Bausch & Lomb

Last updated

Bausch + Lomb Corporation
Company type Public
Industry Medical instruments
Founded1853;171 years ago (1853) in Rochester, New York, US
Founders
Headquarters Vaughan, Ontario, Canada
Key people
 Brent Saunders (CEO)
ProductsEye-care products and equipment
RevenueIncrease2.svg US$3.77 billion (2022)
Decrease2.svg US$207 million (2022)
Decrease2.svg US$6 million (2022)
Total assets Increase2.svg US$11.1 billion (2022)
Total equity Decrease2.svg US$7.10 billion (2022)
Number of employees
c. 12,900 (2022)
Parent Bausch Health
Website bausch.com
Footnotes /references
[1]
John Bausch and Henry Lomb John Bausch and Henry Lomb, New York State Men Biographic Studies and Character Portraits (1910).jpg
John Bausch and Henry Lomb

Bausch & Lomb (since 2010 stylized as Bausch + Lomb [2] ) is an American-Canadian eye health products company based in Vaughan, Ontario, Canada. It is one of the world's largest suppliers of contact lenses, [3] lens care products, pharmaceuticals, intraocular lenses, and other eye surgery products. [4] [5] The company was founded in Rochester, New York, in 1853 by optician John Bausch and cabinet maker turned financial backer Henry Lomb. Until its sale in 2013, Bausch + Lomb was one of the oldest continually operating companies in the United States. [6]

Contents

Bausch + Lomb was a public company listed on the NYSE, until it was acquired by private equity firm Warburg Pincus in 2007. In May 2013, Canadian-based Valeant Pharmaceuticals announced that it would acquire Bausch + Lomb from Warburg Pincus for $4.5 billion in cash. [7] [8] The deal, which was approved by shareholders, closed on August 5, 2013. [9] [10] On May 6, 2022, the company completed an initial public offering and again became publicly traded. [11] As of 2022, the company employs about 12,900 people, [1] and manufactures and markets health care products directly or indirectly in approximately 100 countries. [12]

Company history

Early years

New York headquarters of the Bausch & Lomb Optical Company in 1891 US-NY(1891) p639 ROCHESTER, THE BAUSCH & LOMB OPTICAL COMPANY.jpg
New York headquarters of the Bausch & Lomb Optical Company in 1891

In 1853, John Bausch and Henry Lomb, both German immigrants, established a small but ambitious workshop producing monocles in Rochester, New York. [13] [14] By 1861, their operation had expanded to manufacturing vulcanite rubber eyeglass frames and other precision vision products. [15]

Early growth of the company

During the American Civil War, the Union blockade caused the price of gold and European horn to rise dramatically. This resulted in a growing demand for the Bausch + Lomb spectacles made from vulcanite. [16]

In 1876, Ernst Gundlach joined the company as it began to manufacture microscopes. Later that year, the Bausch & Lomb Optical Company won a distinction at the Philadelphia Centennial Exposition. The company also produced photographic lenses (1883), spectacle lenses (1889), microtomes (1890), binoculars and telescopes (1893). [17] From 1892 in cooperation with Zeiss in Germany, the company produced optical lenses. In this manner, at the end of the 19th century, the product range included eyeglasses, microscopes and binoculars, as well as projectors, camera lenses and camera diaphragms.

Expansion of production at the beginning of the 20th century

With the growth of the US army, under President Theodore Roosevelt and the buildup of the naval fleet, Bausch & Lomb received the commission, through the supplier Saegmuller, to manufacture high-precision lenses for optical measurement and founded a joint venture with Saegmuller. At the same time as this new expansion, a research department with five members was started to develop new products and improve old ones. A new alliance with the Zeiss company in Germany ensured competitive advantages for the three participants, Bausch & Lomb, Saegmuller and Zeiss, in terms of patent use and opening new markets. In 1902, William Bausch, the son of the founder, developed a process to create the desired lens shape directly by casting molten glass. Previously, the glass parts for the lenses had to be separated, ground and polished in a complicated process, and this brought significant savings in time and materials.

The company produced the first optical-quality glass in America during the early to mid-1900s. By the year 1903 the company began manufacturing microscopes, binoculars, and camera shutters.

