NYSE:BLCO Bausch + Lomb Q4 2024 Earnings Report $19.75 +0.10 (+0.51%) As of 04/17/2025 03:13 PM Eastern Earnings HistoryForecast F & M Bank EPS ResultsActual EPS$0.25Consensus EPS $0.23Beat/MissBeat by +$0.02One Year Ago EPS$0.24F & M Bank Revenue ResultsActual Revenue$1.28 billionExpected Revenue$1.26 billionBeat/MissBeat by +$24.86 millionYoY Revenue Growth+9.10%F & M Bank Announcement DetailsQuarterQ4 2024Date2/19/2025TimeBefore Market OpensConference Call DateWednesday, February 19, 2025Conference Call Time8:00AM ETUpcoming EarningsBausch + Lomb's Q1 2025 earnings is scheduled for Wednesday, April 30, 2025, with a conference call scheduled at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress ReleaseAnnual Report (10-K)SEC FilingEarnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Bausch + Lomb Q4 2024 Earnings Call TranscriptProvided by QuartrFebruary 19, 2025 ShareLink copied to clipboard.There are 12 speakers on the call. Operator00:00:00Greetings. Welcome to the Bausch and Lomb Fourth Quarter twenty twenty four Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. Operator00:00:20I will now turn the conference over to your host, George Ghatkowski, Vice President of Investor Relations. You may begin. Speaker 100:00:30Thank you. Good morning, everyone, and welcome to our fourth quarter twenty twenty four Financial Results Conference Call. Participating on today's call are Chairman and Chief Executive Officer, Mr. Brent Saunders and Chief Financial Officer, Mr. Sam Aldosuki. Speaker 100:00:45In addition to this live webcast, a copy of today's slide presentation and a replay of this conference call will be available on our website under the Investor Relations section. Before we begin, I would like to remind you that our presentation today contains forward looking information. We would ask that you take a moment to read the forward looking legend at the beginning of our presentation as it contains important information. This presentation contains non GAAP financial measures and ratios. For more information about these measures and ratios, please refer to Slide one of the presentation. Speaker 100:01:17Non GAAP reconciliations can be found in the appendix to the presentation posted on our website. The financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter unless required by law and not to update or affirm guidance other than through broadly disseminated public disclosure. With that, it's my pleasure to turn the call over to Brent. Speaker 200:01:43Thank you, George, and thank you, everyone, for joining us today. I'm going to show progress against our strategy through the lens of our fourth quarter and full year results. And Sam will go deeper on our performance and provide 2025 guidance. I'll close by highlighting the products and technology that will advance our strategy in 2025 and beyond. We've booked our fifth straight quarter of double digit constant currency revenue growth, contributing to 17% constant currency revenue growth for the year. Speaker 200:02:18While top line growth isn't the only metric that matters, our trajectory is clear. We're capturing market share in an industry with significant growth potential and carving out leadership positions in areas of unmet need. There's no secret sauce behind that growth. In fact, the formula is simple. We continue to introduce new products across businesses and geographies at a steady clip, while optimizing our manufacturing process, which includes deploying AI. Speaker 200:02:51Technology is also a key component of an ongoing investment in our sales force. Our reps are leveraging digital tools to establish new relationships and deepen existing ties. The easier we make their jobs, the better they perform. Again, it's a simple formula. Underpinning our recent success is a commitment to long term growth. Speaker 200:03:16We are once again an innovation company, something I couldn't say when I rejoined Bausch and Lomb two years ago. Our R and D organization has been completely overhauled and infused with top talent. Our refocused pipeline is now filled with promise and potential to significantly enhance the standard of care in iHealth. This section of our roadmap to accelerate growth, which we highlight every quarter, focuses on Phase two, innovate and execute. I can't think of a more appropriate way to describe our current state. Speaker 200:03:53Innovation is driving our decision making process and positioning the company for long term sustainable growth. And our relentless focus on execution is clearly reflected in our results. Words on a roadmap are hollow without concrete examples. So consider the following when it comes to execution. Our organic revenue CAGR over the past two years is approximately 10%. Speaker 200:04:21The success of recent product launches is well documented, particularly in dry eye space, where a comprehensive portfolio is approaching $1,000,000,000 in annual revenue. Proof of our commitment to innovation deserves its own slide. These are the pipeline products we're most excited about with representation from all businesses. Our in house engineers are developing a first of its kind BioMedics contact lines that would optimize oxygen permeability and critically can be produced on existing lines, which means minimizing future capital expenditures. We're also developing a myopia control solution for children and young adolescents. Speaker 200:05:05Our consumer pipeline is all about building on the success of category leading brands with new formulations. We're once again working with the National Eye Institute to develop an AREDS III offering, which we believe would expand the market for our high performance preservation franchise and address a significant growth opportunity in dry AMD. LumiPhiLux is currently under development and would represent the next chapter of premium redness relief. The recent addition of Elias Procedure to our surgical portfolio unlocks new opportunities to treat glaucoma in conjunction with cataract surgery, and we hope to secure an FDA approval later this year. Meanwhile, we continue to roll out premium IOL offerings in a staged approach with an expected 2026 U. Speaker 200:05:59S. Launch for Amvista Beyond and an adjustable IOL in early stages of development. Finally, we've transformed our pharma pipeline to potentially introduce several novel treatments. These include a first dual action therapeutic to address both evaporative and inflammatory dry eye disease, the first product to treat chronic ocular surface pain and the first glaucoma product to lower intraocular pressure and approve visual acuity. Our revamped pipeline positions us to significantly enhance the standard of care for patients across the spectrum of eye health needs. Speaker 200:06:40That's where our focus will continue to be. I reference our holistic strength every quarter. So it's no surprise that I'll do the same when providing a full year review. The key takeaway is there continues to be no laggard. All three reporting segments delivered double digit constant currency revenue growth for the year, thanks to a focus on execution, in particular when bringing new products to market. Speaker 200:07:08Of note, Absence Idra revenue, pharmaceutical saw approximately 15% organic revenue growth for the year. The franchises we highlight speak to that holistic strength. We updated our 2024 projections for MIBO in November and still outperformed expectations with $172,000,000 of revenue. Xiidra hit the high end of our projections with three sixty four million dollars in full year 2024 revenue and a 14% year over year growth for Artilac is a reminder that our holistic strength extends to performance across geographies. Daily SaiHi lenses uptake continues to leap off the page with over 70% reported revenue growth through the year. Speaker 200:07:56Three things are driving that growth: a superior product offering, sales excellence and a thoughtful approach to how we introduce multifocal and toric options in new markets around the world. I referenced our premium IOL pipeline earlier, but it's important to recognize that we're carving out a significant presence in the category with existing offerings. Revenue from premium lenses was up 35% in 2024, despite several launches taking place later in the year. I'll now turn it over to Sam for a closer look at the financials. Speaker 300:08:35Thank you, Brent, and good morning, everyone. Before we begin, please note that all my comments today will be focused on growth expressed on a constant currency basis unless specifically indicated otherwise. Turning now to our financial results on Slides eight and nine. We saw yet another quarter of solid performance with revenue growth across our segments, geographies and product franchises. The broad based momentum in our business continued during the quarter, driven by our sustained focus on execution. Speaker 300:09:08Total company revenue of $1,280,000,000 for the quarter reflects growth of 1110% on an organic basis. For the full year, total company revenue of $4,791,000,000 reflects growth of 1710% on an organic basis. As we have said before, 2024 was one of the most active product launch years in our history. Our steady stream of product launches continues to drive growth and we are excited about the opportunity ahead of us in 2025 and beyond. For the fourth quarter, translational currency was a headwind of $17,000,000 to revenue and $4,000,000 to adjusted EBITDA. Speaker 300:09:54For the full year, it was a headwind of $69,000,000 to revenue and $11,000,000 to adjusted EBITDA. Now let's discuss the results in each of our segments. Vision Care fourth quarter revenue of $723,000,000 increased by 11% driven by growth in both the consumer and contact lens businesses. For the full year, Vision Care revenue was $2,739,000,000 and increased by 10%. The Consumer business grew by 10% in Q4. Speaker 300:10:28Let me go over a few highlights on the Consumer business. In the quarter, Lumify grew by 24% and continued to expand its market leading position. Our consumer dry eye portfolio delivered $103,000,000 in revenue, representing 20% growth in the quarter. Our two key franchises, Artelac and Blinc were once again big contributors to the strong performance. Artelac grew by 18% and Blink grew by 12% in the quarter. Speaker 300:11:02The dry eye portfolio has continued its outstanding performance with growth of approximately 27% on average over the past four quarters. Eye vitamins grew by 7% in Q4 as we continue to see solid consumption trends. And Lens Care grew by 2% for the full year led by our BiTrue MPS franchise. Contact Lens revenue growth was 13% with strong performance across modalities, key brands and geographies. For the full year, Contact Lens revenue growth was 11%. Speaker 300:11:39We are continuing to see very strong momentum with Dairy SciHi, which grew 75% in the quarter. We also saw growth across other key franchises, including Baitru, which was up 3% in the quarter and Ultra, which was up 10%. Contact Lens revenue growth was broad based across markets with The U. S. Up 17% in the quarter and International up 11%. Speaker 300:12:07For the full year, The U. S. Was up 12% and international was up 11%. Outside The U. S, we saw solid performance across all of the regions with growth in China at 12% in the quarter and 18% for the full year. Speaker 300:12:25While we are still in the early innings, we are seeing our investments in Opel in The U. S. And direct to consumer in China pay off. We believe the future of our lens business is highly promising. Our execution continues to be strong and we have a robust pipeline of innovation. Speaker 300:12:45Moving now to the Surgical segment. Fourth quarter revenue was $231,000,000 an increase of 15%. For the full year, revenue was $843,000,000 representing growth of 11%. In Q4, we once again saw growth in each of our three surgical product categories, and we also saw growth across all regions. Consumables, our largest product category grew in the quarter by 10%. Speaker 300:13:17Revenue from equipment was up 21%. Implantables grew by 19% in the quarter with our standard IOLs up 4% and our prima IOLs up 67%. Our InvesTA IOL platform is continuing to perform well with InvesTA Aspire Lens and InvesTA Envy showing strong early results. We are very excited about the surgical business. We are delivering growth that's faster than the overall market and our strategy remains the same. Speaker 300:13:50We will continue to focus on the top line growth and drive margin expansion with our premium products. Lastly, revenue in the Pharma segment was $326,000,000 for the quarter, which represents growth of 7%. For the full year, revenue in the Pharma segment was $1,209,000,000 which represents growth of 45%. Touching on our pharma dry eye portfolio, Mibu has continued its exceptional launch performance and delivered $53,000,000 in revenue in the quarter. For the full year, MIBU delivered 172,000,000 exceeding our latest guidance. Speaker 300:14:33I will once again highlight our commitment to making investments to drive MIBU strong growth, including investments in our direct to consumer campaign. Zadra delivered $104,000,000 revenue in the fourth quarter. This represents 6% growth when excluding the one time $8,000,000 rebate benefit we saw in Q4 of last year, which was driven by the