LAVAL, Quebec—It’s time to say “adieu” to Valeant. The big pharma company Valeant Pharmaceuticals International Inc. (NYSE/TSX: VRX), based here, reported Tuesday that it will change its name as soon as July to Bausch Health Companies Inc. Valeant is the parent company of Bausch + Lomb
, one of the leading eye health companies worldwide. “Becoming Bausch Health Companies is a major step forward in our transformation," Joseph C. Papa, chairman and chief executive officer of Valeant, said in the announcement.
"The Bausch name embodies the rich history of innovation, fortitude and dedication to patient health dating back to when J.J. Bausch opened his first optical goods shop more than 165 years ago. These qualities form the foundation of who we are today as we continue to build an innovative company striving to improve the health of patients globally."
Papa, who joined Valeant in May 2016, and his management team are in the midst of overseeing a multi-year effort to turn around the company. “In the past two years, the company has completed more than a dozen divestitures to strategically streamline operations, has reduced debt by more than 20 percent and has resolved numerous legacy issues,” the announcement noted. "Now is the right time in our turnaround to unite our company's core businesses, subsidiaries and brands under the Bausch Health name.”
The announcement also noted that “because the company's businesses and subsidiaries have strong brand equity, all entities that have separate established brands will continue to operate under the corporate umbrella using their existing names.” Valeant said it will “roll out a new corporate brand identity in July 2018,” including new imagery, a new website and a new stock market ticker symbol, BHC.
Separately on Tuesday, Valeant reported that first-quarter 2018 results “outperformed expectations,” as overall organic revenue grew for the first time since 2015, according to the earnings announcement. The company said the financial results were “driven by branded Rx and [the] Bausch + Lomb/International segments.” Valeant also raised 2018 full-year revenue and adjusted EBITDA (non-GAAP) guidance ranges following the first-quarter report, with projected revenue now in the range of $8.15 billion to $8.35 billion (compared with the previously projected $8.10 billion to $8.30 billion), with the increase due in part to Bausch + Lomb’s expected performance.
In the recent first quarter, Valeant reported revenues of $1.995 billion, a decline of 5.4 percent. The company’s net loss attributable was $2.69 billion in the quarter ended March 31, compared with earnings of $628 million in the year-ago period.
The global vision care business achieved sales growth of 15 percent, with revenue in this business increasing “organically” by 9 percent compared to the first quarter of 2017, according to the announcement.
Sales across the Bausch + Lomb/International segment decreased 3 percent compared with the year-ago quarter ($1.103 billion versus $1.134 billion), primarily due to divestitures and discontinuations, the announcement noted. Excluding the impact of divestitures and discontinuations of $113 million, and the favorable impact of foreign exchange of $65 million, the Bausch + Lomb/International segment grew organically by approximately 2 percent compared to the first quarter of 2017.
"Our first-quarter 2018 results demonstrate that we are making significant progress in our turnaround,” Papa said in the earnings announcement. “For the first time since 2015, the company delivered overall organic revenue growth that tracked above expectations and was driven by our Branded Rx and Bausch + Lomb/International segments.”