The First and Second World Wars

The further development of the firm was affected by political events. Because of the World Wars and the consequent need for optical instruments such as field glasses, range finders, camera lenses, binocular telescopes, searchlight mirrors, torpedo tube sights, and periscopes, the product range could be considerably broadened. Until World War I, optical glass and the instruments made from it (including many military instruments) were often imported into most European and North American countries from Germany. The same was also true of chemical products and laboratory equipment. The outbreak of the war, with Germany's new enemy status, created a scramble to rapidly enhance the domestic industries. [18] In 1933, Bausch + Lomb started to honor outstanding high school science students with the Bausch+Lomb Honorary Science Award. In the 1930s, military products represented 70% of total production. The Ray-Ban brand of sunglasses was developed for pilots in 1936.

After 1945

At a time when the cinema was being superseded by television, Bausch & Lomb developed improved optics for the CinemaScope process, which popularized the film-based anamorphic format and led most cinemas to double the widths of their screens.

In 1965 Bausch & Lomb acquired the patent for the hydrogel contact lenses created by Czech scientists Otto Wichterle and Drahoslav Lím. In 1971, after three years of development work, two years for the medical approval by the United States Food and Drug Administration and an investment of three million USD, Bausch + Lomb launched contact lenses made of Poly-HEMA. In contrast to the contact lenses previously available, made of glass and Lucite (acrylic glass), [19] the new lenses were softer. They were marketed under the brand name "Soflens".

In the 1970s, the company was a major producer of spectrophotometers for the dye and chemical business, such as the Spectronic 20.

A massive restructuring of the company began in the mid-1980s. What had been the core divisions, the production of lenses for various purposes, were sold off. The sunglasses division was continued as Ray-Ban and kept selling well due to effective product placement. By the planned acquisition of other firms, such as Polymer Technology Corporation and Dr. Mann Pharma, existing business areas such as contact lens production were strengthened and new ones were initiated.

In 1997, as a result of a series of company acquisitions, the division for the manufacture of surgical products was established. The Ray-Ban brand was sold in 1999 to the Italian Luxottica Group.

Company developments in recent years

Since then, Bausch & Lomb has developed into a globally operating company which is one of the largest producers of contact lenses. As of 2022, about 12,900 employees in approximately 100 countries work for the firm. [1]

Competitors in the international eye care products market are Johnson & Johnson, Allergan, Alcon, MSD-Chibret, CooperVision, Menicon Co., Hoya Corporation, EssilorLuxottica and Carl Zeiss Meditec. [5]

In 2023, Bausch + Lomb Corp announced it would it would buy Xiidra from Novartis for $1.75 billion and pay additional $750 million in linked to future sales for Xiidra as well as two pipeline asset. [20] [21]

Chief executives
NameTitleTenure
John Jacob Bausch President1885–1926
Edward Bausch President1926–1935
M. Herbert EisenhartPresident1935 – December 1950
Joseph F. TaylorPresidentJanuary 1951 – November 1954
Carl S. HallauerPresidentNovember 1954 – March 1959
William W. McQuilkinPresidentMarch 1959 – May 1971
Jack D. HarbyPresidentMay 1971 –
Daniel G. SchumanCEO– April 1981
Daniel E. GillCEOApril 1981 – December 1995
William M. CarpenterCEO1996 – June 1998
Ron ZarellaCEO2001–2008 [22]
Gerald OstrovCEO2008 – March 2010 [23]
Brent Saunders CEOFebruary 2010 – August 2013
Joseph C. Papa CEOMay 2016 – March 2023
Brent SaundersCEOMarch 2023 – present [24]

Business areas

The Global Eye Health Center in Rochester, New York Bausch & Lomb Vision Care campus.JPG
The Global Eye Health Center in Rochester, New York

Business areas are divided into three large divisions:

In the last few years, several business areas in the Vision Care division have been developed in the framework of product diversification. The manufacturing of contact lenses still accounted for 28% of Bausch & Lomb's turnover in 2001, making it its main business activity. The "SofLens One Day" soft contact lens range have to be changed every day. The product assortment includes higher quality lenses, such as the "SofLens Comfort" or "Seequence" lenses which can be changed after two weeks. The "SofLens66 Toric" were specially designed for people with astigmatism. Lenses from the "Boston" range have a higher oxygen permeability and are more suited for people with sensitive or dry eyes. The newest and most advanced lens range is called "PureVision". [25] These lenses are so oxygen-permeable that they can remain in the eye up to 30 days without being taken out at night. The second largest business, at 25%, is the manufacture of lens-care products. As well as simple combination cleaning and disinfectant solutions for both soft and hard lenses, pH neutral solutions are available for people with particularly sensitive eyes.