acquisition from Novartis. For the full year, Xiidra delivered $364,000,000 in revenue coming in at the high end of our guidance range. As we look to 2025, our strategy remains unchanged. Speaker 300:15:13We will continue our efforts to maximize access to all Xiidra patients. Our team delivered strong Xiidra TRx growth in Q4 and we expect TRx growth to continue in 2025. As I have previously stated, we also expect a one time impact from the Inflation Reduction Act to be about $25,000,000 in 2025. Looking at our broader pharma portfolio, we are seeing solid performance. For the full year, U. Speaker 300:15:45S. Generics grew by 10% and international pharma grew by 8%. Now let me walk through some of the key non GAAP line items on Slides ten and eleven. Adjusted gross margin for the fourth quarter was 62.5%. For the full year, adjusted gross margin was 62.6%, which was up 160 basis points compared to last year. Speaker 300:16:11The increase in adjusted gross margin was mainly driven by product mix as we continue to execute our strategy to transition to higher margin products. In the fourth quarter, we invested $93,000,000 adjusted R and D and $342,000,000 for the full year, which is about 7% of revenue. Fourth quarter adjusted EBITDA excluding IPR and D was $259,000,000 which represents 14% growth versus Q4 of twenty twenty three. For the full year, adjusted EBITDA excluding IPR and D was $878,000,000 up 20% versus 2023. Net interest expense for the quarter was $93,000,000 and $384,000,000 for the full year. Speaker 300:17:04Adjusted EPS excluding IPR and D was $0.25 for the quarter and $0.63 for the full year. Over the course of 2024, we have discussed our targeted efforts to drive cash flow. These efforts are paying off. Adjusted cash flow from operations was $263,000,000 for the full year compared to $56,000,000 in 2023. We are pleased with this performance and we will remain focused on this front in 2025. Speaker 300:17:36Turning now to our 2025 guidance on Slide 15. We expect full year revenue to be in a range of 4,950,000,000.00 billion dollars to $5,050,000,000 This reflects constant currency growth of approximately 5.5% to 7.5%. The fundamentals of our business and the eye care market remain strong and we expect each of our segments to deliver growth in 2025. Shifting to adjusted EBITDA, we are setting our adjusted EBITDA guidance in a range of $900,000,000 to $950,000,000 Consistent with our guidance in 2024, our current guidance excludes any potential one time IPR and D charges that we may have in 2025. As we exited 2024, we saw a swift strength of the U. Speaker 300:18:28S. Dollar. Based on current exchange rates, for the full year 2025, we estimate currency headwinds of approximately CAD100 million to revenue and CAD20 million to adjusted EBITDA. We expect 2025 phasing to follow the natural seasonality of our business with the first quarter being the lowest and the fourth quarter being the highest. I do however want to highlight a couple of factors that will impact our typical phasing. Speaker 300:18:58First, given the success we're seeing in the Mibo direct to consumer campaign, we plan to continue the investment through the early part of this year. Second, we also expect to increase our investment in R and D in the first part of the year as we continue to drive our innovation pipeline. Based on these factors, in Q1 twenty twenty five, we expect to achieve roughly 17% of the full year adjusted EBITDA guidance, and we expect to build on that as we progress throughout the year. While these factors are expected to have a short term impact on phasing, they represent a strategic opportunity that we believe will generate significant growth and sustainable margin expansion over many years. In terms of the other key assumptions underlying our guidance, we expect adjusted gross margin to be approximately 62.5%. Speaker 300:19:53Keep in mind that we are absorbing an estimated $25,000,000 impact from the Inflation Reduction Act in adjusted gross margin. For the full year, we expect investments in R and D to be about 7.5% of revenue. As we continue to monitor Fed actions, we expect interest expense to be approximately $375,000,000 for the full year, which reflects a moderate decrease relative to 2024. We expect our adjusted tax rate to be roughly 15% to 17% and full year CapEx is expected to be approximately $280,000,000 Now on Slide 16, let me provide some additional color on how to think about the adjusted EBITDA guidance in 2025. The midpoint of our 2025 guidance range is $925,000,000 It absorbs currency headwinds of approximately $20,000,000 It also absorbs an estimated impact of approximately $20,000,000 related to our recent acquisition of Allios as we prepare for the approval and the launch in The U. Speaker 300:21:01S. We are excited about bringing Allios to The U. S. Market and believe it will be an important and profitable contributor to the surgical business for years to come. Excluding the impact of the currency headwinds and the Eluis acquisition, at the midpoint of our guidance range, the adjusted EBITDA margin is 18.9% in 2025. Speaker 300:21:24This reflects a 60 basis point EBITDA margin expansion in our base business relative to 2024. To sum up, we are continuing to see solid execution and strong performance across all segments. Our strategy is paying off. There is a clear momentum to further drive revenue growth and sustainable margin expansion. And now I'll turn the call back to Brent. Speaker 200:21:50Thanks, Sam. Let's highlight the categories and products that will help fuel our growth in 2025. Earlier, I mentioned that we're nearing $1,000,000,000 in annual revenue for our dry eye portfolio, which is impressive on its own, but how we got there is noteworthy. Organic revenue growth increased nearly 50% year over year. Meiboe and Xiidra volumes played a prominent role in that growth as weekly TRx trend lines illustrate. Speaker 200:22:19Both have benefited from effective direct to consumer campaigns and a full court press when it comes to educating prescribers on the distinct advantages of each medication. But I'll once again point out that our dry eye portfolio is all encompassing. In addition to our flagship pharmaceutical products, we have OTC solutions that address all needs. One prominent example is our Blink franchise, which reported 12% revenue growth on a constant currency basis in the fourth quarter. We've become a one stop shop for dry eye sufferers. Speaker 200:22:55And that's not only true for the approximately one hundred and fifty million U. S. Adults that experience occasional or frequent symptoms of dry eye or roughly the thirty eight million living with dry eye disease, we offer relief on a global scale. Two OTC products with recognizable names are poised to have an impact in 2025. LUMIFY preservative free eye drops received FDA approval last year and make a wildly popular brand even more attainable. Speaker 200:23:27The product was developed in response to feedback from consumers and eye care professionals. In fact, earlier this year, I had an ophthalmologist tell me she was compounding Lumify Speaker 300:23:39for a Speaker 200:23:40patient in need of a preservative free option. The drops are now available on Amazon and should be on shelves at most major U. S. Retailers by June. Another example being responsive to the needs of consumers and eye care professionals was last year's launch of Blink NutriTears, a clinically proven OTC supplement for dry eyes. Speaker 200:24:03Some dry eye sufferers have an aversion to eye drops or simply prefer adding another pill to their daily regimen. And we've heard countless times from doctors the importance of having a once a day nutraceutical that they can recommend to patients. The opportunity for both products is significant. In January, we launched a new thirty second ad for Blink Nutra Tears that will run throughout the year across linear and connected TV. It's early days, but there are promising signs. Speaker 200:24:35Since the ad went live, we've seen a 4x increase in sales at major retailers. Unlike NutriTears, LumaFi preservative free doesn't have to cultivate a nascent category. Instead, it can ride the coattails of a brand that saw 24% reported revenue growth in the fourth quarter. Our contact lens growth is outpacing the market, which may surprise some in the industry, not us. As highlighted earlier, daily SAI lenses are driving that growth and having the full family of offerings makes it much easier to convert eye care professionals, most of whom don't prefer to mix and match. Speaker 200:25:16While we typically lead with daily SAHAI performance, it's important to remember that other products are contributing to our success. Ultra monthly contacts are a good example with 6% revenue growth in 2024. How we offer contact lenses to patients is increasingly important, which is why we're encouraged by the initial interest in Opal, our e commerce platform launched in October. As more practices adopt this complementary service, product distribution will become increasingly automated and easier with an expected boost in patient loyalty as well. On another note on distribution, putting the issues in Lynchburg behind us last year had an obvious impact on our performance. Speaker 200:26:04It's no coincidence that the lone quarter single digit constant currency revenue growth for our lens business was at the tail end of our remediation process. Our steady drumbeat of premium IOL launches continues with an anticipated first quarter launch of LuxLife in Europe. The lens offers a continuous range of vision and adds to the buzz around our aggressive push into the category. I've mentioned this before, but it's worth repeating given the surgical business is relationship driven. Ophthalmic surgeons are excited about our products and anxious for what's next. Speaker 200:26:43I hear it at industry meetings around the world and in conversations not only with our biggest customers, but our newest customers as well. That excitement is certainly reflected in our premium aisle revenue growth and supports our pipeline strategy. I'll close with a reminder that cutting edge technology is foundational to how we source, make and sell. I covered OPAL earlier. Let me highlight some other important platforms and partnerships. Speaker 200:27:14We're leveraging Collaboration's pharmaceutical data curation and machine learning expertise to identify new drug candidates. ITeligent software simplifies the complex and time consuming surgical planning process and enables device integration. Our collaboration with Character Bio will focus on developing innovative AMD treatments through the company's patient data platform and AI powered analytical engine. We've partnered with Arena AI to help drive yield and output gains at our contact lens manufacturing sites by utilizing predictive analytics. And finally, LEMS is our proprietary digital sales platform that uses AI and machine learning to provide tailor made guidance for engaging eye care professionals. Speaker 200:28:05As made clear by our investments, technology will continue to be a driving force behind our ongoing evolution. Before we take questions, I'd like to thank my colleagues around the world for everything we accomplished in 2024. It's remarkable what we fit into twelve months. And I'm not just talking about the more visible achievements, we made significant strides in every area of our company, thanks to their hard work and buy in. Operator, let's take questions. Operator00:28:37Thank you. At this time, we will be conducting a question and answer session. And the first question today is coming from Patrick Wood from Morgan Stanley. Patrick, your line is open. Speaker 400:29:10Perfect. Thanks so much. I appreciate taking the question. I'll keep it to one just so everybody gets a chance. But Brent, you touched on it at the end about sort of customer side things. Speaker 400:29:21And we can see the pipeline, the innovation that's coming through in the company, but I'd love to hear a little bit more about I know you spend a lot of time on the ground with reps and things, what you're seeing at the customer level. So So is a lot of the growth also coming from, I don't know, on the consumer side, more shelf space, more gondola ends? What are you seeing in terms of the rates of bringing new surgeons in who previously wouldn't have had the discussion. I'm trying to pull out the execution component of the scorecard relative to the innovation. I know they're links, but I'm just interested to hear Speaker 500:29:55more about that. Thanks so much. Speaker 200:29:57Yes. Great question, Patrick. Look, as we sit here today, it kind of marks my two year anniversary with Bausch and Lomb or my return to Bausch and Lomb. And I think you hit the nail on the head. When I joined two years ago, I think we were struggling with customer service on multiple fronts, right? Speaker 200:30:20It started with operational issues of being able to supply products, some of it due to the COVID supply chain disruption, some to our own self forced errors in Lynchburg and the like. And I think we spent a lot of time focused on operational excellence because it's really hard to have selling excellence if you can't supply your products. And Al Waterhouse and our team in supply chain and manufacturing have done a