On Thursday, H.C. Wainwright reaffirmed its Buy rating and $23.00 stock price target for Bausch & Lomb Corporation (NYSE:BLCO), following the company's announcement of a strategic acquisition. Bausch & Lomb revealed on Wednesday that it had acquired Elios Vision, Inc., a company specializing in the development of the ELIOS procedure, a minimally invasive surgery aimed at treating glaucoma.
The ELIOS procedure, which employs a precision non-thermal excimer laser, can be performed alongside cataract surgery. This is significant as over 19% of patients requiring cataract surgery also suffer from glaucoma or ocular hypertension. The technology has already received the CE Mark and has been introduced to the European Union market. Elios Vision is now seeking regulatory approval in the United States.
Bausch & Lomb's existing strong market presence in both glaucoma treatment and cataract surgery positions the company to potentially integrate the ELIOS procedure into its product lineup. This could offer a streamlined solution for ophthalmologists treating both conditions. The financial details of the acquisition have not been disclosed by Bausch & Lomb.
The endorsement of the Buy rating and price target by H.C. Wainwright indicates confidence in the strategic alignment and potential market impact of this acquisition for Bausch & Lomb. The acquisition could enhance the company's offerings in eye care, particularly in the glaucoma treatment segment.
In other recent news, Bausch + Lomb Corporation has made strategic moves to strengthen its position in the eye health industry. The company has acquired Elios Vision, Inc., the developer of a novel minimally invasive glaucoma surgery procedure, enhancing its glaucoma treatment portfolio. This acquisition is expected to meet the growing needs of patients, with glaucoma prevalence projected to increase by 47% from 2020 to 2040.
The company's financial performance has also been robust. Third-quarter revenues for 2024 saw a substantial 19% year-over-year increase, reaching $1.196 billion. This growth was primarily driven by products such as Miebo and Xiidra, and the contact lens segment, particularly SiHy Dailies, which saw a 79% year-over-year increase. Following these results, Bausch + Lomb raised its full-year revenue guidance for 2024.
Analysts' responses to these developments have been mixed. Both Citi and Morgan Stanley (NYSE:MS) downgraded the company's stock, citing reasons including the stock's significant appreciation over the past year. Stifel maintained a Hold rating with a consistent price target of $19.00.
Further, Bausch + Lomb secured $400 million in new term loans, providing it with additional financial flexibility. These recent developments underscore the dynamic nature of Bausch + Lomb's operations and its potential for future growth.
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