Bausch + Lomb Corporation

Good morning and welcome to Bausch & Lomb's first quarter 2025 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to George Gatkowski, Vice President of Investor Relations and Business Insights. Please go ahead.

Thank you. Good morning, everyone, and welcome to our first quarter 2025 Financial Results Conference Call. Participating on today's call are Chairman and Chief Executive Officer, Mr. Brent Saunders, and Chief Financial Officer, Mr. Sam Eldosuki. In addition to this live webcast, a copy of today's slide presentation and a replay of this conference call will be available on our website under the Investor Relations section. Before we begin, I would like to remind you that our presentation today contains forward-looking information. We would ask that you take a moment to read the forward-looking legend at the beginning of our presentation as it contains important information. This presentation contains non-GAAP financial measures and ratios. For more information about these measures and ratios, please refer to slide 1 of the presentation. Non-GAAP reconciliations can be found in the appendix to the presentation posted on our website. The financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter unless required by law, and not to update or affirm guidance other than through broadly disseminated public disclosure. With that, it's my pleasure to turn the call over to Brent.

Thank you, George, and good morning, everyone. I'm going to put our first quarter performance in context and provide updates on two timely topics, followed by Sam's focus on the financials, including 2025 guidance. I'll wrap things up with examples of growth and opportunity in each of our businesses that have us excited for what the future holds. Almost two years ago, on my first earnings call after returning as CEO, I outlined our plan to reestablish Bausch & Lomb as the best eye health company. Core to that strategy are the priorities shown here, which have become a mainstay of earnings presentations and part of our DNA internally. Establishing our priorities was critical, but our ability to stay the course will ultimately determine our success. We had a few bumps in the road to start the year, but our core business is performing well. and we remain focused on positioning the company for long-term profitable growth. We delivered mid-single-digit constant currency revenue growth in the first quarter, which we expect will be in line with industry growth. While we did see constant currency revenue growth across all three reporting segments, pharmaceuticals took a step back for two reasons. Underperformance in our high-margin U.S. generics business and Zydra Revenue Headwinds, which we previously communicated, despite impressive TRX growth. Both are being addressed, which we'll get into later. Instead of using our sales and operations update to tout market share growth or the latest advances in manufacturing, I'd like to highlight the resiliency of my colleagues around the world. The voluntary recall of IOLs on our Invista platform and the evolving tariff landscape presented new challenges, and I couldn't be more impressed with the response. Greediness, accountability, and customer-first mentality continued to define our team. When it comes to innovation, enthusiasm around our pipeline is at an all-time high. We have big things around the corner with the potential to significantly enhance the standard of care in eye health. I'll preface our recall update with a simple message. Patient safety is non-negotiable. That's why we didn't wait for additional data or regulatory action when a toxic anterior segment syndrome or TAS signal was detected in certain intraocular lenses on our Invista platform. We voluntarily pulled the lenses from the market in late March because it was the right thing to do. Our ability to return to market approximately one month later is nothing short of remarkable and speaks to the power of our people I referenced earlier. We immediately began a thorough investigation in collaboration with globally recognized task experts and an advisory group of nearly 30 top cataract surgeons, including leadership from the American Society of Cataract and Refractive Surgery. All signs began to point to lots that used raw material from a different vendor. which allowed us to confirm the cause. Inspection protocols for IOLs have been enhanced, and we've established more explicit standards for vendors. With these new processes in place, we've returned to full production of all InVisto IOLs. Replenishing the U.S. market is underway, with timing for market reentry in other countries being handled on a case-by-case basis in collaboration with health authorities. The amount of positive feedback and encouragement from customers over the past month has been overwhelming. Our relationships with the eye care professionals are built on trust, and I am confident our actions and transparency are helping to strengthen those bonds. One of the benefits of being in business for more than 170 years is significant experience in dealing with uncertainty. We've weathered many storms as a resilient business in a resilient industry. That's important in the current tariff environment, which we are approaching with level heads and confidence in our planning. SAM will quantify the potential impact on our business, which is, of course, a moving target. As things currently stand, our biggest exposure is exporting from the U.S. to China, giving the escalation of reciprocal tariffs. That said, there are several levers we can pull that we believe will mitigate the overall impact of tariffs. These include inventory stocking, moving more manufacturing in-house, and reevaluating pricing where and when it makes sense. But our biggest asset is our global footprint, which we began optimizing well before tariffs were on anyone's radar. Our manufacturing presence spans the globe and is matched by an expansive network of contract manufacturers and distribution facilities. When the dust settles, whenever that may be, We have the ability to shift many elements of our manufacturing based on cost effectiveness. In addition to blunting potential tariff impacts, this flexibility allows us to play offense against competitors with footprints that may not be as advantageous. Production of daily sight-high contact lenses, our fastest-growing product, is a prime example. Those lenses are made in two places, Rochester, New York, and Waterford, Ireland. which could significantly lessen our exposure. While any shift in manufacturing would take time, scenario planning is well underway. Q1 financial highlights include constant currency revenue growth across all reporting segments, once again demonstrating our holistic strength and lack of reliance on one product or region. 5% constant currency revenue growth in vision care was fueled by another quarter of dramatic daily site high uptake and the Blink franchise establishing itself as a fast-growing brand in the OTC dry ice space. Stallworks like Lumify and Artelac continue to outperform and build lasting brand equity. Premium IOLs help to drive 11% constant currency revenue growth in Surgical, which points to the ongoing opportunity and significance of getting Invista lenses back on the market safely and quickly. It's important to remember that our premium IOL portfolio is more than just in VISTA. In fact, we expect to introduce the full range of vision LuxLife IOLs in Europe by the end of the second quarter. Earlier, I referenced headwinds in pharmaceuticals, where Q1 performance can best be described as a mixed bag, despite 1% constant currency revenue growth. U.S. generics faced increased competition and lower inventory within the channel. And Zydra gross-to-net adjustments came in as expected. On the flip side, Myba once again hit the high end of our projections, and International Pharma posted another solid quarter. I'll now turn it over to Sam, who will go deeper on the financials and provide 2025 guidance.