Bausch + Lomb’s recent business developments have been for prescription products. But the lion’s share of its revenue comes from consumer product sales, and the company is further broadening its over-the-counter presence by purchasing a Johnson & Johnson line of eye drops for $106.5 million.
The acquisition brings to Bausch + Lomb the Blink product line, which spans six eye drops and contact lens drops for rewetting and lubricating the eye. Vaughan, Ontario-based Bausch + Lomb said it will finance the acquisition with cash on hand.
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J&J is divesting Blink eye drops comes as it gets out of the business of selling consumer products. The company placed its consumer products assets in a subsidiary, Kenvue, that raised $3.8 billion in an IPO in May. J&J is still Kenvue’s majority shareholder, but going forward, legacy J&J will focus on developing and commercializing drugs and medical devices. The Blink eye drops don’t fit that strategy, so J&J decided to find a new home for them.
[Updated: The following two paragraphs added with comment from J&J.] The Blink products were sold through Johnson & Johnson Vision, a subsidiary. In a statement issued Friday, the company said it is continuously evaluating its eye health portfolio, which will continue to manufacture, sell, and distribute contact lens solutions.
“While we will continue to advocate the importance of treating and relieving dry eye symptoms, we believe the Blink eye drops will be a mutually beneficial fit with Bausch + Lomb, as part of their dry eye portfolio,” the company said in the statement.
Blink eye drops are among the many OTC products available for people suffering from dry eye disease. When those products don’t work, patients look for relief from prescription products. Bausch + Lomb has two new ones. In May, the FDA approved Miebo, a prescription eye drop that works by reducing the tear film evaporation that contributes to dry eye disease. Last week, Bausch + Lomb reached a $1.75 billion deal with Novartis that includes the acquisition of Xiidra, a prescription dry eye disease product that treats the condition by reducing inflammation in the eye.
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“There’s a growing need for relieving the symptoms of dry eyes and dry contact lenses, and OTC products are often the first option consumers choose,” John Ferris, executive vice president, consumer, Bausch + Lomb, said in a prepared statement. “The addition of Blink expands our robust portfolio of OTC eye care brands, enabling us to provide more choices for consumers and eye care professionals.”
Bausch + Lomb’s Vision Care business segment, which includes consumer eye care and contact lens products, generated $2.3 billion in revenue in 2022, a 1% increase over the prior year, according to the company’s annual report. The company said 63% of the segment’s revenue comes from consumer eye business while 37% comes from the contact lens business.
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