Bausch’s B+L Refreshes Contact Lenses, Sending Stock Higher
Bausch Health Companies (TSX:BHC) is having a tough time breaking out to new yearly highs for two reasons. The drug stock sector is out of favor and companies with heavy debt continue to worry investors. Still, BHC’s debt is manageable, so its upside will come as it rolls out new products.
Last week, BHC’s B+L unit launched ULTRA multifocal astigmatism lenses in the U.S. The toric lens will suit a specific set of customers. And given the support for astigmatism and multifocal lenses, the higher price will give the B+L a lift in ASP.
For years, B+L neglected its product line and fell behind competitors. This launch is a turning point for the unit as it continues innovating daily and monthly contact lenses.
Debt Under Control
BHC no longer issues press releases related to its debt repayments or refinancing. The business has enough cash flow to service current and upcoming debt obligations.
The company is now free to change the narrative and to update the public on new product releases instead. Duobrii’s approval in April, the B+L launch of Lotemax SM in the U.S., and products from the Synergy Pharma unit are examples of positive developments for Bausch.
Your Takeaway
Bausch rebounded slightly last week but is still many points away from its 52-week high. As sentiment improves, BHC stock will recover.
