Home / Today's Top Stories / B&L to divest subsidiary,
forge global alliance

B&L to divest subsidiary,
forge global alliance

Bausch & Lomb Inc. is selling its dental-implant business to Finisterre Fund, a health care investment company.
Senior managers at the dental subsidiary, Steri-Oss Inc., also are participants in the purchase agreement and will become part owners of the company once the sale is complete, Bausch & Lomb announced today.
Bausch & Lomb expects to record a non-recurring after-tax gain on the sale, which is subject to financing and scheduled to close by the end of the year. The company declined to release any other details of the sale.
Bausch & Lomb also announced that it has entered into a global alliance with Alameda, Calif.-based InSite Vision Inc. As part of the alliance, Bausch & Lomb will help develop and manufacture glaucoma products based on InSite’s proprietary DuraSite technology.
The InSite alliance also grants Bausch & Lomb exclusive worldwide marketing rights for the jointly developed products.
Bausch & Lomb will make a $2 million equity investment in InSite Vision, the company said. The company also will invest up to $2 million in development funding for the first glaucoma product, subject to reaching certain milestones.
The company also will pay a royalty to InSite and will manufacture other InSite products.
The alliance with InSite further strengthens Bausch & Lomb’s proprietary ophthalmic-product pipeline, the company said in a press release. Last year, Bausch & Lomb signed an agreement with Pharmos Corp. that gave the company the U.S. marketing rights to Lotemax, an anti-inflammatory product, and two line extensions.
Clinicals were completed recently on the first extension product, an ophthalmic allergy drug. Submission for federal approval for the drug is expected by early 1997.
Steri-Oss, based in Yorba Linda, Calif., manufactures dental implants, primarily surgical and prosthetic devices used in the replacement of missing teeth.
The subsidiary has averaged nearly 30 percent revenue growth since Bausch & Lomb purchased it in 1993.
“The business continues to have good growth and earnings potential,” said William Waltrip, Bausch & Lomb’s chairman and CEO, in a press release. “However, it is not strategically linked to our core vision-care business.”
Eli Kammerman, a Salomon Brothers Inc. analyst who follows Bausch & Lomb, said last week that Bausch & Lomb plans to divest its oral-care businesses to concentrate on vision-care products. He said he expects the move to help the company’s bottom line.
Overall, Bausch & Lomb’s earnings were $30 million, or 54 cents a share, a 40 percent decrease from the $52 million, or 89 cents a share, earned in the same period a year ago. Excluding non-recurring events, earnings were flat.
Although Steri-Oss is doing well, other oral-care product revenue fell significantly in the first quarter of this year compared with the same period last year, according to the company.
“Steri-Oss is a strong, well-positioned company with a major market share in a rapidly expanding sector of the health care industry,” said Henry Wendt, former chairman of SmithKline Beecham PLC and managing partner of the Finisterre Fund.
“The company has an excellent management team and is a significant platform for the acquisition of related businesses and technologies in the medical-products arena,” Wendt said.
The New York City-based Finisterre Fund is a private-equity firm investing exclusively in high-growth segments of the health care industry.
Finisterre plans to keep Steri-Oss operations intact, continuing to operate it in the same location with the same management team, Wendt said.
Kenneth Darienzo, president of Steri-Oss, said he is excited about the company’s future with Finisterre.
“It is a great opportunity for everyone involved,” he said.

B&L to divest subsidiary,
forge global alliance

Bausch & Lomb Inc. is selling its dental-implant business to Finisterre Fund, a health care investment company.
Senior managers at the dental subsidiary, Steri-Oss Inc., also are participants in the purchase agreement and will become part owners of the company once the sale is complete, Bausch & Lomb announced today.

x

Check Also

Jim Hammer

Business Hall of Famers stress adaptability, flexibility, relationships (access required)

While many business leaders nationwide have lost sleep wondering how to drum up new leads, others are experiencing a different ...

Pictured is an MCC student engaging in hands-on learning in the optical systems
technology program. MCC’s Future of the Technician Workforce Study found that
industries like Internet of things, automation and robotics, artificial intelligence and
more will have growing importance (Photo provided).

MCC program designed to bridge skills gap for technicians (access required)

The region’s next generation of technicians will need a varied skill set, focusing not only on new technologies and processes ...

2020 Super Lawyers & Rising Stars

The 2020 Upstate New York Super Lawyers and Rising Stars have been announced and the following Rochester lawyers have made ...

Joseph Stefko

Remote work surge creates regional talent attraction opportunities (access required)

In so many ways COVID has turned out to be the great accelerator of trends we were seeing pre-pandemic — ...