, when Bausch Health monetizes the remaining 8.7%, that obviously would be another way to de-lever. Finally, there's the value of the Salix business that also will be a consideration for Bausch Health as they think about this de-levering. Clearly we have all the plans in place to make that happen. As to what could happen there, I really don't wanna speculate on what would happen if they don't de-lever.

Speaker 5: Continues to perform will have an opportunity to improve our capabilities, and that will also when bwshel monetizees the remaining 9%. That obviously will be another way to delever. And then finally, the value of the Sal of business. That also will be a consideration for for bwshe, LF as they think about this delevering. So clearly we have all the plans in place to make that happen. As to what could happen there, I really don't want to speculate on what would happen if they don't delever. We do think that we have a plan in place to do that, of course, as all companies.

Joe Papa: We do think that we have a plan in place to do that. Of course, as all companies do, we have a multiple different scenarios that we'll look at from a business planning point of view, but we absolutely expect that we're gonna be able to move forward to de-lever the Bausch Health business as we've stated publicly.

Joseph Papa: We do think that we have a plan in place to do that. Of course, as all companies do, we have a multiple different scenarios that we'll look at from a business planning point of view, but we absolutely expect that we're gonna be able to move forward to de-lever the Bausch Health business as we've stated publicly.

Speaker 24: Do we have a multiple different scenarios that we look at a business planning point of view, but we absolutely expect that we're going to move forward to the delever, the battish health business, as we've stated publicly.

Speaker 5: Do we have a multiple different scenarios that we'll look at from a business planning point of view, but we absolutely expect that we're going to move forward to the delever, the bollish health business, as we've stated publicly. Great thanks.

Speaker 8: Great Thank lot.

Robbie Marcus: Great. Thanks a lot.

Joe Papa: Thank you.

Joseph Papa: Thank you.

Speaker 22: thankyou I your next question, Please? Certainly the next question is coming from Doran, lunch from City Joan. Your lines of live, Please go ahead.

Zachary Weiner: Operator, next question, please.

Operator 2: Certainly. The next question is coming from Joanne Wuensch from Citi. Joanne, your line is live. Please go ahead.

Operator: Certainly. The next question is coming from Joanne Wuensch from Citi. Joanne, your line is live. Please go ahead.

Speaker 5: Thank you, I very next question, Please. Certainly the next question is coming from joran lunch from City. Joanne, your lines of live, Please go ahead.

Speaker 25: Thank you good morning and congrapps in your first call. I want to spend a little bit of time on the context lend market. We tend to divide between unit growth as well as reported revenue growth or even organic revenue growth and way you want to look at it. But.

Robbie Marcus: Thank you. Good morning, and also congrats on your first call. I wanna spend a little bit of time on the contact lens market. We tend to divide between unit growth as well as, you know, reported revenue growth, or even organic revenue growth, any way you wanna look at it. Specifically, how much of your growth is coming from sort of the cannibalization of older lenses versus new fits? And can you just pull this apart in the US geography as well as anything outside United States you can point to? Thank you.

Joanne Wuensch: Thank you. Good morning, and also congrats on your first call. I wanna spend a little bit of time on the contact lens market. We tend to divide between unit growth as well as, you know, reported revenue growth, or even organic revenue growth, any way you wanna look at it. Specifically, how much of your growth is coming from sort of the cannibalization of older lenses versus new fits? And can you just pull this apart in the US geography as well as anything outside United States you can point to? Thank you.

Speaker 11: Thank you, a good morning and I'll conperwrats in your first call. I want to spend a little bit of time on the conxt lens market. We tend to divide between unit growth as well, as you know, reported revenue growth or even organic revenues. Right and way, want to look at it, but specifically how much of your growth is coming from sort of the cannibalization of older lenses versus new fits, and can you just pull this apart in the? U's geography as well as anything outside United States you can point to? Thank yousure. Let me start on that question. You know, first and foremost, I think what we've been looking at is in terms of our growth. Look at U's versus U's. We've been, we've had a chance to show the? U S.

Speaker 26: Specifically how much of your growth is coming from sort of the cannibalization of older lenses versus new fits?

Speaker 25: And can you just pull this apart in the? U's geography, as well as anything outside the United States you can point to. Thank you.

Joe Papa: Sure. Let me start on that question. You know, first and foremost, I think what we've been looking at is in terms of our growth, looking at US versus OUS. We've had a chance to show the US share of our business growing from somewhere, let's call it 9%, up to the latest data was somewhere around 14.5%. We've been able to show some very significant growth in our US, predominantly behind the growth of the newer products, both our Biotrue ULTRA, and then now importantly, our INFUSE product, the Daily SiHy product. That's probably the first thing I'd talk about in terms of the overall growth is our performance, especially in the US, where we've seen some very significant growth in our contact lens business.

Joseph Papa: Sure. Let me start on that question. You know, first and foremost, I think what we've been looking at is in terms of our growth, looking at US versus OUS. We've had a chance to show the US share of our business growing from somewhere, let's call it 9%, up to the latest data was somewhere around 14.5%. We've been able to show some very significant growth in our US, predominantly behind the growth of the newer products, both our Biotrue ULTRA, and then now importantly, our INFUSE product, the Daily SiHy product. That's probably the first thing I'd talk about in terms of the overall growth is our performance, especially in the US, where we've seen some very significant growth in our contact lens business.

Speaker 27: Sure let me start on that question. First and foremost, I think what we've been looking at is in terms of our growth, looking at U's versus o U's been. We've had a chance to show the? U S.

Speaker 27: Share of our business growing from somewhere it's called 9% up to the latest data was some around 14 a half percent. So we've been able to show some very significant growth in our U's predominantly behind the growth of the newer products both our Biotrue Ultra and then now importantly our our infused product. The daily side high products so that that's probably the I think the first thing I talked about. In terms of the overall growth is our performance especially in the U's where we've seen some very significant growth in our contact lens business. Probably the second thing I would talk about some in terms of cannibalization. This really comes into the question of of what we're looking at from the.

Speaker 5: Share of our business growing from somewhere let's called 9% up to the latest data was some around 14 a half percent. So we've been able to show some very significant growth in our? U's predominant behind the growth of the newer products, both our Biotrue Ultra and then now importantly, our infused product, the daily SI high products. So that that's probably the. I think the first thing I talked about in terms of the overall growth is our performance, especially in the? U us where we've seen some very significant growth in our contact L business. Probably the second thing I would taltalk about some in terms of cannibalization. This really comes into the question of of what we're looking at from the launch- our daily SI high, our infused product. Remarkably, our cannibalization of our existing products has been lower than we've expected. What we've actually picked up on the infused product is we've picked up share from our competitors.