The Pharmaceuticals division manufactures pharmaceutical eye products, which account for 21% of turnover. This range covers prescription medicines for eye irritation, allergic reactions or high eye pressure. The development of this division was speeded up by take-overs of other firms.

The Surgicals division is divided into Refractive Surgery with 8% of turnover and Cataract Vitreotinal Surgery with 18%. The latter division is concerned with products for operations on glaucoma and cataracts and on the cornea, as well as implantable, interocular lenses. The Refractive Surgery division comprises mainly medical analysis devices and lasers required for eye surgery. In order to strengthen this division, the competing companies of Storz and Chiron were acquired.

PureVision

Bausch + Lomb was in a lawsuit with Novartis which claimed to have patents on a Bausch + Lomb product called PureVision. On June 26, 2002, a federal judge ruled that Bausch & Lomb did infringe on Ciba Vision (a subsidiary of Alcon) patents. [26]

On July 2, 2004, the company announced that it had licensed the intellectual property of Novartis. [27] Bausch & Lomb will pay the Ciba Vision unit of Novartis a royalty on net U.S. sales of its PureVision brand contact lenses until 2014 and on net sales outside the U.S. until 2016. But as of now, the brand FreshLook comes under Bausch and Lomb and Ciba manufacturers it.

ReNu product recalls

On April 11, 2006, Bausch & Lomb stopped shipments of its ReNu with MoistureLoc contact lens solution when the Centers for Disease Control and Prevention (CDC) announced there was a high correlation between use of the product and cases of suspected fungal keratitis. [28] The Centers for Disease Control found that "nearly all of the company's ReNu with MoistureLoc eye care products were linked to severe fungal eye infections". [29] Two class action lawsuits have been filed against Bausch & Lomb in relation to the eye fungus problems. [30]

Diversity

Bausch & Lomb received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2003, the second year of the report. [31]

Lawsuits

In 1994, several states in the US, including Texas, opened an investigation against Bausch & Lomb. This investigation was based on the sale of duplicate contact lenses under different names and prices. Three different versions of the same contact lens were being sold under OptimaFW, Medalist lenses, and SeeQuence2. OptimaFW, the most expensive version, was available with a lifetime of one year, The mid-priced, Medalist lenses were sold with a lifetime of three months, and SeeQuence2, the least expensive, came with a lifetime of two to three weeks. By 1996, the company ensured that all three versions carried the OptimaFW tag and tried to standardize the packaging, but the pricing was still different. In 1996, the case was settled for $68 million. In 1997, 17 states pressured Bausch & Lomb to stop the sale of duplicate lenses, deceptive practice stated in the court. The settlement also demanded the company to pay $1.7 million or $100,000 to each state to cover investigative costs. [32]

In 2009, Bausch & Lomb spent $250 million to settle six hundred lawsuits filed by consumers exposed to Fusarium keratitis, a fungal infection, after using its contact solution ReNu with MoistureLoc. Between June 2005 and September 2006, one hundred eighty cases were reported, out of which seven patients required eye removal and sixty required corneal transplants. [33] [34] [4]

Related Research Articles

<span class="mw-page-title-main">Contact lens</span> Lenses placed on the eyes surface

Contact lenses, or simply contacts, are thin lenses placed directly on the surface of the eyes. Contact lenses are ocular prosthetic devices used by over 150 million people worldwide, and they can be worn to correct vision or for cosmetic or therapeutic reasons. In 2010, the worldwide market for contact lenses was estimated at $6.1 billion, while the US soft lens market was estimated at $2.1 billion. Multiple analysts estimated that the global market for contact lenses would reach $11.7 billion by 2015. As of 2010, the average age of contact lens wearers globally was 31 years old, and two-thirds of wearers were female.

