Bausch + Lomb gains as BofA hikes PT on Xiidra acquisition

Bausch Health Companies

03/07/2023 15:01

** U.S.-listed shares of Bausch + Lomb  BLCO.N  up 1.6% at
$20.40 early Mon after BofA Global Research raises its PT on
favorable view of co's acquisition of Xiidra
    ** BLCO shares on Fri closed up 4.6% at $20.07, after
hitting record high of $21.95, after co said it would buy the
dry-eye drug from Switzerland's Novartis  NOVN.S  for $1.75 bln
and up to $750 mln in potential milestone payments
        ** Xiidra’s annual sales of ~$500m will increase size of
ophthalmic pharmaceutical segment by roughly 70%, BofA says in
research note, adding acquisition gives it well-established
dry-eye drug (DED) brand and experienced sales force that should
accelerate launch of BLCO’s recently approved DED, Miebo, BofA
writes in research note
    ** Xiidra likely 200+ basis points accretive to EBITDA
margins, BofA says
    ** BofA raises BLCO PT by $4 to $23
    ** 6 of 11 analysts covering BLCO rate stock "buy" or
higher, rest "hold" and median PT is $21, per Refinitiv
    ** BLCO in process of being spun out from Canada's Bausch
Health Companies  BHC.TO , formerly known as Valeant
Pharmaceuticals
    ** With move on the session, U.S.-listed BLCO shares up 32%
YTD
    ** U.S.-listed shares of Bausch Health down 1.9% at $7.85 on
Mon, but up ~26% in 2023

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))