Joe Papa: Probably the second thing I would talk about in terms of cannibalization. This really comes into the question of what we're looking at from the launch of our Daily SiHy, our INFUSE product. Remarkably, our cannibalization of our existing products has been lower than we've expected. What we've actually picked up on the INFUSE product is we picked up share from our competitors, as well as brand-new patient starts have come to our INFUSE product. We've been very happy with what we've seen from a cannibalization. It's been lower than we've expected. A large percentage, you would imagine, has come from the other Daily SiHy lenses.

Joseph Papa: Probably the second thing I would talk about in terms of cannibalization. This really comes into the question of what we're looking at from the launch of our Daily SiHy, our INFUSE product. Remarkably, our cannibalization of our existing products has been lower than we've expected. What we've actually picked up on the INFUSE product is we picked up share from our competitors, as well as brand-new patient starts have come to our INFUSE product. We've been very happy with what we've seen from a cannibalization. It's been lower than we've expected. A large percentage, you would imagine, has come from the other Daily SiHy lenses.

Speaker 24: Launch our daily side high our in fuse product. Remarkably, our cannibalization of our existing products has been lower than we've expected. What we've actually picked up on the INFUSE product is we picked up share from our competitors as well as brand new patient starts have come to our our in fuse products. So we've been very happy with what we've seen from a cannibalization. It's been lower than we've expected. A large percentage you would imagine has come from the other daily side high length. Importantly, what we believe that the problem out there- the current daily high prior to the launch of our in fuse or ultra one day we go outside the u's- the issue has been the existing products still have a problem causing contact lens draing us. one of the things that we were able to do with our product by putting otoal protect ance- an electure Lights in moisturizers into the formulation is we've get very high response from patients in terms of the ability to where their products all they long. We think that's an important part of how we will be successful with the launch of our INFUSE or ultra one day we go outside the United States. So I think I've got most of the questions that are in terms of context: L market growth, we clearly see the daily side business growing dramatically. Where we launch in fuse in the United States for examplewe have the best date in U's. We know that where we have the fit sets we have about a 14 perset market share. So obviously that's very positive for us- is we think about a product category in the United States is going from like one billion up to about a $3 billion category by 20- 30. So we're excited about what it means and where we'll pick up business. There will be some cannibaliz of our old the brands but the majority of it so far has come from competiitive products and new patient starts is probably best answer to your question and join just to what said. We did include our information on the products. Our Ning exact but you'll see that buy through grewing the quarter up it organically and ultra grouw about 4% Act that was standing solve product. That would that a lot down.

Speaker 5: As well as brand new patient starts have come to our our infuse products. So we've been very happy with what we've seen from a cannibalization. It's been lower than we've expected a large percentage. You would. Imagine has come from the other daily side high lensthus. Importantly what we believe that the problem out there the current daily side highs prior to the launch of our infuse or ultra one day we go outside the U 's. The issue has been the existing products still have a problem caussing contact lens drywnessus one of the things that we were able to do with our product by putting optimal protectants and electurelyit. In moisturizers into the formulation is we've get very high response from patients in terms of the ability to where their products all day long. We think that's an important part of how we will be successful with the launch of our infuse or ultra one day. We go outside the United States So.

Joe Papa: Importantly, what we believe the problem out there on the current Daily SiHy prior to the launch of our INFUSE or ULTRA One Day, we call it outside the US, the issue has been the existing products still have a problem causing contact lens dryness. One of the things that we were able to do with our product by putting osmoprotectants and electrolytes in, and moisturizers into the formulation, is we get very high response from patients in terms of the ability to wear their products all day long. We think that's an important part of how we will be successful with the launch of our INFUSE or ULTRA One Day, we call it outside the United States. I think I've got most of the questions there in terms of contact lens market growth.

Joseph Papa: Importantly, what we believe the problem out there on the current Daily SiHy prior to the launch of our INFUSE or ULTRA One Day, we call it outside the US, the issue has been the existing products still have a problem causing contact lens dryness. One of the things that we were able to do with our product by putting osmoprotectants and electrolytes in, and moisturizers into the formulation, is we get very high response from patients in terms of the ability to wear their products all day long. We think that's an important part of how we will be successful with the launch of our INFUSE or ULTRA One Day, we call it outside the United States. I think I've got most of the questions there in terms of contact lens market growth.

Joe Papa: We clearly see the Daily SiHy business growing dramatically. Where we launched INFUSE in the United States, for example, we have the best data in the US. We know that where we have the fit sets, we have about a 14% market share. Obviously that's very positive for us as we think about a product category in the United States that's going from like $1 billion up to about a $3 billion category by 2030. We're excited about what it means and where we'll pick up business. There will be some cannibalization for our older brands, but majority of it so far has come from competitive products and new patient starts is probably the best answer to your question.

Joseph Papa: We clearly see the Daily SiHy business growing dramatically. Where we launched INFUSE in the United States, for example, we have the best data in the US. We know that where we have the fit sets, we have about a 14% market share. Obviously that's very positive for us as we think about a product category in the United States that's going from like $1 billion up to about a $3 billion category by 2030. We're excited about what it means and where we'll pick up business. There will be some cannibalization for our older brands, but majority of it so far has come from competitive products and new patient starts is probably the best answer to your question.

Speaker 5: I think I've gotten most of the questions there. In terms of context, ence market growth, we clearly see the daily side high business growing dramatically. Where we launched, in fws in the United States, for example, we have the best data in the? U's. We know that where we have the fit sets we have about a 14% market share. So obviously that's very positive for us. As we think about a product category, United States is going from like one billion up to about a $3 billion category by 2030, So we're excited about what it means and where we'll pick up business. There will be some cannibalization of our older brands, but the majority of it so far has come from competitive products and new patient starts is probably the best answer to your question and join, just add to what you said. We did include certain information on the products in our earnings se. You'll see that to buy through grew in the quarter up 8% organically and ultra grew about 4% organically, not withstanding softnessnect that would be in that China locked down.

Sam Eldessouky: Joanne, just to add to what Joe said, we did include certain information on the products in our earnings deck. You'll see that the Biotrue grew in the quarter roughly about 8% organically, and ULTRA grew about 4% organically, notwithstanding the softness that we've seen in the China lockdown.

Speaker 1: Thank you.

Robbie Marcus: Thank you.

Joanne Wuensch: Thank you.

Speaker 28: Thank you. Your next question is coming from PO Chickering from voche Bank PO. Your line is live. Please go ahead.

Operator 2: Thank you. Your next question is coming from Pito Chickering from Deutsche Bank. Tito, your line is live. Please go ahead.

Operator: Thank you. Your next question is coming from Pito Chickering from Deutsche Bank. Tito, your line is live. Please go ahead.