<span class="mw-page-title-main">Novartis</span> Swiss multinational pharmaceutical corporation

Novartis AG is a Swiss multinational pharmaceutical corporation based in Basel, Switzerland. Consistently ranked in the global top five, Novartis is one of the largest pharmaceutical companies in the world and was the fourth largest by revenue in 2022.

<span class="mw-page-title-main">Carl Zeiss AG</span> German optics company

Carl Zeiss AG, branded as ZEISS, is a German manufacturer of optical systems and optoelectronics, founded in Jena, Germany in 1846 by optician Carl Zeiss. Together with Ernst Abbe and Otto Schott he laid the foundation for today's multinational company. The current company emerged from a reunification of Carl Zeiss companies in East and West Germany with a consolidation phase in the 1990s. ZEISS is active in four business segments with approximately equal revenue in almost 50 countries, has 30 production sites and around 25 development sites worldwide.

ReNu is a brand of soft contact lens care products produced by Bausch & Lomb. By far the most popular brand of lens solutions until 2006, ReNu has rebranded its formulations as renu sensitive and renu fresh, the latter containing a patented ingredient called hydranate, known by chemists as hydroxyalkylphosphonate, that removes protein deposits and can eliminate the need for a separate enzymatic cleaner.

Bausch Health Companies Inc. is an American-Canadian multinational specialty pharmaceutical company based in Laval, Quebec, Canada. It develops, manufactures and markets pharmaceutical products and branded generic drugs, primarily for skin diseases, gastrointestinal disorders, eye health and neurology. Bausch Health owns Bausch & Lomb, a supplier of eye health products. Bausch Health's business model is primarily focused on acquiring small pharmaceutical companies and then sharply increasing the prices of the drugs these companies sell.

<span class="mw-page-title-main">Metrogon</span> Wide-field photographic lens design

Metrogon is a high resolution, low-distortion, extra-wide field photographic lens design, popularized by Bausch and Lomb. Variations of this design were used extensively by the US military for aerial photography, fitted to the T-11 and other aerial cameras.

<span class="mw-page-title-main">Phoropter</span> Ophthalmic testing device

A phoropter or refractor is an ophthalmic testing device. It is commonly used by eye care professionals during an eye examination, and contains different lenses used for refraction of the eye during sight testing, to measure an individual's refractive error and determine their eyeglass prescription. It also is used to measure the patients' phorias and ductions, which are characteristics of binocularity.

<span class="mw-page-title-main">John Jacob Bausch</span> American optician and businessman

John Jacob Bausch was a German-American maker of optical instruments who co-founded Bausch & Lomb. Over six decades he transformed his small, local optical shop into a large-scale international enterprise, pioneering the American optical industry.

<span class="mw-page-title-main">Aviator sunglasses</span> Style of sunglasses

Aviator sunglasses are a style of sunglasses that was developed by a group of American firms. The original Bausch & Lomb design is now commercially marketed as Ray-Ban Aviators, although other manufacturers also produce aviator-style sunglasses.

Fungal keratitis is a fungal infection of the cornea, which can lead to blindness. It generally presents with a red, painful eye and blurred vision. There is also increased sensitivity to light, and excessive tears or discharge.

Johnson & Johnson Vision (JJV) is a subsidiary of Johnson & Johnson and is composed of two divisions, Johnson & Johnson Surgical Vision and Johnson & Johnson Vision Care. Services include Intraocular lenses, laser vision correction systems, phacoemulsification systems, viscoelastic, Microkeratomes and related products used in cataract and refractive surgery.

<span class="mw-page-title-main">Bepotastine</span> Chemical compound

Bepotastine is a 2nd generation antihistamine. It was approved in Japan for use in the treatment of allergic rhinitis and urticaria/pruritus in July 2000, and January 2002, respectively. It is marketed in the United States as an eye drop under the brand name Bepreve, by ISTA Pharmaceuticals, a subsidiary of Bausch + Lomb.

