Valeant Pharmaceuticals has been one of the drugmakers hit hardest by the focus on drug pricing in the past few years, and as a result, has made the decision to change their name to Bausch Health Companies Inc. The change will take effect as of July 2018.
“Becoming Bausch Health Companies is a major step forward in our transformation,” said Joseph C. Papa, chairman and CEO, Valeant. “The Bausch name embodies the rich history of innovation, fortitude and dedication to patient health dating back to when J.J. Bausch opened his first optical goods shop more than 165 years ago. These qualities form the foundation of who we are today as we continue to build an innovative company striving to improve the health of patients globally.”
Papa joined Valeant as CEO in May of 2016 just as stocks in the Canadian pharmaceutical company were hitting an all-time low. Outgoing CEO J. Michael Pearson was the main driver behind Valeant’s low-R&D strategy of acquiring old drugs and hiking up the price which landed the company in hot water with the US government in 2015.
“Now is the right time in our turnaround to unite our company’s core businesses, subsidiaries and brands under the Bausch Health name,” said Papa. “We believe Bausch Health Companies more accurately represents the full scope of the Company today – a leader in the development and manufacture of a wide range of pharmaceutical, medical device and over-the-counter products, primarily in the therapeutic areas of eye health, gastroenterology and dermatology.”
Over the last two years, Papa’s strategy to build Valeant back up has included selling off over a dozen products and reducing the company’s debt load by 20 percent. Still, the company reported a net loss to the tune of $2.7 billion in Q1 of 2018, which may be no surprise to investors who have grown accustomed to disappointing financial reports.
However, the company’s Q1 2018 earnings report wasn’t all bad news; Valeant’s global vision care business saw a revenue increase of 15 percent compared Q1 2017. The company is also preparing to launch two new ophthalmic drugs, which they refer two as members of the “Significant Seven:” glaucoma drug Vyzulta and over-the-counter (OTC) eye redness treatment, Lumify.
“We completed an extensive assessment of the name entities available from within our portfolio and also assessed several potential new names. As our review progressed, it became clear that Bausch Health Companies best represents the company we are today,” said Papa. “With a history that ranges from creating revolutionary Vulcanite eye glass frames in 1861 to being the first to mass produce and market soft contact lenses globally in 1971, the Bausch brand is synonymous with innovation and quality.”
As of July, the company will trade under a new symbol, BHC, on the New York Stock Exchange and the Toronto Stock Exchange. Their rebranding efforts will also include a new website and imagery to highlight their shift from Valeant to Bausch Health Companies.