Speaker 12: Thank you. Your next question coming from P o trickering from going to B. know your line of live. Please go ahead, morning guys, I think. Take my questions back in December , in January , to see you'were able to increase prices, help offset the inflationary pressurescan going to buy for what percent of your portfolio you'were able to increase those prices for and those increases had to had any negative impact on demand. And also, if inflation continues going forward, are we still confidending and keep on passing through these price increases to consumers in that impacting demand? Thanks so muchgreat question. Let', S let's start with the startcle. Your 100% correct. In that January time frame we did take pricing. We took pricing on our prescription pharmaceutical product portfolio that was in the all part mid single digits. Now I want to be clear that when you take pricing, even at, let's just see 5% of the example.

Robbie Marcus: Hey, good morning, guys. Thanks for taking my questions. Back in December and January this year, you were able to increase prices to help offset the inflationary pressures. Can you quantify for us what percentage of your portfolio you were able to increase those prices for? If those increases had any negative impact on demand? Also, if inflation continues going forward, are you still confident that you can keep on passing through these price increases to consumers without impacting demand? Thanks so much.

Pito Chickering: Hey, good morning, guys. Thanks for taking my questions. Back in December and January this year, you were able to increase prices to help offset the inflationary pressures. Can you quantify for us what percentage of your portfolio you were able to increase those prices for? If those increases had any negative impact on demand? Also, if inflation continues going forward, are you still confident that you can keep on passing through these price increases to consumers without impacting demand? Thanks so much.

Speaker 29: agg. Warning guys, I think take my questions.

Speaker 29: Back in December , in generuary, to see you're able to increase prices, help offset the inflationrate pressures.

Speaker 29: Ke going buy for us what percent of your portfolio you'were able to increase those prices for? Ne increases had to had any negative impact on demand and also, if inflation continues going forward, are we still confident you can keep on passing through these price increases to consumers without impacting demand? Thanks so much.

Joe Papa: Yeah, great question. Let's start with historical. You're 100% correct. In that January timeframe, we did take pricing. We took pricing on our prescription pharmaceutical product portfolio. That was in the ballpark mid-single digits. Now, I wanna be clear, that when you take pricing even at, let's just use 5% as an example. If you take a 5% pricing, you're not gonna realize a 5% pricing. You're gonna have to offset that with some additional gross-to-net reductions, et cetera. We did take pricing on our prescription business, yes. In addition, we took pricing on our consumer business. In that case, we took the action on the consumer business in January, but we did not see the actual realized pricing there until really in the March timing.

Joseph Papa: Yeah, great question. Let's start with historical. You're 100% correct. In that January timeframe, we did take pricing. We took pricing on our prescription pharmaceutical product portfolio. That was in the ballpark mid-single digits. Now, I wanna be clear, that when you take pricing even at, let's just use 5% as an example. If you take a 5% pricing, you're not gonna realize a 5% pricing. You're gonna have to offset that with some additional gross-to-net reductions, et cetera. We did take pricing on our prescription business, yes. In addition, we took pricing on our consumer business. In that case, we took the action on the consumer business in January, but we did not see the actual realized pricing there until really in the March timing.

Speaker 27: A great question. Let's start with historical. Your're 100% correct. In that January timeframe we did take pricing. We took pricing on our prescription pharmaceutical product portfolio that was in the wallpark midsingle digits. Now I want to be clear that when you take pricing- even that', S use 5% as an example- if you take a 5% pricing you're not going to realize a 5% pricing. You're going to you're going to have to offset that with some additional gth in net reductions, etce. So we did take pricing on our prescription business yes, in addition, we took pricing on our consumer business.

Speaker 5: If you take a 5% pricing you're not going to realize a 5% pricing' you're going to have to offset that with some additional gross in that, reductions et cetera. So we did pay pricing on our prescription business, yes. In addition, we took pricing on our consumer business and in that case we to on the consumer business the action in January . But we did not see the actual to realize pricing there until really in the March timing. We have to give retailers proximiz 2% to three months of time to build that into their, into their process. So that did not really occur TIL March where we have seen that in both the pricing aspects of what we saw, on both the consumer as well as on the prescription side, we did not see any deimulation of the.

Speaker 27: And in that case we took on the consumer business the action in January but we did not see the actual realized pricing there until really in the March. Timing we have to give retailers approximiz two to three months of time to build that into their into their process so that did not really occur TIL March. But we have seen that in both the pricing aspects of what we saw on both the consumer as well as on the prescription side. We did not see any dimination of the.

Joe Papa: We have to give retailers approximately two to three months of time to build that into their process. That did not really occur till March, but we have seen that. In both the pricing aspects of what we saw on both the consumer as well as on the prescription side, we did not see any diminution of the demand for either of those categories. We are continuing to be able to pass on that price. On the other area, on the vision contact lens business, we did also take pricing there, ballpark in that mid-single-digit areas where we took pricing, and that did occur in that January timeframe. Now, as to the question on going forward, we do expect that inflation is real.

Joseph Papa: We have to give retailers approximately two to three months of time to build that into their process. That did not really occur till March, but we have seen that. In both the pricing aspects of what we saw on both the consumer as well as on the prescription side, we did not see any diminution of the demand for either of those categories. We are continuing to be able to pass on that price. On the other area, on the vision contact lens business, we did also take pricing there, ballpark in that mid-single-digit areas where we took pricing, and that did occur in that January timeframe. Now, as to the question on going forward, we do expect that inflation is real.

Speaker 27: The demand for either of those categories, So we are continuing to be able to pass on that price. On the other area, on the vision.

Speaker 5: The demand for either of those category, So we are continuing to be able to pass on that price. On the other area, on the vision contact lens business, we did also take pricing there ballpark, in that mid single diginess areas where we took pricing, and that did occur in that January time frame. Now, as to the question on go forward, we do think that inflation is real. It's something we are going to look to take additional pricing we have not seen a really different demand from the prices we've taken in the past. We will continue to look at this. It's something that we do believe is part of our need to look at this from an inflationary pressure that we're facing. Beyond in, beyond the pricing aspect, though I want to be very clear and, as we're thinking about the future, we're thinking about not just simply on a price as a, the actual selling price. We're all looking at other things like discounts and other rebates in terms of how we take a look at the challenge we face from an inflationary pressure.

Speaker 4: Contact lens business. We did also take pricing there ballpark, in that mid single business areas where we took pricing, and that did occur in that January time frame. Now, as to the question on go forward, we do think that inflation is real. It's something we are going to look to. Take additional pricing: we have not seen a really different demand from the prices we've taken in the past. We will continue to look at this. It's something that we do believe is part of our need to look at this from an inflationary pressure that we're facing beyond, beyond the pricing aspect though, I want to be very clear and, as we're thinking about the future, we're thinking about not just simply on a price as a, the actual selling price. We all looking at other things like discount and other rebates, in terms of how we take a look at the challenge we face from an inflationary pressure. We've also, as a go forward Institute of what we refer to as project core, project core standfor, cost optimization, revenue enhancement. That's a program that we're looking at through our entire.

