Bausch + Lomb Corporation (NYSE:BLCO) Q2 2023 Earnings Call Transcript - Page 6 of 6 - InvestingChannel

Bausch + Lomb Corporation (NYSE:BLCO) Q2 2023 Earnings Call Transcript

It’s not at the level of – we’re talking about massive need of invested capital, but – or capital into the plants. This is more about process. It’s about managing third-party suppliers. It’s having – qualifying additional third-party suppliers, it’s about getting things right. And that will take a year or two to fix completely, but we’re well on our way. We’ve got a fresh look coming with a very senior experienced leader, and we’re going to roll up our sleeves and tackle the problem. I don’t know, Sam, any other color…

SamEldessouky: No. And – Craig, to your question about how we’re thinking about it in terms of guidance, a couple of things I’ll highlight here for you; one is in my prepared remarks, I talked about our gross margin. I said that our gross margin is still holding around approximately 60%. But I also commented that the fact that we’re seeing some pressure on that 60%, so it might have been a very strong 60% or there might be a little bit of a rounding down that’s coming out because of that 60%. So there is a pressure that we’re seeing, and that’s coming out of what we talked about on the surgical side. In terms of just when you step back and you think about what we’re doing from the supply chain, I think there’s – it’s not lost on us that it is taking time to be able to work through this, and there’s multiple outcomes and ranges of outcomes that will potentially come out in terms of the work and supply chain.

And we factored those ranges of outcome in our thinking within the guidance range of the $700 million to $750 million. So that was baked in. Again, it’s hard to pinpoint that specifically one scenario that can play out. There’s multiple scenarios, and we try to think through those scenarios, as we’re thinking through the range. So that’s been already baked into what we’re thinking in terms of our guidance range.

Craig Bijou: Great. Thanks guys.

Operator: We have time for one more question. Your next question is coming from Patrick Wood at Morgan Stanley.

Patrick Wood: Amazing. Thank you very much. I’ll keep it to one given time running out. Quite a specific one, that the IC-8, the Apthera lens, I know it’s very early stage, but it’s quite a unique asset given a eat-off lens and the partial, I guess, astigmatic coverage. How is the initial feedback going there? How do you feel about that launch in general and the capacity to potentially take a little bit of share within that sort of premium AT-IOL market?

BrentSaunders: I’m glad you asked about it, because I do think it’s a very important product for us and for patients and for surgeons. I was just at a major surgical conference with some of the top U.S. KOLs, and I can tell you that the physicians or surgeons that have been trained and have implanted the lens, have phenomenal feedback, very enthusiastic positive response. Small hands, right, it’s a small group of surgeons and a small group of patients, but very impressive early start. The key is getting surgeons trained and comfortable with the lens. But I do think there is a real segment of the market for patients who perhaps need a more middle-of-the-road economic solution, to an eat-off outcome, that ICA is the perfect fit, and early, but incredibly exciting initial days and outcomes.

So I remain pretty optimistic and bullish on the product. With just in the U.S. launch, it will be a phased launch to the rest of the world. But I think in a year or 2, this could be a really significant product in our surgical portfolio. So thanks for the question. I’m pretty excited about that particular launch.

Patrick Wood: Amazing. Thank you.

Brent Saunders: Great. Well, operator, maybe I’ll just say a few closing words. Thanks everyone for attending, and thank you for your questions. I do think we put up a very strong quarter this year – this quarter, I mean, 12% constant currency revenue growth is, I think, quite a testament to our team who has worked so hard in the quarter to deliver. And as I mentioned, certainly, the highlight is performance and progress, as we continue to execute against our roadmap and to create the best eye health company in the world. So again, thank you for your time, and we look forward to keeping you updated.

Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.

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