Valeant drops name in bid to break with past
This article was originally published in OTC Bulletin & The Rose Sheet
Executive Summary
Bausch Health Companies will be the new name for Canada’s Valeant Pharmaceuticals International from 1 July 2018. The name – which is taken from the firm’s Bausch + Lomb eye-care business – “accurately represents the breadth of the company today”, according to Valeant, “and reflects the innovative legacy of the Bausch business”.
Bausch Health Companies will be the new name for Canada’s Valeant Pharmaceuticals International from 1 July 2018. The name – which is taken from the firm’s Bausch + Lomb eye-care business – “accurately represents the breadth of the company today”, according to Valeant, “and reflects the innovative legacy of the Bausch business”.
Noting that the firm had spent the past two years restructuring under chairman and chief executive officer Joe Papa, Valeant said now was the “right time in our turnaround to unite our company’s core businesses, subsidiaries and brands under the Bausch Health name”.
“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 OTC products, primarily in the therapeutic areas of eye health, gastroenterology and dermatology,” commented Papa.
“Becoming Bausch Health Companies is a major step forward in our transformation,” Papa insisted. “The Bausch name embodies a rich history of innovation, fortitude and dedication to patient health. 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.”
Commenting on Valeant’s decision to use the Bausch name, Papa revealed that the firm had completed an “extensive assessment of the name entities available from within our portfolio” and had also considered “several” potential new names. “As our review progressed, it became clear that Bausch Health Companies best represents the company we are today, as the Bausch brand is synonymous with innovation and quality.”
As part of the name change, Valeant said it would roll out a new corporate brand identity – including new imagery and website – and would change its trading symbol on the New York Stock Exchange from VRX to BHC.
Since joining Valeant from Perrigo in May 2016 (OTC bulletin, 6 May 2016, page 1), Papa had overseen more than a dozen divestitures to “strategically streamline operations”, the firm pointed out, reduced debt by “more than 20%”, and had resolved “numerous legacy issues”.
As part of these divestments, Valeant last year offloaded its iNova Pharmaceuticals business – which markets a range of OTC products – to funds managed by two private-equity groups for US$920 million (€781 million) (OTC bulletin, 6 October 2017, page 8).