Joe Papa: It's something we are going to look to take additional pricing. We have not seen a really different demand from the prices we've taken in the past. We will continue to look at this. It's something that we do believe is part of our need to look at this from an inflationary pressure that we're facing. Beyond the pricing aspect, though, I wanna be very clear, and as we're thinking about the future, we're thinking about it not just simply on a price as the actual selling price, but we're also looking at other things like discounts and other rebates in terms of how we can take a look at the challenge we face from an inflationary pressure. We've also, as a go forward, instituted what we refer to as Project CORE.

Joseph Papa: It's something we are going to look to take additional pricing. We have not seen a really different demand from the prices we've taken in the past. We will continue to look at this. It's something that we do believe is part of our need to look at this from an inflationary pressure that we're facing. Beyond the pricing aspect, though, I wanna be very clear, and as we're thinking about the future, we're thinking about it not just simply on a price as the actual selling price, but we're also looking at other things like discounts and other rebates in terms of how we can take a look at the challenge we face from an inflationary pressure. We've also, as a go forward, instituted what we refer to as Project CORE.

Joe Papa: Project CORE stands for Cost Optimization Revenue Enhancement. That's a program that we're looking at through our entire all the different P&L aspects of like manufacturing, everywhere we can do to reduce obsolescence, to re-improve yield, to try to move forward with additional response to the inflationary pressure now, to get ahead of this rather than to be responding to it. We wanna continue to get ahead of this, because we do see inflationary pressures and, you know, everything from, you know, the resins we purchase for the polymers, energy obviously, and shipping. We're trying to get ahead of that, and we think Project CORE is gonna help us get ahead of that as we think through this going forward. Do you have anything you wanna add to what I said?

Joseph Papa: Project CORE stands for Cost Optimization Revenue Enhancement. That's a program that we're looking at through our entire all the different P&L aspects of like manufacturing, everywhere we can do to reduce obsolescence, to re-improve yield, to try to move forward with additional response to the inflationary pressure now, to get ahead of this rather than to be responding to it. We wanna continue to get ahead of this, because we do see inflationary pressures and, you know, everything from, you know, the resins we purchase for the polymers, energy obviously, and shipping. We're trying to get ahead of that, and we think Project CORE is gonna help us get ahead of that as we think through this going forward. Do you have anything you wanna add to what I said?

Speaker 5: We've also as a go-forward Institute of what we refer to as project core project. Core standfer cost optimization revenue enhancement that's a program that we're looking at through our entire. All the different pnl aspects of like manufacturing everywhere we can do to reduce obsolescence to improve yield to try to move forward with additional response to the inflationary pressure. Now to get ahead of this rather than to be responding to it want to continue to get ahead of this because we do see inflationary pressures and everything from the residence we purchase for the polymersthis energy obviously and shipping. So we're trying to get ahead of that and we think project court isgoing to help us get ahead of that as we think through this going forward and want to add to what.

Speaker 18: All the different pnl aspects of like manufacturing everywhere we can do to reduce obsolescence, improve yield, to try how to move forward with additional respondse to the inflationary pressure now to get ahead of this rather than to be responding to it. Want to continue to get ahead of this because we do see inflationary pressures and everything from the residence we purchase for the polymmer' energy obviously, and shipping. So we're trying to get ahead of that and we think project court is to help us get ahead of that. As we think through this going forward, they we want to add to what.

Joanne Wuensch: No. I'm perfect.

Pito Chickering: No. I'm perfect.

Speaker 10: Thank you AB next question, Please.

Joe Papa: Thank you. Operator, next question, please.

Joseph Papa: Thank you. Operator, next question, please.

Operator 2: Certainly. The next question is coming from Cecilia Furlong with Morgan Stanley. Cecilia, your line is live. Please go ahead.

Operator: Certainly. The next question is coming from Cecilia Furlong with Morgan Stanley. Cecilia, your line is live. Please go ahead.

Speaker 2: Apparently the next question is coming from cecilliia. furwhile with Morgan's famanily. Cecilia, your line is live. Please go ahead.

Speaker 5: Thank you. Every next question Please, ptly. The next question is coming from ceila for law with Morgan Stanley . seclior, your line as live ase, go ahead. Good morning and thank you for taking the question. I wanted to ask specifically on the capital equipment front what you're seeing globally in terms of just demand for capital, especially in this environment, how you contemplated that in your 22 outlook and then also on SPE, here just above a AR, a bit more about the initial days of launch, as well as how you're thinking about that product to the balance of this year in terms of cript. Thank yousure, let me. Let me start in on the capital front. one of the things I want to refer you to, Slide number 27 of our presentation, as we did show all of the top 10 produrctics we have as a company and one of them specifically was the surgical equipment and that shows that firstus a year ago, the capital.

Joanne Wuensch: Great. Good morning, and thank you for taking the questions. I wanted to ask specifically on the capital equipment front, what you're seeing globally in terms of just demand for capital, especially in this environment, how you contemplated that in your 2022 outlook. Also on XIPERE, just would love to hear a bit more about the initial days of launch as well as how you're thinking about that product through the balance of this year in terms of growth. Thank you.

Cecilia Furlong: Great. Good morning, and thank you for taking the questions. I wanted to ask specifically on the capital equipment front, what you're seeing globally in terms of just demand for capital, especially in this environment, how you contemplated that in your 2022 outlook. Also on XIPERE, just would love to hear a bit more about the initial days of launch as well as how you're thinking about that product through the balance of this year in terms of growth. Thank you.

Speaker 30: Good morning and thank you for taking the questions. I wanted to ask specifically on the, the capital equipment front, what you're seeing globally in terms of just demand for capital, especially in this environment, how you contemplated that in your 22 outlook and then also on xyite, pehere just would love to hear a bit more about the, the initial days of launch, as well as how you're thinking about that product to the balance of this year in terms of growth. Thank you.

Speaker 8: Sure let me let me start in on the capital one of the things I want to refer you to Slide number 27 of our presentation and we did show all of the top 10 products. We have as a company and one of them. Specifically was the surgical equipment and that shows that first of a year ago the capital demand has been up flat. There absolutely was increased demand for consumer rules that was up 13% and also the implantic was up four and a half percent. So we did see increased demand for our overall surgical business as we stated but the actual capital demand has a slowed down. A little bit was not surprising to us. It's part of what we had expected. We do see that that will improve as we work our way through some of the.