really great job over the last two years stabilizing. And you don't hear us talking about anymore in earning report, supply issues or recalls. The quality metrics in our plants are trending all into high levels. Speaker 200:31:03Our backorders are at all time lows. And so we're really delivering great operational excellence over the last two years. We then focused on selling excellence, right. And great proof point is since I joined the last two years, our revenue growth CAGR for the last two years is 10% on an organic basis. So growing much faster than our industry and taking market share. Speaker 200:31:26And I think that was broad based, right? If you look at over the two years, you see or in '24, you see consumer up 9% on constant currency, contact lens all time high at 11%, Surgical at 11% and pharma at a 15% organic constant currency. So really broad based growth by geographies would be a very similar story. And so that's not a one pick, trick pony. It's a really holistic commitment to selling excellence. Speaker 200:31:53And then the third component of my roadmap plan was innovation. And you're right, we see that playing out in the depth of the pipeline and the new product launches. But as we think about the next two years, it's really about driving continued growth and now couple that with margin expansion and profitability improvement. And it's not like we ignored it. If you look at 24 P and L leverage, right, margin expansion was about 50 bps. Speaker 200:32:24If you exclude some of the one off items that Sam mentioned in the prepared remarks, 25 bps is about another 60 bps improvement. But really I start to get excited when I look at '26 and '27 of the opportunity we have to continue that journey and margin expansion, all while investing in the new products and the pipeline. So as I sit here today, I give the team a really good report card on the last two years of accomplishing and frankly doing what we said we would do. And I look at the opportunity over the next two years and I'm probably even more excited. So all in all, it's good. Speaker 200:33:02I think more specifically and then I'll conclude. When I go out and talk to customers, I'll be in China next week and meeting with customers and the team. I'll be at the ACOS meeting in Out West this weekend. So I'm out of quite a bit. There is just renewed excitement about the what they call the new B and L. Speaker 200:33:23I don't know if I'd call it the new B and L, but they do. And surgeons in particular that really didn't consider B and L in the past are looking at products like Envy, Envista Envy and the chatter there early days, but about 10,000 lenses now implanted about 900 surgeons doing Envy's more in the queue that want to do Envy are really getting great patient outcomes. They are noticing the difference and that's what drives customers to want to be with Bausch and Lomb, innovation and great execution. Speaker 400:34:01Beautiful. Thanks so much for the Speaker 300:34:02question. Yes. Thank you, Pat. Operator00:34:06Thank you. The next question will be coming from Joanne Wuensch from Citibank. Joanne, your line is live. Speaker 600:34:13Good morning and thank you so much for taking the question. I want to spend just a minute talking about contact lenses. We saw another quarter of very strong double digit growth both in The United States and outside The United States. And I was curious how you thought about the continuous nature of that, continuity, whatever the right word is. And in particular, what you can tell us about the Biomimetic lens and myopia control? Speaker 600:34:38Thank you. Speaker 200:34:40Great, Joanna. And I should have mentioned, Yahia Hashad is with us for Q and A. He's our Head of R and D and Chief Medical Officer. So I'll ask him to weigh in here as well on the pipeline. But look, I couldn't be more proud of our contact lens performance and the team, 11% for the year, 13% on a constant currency basis for the quarter. Speaker 200:35:02We're hitting numbers that really we haven't hit in terms of growth at Bausch and Lomb in probably twenty, thirty years, right? And really, I dare to say, we don't have all the numbers from competitors, but really probably sales leadership for the year and for the quarter based on what we believe will happen in the industry. And look, contact lens is a great business, right? It's a great market. It's got strong growth. Speaker 200:35:27I think we were slightly more optimistic about market growth in 'twenty five than even 'twenty four, which was a very solid year. And our performance I think is quite broad based. I look at what we're doing in The U. S. With the full family of infused now, and Opal, a big investment we made last year, is really making a difference. Speaker 200:35:49I look at a big market like China, where I'll be next week, and our direct to consumer capabilities that we invested in end of twenty twenty three and end of twenty twenty four, really are making a difference in terms of how we interact with customers and deliver contact lenses. But our product pipeline is probably what makes me even more excited, not just the Biomimetic lines, which Yahia can contact, touch on, but also our myopia control programs and quite a few other programs there. So I look at the next couple of years executing on the current pipeline of sustainable growth and leadership. And then the future and probably 2027 and beyond gets super exciting with the new products that are coming. But Yahir, you want to talk Joe on the BioMOMENTIC? Speaker 700:36:37Yes, sure. So actually, as you always mentioned Brent, there hasn't been a lot of innovations in the material side of the contact lenses in so many years. And in fact, the Boltron LAM, one of its strengths is the capabilities we have in research and development for the contact lenses. And one of the areas that we focused on is then what is next in terms of the material and can we create really a new material segments for the future. And this is actually what came up about we started the project about a year and a half ago. Speaker 700:37:10It's a lens been done from a biomaterial substance that is designed to mimic the natural environment inside the eye from a chemistry and a biology perspective. Added to this also we are revamping completely also the packaging solution for the contact lenses to add also to the comfort that can the consumer can feel and also considering the global sustainability piece that also allow us to be expanding globally. So, we have done massive strides in terms of the developments. We have done conducted over eight internal clinical studies and the study is showing pretty promising results. We are going for the first external big study during mid this year. Speaker 700:37:57And actually, we hope that what we have put from a target product profile that we will be able to see from this clinical study. So that's the Yes. Speaker 200:38:07And I think and Yahia won't say this, but outside of the great work his team has done in developing this biomimetic material, the one requirement I gave the R and D team was they had to design for purpose on existing equipment to really essentially minimize or really not have any significant capital expenditure that generally comes with new material development and they did just that. So not only is a breakthrough innovation, it's going to be a high margin lens at the get go and not require big cash capital expenditures to get up and scale. So we're super excited about it. Obviously, the clinical trial data is critical to the success of the lens, but we're really excited about Speaker 300:38:57it. Next question, operator. Operator00:39:01Thank you. And the next question is coming from Craig Bijou from Bank of America. Craig, your line is live. Speaker 800:39:10Good morning, guys. Thanks for taking the questions. I guess, wanted to start with the dry eye franchise on, at least on the prescription side. And obviously, MIVO has seen a significant ramp since it launched and through '24. Xiidra looks like it's rebounded. Speaker 800:39:28So we'd just love to understand the expectations that we should be thinking about for both of those in 2025. So for MIBOW, can you grow sales sequentially like you have been? And then is PROSIDRA is the mid single digits revenue growth that you've talked about in the past, is that still the right way to think about growth for that franchise? Speaker 200:39:52Yes. So let me start and then I'll ask Sam to chime in as well. So great question, Craig. Thank you. Look, I think both of those products are really the workhorses of our U. Speaker 200:40:04S. Pharmaceutical business. Mivo is the I think it is the most successful launch in ocular surface history. And we're really proud of what we've done there. We do have very high expectations for Mibo to continue to drive growth in 2025 and for the long term. Speaker 200:40:23And look, it's one data point. You guys get the weekly report card in IQVIA data, But January looked quite strong. The momentum from Q4 has carried into January. And I think that's more impressive when you think about the seasonality of this category, dry eye category, tends to see the first quarter and in particular January be the weakest month of the year because of the way that co pays work and deductibles work. And so I think that's good. Speaker 200:40:55Xiidra, Sam can provide some more commentary. Our goal is TRx growth. We have this asset for the next several years and we're making an investment in managed care coverage in 2025, which we talked about quite a bit, I think at every quarter last year about the investment we needed to make to maintain coverage. But clearly, we see a real opportunity to continue momentum in TRx growth and believe this Speaker 300:41:25is going to be a growth driver for us for the long term. But Sam, you want to touch on any financial metrics? Sure. And I'll start with MIBOW. And Craig, I think when you reflect back on Q4 for MIBOW, we had sales of roughly about $53,000,000 dollars That's a pretty good baseline for us to think about as you think about run rate for and growth into 2025. Speaker 300:41:48Just keep in mind that sequential element that you asked about or pointed out is very important to understand the seasonality. Q1 is always the lowest, Q4 is the highest. So you look at Q4 to Q1, you just have to keep that in mind as you think about the Q1 and you start phasing the growth from Michael. In terms of Xiidra, our strategy in Xiidra has been working very nicely. You've seen that in the TRxs, especially in the second half of twenty twenty four. Speaker 300:42:17And we ended the year with the average TRxs of 23,000 plus that Brent highlighted. This is a very important factor, because the team is executing very well. And as you think about 2025, that momentum in terms of driving the volume will continue with us and we expect to see that in 2025. The two things that we've been highlighting throughout 2024 is first is the IRA, the Inflation Reduction Act, which we quantify roughly by '25. That will be a one time headwind for us as we think about '25 versus '24 in Xiidra. Speaker 300:42:52The other part is the level of confidence that we have developed as we've started seeing the execution and the TRxs, we always highlighted that we have to invest also in making sure that we have the right access And that's something we will be doing. We highlighted in 2024 that we'll make sure that that's taking place in 2025. That also will be a one time sort of investment. I refer to it as it's a short term investment in 2025. It does pay a lot of dividends beyond '25 as you go and you start driving those volume up. Speaker 300:43:24I refer to it as a simple ROI no brainer in terms of the kind of an investment with the TRxs that we're seeing so far. Next question, operator. Speaker 200:43:36Go ahead, Craig. Speaker 800:43:39Thanks, Brent. I was just going to ask one quick follow-up, if I may. So on the market compact lens performance, just wanted to get your comments on your market share versus maybe transitioning your existing customers to or I guess a mix benefit from transitioning Speaker 500:43:59some of your existing customers to the daily disposables? Yes. Speaker 800:44:00I mean, I think it's Speaker 200:44:04And I think there's a combination here of obviously transitioning some of our existing customers and us also focusing on new fits or new starts. And I think there's a real nice balance being accomplished throughout the execution in the field. And you see that we saw ultra monthly up 6% for the year. So when you look at this, it's not all of just coming from the new products. It's maintaining growth in the older products, while we use the new products to accelerate. Speaker 200:44:44And so it's not a leaky bucket. It's filling the bucket higher and higher. Speaker 800:44:52Got it. Thanks for the extra question guys. Speaker 200:44:55Sure. Thanks, Greg. Operator00:44:57Thank you. The next question will be from Larry Biegelsen from Wells Fargo. Larry, your line is live. Speaker 900:45:03Good morning. Thanks for taking the question and congrats on a strong finish to the year here. Brent and Sam, you talked about 10% organic growth in the last two years, Brent, and in Q4. So clearly a lot of momentum here, but you're guiding to about 6.5% at the midpoint in 2025. Why is that the right