<span class="mw-page-title-main">ISTA Pharmaceuticals</span> US-based pharmaceutical company

ISTA Pharmaceuticals, Inc., was a US-based pharmaceutical company that specialized in ophthalmic pharmaceutical products and discovers, develops, and markets therapies for inflammation, ocular pain, glaucoma, allergy, and dry eye. ISTA was acquired by Bausch & Lomb, an eye care company, on March 26, 2012. Under the deal, Bausch & Lomb have agreed to pay $9.10 per share for ISTA, bringing the total value of the acquisition to $500 million. In 2012, Valeant Pharmaceuticals withdrew its $360 million offer.

<span class="mw-page-title-main">Leica Microsystems</span>

Leica Microsystems GmbH is a German microscope manufacturing company. It is a manufacturer of optical microscopes, equipment for the preparation of microscopic specimens and related products. There are ten plants in eight countries with distribution partners in over 100 countries. Leica Microsystems emerged in 1997 out of a 1990 merger between Wild-Leitz, headquartered in Heerbrugg Switzerland, and Cambridge Instruments of Cambridge England. The merger of those two umbrella companies created an alliance of the following 8 individual manufacturers of scientific instruments. American Optical Scientific Products, Carl Reichert Optische Werke AG, R.Jung, Bausch and Lomb Optical Scientific Products Division, Cambridge Instruments, E.Leitz Wetzlar, Kern & Co., and Wild Heerbrugg AG, bringing much-needed modernization and a broader degree of expertise to the newly created entity called Leica Holding B.V. group. In 1997 the name was changed to Leica Microsystems and is a wholly-owned entity of Danaher Corporation since July 2005. Danaher is a US venture capital company.

<span class="mw-page-title-main">Alimera Sciences</span>

Alimera Sciences, Inc. is a biopharmaceutical sales company based in Alpharetta, Georgia that specializes in the commercialization and sales of prescription ophthalmic pharmaceuticals. The company's main selling focus is on diseases affecting the back of the eye, or retina. The company is the licensee for Iluvien, a fluocinolone acetonide intravitreal implant.

<span class="mw-page-title-main">Ernst Gundlach</span> German-American inventor

Ernst Gundlach (1834–1908) was a German-American inventor specialising in the design of optical instruments.

Joseph C. Papa is an American businessman and the chairman and chief executive officer (CEO) of Bausch & Lomb, a company formed from the initial public offering (IPO) of the eye health business of Bausch Health Companies Inc.

Brent Saunders is an American biopharma executive and entrepreneur who is the chairman and CEO of the health company Bausch & Lomb. He helped lead various mergers and acquisitions, including the mergers between Merck and Schering-Plough, the acquisition of Bausch + Lomb by Valeant Pharmaceuticals, and the $63 billion acquisition of Allergan by Abbvie. He is the founder of special-purpose acquisition company (SPAC) Vesper Healthcare Acquisition. Saunders is also executive chairman of medical aesthetics companies The Beauty Health Company and Hugel America.