Joe Papa: Sure. Let me start on the capital front. One of the things I wanna refer you to on slide number 27 of our presentation is we did show all of the top 10 products we have as a company, and one of them specifically was the surgical equipment. That shows that versus a year ago, the capital demand has been, I'll call it flat. There absolutely was increased demand for consumables. It was up 13%, and also the implantables up 4.5%. We did see increased demand for our overall surgical business, as we stated, but the actual capital demand has slowed down a little bit, which is not surprising to us. It's part of what we had expected.

Joseph Papa: Sure. Let me start on the capital front. One of the things I wanna refer you to on slide number 27 of our presentation is we did show all of the top 10 products we have as a company, and one of them specifically was the surgical equipment. That shows that versus a year ago, the capital demand has been, I'll call it flat. There absolutely was increased demand for consumables. It was up 13%, and also the implantables up 4.5%. We did see increased demand for our overall surgical business, as we stated, but the actual capital demand has slowed down a little bit, which is not surprising to us. It's part of what we had expected.

Speaker 5: Demand has been up flat. There absolutely was increased demand for consumer rles- it wasup up 13% and also the implantableles up four point half percent. So we did see increased demand for our overall surgical business, as we stated, but the actual capital demand has slowed down a little bit. Was's not surprising to us? It's part of what we had expected. We do see that that will inimprove as we work our way through some of the issues that we're currently seeing in the marketplace, but we did see the growth clearly in the consumables and the implantable side of the business, as it would relate to Z peer. What we're really excited about is the response rate. We showed the response rate in our information- very, very clear response rate for patients when we use Z PE. The specific data is on Page 17 of our presentation.

Joe Papa: We do see that that will improve as we work our way through some of the issues that we're currently seeing in the marketplace. We did see the growth clearly in the consumables and the implantable side of the business. As it would relate to XIPERE, what we're really excited about is the response rate. We showed the response rate in our information. Very clear response rate for patients when you use XIPERE. The specific data is on page 17 of our presentation. The best corrected visual acuity has increased dramatically. You can see that we had 46.9% improvement versus the control group only had a 15.6%. That is the reason why we're getting very favorable feedback from the initial launch of the product.

Joseph Papa: We do see that that will improve as we work our way through some of the issues that we're currently seeing in the marketplace. We did see the growth clearly in the consumables and the implantable side of the business. As it would relate to XIPERE, what we're really excited about is the response rate. We showed the response rate in our information. Very clear response rate for patients when you use XIPERE. The specific data is on page 17 of our presentation. The best corrected visual acuity has increased dramatically. You can see that we had 46.9% improvement versus the control group only had a 15.6%. That is the reason why we're getting very favorable feedback from the initial launch of the product.

Speaker 4: Issues that we're currently saying in the marketplace. But we did see the growth clearly in the consumables, in the implantable side of the business, as it would relate to to Z here. What we're really excited about is the response rate. We showed the response rate in our information: very, very clear response rate for for patients. When you use life here. The specific data is page 17 of our presentation. But the best correct visual acuity has increased dramatically. You can see that we had 47% improvement versus the control group only had a 16%. So that is the reason why we're getting very favorable feedback from the initial launch of the product. Now, to be clear, I want to be absolutely clear that this is a product that requires additional training to how to inject into the super corial space. So that's going to take some time, but that that's clear. one of the things that we're thinking about in terms of you know this overall U V U's market being bought. You know a $4 million opportunity the. The actual MAC deem some less than that. You about a third of that for 25% of that. But we clearly think that this in an opportunity because of our response that we've gotten from training of the physicians who've seen a very good receptption as they've used this product. So more to stay tuned for that more to happen, especially as we get additional reimbursement with the product. But we're excited about the initial launch and, most importantly, we're excited about how this is really helping patients by you likeing in the super corial space and we think the super corial space may be a platform for additional product in the future that we hope have more to say about thatin the future.

Speaker 5: But the best correct visual acuity has increased dramatically. You can see that we had 47% improvement versus the control group. Only had a 16%. So that is the reason why we're getting very favorable feedback from the initial launch of the product now to be clear. I want to be absolutely clear that this is a product that requires additional training to how to inject into the supercorial space. So that's going to take some time but that that's clearly one of the things that re we're thinking about in terms of know. This overall U V is U's market being bought. You know a $4 million opportunity. The actual of MAC de is somewhat less than that you about a third of that or 25% of that. But we clearly think that this is an opportunity because of our response that we've gotten from training of the physicians who've seen a very good recaption as they've used this product. So.

Joe Papa: Now to be clear, I wanna be absolutely clear that this is a product that requires additional training to how to inject into the suprachoroidal space, so that's going to take some time. That, that's clearly one of the things that we're thinking about in terms of, you know, this overall uveitis US market being about, you know, a $400 million opportunity. The actual macular edema is so much less than that, you know, about a third of that or 25% of that. We clearly think that this is an opportunity because of our response that we've gotten from training of the physicians who've seen a very good reception as they've used this product. More to stay tuned for that, more to happen, especially as we get additional reimbursement with the product.

Joseph Papa: Now to be clear, I wanna be absolutely clear that this is a product that requires additional training to how to inject into the suprachoroidal space, so that's going to take some time. That, that's clearly one of the things that we're thinking about in terms of, you know, this overall uveitis US market being about, you know, a $400 million opportunity. The actual macular edema is so much less than that, you know, about a third of that or 25% of that. We clearly think that this is an opportunity because of our response that we've gotten from training of the physicians who've seen a very good reception as they've used this product. More to stay tuned for that, more to happen, especially as we get additional reimbursement with the product.

Joe Papa: We're excited about the initial launch, and most importantly, we're excited about how this is really helping patients, by utilizing the suprachoroidal space. We think the suprachoroidal space may be a platform for additional products, in the future that we hope to have more to say about that in the future. Thank you for your question. Operator, next question, please.

Joseph Papa: We're excited about the initial launch, and most importantly, we're excited about how this is really helping patients, by utilizing the suprachoroidal space. We think the suprachoroidal space may be a platform for additional products, in the future that we hope to have more to say about that in the future. Thank you for your question. Operator, next question, please.

Speaker 5: More to stay tuned for that more to happen especially as we get additional reimbursement with the product. But we're excited about the initial launch and most importantly we're excited about how this is really helping patients but you like in the supercorial space and we think the superial space may be a platform for additional products in the future that we hope have more to say about that in the futurethank F question operate next question. Please certainly the next question is coming from I mean has on with Goldman. sax I mean your line of life. Please go ahead think this is fell on for a meetand. We take the question that I'd ask a broader pictureor question as well. Balance sheet very strong strong free cash flow generation maybe just touch on capital allocation priorities for the company and then to some of the prior questions interested if if burdening and with additional debt is a potentiality in the future depending on how things play out with the pir company to help you thanks particking the question IA. It's a good question. i'also with the capital allocation I would just focus on sort where we.