starting point? Speaker 900:45:26Which business is slow relative to 2024? And Sam, I didn't hear you talk about revenue seasonality. Thanks. Speaker 300:45:35Yes. Thanks, Larry. Maybe I'll take it in part here. And when I reflect on sort of old businesses, we don't see any business that slowly. Actually, maybe take a step back and look at the overall market dynamics, right? Speaker 300:45:48The market dynamics are solid and we've seen that market is growing roughly around mid single digits. And as you pointed, our guidance bracket is roughly about anywhere between 5.5 to 7.5% with the midpoint of 6.5% in terms of revenue top line growth. Really the framework that we've been following and we've seen that work very nicely in 2024 is driving our performance to be growing above market. And that's really what our guidance suggests the growth in terms of what we're seeing in terms of growing faster than the market and continuing to gain share. One of the elements that you have to keep in mind is we're also absorbing some of the elements of the IRA that I mentioned earlier in terms of the growth on a year to year basis and also the market access elements of that that's absorbed on a year to year basis, but overall still growing faster than the market. Speaker 300:46:39So given the fact we're this is the first time we're setting our guidance for 2025, we think it's a reasonable place to start with the guidance range and we factor in all the different elements of our business and we think it's pretty well balanced guidance as a start of the year. Speaker 900:46:55And seasonality, Sam? Speaker 300:46:58Seasonality, it follows the natural seasonality that we've seen in 2024 really on the revenue side, EBITDA was really the two factors that were unusual or unique for us in 2025. That's why I called them out, being the investments that we're continuing in MIBO DTC, which will continue in Q1 that didn't happen at Q1 last year, as well as the Helios acquisition and registration, which we expect to be taking place in the first half of twenty twenty four. So that's why I called out the EBITDA seasonality. But other than that seasonality should follow 2024 seasonality. Speaker 500:47:35All right. Thanks so much guys. Speaker 300:47:38Thanks, Larry. Speaker 200:47:39Next question, operator. Operator00:47:41Thank you. The next question will be from Doug Mayim from RBC Capital. Doug, your line is live. Speaker 900:47:48Yes. Good morning, everyone. Thank you. My question has to do with MIBEL. I'm really curious if you could update us on how managed care insured contracting has gone over the last year. Speaker 900:48:04I know that you've been hoping for one mid year of last year, but that got delayed to the beginning of this year. I'm wondering if you could update us there. And then finally, when you think about the profitability of the product and the fact that you've extended that DTC campaign, do you expect that product as it leaves this year 2025 to be profitable? Or we're really looking at 2627 to see that profitability come through? And I'll leave it there. Speaker 900:48:33Thank you. Speaker 200:48:35Yes. So thanks, Doug. Yes. So Mevo coverage is quite strong. We're just starting the second year of launch here, right? Speaker 200:48:45This is the sixth quarter since launch and we're at 74% commercial coverage and 64% Medicare. So nearing full coverage, I usually say when both numbers in the 70s, you're at full coverage. So we're just a hair away. And so that's why you invest in the DTC because you have that coverage. We have the reps, the doctors are experiencing it, the patients are happy. Speaker 200:49:14And so all that comes together for strong execution. Clearly, what we see with miva, which we have for approximately another decade, is a path to driving real profitability starting next year. And so as most pharmaceutical launches, the first two years are investment years and then you see the profitability improve. I think we'll follow that very customary path. But the good news is, our numbers just keep improving, improving like we did last year. Speaker 200:49:46We kept taking guidance up. We kept overachieving. I do think that MIVO has the potential to just continue to outperform the category as it's incredibly well tolerated and effective medicine for patients that suffer from GI disease. So I think we're strongly positioned, Doug. Speaker 900:50:08Thank you. Operator00:50:10Thank you. The next question will be from Matt Miksic from Barclays. Matt, your line is live. Speaker 1000:50:17Hi. Thanks so much for taking the question. So maybe just a clarification on the comments you made about organic growth and the guidance for this year. It sounds like if we were to think about the difference, the double digits and then the slightly lower 25 growth, it's the IRA impact and then it's sort of maybe setting your goal to grow above market, but not really gunning for double digit growth each year. That is just maybe one quick clarification. Speaker 1000:50:50And then on surgical, if I could, maybe it would be great to hear you've had some success with Envy. You've got a pipeline of new lenses coming to the market. Where do you think you still have key kind of gaps that you're aiming to close that you think could significantly step up the competitive and share trends within that market? Or are there any? And what are those in addition to the products that you've rolled out? Speaker 1000:51:21Thanks so much. Speaker 200:51:23Yes. So let me answer the surgical one and I'll pass it over to Sam for the guidance question, Matt. Look, on surgical, our strategy was to starting two years ago was to really drive into the premium category. And that really just kicked off in the fourth quarter with the launch of Envy. So we're just a few months into it. Speaker 200:51:49And obviously we have Envy launching and really gaining early quick adoption. We're very pleased with that early days, but great reported outcomes from surgeons and patients. And now in Europe, we're launching LuxLife right now. The Invista platform will launch in the back half of the year in Europe as well. He and his team are got the EDOF lens and Vista Beyond in clinical trials with a launch towards the end of twenty twenty six. Speaker 200:52:22And so the IOL portfolio is the table is set, right? We have to add one more piece to it, but that's in clinical studies. And I feel like we have arguably the most comprehensive we actually do have the most comprehensive IOL portfolio once we have BEYOND in place. I think on the equipment side, we have Cinnova, our upgrade to our FACO machine, Eleyos, which we expect an FDA approval for in later this year, is I think really a game changer minimally invasive glaucoma surgery. And so I think all the pieces are coming together. Speaker 200:53:04I'd mentioned in the prepared remarks, we have adjustable IOL in very early development. We continue to look at technologies in both the combination and adjustability in IOLs. And so, I think I don't think we have any significant gaps. We have work to do, but I don't see any real significant gaps in the near term, at least over the next couple of years. Sam, you want to touch guidance? Speaker 300:53:32Yes. And Matt, when you think about the revenue, I think given the fact that again, you're starting setting up the guidance in the beginning of the year for twelve months out, you start by anchoring into where the market is and the market growth is. And the market growth, as I said, is about mid single digits. Our framework is to continue to grow faster in our market. That's why we positioned ourselves between the 5.5% to 7.5% in terms of growth. Speaker 300:53:59That Viewpoint IRA, that's definitely a headwind for us in 2025. Also I did mention the access, so I was talking about Zadra that will also be a headwind for us in 2025. But putting those two points in terms of aside, there's always going to be puts and takes with our sort of guidance range. And I think there's definitely areas where we can have the opportunity to be able to outperform, but we will have to be able to work our way through as we see those areas, how they play out throughout the year. And that's our guidance factor in multiple of those scenarios as we think about it. Speaker 1000:54:35Thank you for the color and the questions. Speaker 200:54:38Yes. Thanks, Matt. Operator00:54:40Thank you. The next question will be from Robbie Marcus from JPMorgan. Robbie, your line is live. Speaker 1100:54:46Great. Thanks for taking the questions. Two for me. Sam, I'll just ask them together. One, maybe I missed it. Speaker 1100:54:54How do we think about free cash flow in 2025? It was negative in 2024, can that term positive and how positive? And second, my rough map based on the guidance gets me to something like $0.02 to $0.04 of EPS growth. Is that the right ballpark? And how do you think about taking this good top line growth you're seeing and driving EPS and free cash flow in the future? Speaker 1100:55:23Thanks. Speaker 300:55:24All right. Thanks, Thanks, Ravi. Let me take them in parts here. So let me start with the cash flow. We are very pleased with what we've seen in 2024 with the cash generation. Speaker 300:55:34And we've seen that really come to fruition for us in the second half, starting with Q3 and then full year as well. Our cash adjusted cash flow as we reported this morning $263,000,000 As we think about twenty five year Ravi, I would say that the momentum that we had with the adjusted cash flow operation that will continue pretty much. We're not sort of taking any steps back from all the actions we've put in place to keep continue to drive that cash flow. So I expect the level of conversion to continue with potential continue to improve as we go into 2025. In terms of CapEx, we are guided to drop it by $280,000,000 There's always going to be a little bit of a timing around the spend of those CapEx and the timing of projects launches and the spend of when it takes place. Speaker 300:56:24I do expect that we would be in a positive free cash flow in 2025 based on what we see today in terms of our actions we've taken in place for the cash generation as well as we're thinking about the CapEx, but that's something we'll continue to update on as we go throughout the year. In terms of the other part of your question on EPS, so I would there's a couple of things when you think about EPS, we're going to see EPS growth on a year to year basis. We ended the year right now at $0.63 to expect to be a growth on a year to year basis. The two things I'll probably highlight for you to keep in mind as you think through it is our tax rate, we're guiding to a 15% to 17% tax rate in 2025. So that will be a little bit of a headwind as we think about the EPS growth, as well as the currency, which I highlighted on the EBITDA is about $20,000,000 I will see that flow of that currency as it goes through the EPS. Speaker 1100:57:23And just to clarify, is free cash flow positive in twenty twenty five million dollars or just improving towards positive? Thanks a lot. Speaker 300:57:33Well, we expect to be positive. Speaker 1100:57:36Great. Thank you very much. Speaker 200:57:38Thanks, Troy. Operator00:57:40Thank you. Our last question today will be from Gary Nachman from Raymond James. Gary, your line is live. Speaker 500:57:49Hey, guys. Good morning. This is Dennis Resnick on for Gary Nachman. Thank you for taking my question. Congrats on the quarter. Speaker 500:57:56Just for the dry eye franchise, are there any metrics or color that you can share as a patient's compliance with the dosing? And then any color on the refill rates? And then in the third quarter, you previously mentioned about how you begun sampling the one point six ml from IMO. Can you just talk about the conversion efforts there and if I was able to activate any new prescribers? Thanks so much. Speaker 200:58:18Sure. So one of the I think one of the important differentiating characteristics of Mibo versus the other drugs, including Xyedra in the inflammatory category is higher refault rates. I don't have the exact number in front of me. I can have George send it to you, but it is its refault rate is significantly higher than that of the other in the category, which goes to the, I think, strong clinical profile and safety profile of the medicine. I think people just feel better on it to be fair and that drives a lot of refills. Speaker 200:59:00So in essence, Mibo is potentially a harder working prescription because it's a stickier prescription versus the other drugs that tend to take a little longer to work and require a little bit more persistence from the patient to get relief. And so that's why that investment in Mibo and the long term outlook for Mibo is particularly exciting for us. Great. Thank you. Okay. Speaker 200:59:28Yes. So operator, maybe just a quick few closing remarks. First and foremost, I really do want to thank my colleagues at Bausch Alarm for delivering such a strong year and quarter. And I look forward to working with them in 2025 to continue to deliver on our expectations. And then also a quick thank you to all of our customers and patients who rely on Bausch and Lomb to provide great products and continue to drive innovation. Speaker 200:59:59We look forward to keeping you updated and talk to you next quarter. Thank you. Operator01:00:05Thank you. