Bausch & Lomb to Acquire China's Leading Ophthalmic Pharmaceuticals Company.ROCHESTER, N.Y. -- Bausch & Lomb (NYSE NYSE
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BOL Beginning Of Life ), the global eye health company, has entered into a definitive agreement to acquire a 55-percent controlling interest controlling interest
The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in the Shandong Chia Tai Freda Pharmaceutical Group (CTF CTF Capture The Flag
CTF Child Trust Fund (UK)
CTF Canadian Tax Foundation
CTF Canadian Taxpayers Federation (lobby group)
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CTF Canadian Teachers' Federation ), the leading ophthalmic pharmaceutical company in China, from Sino Biopharmaceutical Ltd. (HKSE HKSE Hong Kong Stock Exchange :1177.HK). The purchase price of $200 million in cash represents the equivalent of 18.6-times 2004 net earnings. The acquisition will accelerate Bausch & Lomb's expansion into the rapidly growing ophthalmic pharmaceuticals market in China.
In addition, Bausch & Lomb has agreed in principle to a future acquisition of an additional 15-percent interest in CTF held by two other entities, for $54.5 million, an amount equivalent on a per-share basis to the price being paid to Sino Biopharmaceutical Ltd.
The leader in the China ophthalmic pharmaceuticals market, CTF primarily develops, manufactures and markets medications used to treat ocular inflammation and infection, glaucoma glaucoma (glôkō`mə), ocular disorder characterized by pressure within the eyeball caused by an excessive amount of aqueous humor (the fluid substance filling the eyeball). and dry eye including the Moisten and Mioclear lines of eye drops. In 2004, CTF recorded sales of US$62 million. Since 2001, CTF has recorded compound annual growth of more than 20 percent compared to the overall Chinese ophthalmic pharmaceuticals market growth of about 15 percent during the same period.
Headquartered in the city of Jinan in Shandong Province, CTF has roughly 1,300 employees, with about half of them working in sales and marketing. CTF has an extensive national network of sales representatives and distributors that reach the country's hospitals and pharmacies.
"The acquisition of this well-known and respected local pharmaceutical company, combined with Bausch & Lomb's strong brand and longtime leadership in vision care products in China, will significantly enhance our presence in China's ophthalmic pharma market," said Bausch & Lomb Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Ronald L. Zarrella. "CTF will provide Bausch & Lomb access to a national network of pharmaceutical sales representatives pharmaceutical sales representative Detailer, Drug rep Drug industry A drug company employee who regularly visits physicians and office practices, providing information on the company's products–usually putting a negative 'spin' on competitors' products. See Detailing. and distributors, strong domestic brands, a GMP-certified manufacturing facility, and expertise in regulatory affairs and product development, all of which we view as a springboard for further growth in this strategically important market."
The acquisition is expected to close in the third quarter, subject to certain conditions including formal, final approval by the shareholders of Sino Biopharmaceutical, at which time asset valuation and purchase price allocations will be finalized. Based on preliminary estimates, the transaction is projected to be essentially neutral to 2005 earnings per share, five-to-10-cents-per-share accretive in 2006, and 10-to-15-cents-per-share accretive in 2007. These projections exclude transaction-related costs and customary purchase-accounting adjustments.
Bausch & Lomb derived $525 million, or 24 percent of its 2004 revenues, primarily from pharmaceutical products sold mainly in Europe and the United States. Bausch & Lomb, at its plants in China, makes and markets China's leading brands of contact lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. and lens care products; the Company also sells its products for refractive refractive
capacity to refract light.
a difference between the focal length of the cornea and lens, and the length of the eye, resulting in myopia or hyperopia. and cataract surgeries in China.
This news release contains, among other things, certain statements of a forward-looking nature relating to future events or the future business performance of Bausch & Lomb. Such statements involve a number of risks and uncertainties including, without limitation, those concerning global and local economic, political and sociological conditions, and the effect on economic, commerce, social and political systems caused by natural disasters (such as, without limitation, earthquakes, hurricanes/typhoons, tornadoes and tsunamis), currency exchange rates, government pricing changes and initiatives with respect to healthcare products, changes in laws and regulations relating to the Company's products and the import and export of such products, product development and rationalization, enrollment and completion of clinical trials, the ability of the Company to obtain regulatory approvals, the outcome of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.
When a person begins a civil lawsuit, the person enters into a process called litigation. , the ability of the Company to launch products within planned timeframes, the success of product introductions, the financial well-being of key customers, development partners and suppliers, the successful execution of marketing strategies, the continued successful implementation of the Company's efforts in managing and reducing costs and expenses, the Company's success in introducing and implementing its enterprise-wide information technology initiatives, including the corresponding impact on internal controls and reporting, the Company's success in the process of management testing, including the evaluation of results, and auditor attestation of internal controls (as required under the Sarbanes-Oxley Act See SOX. of 2002), the continued successful execution of the Company's profitability improvement plans, continued positive relations with third party financing sources, as well as the risk factors listed from time to time in the Company's SEC filings, including but not limited to, the current report on Form 8-K Form 8-K
The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock.
See 8-K. dated June 14, 2002 and the Form 10-Q Form 10-Q
See 10-Q. for the quarter ended March 26, 2005.
Bausch & Lomb is the eye health company, dedicated to perfecting vision and enhancing life for consumers around the world. Its core businesses include soft and rigid gas permeable contact lenses and lens care products, and ophthalmic surgical and pharmaceutical products. The Bausch & Lomb name is one of the best known and most respected healthcare brands in the world. Founded in 1853, the Company is headquartered in Rochester, New York This article is about the city of Rochester in Monroe County. For the town in Ulster County, see Rochester, Ulster County, New York.
Rochester, once known as The Flour City, and more recently as The Flower City or . Bausch & Lomb's 2004 revenues were $2.2 billion; it employs approximately 12,400 people worldwide and its products are available in more than 100 countries. More information about the Company can be found on the Bausch & Lomb Web site at www.bausch.com. Copyright Bausch & Lomb Incorporated.
A product photo is available from Margaret Graham.