Speaker 18: Thank you for your question. afterperor your next question, Please.

Operator 2: Certainly. The next question is coming from Amit Hazan with Goldman Sachs. Amit, your line is live. Please go ahead.

Operator: Certainly. The next question is coming from Amit Hazan with Goldman Sachs. Amit, your line is live. Please go ahead.

Speaker 2: Certainly the next question is coming from aneat. Has on with Goldman Sachs and eet your line of life. Please go ahead.

Speaker 31: I think this is fell on for me and should take the question, but I'd ask a broader picture question as well. Balance sheet: very strong strongk free cash flow generation.

Pito Chickering: Hi, thanks. This is Phil on for Amit. Thanks for taking the question. Thought I'd ask a broader picture question as well. Balance sheet, very strong free cash flow generation. Maybe just touch on capital allocation priorities for the company, and then to some of the prior questions. I'm interested if burdening Bausch + Lomb with additional debt is a potentiality in the future, depending on how things play out at the parent company to help deliver. Thanks for taking the question.

Amit Hazan: Hi, thanks. This is Phil on for Amit. Thanks for taking the question. Thought I'd ask a broader picture question as well. Balance sheet, very strong free cash flow generation. Maybe just touch on capital allocation priorities for the company, and then to some of the prior questions. I'm interested if burdening Bausch + Lomb with additional debt is a potentiality in the future, depending on how things play out at the parent company to help deliver. Thanks for taking the question.

Speaker 18: Maybe just touch on capital allocation priorities for the company and then to some of the prior questions interested: if, if burdening bolch and long with additional debt is a potentiality in the future, depending on how things play out at the parent company. To help you over, thanks particular question.

Speaker 10: I me it's a good question. Also with the capital allocation. I ll just focus on sort, where we are and what we also done in the last couple of years, I think in the past number of years. We invest directly about two billion in the BNL business. Since 2018, half ple that came into R and D investment- about 700- but that two billion in capx investment and that was very important for us to invest in our platform to be able to enable us to see what we are seeing today in terms of launches and the product that we're able to bring to the market. And as we go forward, I think we'll continue to have the same level of investment in our business between the R and d- about 7% of sales. When we think about capastics, sort re think about about 200 to 200 two, 25 billion. We build Ty good capacity to allow us to support our launches and what we need for the next number of years and right now we're Turning our attention to ensure that are building for the future, for a line for additional growth as we go forward with the spend that we're doing. So I think that you'll find investment our platform is going to be a key priority for us. We also did talk about the opportunity for us as we now on a standalone base, we'll be able to deploy some of our cash and our balance sheet towards the acquisitions- maybe on the both side- of bothlt-on type of acquisitions, and they're going tobe be very strategic as we think about where we are within the marketplace, where we can leverage our infrastructure commercial for structure. We can scale it even further than what we have now by pointing in some of the product or acquisitions into our portfolio. From that on BNL, we raised about two point five billion.

Sam Eldessouky: Thanks, Sam. Yeah, it's a good question. I'll start with the capital allocation. I would just focus on sort of where we are and what we also have done in the last couple of years. I think in the past number of years, we invested roughly about $2 billion in the B&L business since 2018. About half of that came into R&D investments, about $700 million of that $2 billion was about in CapEx investment. That was very important for us to invest in our platform, to be able to enable us to see what we are seeing today in terms of launches and the products that we're able to bring to the market. As we go forward, I think we'll continue to have the same level of investment in our business between the R&D, about 7% of sales.

Speaker 6: Are and what we also have done in the last couple of years, I think in the past number of years. We invest dructly about two billion in the BNL business. Since 2018. half of that came into R and the investment about 700, but that two billion was in CapEx investment and that was very important for us to invest in our platform to be able to enable us to see what we are seeing today in terms of launches and the products that we're able to bring to the market. And as we go forward, I think we'll continue to have the same level of investment in our business between the R? D of about 7% of sales. When we think about the capeics, we're Thin about about 200 to 200. twotwentthousand five billion. We build pret good capacity to allow us to support our launches and what we need for the next number of years, and right now we're Turning our attention to ensure that we are building for the future, for a lot for additional growth as we go forward with the spend that we're doing. So I think that you'll find the investment our platform is going to be a key priority for us.

Sam Eldessouky: When we think about CapEx, we're thinking about it about $200 to 225 million. We've built pretty good capacity to allow us to support our launches and what we need for the next number of years. Right now we're turning our attention to ensure that we are building for the future, for allowing for additional growth as we go forward with the spend that we're doing. I think that you'll find that investment on our platform is gonna be a key priority for us. We also did talk about the opportunity for us as we now, on a standalone basis, will be able to deploy some of our cash and our balance sheet towards the acquisitions, mainly on the bolt-on side of bolt-on type of acquisitions.

Speaker 6: We also did talk about the opportunity for us, as we now on a stand-alone basase, we'll be able to deploy some of our cash and our balance sheet towards the acquisitions- mainia on the both sside of bolt-on type of acquisitions- and are're going to be very strategic as we think about where we are within the marketplace, where we can leverage our infrastructure, commercial infrastructure- we can scale it even further than what we have now by putlling in some of this product or acquisitions into our portfolio. From on BNL, we raised two point five billion.

Sam Eldessouky: They're gonna be very strategic as we think about where we are within the marketplace, where we can leverage our infrastructure, commercial infrastructure, and we can scale it even further than what we have now, by pulling in some of those products or acquisitions into our portfolio. From a debt on B&L, we raised about $2.5 billion as part of the IPO. It's important to step back and just reflect in terms of the capital structure that we deployed within B&L. I think we focused on what we wanted and how we wanted B&L to be structured from a sufficient capital structure going forward, ensuring that we will be able to get to an investment-grade rating as we do the spin-off.

Speaker 11: Our valpo. It's important to step back and just reflect in terms of that capital structure that we deployed within bl. I think we focused on what we wanted and how we want to bl to B structure from our coefficient capital structure, going forward, ensuring that we will be able to get an investment grade rating as we do that kind off. So that all played in our thinking in terms of how we thought about capital structure and how we thought about where we are from to serve the leverage and now where we are from a balance sheet. I think we're going to be able to continue to focused on the investment grade as we move forward for bl. it'is an important factor for us.

Speaker 6: Our PO. It's important to step back and just reflect in terms of that capital structure that we deployed within DL. I think we focused on what we wanted and how we want to DL to B structure from our sufficient capital structure, going forward, ensuring that we will be able to get to an investment grade rating as we do that SP off. So that all played in our thinking in terms of how we thought about that capital structure and how we thought about where we are from to serve the leverage and where we are from a balance sheet, and I think we're going to be able to continue to focused on the investment grade as we move forward, for being out's an important factor for us.