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallBausch + Lomb Q4 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress ReleaseAnnual report(10-K) F & M Bank Earnings HeadlinesF & M Bank Corp. (FMBM): Among Stocks Insiders Were Buying In Q1 2025April 1, 2025 | msn.comF&M Bank reports Q4 EPS 64c vs. 13c last yearFebruary 3, 2025 | markets.businessinsider.comTrump and Musk fight backIs there more to the Musk–Trump relationship than meets the eye? Jeff Brown thinks so — and he believes it has to do with a top-level initiative to build the ultimate military-grade AI system. He’s calling it the “AI Superweapon,” and he says it could soon become the center of global tech dominance. At the core of this initiative? 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There are 12 speakers on the call. Operator00:00:00Greetings. Welcome to the Bausch and Lomb Fourth Quarter twenty twenty four Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. Operator00:00:20I will now turn the conference over to your host, George Ghatkowski, Vice President of Investor Relations. You may begin. Speaker 100:00:30Thank you. Good morning, everyone, and welcome to our fourth quarter twenty twenty four Financial Results Conference Call. Participating on today's call are Chairman and Chief Executive Officer, Mr. Brent Saunders and Chief Financial Officer, Mr. Sam Aldosuki. Speaker 100:00:45In addition to this live webcast, a copy of today's slide presentation and a replay of this conference call will be available on our website under the Investor Relations section. Before we begin, I would like to remind you that our presentation today contains forward looking information. We would ask that you take a moment to read the forward looking legend at the beginning of our presentation as it contains important information. This presentation contains non GAAP financial measures and ratios. For more information about these measures and ratios, please refer to Slide one of the presentation. Speaker 100:01:17Non GAAP reconciliations can be found in the appendix to the presentation posted on our website. The financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter unless required by law and not to update or affirm guidance other than through broadly disseminated public disclosure. With that, it's my pleasure to turn the call over to Brent. Speaker 200:01:43Thank you, George, and thank you, everyone, for joining us today. I'm going to show progress against our strategy through the lens of our fourth quarter and full year results. And Sam will go deeper on our performance and provide 2025 guidance. I'll close by highlighting the products and technology that will advance our strategy in 2025 and beyond. We've booked our fifth straight quarter of double digit constant currency revenue growth, contributing to 17% constant currency revenue growth for the year. Speaker 200:02:18While top line growth isn't the only metric that matters, our trajectory is clear. We're capturing market share in an industry with significant growth potential and carving out leadership positions in areas of unmet need. There's no secret sauce behind that growth. In fact, the formula is simple. We continue to introduce new products across businesses and geographies at a steady clip, while optimizing our manufacturing process, which includes deploying AI. Speaker 200:02:51Technology is also a key component of an ongoing investment in our sales force. Our reps are leveraging digital tools to establish new relationships and deepen existing ties. The easier we make their jobs, the better they perform. Again, it's a simple formula. Underpinning our recent success is a commitment to long term growth. Speaker 200:03:16We are once again an innovation company, something I couldn't say when I rejoined Bausch and Lomb two years ago. Our R and D organization has been completely overhauled and infused with top talent. Our refocused pipeline is now filled with promise and potential to significantly enhance the standard of care in iHealth. This section of our roadmap to accelerate growth, which we highlight every quarter, focuses on Phase two, innovate and execute. I can't think of a more appropriate way to describe our current state. Speaker 200:03:53Innovation is driving our decision making process and positioning the company for long term sustainable growth. And our relentless focus on execution is clearly reflected in our results. Words on a roadmap are hollow without concrete examples. So consider the following when it comes to execution. Our organic revenue CAGR over the past two years is approximately 10%. Speaker 200:04:21The success of recent product launches is well documented, particularly in dry eye space, where a comprehensive portfolio is approaching $1,000,000,000 in annual revenue. Proof of our commitment to innovation deserves its own slide. These are the pipeline products we're most excited about with representation from all businesses. Our in house engineers are developing a first of its kind BioMedics contact lines that would optimize oxygen permeability and critically can be produced on existing lines, which means minimizing future capital expenditures. We're also developing a myopia control solution for children and young adolescents. Speaker 200:05:05Our consumer pipeline is all about building on the success of category leading brands with new formulations. We're once again working with the National Eye Institute to develop an AREDS III offering, which we believe would expand the market for our high performance preservation franchise and address a significant growth opportunity in dry AMD. LumiPhiLux is currently under development and would represent the next chapter of premium redness relief. The recent addition of Elias Procedure to our surgical portfolio unlocks new opportunities to treat glaucoma in conjunction with cataract surgery, and we hope to secure an FDA approval later this year. Meanwhile, we continue to roll out premium IOL offerings in a staged approach with an expected 2026 U. Speaker 200:05:59S. Launch for Amvista Beyond and an adjustable IOL in early stages of development. Finally, we've transformed our pharma pipeline to potentially introduce several novel treatments. These include a first dual action therapeutic to address both evaporative and inflammatory dry eye disease, the first product to treat chronic ocular surface pain and the first glaucoma product to lower intraocular pressure and approve visual acuity. Our revamped pipeline positions us to significantly enhance the standard of care for patients across the spectrum of eye health needs. Speaker 200:06:40That's where our focus will continue to be. I reference our holistic strength every quarter. So it's no surprise that I'll do the same when providing a full year review. The key takeaway is there continues to be no laggard. All three reporting segments delivered double digit constant currency revenue growth for the year, thanks to a focus on execution, in particular when bringing new products to market. Speaker 200:07:08Of note, Absence Idra revenue, pharmaceutical saw approximately 15% organic revenue growth for the year. The franchises we highlight speak to that holistic strength. We updated our 2024 projections for MIBO in November and still outperformed expectations with $172,000,000 of revenue. Xiidra hit the high end of our projections with three sixty four million dollars in full year 2024 revenue and a 14% year over year growth for Artilac is a reminder that our holistic strength extends to performance across geographies. Daily SaiHi lenses uptake continues to leap off the page with over 70% reported revenue growth through the year. Speaker 200:07:56Three things are driving that growth: a superior product offering, sales excellence and a thoughtful approach to how we introduce multifocal and toric options in new markets around the world. I referenced our premium IOL pipeline earlier, but it's important to recognize that we're carving out a significant presence in the category with existing offerings. Revenue from premium lenses was up 35% in 2024, despite several launches taking place later in the year. I'll now turn it over to Sam for a closer look at the financials. Speaker 300:08:35Thank you, Brent, and good morning, everyone. Before we begin, please note that all my comments today will be focused on growth expressed on a constant currency basis unless specifically indicated otherwise. Turning now to our financial results on Slides eight and nine. We saw yet another quarter of solid performance with revenue growth across our segments, geographies and product franchises. The broad based momentum in our business continued during the quarter, driven by our sustained focus on execution. Speaker 300:09:08Total company revenue of $1,280,000,000 for the quarter reflects growth of 1110% on an organic basis. For the full year, total company revenue of $4,791,000,000 reflects growth of 1710% on an organic basis. As we have said before, 2024 was one of the most active product launch years in our history. Our steady stream of product launches continues to drive growth and we are excited about the opportunity ahead of us in 2025 and beyond. For the fourth quarter, translational currency was a headwind of $17,000,000 to revenue and $4,000,000 to adjusted EBITDA. Speaker 300:09:54For the full year, it was a headwind of $69,000,000 to revenue and $11,000,000 to adjusted EBITDA. Now let's discuss the results in each of our segments. Vision Care fourth quarter revenue of $723,000,000 increased by 11% driven by growth in both the consumer and contact lens businesses. For the full year, Vision Care revenue was $2,739,000,000 and increased by 10%. The Consumer business grew by 10% in Q4. Speaker 300:10:28Let me go over a few highlights on the Consumer business. In the quarter, Lumify grew by 24% and continued to expand its market leading position. Our consumer dry eye portfolio delivered $103,000,000 in revenue, representing 20% growth in the quarter. Our two key franchises, Artelac and Blinc were once again big contributors to the strong performance. Artelac grew by 18% and Blink grew by 12% in the quarter. Speaker 300:11:02The dry eye portfolio has continued its outstanding performance with growth of approximately 27% on average over the past four quarters. Eye vitamins grew by 7% in Q4 as we continue to see solid consumption trends. And Lens Care grew by 2% for the full year led by our BiTrue MPS franchise. Contact Lens revenue growth was 13% with strong performance across modalities, key brands and geographies. For the full year, Contact Lens revenue growth was 11%. Speaker 300:11:39We are continuing to see very strong momentum with Dairy SciHi, which grew 75% in the quarter. We also saw growth across other key franchises, including Baitru, which was up 3% in the quarter and Ultra, which was up 10%. Contact Lens revenue growth was broad based across markets with The U. S. Up 17% in the quarter and International up 11%. Speaker 300:12:07For the full year, The U. S. Was up 12% and international was up 11%. Outside The U. S, we saw solid performance across all of the regions with growth in China at 12% in the quarter and 18% for the full year. Speaker 300:12:25While we are still in the early innings, we are seeing our investments in Opel in The U. S. And direct to consumer in China pay off. We believe the future of our lens business is highly promising. Our execution continues to be strong and we have a robust pipeline of innovation. Speaker 300:12:45Moving now to the Surgical segment. Fourth quarter revenue was $231,000,000 an increase of 15%. For the full year, revenue was $843,000,000 representing growth of 11%. In Q4, we once again saw growth in each of our three surgical product categories, and we also saw growth across all regions. Consumables, our largest product category grew in the quarter by 10%. Speaker 300:13:17Revenue from equipment was up 21%. Implantables grew by 19% in the quarter with our standard IOLs up 4% and our prima IOLs up 67%. Our InvesTA IOL platform is continuing to perform well with InvesTA Aspire Lens and InvesTA Envy showing strong early results. We are very excited about the surgical business. We are delivering growth that's faster than the overall market and our strategy remains the same. Speaker 300:13:50We will continue to focus on the top line growth and drive margin expansion with our premium products. Lastly, revenue in the Pharma segment was $326,000,000 for the quarter, which represents growth of 7%. For the full year, revenue in the Pharma segment was $1,209,000,000 which represents growth of 45%. Touching on our pharma dry eye portfolio, Mibu has continued its exceptional launch performance and delivered $53,000,000 in revenue in the quarter. For the full year, MIBU delivered 172,000,000 exceeding our latest guidance. Speaker 300:14:33I will once again highlight our commitment to making investments to drive MIBU strong growth, including investments in our direct to consumer campaign. Zadra delivered $104,000,000 revenue in the fourth quarter. This represents 6% growth when excluding the one time $8,000,000 rebate benefit we saw in Q4 of last year, which was driven by the acquisition from Novartis. For the full year, Xiidra delivered $364,000,000 in revenue coming in at the high