Pharma BD Deal Intelligence
$8.7B cash roll-up buy that briefly worked—Bausch + Lomb's eye-care revenue grew from ~$3.8B to ~$5.1B and it got its own 2022 IPO—but the parent's debt-fueled strategy collapsed under the Philidor scandal, wiping out Valeant/Bausch Health shareholders and leaving a levered survivor still facing a 2028 patent cliff.
Valeant's $8.7 billion deal for Bausch & Lomb, the eye-care company owned by Warburg Pincus, positions Canada's largest drugmaker to compete globally in the…
Warburg Pincus roughly tripled its 2007 take-private investment; Valeant CEO Pearson framed the deal as putting Valeant 'among the 15 largest global…
Three years on, the B+L unit was the best-performing asset Valeant owned and arguably the only piece worth the original price — a retroactive vindication of…
Source summaries from our enrichment pipeline; follow links for originals.
All 5 sources with sentiment breakdown →
Valeant agreed to acquire Bausch + Lomb from Warburg Pincus-led group for $8.7B cash ($4.5B to investors, $4.2B to repay B+L debt); created global eye-health platform with pro-forma 2013 net revenue >$3.5B.
Assessment window: 5yr post-close.
$48.3B Global eye care market projected $48.3B by 2017 (5% CAGR)
Ophthalmology spans cataract surgery, glaucoma, dry eye, contact lenses/lens care, and back-of-eye disease (AMD, diabetic retinopathy). Demand drivers are aging populations, rising diabetes prevalence, and emerging-market access — making the category a stable, mid-single-digit growth market less exposed to genericization than systemic specialty Rx.
At deal close (Aug 2013), the global eye-care space was dominated by Novartis's Alcon (the #1 player following the 2010-2011 acquisition from Nestle), Allergan (Restasis, Lumigan, Ozurdex; Botox-funded ophth pipeline), J&J Vision Care (Acuvue), and a fragmented prescription tail. Bausch + Lomb — taken private by Warburg Pincus in 2007 and rebuilt — had a balanced contact lens (Biotrue, PureVision, ULTRA), lens-care (renu, Boston), surgical (Stellaris, Storz, VICTUS), and pharmaceutical (Besivance, Lotemax, Ocuvite, PreserVision) portfolio with weakness in glaucoma. Valeant paid $8.7B (~$4.5B to Warburg, ~$4.2B B+L debt) and projected $800M of synergies, immediately accretive >40% to 2013 cash EPS, framing the combined entity as the #2 global eye-health player against Alcon. Stifel's Annabel Samimy valued the ophth Rx business alone at ~$6.8B (14x EBITDA), implying Valeant essentially got contacts/surgical for ~$2B. The deal pre-dated the Allergan attempt and the Philidor scandal that would later collapse Valeant's M&A engine.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Valeant Pharmaceuticals International, Inc. / Bausch + Lomb (this deal) | 2013 | $8.7B | 36 |
| Valeant Pharmaceuticals International, Inc. / Dow Pharmaceutical Sciences, Inc. | 2009 | $285M | 66 |
| Valeant Pharmaceuticals International, Inc. / iNova Pharmaceuticals | 2011 | $700M | 63 |
| Valeant Pharmaceuticals International, Inc. / Xcel Pharmaceuticals, Inc. | 2005 | $280M | 42 |
| Valeant Pharmaceuticals International, Inc. / Dermik Laboratories (Sanofi dermatology unit) | 2011 | $425M | 36 |
| Valeant Pharmaceuticals International, Inc. / Medicis Pharmaceutical Corporation | 2012 | $2.6B | 33 |
| Valeant Pharmaceuticals International, Inc. / PreCision Dermatology, Inc. | 2014 | $475M | 23 |
← Browse all deals · How we score deals
More: 2013 deals · Valeant Pharmaceuticals International, Inc. deals · Ophthalmology deals