Sam Eldessouky: That all plays into our thinking in terms of how we thought about the capital structure, and how we thought about where we are from a, to sort of, the leverage and, where we are from a balance sheet. I think we're gonna be able to continue to focus on the investment grade as we move forward for B&L. It's an important factor for us.

Speaker 32: If I need to that a little bit to that, because I agree with everything said, is that, as we're thinking about this, we see a the E health excellent market opportunities got strong tail when, whether you're thinking about you know patients over the age of 65 using 10 times more E health than people under the age of 65 example, and we know that thepopulation going increase. We know that there's a my OP epidemic out there, that it's moved from 20% of the population with my OP to for percent on its way to fif percent of the population. So we know about diabetes. All those reasons we think are suggesting it's a good time to invest in a business and I health, whether it the organic side that've reference in the pri part of the conversation or to the in organic side. We we think the markets are going to grow for to 5%. We think we can go at or above market growth rate and then on top of that we have this opportunity now with these new products as well as investing in business development M a opportunities to bolt on additional assets on this capital allocation question. So we think that's a chance to grow organically at or above market growth rate and then bolt on in organic growth o opportunities. We have not had the chance to do that in the past because of some of the debt issues that about health total parent company had. We think this is a great opportunity for the future. Or to magnitude- I don't want you think we're doing billion dollar transactions but billion, multibillion doll transactions. But we do think their opportunities there to do some additional bolt on force specifically in the areas of. We do think are two areas or interested to Lt on some additional assets in the surgical space and also in the optimology prescription SPAC from a capital allocation point of. Those are the areas that we are interested in thinking about going forward.

Joe Papa: If I can just add a little bit to what Sam said, because I agree with everything you said. It's that as we're thinking about this, we see the eye health being an excellent market opportunity. It's got strong tailwind, whether you're thinking about, you know, patients over the age of 65 using 10 times more eye health than people under the age of 65, as an example. We know that the population is going to increase. We know that there's a myopia epidemic out there that it's moved from 20% of the population with myopia to 40% on its way to 50% of the population. We know about diabetes.

Joseph Papa: If I can just add a little bit to what Sam said, because I agree with everything you said. It's that as we're thinking about this, we see the eye health being an excellent market opportunity. It's got strong tailwind, whether you're thinking about, you know, patients over the age of 65 using 10 times more eye health than people under the age of 65, as an example. We know that the population is going to increase. We know that there's a myopia epidemic out there that it's moved from 20% of the population with myopia to 40% on its way to 50% of the population. We know about diabetes.

Speaker 5: If I need to that a little to Sam, because I agree with everything you said, is that, as we're thinking about this, we see a the E health being excellent market opportunity. It's got strong tailwinds, whether you're thinking about. You know patients over the age of 65 using 10 times more E health than people under the age of 65 is example, and we know that the population phone increase. We know that there's a myopia epidemic out there, that it's moved from 20% of the population with my OP to fortypercent on its way to 50% of the population. So we know about diabetes. All those reasons we think are suggesting it's a good time to invest in a business and I health, whether it's the organic side- that that we've referenced in the pri part of the conversation, or to the inorganic side. We think the markets are going to grow four to 5%. We think we can go at or above market growth rates, and then, on top of that, we have this opportunity now with these new products, as well as investing in business development M a opportunities to bolt on additional assets. On this capital allocation question.

Joe Papa: All those reasons we think are suggesting it's a good time to invest in a business in eye health, whether it's the organic side that we've referenced in the prior part of the conversation or to the inorganic side. We think the markets are gonna grow 4% to 5%. We think we can grow at or above market growth rates. On top of that, we have this opportunity now with these new products, as well as investing in business development M&A opportunities to bolt on additional assets on this capital allocation question. We think that's a chance to grow organically at or above market growth rate and then bolt on inorganic growth opportunities. We have not had the chance to do that in the past because of some of the debt issues that Bausch Health, the total parent company had.

Joseph Papa: All those reasons we think are suggesting it's a good time to invest in a business in eye health, whether it's the organic side that we've referenced in the prior part of the conversation or to the inorganic side. We think the markets are gonna grow 4% to 5%. We think we can grow at or above market growth rates. On top of that, we have this opportunity now with these new products, as well as investing in business development M&A opportunities to bolt on additional assets on this capital allocation question. We think that's a chance to grow organically at or above market growth rate and then bolt on inorganic growth opportunities. We have not had the chance to do that in the past because of some of the debt issues that Bausch Health, the total parent company had.

Joe Papa: We think this is a great opportunity for the future. Order of magnitude, I don't want you to think we're doing billion-dollar transactions, but multi-billion dollar transactions, but we do think there are opportunities there to do some additional bolt-ons for us. Specifically in the areas of, we do think there are two areas, we're interested to bolt on some additional assets in the surgical space and also in the ophthalmology prescription spaces from a capital allocation point of view. Those would be the areas that we are interested in thinking about, going forward.

Joseph Papa: We think this is a great opportunity for the future. Order of magnitude, I don't want you to think we're doing billion-dollar transactions, but multi-billion dollar transactions, but we do think there are opportunities there to do some additional bolt-ons for us. Specifically in the areas of, we do think there are two areas, we're interested to bolt on some additional assets in the surgical space and also in the ophthalmology prescription spaces from a capital allocation point of view. Those would be the areas that we are interested in thinking about, going forward.

Speaker 27: However I think we have time for maybe one more question, Please.

Pito Chickering: Operator, I think we have time for maybe one more question, please.

Amit Hazan: Operator, I think we have time for maybe one more question, please.

Operator 2: Certainly. Your final question is coming from Zachary Weiner from Jefferies. Zach, your line is live. Please go ahead.

Operator: Certainly. Your final question is coming from Zachary Weiner from Jefferies. Zach, your line is live. Please go ahead.

Speaker 19: Certainly your final question is coming from Jack Weiner, from jefffriys. Jack, your line is live. Please go ahead.

Speaker 33: Hey thanks, TA King. The question I' just wantder to hit on the 14% market share that you guys talked about in regions, that you had that just today, COL on expanding that broader, more broadly, across the U's, and where, ultimately do you think that you can get that share?

Zachary Weiner: Hey, thanks for taking the question. I just wanted to hit on the 14% market share that you guys talked about, in regions that you have fit sets. Just any color on expanding that fit set more broadly across the US and where ultimately do you think that you can get that share?

Speaker 13: actuallycltaking the question. I just want to hit on the 14% market share that you guys talked about in regions that you had fit that just today. Col on expanding that fit that broader, more broadly, across the U's and where ultimately do you think that you can get that share?