end of our guidance range. As we look to 2025, our strategy remains unchanged. Speaker 300:15:13We will continue our efforts to maximize access to all Xiidra patients. Our team delivered strong Xiidra TRx growth in Q4 and we expect TRx growth to continue in 2025. As I have previously stated, we also expect a one time impact from the Inflation Reduction Act to be about $25,000,000 in 2025. Looking at our broader pharma portfolio, we are seeing solid performance. For the full year, U. Speaker 300:15:45S. Generics grew by 10% and international pharma grew by 8%. Now let me walk through some of the key non GAAP line items on Slides ten and eleven. Adjusted gross margin for the fourth quarter was 62.5%. For the full year, adjusted gross margin was 62.6%, which was up 160 basis points compared to last year. Speaker 300:16:11The increase in adjusted gross margin was mainly driven by product mix as we continue to execute our strategy to transition to higher margin products. In the fourth quarter, we invested $93,000,000 adjusted R and D and $342,000,000 for the full year, which is about 7% of revenue. Fourth quarter adjusted EBITDA excluding IPR and D was $259,000,000 which represents 14% growth versus Q4 of twenty twenty three. For the full year, adjusted EBITDA excluding IPR and D was $878,000,000 up 20% versus 2023. Net interest expense for the quarter was $93,000,000 and $384,000,000 for the full year. Speaker 300:17:04Adjusted EPS excluding IPR and D was $0.25 for the quarter and $0.63 for the full year. Over the course of 2024, we have discussed our targeted efforts to drive cash flow. These efforts are paying off. Adjusted cash flow from operations was $263,000,000 for the full year compared to $56,000,000 in 2023. We are pleased with this performance and we will remain focused on this front in 2025. Speaker 300:17:36Turning now to our 2025 guidance on Slide 15. We expect full year revenue to be in a range of 4,950,000,000.00 billion dollars to $5,050,000,000 This reflects constant currency growth of approximately 5.5% to 7.5%. The fundamentals of our business and the eye care market remain strong and we expect each of our segments to deliver growth in 2025. Shifting to adjusted EBITDA, we are setting our adjusted EBITDA guidance in a range of $900,000,000 to $950,000,000 Consistent with our guidance in 2024, our current guidance excludes any potential one time IPR and D charges that we may have in 2025. As we exited 2024, we saw a swift strength of the U. Speaker 300:18:28S. Dollar. Based on current exchange rates, for the full year 2025, we estimate currency headwinds of approximately CAD100 million to revenue and CAD20 million to adjusted EBITDA. We expect 2025 phasing to follow the natural seasonality of our business with the first quarter being the lowest and the fourth quarter being the highest. I do however want to highlight a couple of factors that will impact our typical phasing. Speaker 300:18:58First, given the success we're seeing in the Mibo direct to consumer campaign, we plan to continue the investment through the early part of this year. Second, we also expect to increase our investment in R and D in the first part of the year as we continue to drive our innovation pipeline. Based on these factors, in Q1 twenty twenty five, we expect to achieve roughly 17% of the full year adjusted EBITDA guidance, and we expect to build on that as we progress throughout the year. While these factors are expected to have a short term impact on phasing, they represent a strategic opportunity that we believe will generate significant growth and sustainable margin expansion over many years. In terms of the other key assumptions underlying our guidance, we expect adjusted gross margin to be approximately 62.5%. Speaker 300:19:53Keep in mind that we are absorbing an estimated $25,000,000 impact from the Inflation Reduction Act in adjusted gross margin. For the full year, we expect investments in R and D to be about 7.5% of revenue. As we continue to monitor Fed actions, we expect interest expense to be approximately $375,000,000 for the full year, which reflects a moderate decrease relative to 2024. We expect our adjusted tax rate to be roughly 15% to 17% and full year CapEx is expected to be approximately $280,000,000 Now on Slide 16, let me provide some additional color on how to think about the adjusted EBITDA guidance in 2025. The midpoint of our 2025 guidance range is $925,000,000 It absorbs currency headwinds of approximately $20,000,000 It also absorbs an estimated impact of approximately $20,000,000 related to our recent acquisition of Allios as we prepare for the approval and the launch in The U. Speaker 300:21:01S. We are excited about bringing Allios to The U. S. Market and believe it will be an important and profitable contributor to the surgical business for years to come. Excluding the impact of the currency headwinds and the Eluis acquisition, at the midpoint of our guidance range, the adjusted EBITDA margin is 18.9% in 2025. Speaker 300:21:24This reflects a 60 basis point EBITDA margin expansion in our base business relative to 2024. To sum up, we are continuing to see solid execution and strong performance across all segments. Our strategy is paying off. There is a clear momentum to further drive revenue growth and sustainable margin expansion. And now I'll turn the call back to Brent. Speaker 200:21:50Thanks, Sam. Let's highlight the categories and products that will help fuel our growth in 2025. Earlier, I mentioned that we're nearing $1,000,000,000 in annual revenue for our dry eye portfolio, which is impressive on its own, but how we got there is noteworthy. Organic revenue growth increased nearly 50% year over year. Meiboe and Xiidra volumes played a prominent role in that growth as weekly TRx trend lines illustrate. Speaker 200:22:19Both have benefited from effective direct to consumer campaigns and a full court press when it comes to educating prescribers on the distinct advantages of each medication. But I'll once again point out that our dry eye portfolio is all encompassing. In addition to our flagship pharmaceutical products, we have OTC solutions that address all needs. One prominent example is our Blink franchise, which reported 12% revenue growth on a constant currency basis in the fourth quarter. We've become a one stop shop for dry eye sufferers. Speaker 200:22:55And that's not only true for the approximately one hundred and fifty million U. S. Adults that experience occasional or frequent symptoms of dry eye or roughly the thirty eight million living with dry eye disease, we offer relief on a global scale. Two OTC products with recognizable names are poised to have an impact in 2025. LUMIFY preservative free eye drops received FDA approval last year and make a wildly popular brand even more attainable. Speaker 200:23:27The product was developed in response to feedback from consumers and eye care professionals. In fact, earlier this year, I had an ophthalmologist tell me she was compounding Lumify Speaker 300:23:39for a Speaker 200:23:40patient in need of a preservative free option. The drops are now available on Amazon and should be on shelves at most major U. S. Retailers by June. Another example being responsive to the needs of consumers and eye care professionals was last year's launch of Blink NutriTears, a clinically proven OTC supplement for dry eyes. Speaker 200:24:03Some dry eye sufferers have an aversion to eye drops or simply prefer adding another pill to their daily regimen. And we've heard countless times from doctors the importance of having a once a day nutraceutical that they can recommend to patients. The opportunity for both products is significant. In January, we launched a new thirty second ad for Blink Nutra Tears that will run throughout the year across linear and connected TV. It's early days, but there are promising signs. Speaker 200:24:35Since the ad went live, we've seen a 4x increase in sales at major retailers. Unlike NutriTears, LumaFi preservative free doesn't have to cultivate a nascent category. Instead, it can ride the coattails of a brand that saw 24% reported revenue growth in the fourth quarter. Our contact lens growth is outpacing the market, which may surprise some in the industry, not us. As highlighted earlier, daily SAI lenses are driving that growth and having the full family of offerings makes it much easier to convert eye care professionals, most of whom don't prefer to mix and match. Speaker 200:25:16While we typically lead with daily SAHAI performance, it's important to remember that other products are contributing to our success. Ultra monthly contacts are a good example with 6% revenue growth in 2024. How we offer contact lenses to patients is increasingly important, which is why we're encouraged by the initial interest in Opal, our e commerce platform launched in October. As more practices adopt this complementary service, product distribution will become increasingly automated and easier with an expected boost in patient loyalty as well. On another note on distribution, putting the issues in Lynchburg behind us last year had an obvious impact on our performance. Speaker 200:26:04It's no coincidence that the lone quarter single digit constant currency revenue growth for our lens business was at the tail end of our remediation process. Our steady drumbeat of premium IOL launches continues with an anticipated first quarter launch of LuxLife in Europe. The lens offers a continuous range of vision and adds to the buzz around our aggressive push into the category. I've mentioned this before, but it's worth repeating given the surgical business is relationship driven. Ophthalmic surgeons are excited about our products and anxious for what's next. Speaker 200:26:43I hear it at industry meetings around the world and in conversations not only with our biggest customers, but our newest customers as well. That excitement is certainly reflected in our premium aisle revenue growth and supports our pipeline strategy. I'll close with a reminder that cutting edge technology is foundational to how we source, make and sell. I covered OPAL earlier. Let me highlight some other important platforms and partnerships. Speaker 200:27:14We're leveraging Collaboration's pharmaceutical data curation and machine learning expertise to identify new drug candidates. ITeligent software simplifies the complex and time consuming surgical planning process and enables device integration. Our collaboration with Character Bio will focus on developing innovative AMD treatments through the company's patient data platform and AI powered analytical engine. We've partnered with Arena AI to help drive yield and output gains at our contact lens manufacturing sites by utilizing predictive analytics. And finally, LEMS is our proprietary digital sales platform that uses AI and machine learning to provide tailor made guidance for engaging eye care professionals. Speaker 200:28:05As made clear by our investments, technology will continue to be a driving force behind our ongoing evolution. Before we take questions, I'd like to thank my colleagues around the world for everything we accomplished in 2024. It's remarkable what we fit into twelve months. And I'm not just talking about the more visible achievements, we made significant strides in every area of our company, thanks to their hard work and buy in. Operator, let's take questions. Operator00:28:37Thank you. At this time, we will be conducting a question and answer session. And the first question today is coming from Patrick Wood from Morgan Stanley. Patrick, your line is open. Speaker 400:29:10Perfect. Thanks so much. I appreciate taking the question. I'll keep it to one just so everybody gets a chance. But Brent, you touched on it at the end about sort of customer side things. Speaker 400:29:21And we can see the pipeline, the innovation that's coming through in the company, but I'd love to hear a little bit more about I know you spend a lot of time on the ground with reps and things, what you're seeing at the customer level. So So is a lot of the growth also coming from, I don't know, on the consumer side, more shelf space, more gondola ends? What are you seeing in terms of the rates of bringing new surgeons in who previously wouldn't have had the discussion. I'm trying to pull out the execution component of the scorecard relative to the innovation. I know they're links, but I'm just interested to hear Speaker 500:29:55more about that. Thanks so much. Speaker 200:29:57Yes. Great question, Patrick. Look, as we sit here today, it kind of marks my two year anniversary with Bausch and Lomb or my return to Bausch and Lomb. And I think you hit the nail on the head. When I joined two years ago, I think we were struggling with customer service on multiple fronts, right? Speaker 200:30:20It started with operational issues of being able to supply products, some of it due to the COVID supply chain disruption, some to our own self forced errors in Lynchburg and the like. And I think we spent a lot of time focused on operational excellence because it's really hard to have selling excellence if you can't supply your products. And Al Waterhouse and our team in supply chain and manufacturing have done a really great job over the last two years stabilizing. And you don't hear us talking about anymore in earning