* IPO possible this year but process not started yet -CEO
* Rare pure-play eye company should appeal to investors
By Ben Hirschler
LONDON, July 18 (Reuters) – Global eyecare company Bausch &
Lomb is focused on returning to the public market and sees
strong investor appetite for an IPO, which could come as early
as the end of this year, its chief executive said on Wednesday.
“If we felt inclined to do it we certainly could before the
end of the year but nothing has been started inside the company
to make that happen just yet,” Brent Saunders told Reuters.
The Rochester, New York-based company was acquired by
Warburg Pincus in late 2007 for $4.5 billion, including
$830 million of debt, after falling out of Wall Street’s favour
because of product recalls, big charges and restatements of
earnings.
Since then it has undergone a transformation under Saunders,
who joined two years ago and has built up the business through
acquisitions, most recently a deal to buy Ista Pharmaceuticals
in March for about $500 million.
“We aspire one day to return to the public market,” he said
in a telephone interview. “I think it will make an exciting
story for investors and that’s something we’re very focused on
doing.”
Saunders said the health of the maker of contact lenses, eye
drugs and surgical equipment was reflected in the fact that
Bausch had achieved eight quarters of double-digit growth.
Its main competitors are three healthcare heavyweights —
Johnson & Johnson, Novartis and Abbott
Laboratories — for whom eyecare is only a minor focus.
While that makes the competitive landscape tough, it also
gives Bausch a rarity value that could help its initial public
offering (IPO).
“There is a scarcity value to ophthalmology — there is a
real appetite for a company like Bausch & Lomb to return to the
public market from institutional investors,” Saunders said.
“A lot of institutional investors also like to do
demographic investment and the demographics for eye health care
are quite compelling.”
Eye problems are on the rise around the world due to ageing
populations and increasing rates of diabetes, which can cause
eye damage. At the same time, the growing middle classes in
emerging markets have more money to spend on eyecare.
Owner Warburg Pincus will be hoping for a handsome return
when Bausch comes back to the public market, although Saunders
declined to say what the price tag might be.
“It’s a very exciting time at Bausch & Lomb and that has to
be reflected in the valuation,” he said.
(Reporting by Ben Hirschler; Editing by Mark Potter)