Joe Papa: Yeah. It's an absolutely great question. I want to be specific that the data I shared on that 14% was specific to the US data in terms of where we have fit sets in the US. We have been able to get a 14% share of our INFUSE products. So that just may be one clarity. But do we believe there's an opportunity to continue to expand? The answer is absolutely yes. Look to us as we've now increased our capacity for making contact lenses and the SiHy Daily lens. As we do that, we'll have opportunities to introduce additional fit sets or samples across the broad category of the United States, but also how we're looking at this market opportunity globally.

Joseph Papa: Yeah. It's an absolutely great question. I want to be specific that the data I shared on that 14% was specific to the US data in terms of where we have fit sets in the US. We have been able to get a 14% share of our INFUSE products. So that just may be one clarity. But do we believe there's an opportunity to continue to expand? The answer is absolutely yes. Look to us as we've now increased our capacity for making contact lenses and the SiHy Daily lens. As we do that, we'll have opportunities to introduce additional fit sets or samples across the broad category of the United States, but also how we're looking at this market opportunity globally.

Speaker 27: That's a great question is that I want to be specific that the data I shared on that 14%, it was specific to the? U's data in terms of where we have fits sets. In the? U's we have been able to get a 14% share of our INFUSE products. So that just to make the once clear. But do we believe there's an opportunity to continue to expand? Their answer: absolutely yes. Look to us as we now increase our capacity for making contact lenses and on the this high daily lens, as we do that, we ll have opportunities to roduce additional fits sets, our samples, across the broad category. United States, but also how we're looking at this market opportunity. globway I was that at the end of 20- 20: one had launched an approximately five markets. Now we're up about 20- four markets in terms of the launch of our side high daily lens. So look to us to continue to move for with the opportunities to grow market share of fuse. Importantly though, maybe just one important comment: we think United States, the high daily market is going to grow from about one billion- one billion- last year- to some more closer to $3 billion by 2030- 20 thousand Thirty one We also think the international portion of it's going to growfrom about one and half into about three point seven billion. So you're looking at a market on the daily high lenses is growing from two and a half billion dollars something close to $6 billion globally. So that's why we're excited about this bility to come forward with the contact lens are infuse that we believe delivers on some of the challenges in the current side high daily portfolio product that are available predominantately for addressing this area of contact lens joining us because of our formulation and certainly the patient feedback has been outstanding, based on the patients that we've had a chance to show to So clearly taking look at as we expand our capacity, we absolutely go out more fits sets and more opportunity for the future with our fuse products. So thank you very much for the question. That concludes our presentation and Q a today. Thank you very much for joining. Look forward to getting back and talking to you in the near future. Have a great day of one

Speaker 5: Yeah it's it's that's a great question is that I want to be specific that the data I shared on that 14%. It was specific to the U's data in terms of where we have fitsets in the U 's. We have been able to get a 14% share of our infused product so that just to may be once clarity but do we believe there's an opportunity to continue to expand their answers absolutely yes look to us as we've now increase our capacity for making contact lenses and on this this high daily lens as we do that we'll have opportunities to introduce additional fit sets our samples across the broad category United States but also how we're looking at this market opportunity globally as was that at the end of 20 20 one we had launched in approximately five markets. Now we're up about 20 four markets in terms of the launch of our.

Joe Papa: As I said, at the end of 2021, we had launched in approximately 5 markets. Now we're up to about 24 markets in terms of the launch of our SiHy daily lens. Look to us to continue to move forward with the opportunities to grow market share of INFUSE. Importantly, though, maybe just make one important comment. We think the United States, the SiHy daily market, is gonna grow from about $1.1 billion last year to somewhere closer to $3 billion by 2030, 2031. We also think the international portion of it is gonna grow from about $1.5 billion to about $3.7 billion.

Joseph Papa: As I said, at the end of 2021, we had launched in approximately 5 markets. Now we're up to about 24 markets in terms of the launch of our SiHy daily lens. Look to us to continue to move forward with the opportunities to grow market share of INFUSE. Importantly, though, maybe just make one important comment. We think the United States, the SiHy daily market, is gonna grow from about $1.1 billion last year to somewhere closer to $3 billion by 2030, 2031. We also think the international portion of it is gonna grow from about $1.5 billion to about $3.7 billion.

Speaker 5: sidehigh daily lens. So look to us to continue to move forward with the opportunities to grow market share up and fuse. Importantly though, maybe just one important comment. We think United States the high daily market is going grow from about one billion- will put one billion last year to some where closer to $3 billion- by 2, ythousand 30, twotwentthousand 30, one We also think the international portion of it's going to grow from But one half, about three point seven billion. So you're looking at a market on the daily side. High lens is growing from two and a half billion dollars to something close to $6 billion globally. So that's why we're excited about this bility to come forward with the contact lens are infuse. That we believe delivers on some of the challenges in the current side high daily portfolio product that are available predominantly for addressing this area of contact lens drying. This because of our formulation and certainly the patient feedback has been outstanding, based on the patients that we've had a chance to show it to So clearly, taking a look at as we expand our capacity, we absolutely go out more fit sets and more opportunity for.

Joe Papa: You're looking at a market on the daily SiHy lenses growing from, you know, call it $2.5 billion to something close to $6 billion globally. That's why we're excited about this ability to come forward with a contact lens, our INFUSE, that we believe delivers on some of the challenges in the current SiHy daily portfolio of products that are available, predominantly for addressing this area of contact lens dryness, because of our formulation. Certainly the patient feedback has been outstanding, based on the patients that we've had a chance to show it to. Clearly, taking a look at, as we expand our capacity, we absolutely go out with more fit sets and more opportunity for the future, with our INFUSE product. Thank you very much for the question.

Joseph Papa: You're looking at a market on the daily SiHy lenses growing from, you know, call it $2.5 billion to something close to $6 billion globally. That's why we're excited about this ability to come forward with a contact lens, our INFUSE, that we believe delivers on some of the challenges in the current SiHy daily portfolio of products that are available, predominantly for addressing this area of contact lens dryness, because of our formulation. Certainly the patient feedback has been outstanding, based on the patients that we've had a chance to show it to. Clearly, taking a look at, as we expand our capacity, we absolutely go out with more fit sets and more opportunity for the future, with our INFUSE product. Thank you very much for the question.

Joe Papa: That concludes our presentation and Q&A today. Thank you very much for joining. We look forward to getting back and talking to you in the near future. Have a great day, everyone.

Joseph Papa: That concludes our presentation and Q&A today. Thank you very much for joining. We look forward to getting back and talking to you in the near future. Have a great day, everyone.

Operator 2: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker 10: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Q1 2022 Bausch + Lomb Corp Earnings Call

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