report, supply issues or recalls. The quality metrics in our plants are trending all into high levels. Speaker 200:31:03Our backorders are at all time lows. And so we're really delivering great operational excellence over the last two years. We then focused on selling excellence, right. And great proof point is since I joined the last two years, our revenue growth CAGR for the last two years is 10% on an organic basis. So growing much faster than our industry and taking market share. Speaker 200:31:26And I think that was broad based, right? If you look at over the two years, you see or in '24, you see consumer up 9% on constant currency, contact lens all time high at 11%, Surgical at 11% and pharma at a 15% organic constant currency. So really broad based growth by geographies would be a very similar story. And so that's not a one pick, trick pony. It's a really holistic commitment to selling excellence. Speaker 200:31:53And then the third component of my roadmap plan was innovation. And you're right, we see that playing out in the depth of the pipeline and the new product launches. But as we think about the next two years, it's really about driving continued growth and now couple that with margin expansion and profitability improvement. And it's not like we ignored it. If you look at 24 P and L leverage, right, margin expansion was about 50 bps. Speaker 200:32:24If you exclude some of the one off items that Sam mentioned in the prepared remarks, 25 bps is about another 60 bps improvement. But really I start to get excited when I look at '26 and '27 of the opportunity we have to continue that journey and margin expansion, all while investing in the new products and the pipeline. So as I sit here today, I give the team a really good report card on the last two years of accomplishing and frankly doing what we said we would do. And I look at the opportunity over the next two years and I'm probably even more excited. So all in all, it's good. Speaker 200:33:02I think more specifically and then I'll conclude. When I go out and talk to customers, I'll be in China next week and meeting with customers and the team. I'll be at the ACOS meeting in Out West this weekend. So I'm out of quite a bit. There is just renewed excitement about the what they call the new B and L. Speaker 200:33:23I don't know if I'd call it the new B and L, but they do. And surgeons in particular that really didn't consider B and L in the past are looking at products like Envy, Envista Envy and the chatter there early days, but about 10,000 lenses now implanted about 900 surgeons doing Envy's more in the queue that want to do Envy are really getting great patient outcomes. They are noticing the difference and that's what drives customers to want to be with Bausch and Lomb, innovation and great execution. Speaker 400:34:01Beautiful. Thanks so much for the Speaker 300:34:02question. Yes. Thank you, Pat. Operator00:34:06Thank you. The next question will be coming from Joanne Wuensch from Citibank. Joanne, your line is live. Speaker 600:34:13Good morning and thank you so much for taking the question. I want to spend just a minute talking about contact lenses. We saw another quarter of very strong double digit growth both in The United States and outside The United States. And I was curious how you thought about the continuous nature of that, continuity, whatever the right word is. And in particular, what you can tell us about the Biomimetic lens and myopia control? Speaker 600:34:38Thank you. Speaker 200:34:40Great, Joanna. And I should have mentioned, Yahia Hashad is with us for Q and A. He's our Head of R and D and Chief Medical Officer. So I'll ask him to weigh in here as well on the pipeline. But look, I couldn't be more proud of our contact lens performance and the team, 11% for the year, 13% on a constant currency basis for the quarter. Speaker 200:35:02We're hitting numbers that really we haven't hit in terms of growth at Bausch and Lomb in probably twenty, thirty years, right? And really, I dare to say, we don't have all the numbers from competitors, but really probably sales leadership for the year and for the quarter based on what we believe will happen in the industry. And look, contact lens is a great business, right? It's a great market. It's got strong growth. Speaker 200:35:27I think we were slightly more optimistic about market growth in 'twenty five than even 'twenty four, which was a very solid year. And our performance I think is quite broad based. I look at what we're doing in The U. S. With the full family of infused now, and Opal, a big investment we made last year, is really making a difference. Speaker 200:35:49I look at a big market like China, where I'll be next week, and our direct to consumer capabilities that we invested in end of twenty twenty three and end of twenty twenty four, really are making a difference in terms of how we interact with customers and deliver contact lenses. But our product pipeline is probably what makes me even more excited, not just the Biomimetic lines, which Yahia can contact, touch on, but also our myopia control programs and quite a few other programs there. So I look at the next couple of years executing on the current pipeline of sustainable growth and leadership. And then the future and probably 2027 and beyond gets super exciting with the new products that are coming. But Yahir, you want to talk Joe on the BioMOMENTIC? Speaker 700:36:37Yes, sure. So actually, as you always mentioned Brent, there hasn't been a lot of innovations in the material side of the contact lenses in so many years. And in fact, the Boltron LAM, one of its strengths is the capabilities we have in research and development for the contact lenses. And one of the areas that we focused on is then what is next in terms of the material and can we create really a new material segments for the future. And this is actually what came up about we started the project about a year and a half ago. Speaker 700:37:10It's a lens been done from a biomaterial substance that is designed to mimic the natural environment inside the eye from a chemistry and a biology perspective. Added to this also we are revamping completely also the packaging solution for the contact lenses to add also to the comfort that can the consumer can feel and also considering the global sustainability piece that also allow us to be expanding globally. So, we have done massive strides in terms of the developments. We have done conducted over eight internal clinical studies and the study is showing pretty promising results. We are going for the first external big study during mid this year. Speaker 700:37:57And actually, we hope that what we have put from a target product profile that we will be able to see from this clinical study. So that's the Yes. Speaker 200:38:07And I think and Yahia won't say this, but outside of the great work his team has done in developing this biomimetic material, the one requirement I gave the R and D team was they had to design for purpose on existing equipment to really essentially minimize or really not have any significant capital expenditure that generally comes with new material development and they did just that. So not only is a breakthrough innovation, it's going to be a high margin lens at the get go and not require big cash capital expenditures to get up and scale. So we're super excited about it. Obviously, the clinical trial data is critical to the success of the lens, but we're really excited about Speaker 300:38:57it. Next question, operator. Operator00:39:01Thank you. And the next question is coming from Craig Bijou from Bank of America. Craig, your line is live. Speaker 800:39:10Good morning, guys. Thanks for taking the questions. I guess, wanted to start with the dry eye franchise on, at least on the prescription side. And obviously, MIVO has seen a significant ramp since it launched and through '24. Xiidra looks like it's rebounded. Speaker 800:39:28So we'd just love to understand the expectations that we should be thinking about for both of those in 2025. So for MIBOW, can you grow sales sequentially like you have been? And then is PROSIDRA is the mid single digits revenue growth that you've talked about in the past, is that still the right way to think about growth for that franchise? Speaker 200:39:52Yes. So let me start and then I'll ask Sam to chime in as well. So great question, Craig. Thank you. Look, I think both of those products are really the workhorses of our U. Speaker 200:40:04S. Pharmaceutical business. Mivo is the I think it is the most successful launch in ocular surface history. And we're really proud of what we've done there. We do have very high expectations for Mibo to continue to drive growth in 2025 and for the long term. Speaker 200:40:23And look, it's one data point. You guys get the weekly report card in IQVIA data, But January looked quite strong. The momentum from Q4 has carried into January. And I think that's more impressive when you think about the seasonality of this category, dry eye category, tends to see the first quarter and in particular January be the weakest month of the year because of the way that co pays work and deductibles work. And so I think that's good. Speaker 200:40:55Xiidra, Sam can provide some more commentary. Our goal is TRx growth. We have this asset for the next several years and we're making an investment in managed care coverage in 2025, which we talked about quite a bit, I think at every quarter last year about the investment we needed to make to maintain coverage. But clearly, we see a real opportunity to continue momentum in TRx growth and believe this Speaker 300:41:25is going to be a growth driver for us for the long term. But Sam, you want to touch on any financial metrics? Sure. And I'll start with MIBOW. And Craig, I think when you reflect back on Q4 for MIBOW, we had sales of roughly about $53,000,000 dollars That's a pretty good baseline for us to think about as you think about run rate for and growth into 2025. Speaker 300:41:48Just keep in mind that sequential element that you asked about or pointed out is very important to understand the seasonality. Q1 is always the lowest, Q4 is the highest. So you look at Q4 to Q1, you just have to keep that in mind as you think about the Q1 and you start phasing the growth from Michael. In terms of Xiidra, our strategy in Xiidra has been working very nicely. You've seen that in the TRxs, especially in the second half of twenty twenty four. Speaker 300:42:17And we ended the year with the average TRxs of 23,000 plus that Brent highlighted. This is a very important factor, because the team is executing very well. And as you think about 2025, that momentum in terms of driving the volume will continue with us and we expect to see that in 2025. The two things that we've been highlighting throughout 2024 is first is the IRA, the Inflation Reduction Act, which we quantify roughly by '25. That will be a one time headwind for us as we think about '25 versus '24 in Xiidra. Speaker 300:42:52The other part is the level of confidence that we have developed as we've started seeing the execution and the TRxs, we always highlighted that we have to invest also in making sure that we have the right access And that's something we will be doing. We highlighted in 2024 that we'll make sure that that's taking place in 2025. That also will be a one time sort of investment. I refer to it as it's a short term investment in 2025. It does pay a lot of dividends beyond '25 as you go and you start driving those volume up. Speaker 300:43:24I refer to it as a simple ROI no brainer in terms of the kind of an investment with the TRxs that we're seeing so far. Next question, operator. Speaker 200:43:36Go ahead, Craig. Speaker 800:43:39Thanks, Brent. I was just going to ask one quick follow-up, if I may. So on the market compact lens performance, just wanted to get your comments on your market share versus maybe transitioning your existing customers to or I guess a mix benefit from transitioning Speaker 500:43:59some of your existing customers to the daily disposables? Yes. Speaker 800:44:00I mean, I think it's Speaker 200:44:04And I think there's a combination here of obviously transitioning some of our existing customers and us also focusing on new fits or new starts. And I think there's a real nice balance being accomplished throughout the execution in the field. And you see that we saw ultra monthly up 6% for the year. So when you look at this, it's not all of just coming from the new products. It's maintaining growth in the older products, while we use the new products to accelerate. Speaker 200:44:44And so it's not a leaky bucket. It's filling the bucket higher and higher. Speaker 800:44:52Got it. Thanks for the extra question guys. Speaker 200:44:55Sure. Thanks, Greg. Operator00:44:57Thank you. The next question will be from Larry Biegelsen from Wells Fargo. Larry, your line is live. Speaker 900:45:03Good morning. Thanks for taking the question and congrats on a strong finish to the year here. Brent and Sam, you talked about 10% organic growth in the last two years, Brent, and in Q4. So clearly a lot of momentum here, but you're guiding to about 6.5% at the midpoint in 2025. Why is that the right starting point? Speaker 900:45:26Which business is slow relative to 2024? And Sam, I didn't hear you