The Canadian healthcare company Bausch Health will expand its board of directors to add two representatives of the activist investor Carl Icahn. With the two new appointments, the board will have 13 directors.
Under the agreement, Brett Icahn and Steven Miller will be appointed to the board as new independent directors, effective in mid-March, with each to serve a term expiring at the company’s 2021 annual meeting, which will be held on April 27.
The company has also agreed to include Brett Icahn and Miller on its slate of nominees for election at the annual meeting.
The Icahn Group, which holds a 7.83 percent stake in Bausch Health, has agreed to vote in favor of each of the nominees on the board’s slate.
“We look forward to collaborating with the board and management and contributing meaningfully to the company’s ongoing strategic review,” said Carl Icahn.
Brett Icahn and Miller will be appointed to two board committees, the finance and transactions committee and the committee assisting with evaluating strategic alternatives, including the potential spin of the company’s eye health business.
Bausch Health also released its fourth-quarter results that showed a net loss of $153 million compared to a net loss of $1,516 million a year earlier. Adjusted net income for the quarter was $478 million, up by 18 percent.
Quarterly revenues fell to $2,213 million from $2,224 million a year earlier. The Bausch + Lomb/International segment outperformed slightly with sales of $1,242 million, flat on a reported basis and organically.
In the full year, the company posted a net loss of $560 million dollars against a loss of $1.788 billion in 2019. Adjusted net income was $1.428 billion, down by 8 percent.
Total revenues fell by 7 percent to $8,027 million. Bausch + Lomb/International also reported a 7 percent decline in sales to $4,408 million. The Global Vision Care segment saw its annual revenues drop by 11 percent to $755 million, with a 9.5 percent decline for the aggregated sales of the group’s main contact lenses’ brands - Soflens, Biotrue ONEday, Bausch+Lomb ULTRA and PureVision.
For the Global Vision Care category, sales in the U.S. grew by 5 percent year-on-year in Q4, and by 2 percent in the full financial year. The overall sales drop in the segment was driven by big declines in the international market, with organic revenues going down by 3 percent in the quarter and by 17 percent in the year. Bausch Health mentioned Asia-Pacific as a weak point.
In 2021, the company expects revenues of $8,600-8,800 million and an adjusted Ebitda of $3,400-3,550 million, against $3,294 million in 2020. It also provided an update on its spin off plans for the eye health unit, saying that the financial segmentation of Bausch + Lomb should be completed by the end of Q1 2021, and that all internal necessary objectives should be achieved by the end of Q3.