References

  1. 1 2 3 "Bausch + Lomb Corporation 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 22, 2023.
  2. ↑ "Bausch + Lomb introduces new logo, icon". March 3, 2010.
  3. ↑ Gorbman, Randy. "Bausch + Lomb marks 50th anniversary of the soft contact lens". CITY News. Retrieved April 1, 2021.
  4. 1 2 "Eye product concern slams Bausch & Lomb". NBC News. April 11, 2006. Retrieved August 25, 2021.
  5. 1 2 "Contact Lenses Market Size, Share & Covid-19 Impact Analysis". Fortune Business Insights. April 2023. Retrieved May 28, 2023.
  6. ↑ "Bausch & Lomb: The Bausch + Lomb story". Archived from the original on May 1, 2007. Retrieved April 19, 2007.
  7. ↑ "Valeant to buy contact-lens giant Bausch & Lomb for $4.5 billion". Los Angeles Times . May 27, 2013.
  8. ↑ "Valeant Agrees to Buy Bausch & Lomb in $8.7 Billion Deal". Bloomberg.com. May 28, 2013. Retrieved March 14, 2017.
  9. ↑ "Form 8-K".
  10. ↑ "Investors' Overview". Bausch & Lomb. Retrieved January 30, 2014.
  11. ↑ Beltran, Luisa (May 3, 2022). "Bausch + Lomb Targets $8.4 Billion Valuation with IPO". Barrons. Retrieved May 3, 2022.
  12. ↑ "Careers : Bausch + Lomb". www.bausch.com. Retrieved December 22, 2021.
  13. ↑ Kolbow, Berti (2014). "John Bausch". Immigrant Entrepreneurship: The German-American Business Biography, 1720 to the Present. Retrieved May 20, 2014.
  14. ↑ "German American Corner". German Heritage. 2014. Archived from the original on September 12, 2009. Retrieved August 9, 2014.
  15. ↑ "A History of Bausch and Lomb". nwmangum.com. Source: Kingslake, Rudolf, 1974, The Rochester Camera and Lens Companies, Rochester NY, Photographic Historical Society.
  16. ↑ "Journal of applied microscopy. v.6 (1903)". HathiTrust. hdl:2027/hvd.32044103067088 . Retrieved January 31, 2018.
  17. ↑ "Henry Lomb bio". Archived from the original on October 26, 2007.
  18. ↑ Bausch & Lomb Optical Company (February 1920), "The end of a foreign monopoly (Bausch & Lomb Optical Company advertisement)", Popular Science, 96 (2).
  19. ↑ Lucite International. Retrieved on 2013-08-23.
  20. ↑ "Bausch + Lomb to buy Novartis dry-eye drug for $1.75 bln". Reuters. June 30, 2023. Retrieved June 30, 2023.
  21. ↑ "Novartis Sells Eye Drugs to Bausch + Lomb for Up to $2.5 Billion". Bloomberg.com. June 30, 2023. Retrieved June 30, 2023.
  22. ↑ "10 Executives Who Lied On Their Resumes - And 2 Who Got Away With It - ReadWrite". May 3, 2012.
  23. ↑ Dobbin, Ben (March 15, 2010). "New CEO, chairman appointed at Bausch & Lomb". Boston.com– via The Boston Globe.
  24. ↑ Hopkins, Jared S. (June 30, 2023). "Bausch + Lomb's CEO Inks First Big Deal Since Return". The Wall Street Journal .
  25. ↑ Lim, L.; Tan, D. T.; Chan, W. K. (2001). "Therapeutic use of Bausch & Lomb PureVision contact lenses". The CLAO Journal. 27 (4): 179–185. ISSN   0733-8902. PMID   11725978.
  26. ↑ "Company News: Bausch + Lomb is found guilty of patent infringement". The New York Times . July 27, 2002. Retrieved April 19, 2007.
  27. ↑ "Bausch & Lomb, Ciba Vision reach settlement of patent litigation". The Daily Record (Rochester, New York). July 7, 2004. Archived from the original on February 20, 2009. Retrieved April 19, 2007.
  28. ↑ "Fusarium Keratitis — Multiple States, 2006". April 14, 2006. Archived from the original on May 17, 2007. Retrieved April 19, 2007.
  29. ↑ Crane, Mary (May 3, 2006). "More Recalls Ahead For Bausch & Lomb?". Forbes. Archived from the original on November 16, 2007. Retrieved April 19, 2007.
  30. ↑ "Eye Fungus Lawsuits Filed: Bausch & Lomb Could Face Class Action Suit Over Lens Solution". Associated Press. April 20, 2006. Retrieved April 19, 2007.
  31. ↑ "Corporate Equality Index (2003)". Human Rights Campaign Foundation. 2003. Archived from the original on September 30, 2007. Retrieved April 19, 2007.
  32. ↑ Street Journal, Laura JohannesStaff Reporter of The Wall (August 20, 1997). "Bausch & Lomb Agrees to Stop Selling Duplicate Contact Lenses". Wall Street Journal. Retrieved August 25, 2021.
  33. ↑ "Bausch & Lomb settles 600 eye fungus lawsuits". ABC News. Retrieved August 25, 2021.
  34. ↑ "Bausch & Lomb settles 600 lawsuits". FiercePharma. Retrieved August 25, 2021.
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