Bausch + Lomb's Q1 2025: Contradictions Surface on Product Recalls, Market Growth, and Financial Guidance

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Financial Performance and Revenue Growth:
- Bausch + Lomb Corporation (NYSE:BLCO) reported a 5% constant currency revenue growth in Q1 2025, with a 9.5% increase in the Vision Care segment and a 11% increase in Surgical.
- Growth was driven by strong performance in Daily SiHy contact lenses and premium IOLs.

Recall and Customer Response:
- The voluntary recall of enVista IOLs in late March and subsequent return to market approximately one month later demonstrated resilience and commitment to patient safety.
- Positive customer feedback and encouragement from ASCRS indicated trust in Bausch + Lomb's actions and transparency.

Pharmaceutical Segment Dynamics:
- The Pharmaceuticals segment experienced a 1% constant currency revenue growth, with MIEBO contributing significantly at $57 million.
- U.S. Generics faced a 23% decline, offset by the strong performance of MIEBO and International Pharma.

Tariff Impact and Strategic Planning:
- Bausch + Lomb estimated tariffs as a potential headwind of 120 basis points to adjusted EBITDA margin in 2025, with exposure mainly from exporting from the U.S. to China.
- Mitigation strategies, including inventory stocking and moving manufacturing in-house, are being implemented to counter tariff effects.