talk about revenue seasonality. Thanks. Speaker 300:45:35Yes. Thanks, Larry. Maybe I'll take it in part here. And when I reflect on sort of old businesses, we don't see any business that slowly. Actually, maybe take a step back and look at the overall market dynamics, right? Speaker 300:45:48The market dynamics are solid and we've seen that market is growing roughly around mid single digits. And as you pointed, our guidance bracket is roughly about anywhere between 5.5 to 7.5% with the midpoint of 6.5% in terms of revenue top line growth. Really the framework that we've been following and we've seen that work very nicely in 2024 is driving our performance to be growing above market. And that's really what our guidance suggests the growth in terms of what we're seeing in terms of growing faster than the market and continuing to gain share. One of the elements that you have to keep in mind is we're also absorbing some of the elements of the IRA that I mentioned earlier in terms of the growth on a year to year basis and also the market access elements of that that's absorbed on a year to year basis, but overall still growing faster than the market. Speaker 300:46:39So given the fact we're this is the first time we're setting our guidance for 2025, we think it's a reasonable place to start with the guidance range and we factor in all the different elements of our business and we think it's pretty well balanced guidance as a start of the year. Speaker 900:46:55And seasonality, Sam? Speaker 300:46:58Seasonality, it follows the natural seasonality that we've seen in 2024 really on the revenue side, EBITDA was really the two factors that were unusual or unique for us in 2025. That's why I called them out, being the investments that we're continuing in MIBO DTC, which will continue in Q1 that didn't happen at Q1 last year, as well as the Helios acquisition and registration, which we expect to be taking place in the first half of twenty twenty four. So that's why I called out the EBITDA seasonality. But other than that seasonality should follow 2024 seasonality. Speaker 500:47:35All right. Thanks so much guys. Speaker 300:47:38Thanks, Larry. Speaker 200:47:39Next question, operator. Operator00:47:41Thank you. The next question will be from Doug Mayim from RBC Capital. Doug, your line is live. Speaker 900:47:48Yes. Good morning, everyone. Thank you. My question has to do with MIBEL. I'm really curious if you could update us on how managed care insured contracting has gone over the last year. Speaker 900:48:04I know that you've been hoping for one mid year of last year, but that got delayed to the beginning of this year. I'm wondering if you could update us there. And then finally, when you think about the profitability of the product and the fact that you've extended that DTC campaign, do you expect that product as it leaves this year 2025 to be profitable? Or we're really looking at 2627 to see that profitability come through? And I'll leave it there. Speaker 900:48:33Thank you. Speaker 200:48:35Yes. So thanks, Doug. Yes. So Mevo coverage is quite strong. We're just starting the second year of launch here, right? Speaker 200:48:45This is the sixth quarter since launch and we're at 74% commercial coverage and 64% Medicare. So nearing full coverage, I usually say when both numbers in the 70s, you're at full coverage. So we're just a hair away. And so that's why you invest in the DTC because you have that coverage. We have the reps, the doctors are experiencing it, the patients are happy. Speaker 200:49:14And so all that comes together for strong execution. Clearly, what we see with miva, which we have for approximately another decade, is a path to driving real profitability starting next year. And so as most pharmaceutical launches, the first two years are investment years and then you see the profitability improve. I think we'll follow that very customary path. But the good news is, our numbers just keep improving, improving like we did last year. Speaker 200:49:46We kept taking guidance up. We kept overachieving. I do think that MIVO has the potential to just continue to outperform the category as it's incredibly well tolerated and effective medicine for patients that suffer from GI disease. So I think we're strongly positioned, Doug. Speaker 900:50:08Thank you. Operator00:50:10Thank you. The next question will be from Matt Miksic from Barclays. Matt, your line is live. Speaker 1000:50:17Hi. Thanks so much for taking the question. So maybe just a clarification on the comments you made about organic growth and the guidance for this year. It sounds like if we were to think about the difference, the double digits and then the slightly lower 25 growth, it's the IRA impact and then it's sort of maybe setting your goal to grow above market, but not really gunning for double digit growth each year. That is just maybe one quick clarification. Speaker 1000:50:50And then on surgical, if I could, maybe it would be great to hear you've had some success with Envy. You've got a pipeline of new lenses coming to the market. Where do you think you still have key kind of gaps that you're aiming to close that you think could significantly step up the competitive and share trends within that market? Or are there any? And what are those in addition to the products that you've rolled out? Speaker 1000:51:21Thanks so much. Speaker 200:51:23Yes. So let me answer the surgical one and I'll pass it over to Sam for the guidance question, Matt. Look, on surgical, our strategy was to starting two years ago was to really drive into the premium category. And that really just kicked off in the fourth quarter with the launch of Envy. So we're just a few months into it. Speaker 200:51:49And obviously we have Envy launching and really gaining early quick adoption. We're very pleased with that early days, but great reported outcomes from surgeons and patients. And now in Europe, we're launching LuxLife right now. The Invista platform will launch in the back half of the year in Europe as well. He and his team are got the EDOF lens and Vista Beyond in clinical trials with a launch towards the end of twenty twenty six. Speaker 200:52:22And so the IOL portfolio is the table is set, right? We have to add one more piece to it, but that's in clinical studies. And I feel like we have arguably the most comprehensive we actually do have the most comprehensive IOL portfolio once we have BEYOND in place. I think on the equipment side, we have Cinnova, our upgrade to our FACO machine, Eleyos, which we expect an FDA approval for in later this year, is I think really a game changer minimally invasive glaucoma surgery. And so I think all the pieces are coming together. Speaker 200:53:04I'd mentioned in the prepared remarks, we have adjustable IOL in very early development. We continue to look at technologies in both the combination and adjustability in IOLs. And so, I think I don't think we have any significant gaps. We have work to do, but I don't see any real significant gaps in the near term, at least over the next couple of years. Sam, you want to touch guidance? Speaker 300:53:32Yes. And Matt, when you think about the revenue, I think given the fact that again, you're starting setting up the guidance in the beginning of the year for twelve months out, you start by anchoring into where the market is and the market growth is. And the market growth, as I said, is about mid single digits. Our framework is to continue to grow faster in our market. That's why we positioned ourselves between the 5.5% to 7.5% in terms of growth. Speaker 300:53:59That Viewpoint IRA, that's definitely a headwind for us in 2025. Also I did mention the access, so I was talking about Zadra that will also be a headwind for us in 2025. But putting those two points in terms of aside, there's always going to be puts and takes with our sort of guidance range. And I think there's definitely areas where we can have the opportunity to be able to outperform, but we will have to be able to work our way through as we see those areas, how they play out throughout the year. And that's our guidance factor in multiple of those scenarios as we think about it. Speaker 1000:54:35Thank you for the color and the questions. Speaker 200:54:38Yes. Thanks, Matt. Operator00:54:40Thank you. The next question will be from Robbie Marcus from JPMorgan. Robbie, your line is live. Speaker 1100:54:46Great. Thanks for taking the questions. Two for me. Sam, I'll just ask them together. One, maybe I missed it. Speaker 1100:54:54How do we think about free cash flow in 2025? It was negative in 2024, can that term positive and how positive? And second, my rough map based on the guidance gets me to something like $0.02 to $0.04 of EPS growth. Is that the right ballpark? And how do you think about taking this good top line growth you're seeing and driving EPS and free cash flow in the future? Speaker 1100:55:23Thanks. Speaker 300:55:24All right. Thanks, Thanks, Ravi. Let me take them in parts here. So let me start with the cash flow. We are very pleased with what we've seen in 2024 with the cash generation. Speaker 300:55:34And we've seen that really come to fruition for us in the second half, starting with Q3 and then full year as well. Our cash adjusted cash flow as we reported this morning $263,000,000 As we think about twenty five year Ravi, I would say that the momentum that we had with the adjusted cash flow operation that will continue pretty much. We're not sort of taking any steps back from all the actions we've put in place to keep continue to drive that cash flow. So I expect the level of conversion to continue with potential continue to improve as we go into 2025. In terms of CapEx, we are guided to drop it by $280,000,000 There's always going to be a little bit of a timing around the spend of those CapEx and the timing of projects launches and the spend of when it takes place. Speaker 300:56:24I do expect that we would be in a positive free cash flow in 2025 based on what we see today in terms of our actions we've taken in place for the cash generation as well as we're thinking about the CapEx, but that's something we'll continue to update on as we go throughout the year. In terms of the other part of your question on EPS, so I would there's a couple of things when you think about EPS, we're going to see EPS growth on a year to year basis. We ended the year right now at $0.63 to expect to be a growth on a year to year basis. The two things I'll probably highlight for you to keep in mind as you think through it is our tax rate, we're guiding to a 15% to 17% tax rate in 2025. So that will be a little bit of a headwind as we think about the EPS growth, as well as the currency, which I highlighted on the EBITDA is about $20,000,000 I will see that flow of that currency as it goes through the EPS. Speaker 1100:57:23And just to clarify, is free cash flow positive in twenty twenty five million dollars or just improving towards positive? Thanks a lot. Speaker 300:57:33Well, we expect to be positive. Speaker 1100:57:36Great. Thank you very much. Speaker 200:57:38Thanks, Troy. Operator00:57:40Thank you. Our last question today will be from Gary Nachman from Raymond James. Gary, your line is live. Speaker 500:57:49Hey, guys. Good morning. This is Dennis Resnick on for Gary Nachman. Thank you for taking my question. Congrats on the quarter. Speaker 500:57:56Just for the dry eye franchise, are there any metrics or color that you can share as a patient's compliance with the dosing? And then any color on the refill rates? And then in the third quarter, you previously mentioned about how you begun sampling the one point six ml from IMO. Can you just talk about the conversion efforts there and if I was able to activate any new prescribers? Thanks so much. Speaker 200:58:18Sure. So one of the I think one of the important differentiating characteristics of Mibo versus the other drugs, including Xyedra in the inflammatory category is higher refault rates. I don't have the exact number in front of me. I can have George send it to you, but it is its refault rate is significantly higher than that of the other in the category, which goes to the, I think, strong clinical profile and safety profile of the medicine. I think people just feel better on it to be fair and that drives a lot of refills. Speaker 200:59:00So in essence, Mibo is potentially a harder working prescription because it's a stickier prescription versus the other drugs that tend to take a little longer to work and require a little bit more persistence from the patient to get relief. And so that's why that investment in Mibo and the long term outlook for Mibo is particularly exciting for us. Great. Thank you. Okay. Speaker 200:59:28Yes. So operator, maybe just a quick few closing remarks. First and foremost, I really do want to thank my colleagues at Bausch Alarm for delivering such a strong year and quarter. And I look forward to working with them in 2025 to continue to deliver on our expectations. And then also a quick thank you to all of our customers and patients who rely on Bausch and Lomb to provide great products and continue to drive innovation. Speaker 200:59:59We look forward to keeping you updated and talk to you next quarter. Thank you. Operator01:00:05Thank you. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.Read morePowered by