BAUSCH + Lomb said on Monday that CEO Brent Saunders will leave the eye-care company by mutual agreement with its board, sending its US-listed shares down more than 7 percent.
Chairman Thomas Appio was named interim CEO, effective immediately. He will continue to serve as CEO of Bausch Health, which owns about 87 percent of Bausch + Lomb, while also leading the eye-care company.
Citi analysts described the timing as “sudden” but noted that Appio’s previous leadership roles at Bausch + Lomb leave him well-placed to lead the company.
Saunders had returned to lead Bausch + Lomb in 2023 after an earlier stint from 2010 to 2013. He previously led Allergan until its $63-billion sale to AbbVie in 2020.
Leerink analysts said the abrupt management change could weigh on the stock, particularly as investors focus on Bausch Health’s plans for its stake in Bausch + Lomb. However, they added that the eye-care company remains on “strong fundamental footing.”
Bausch Health spun off Bausch + Lomb into a publicly listed company in 2022 but retained control. A potential sale process ended without a deal in 2025.
Additionally, Bausch + Lomb and Bausch Health expect to raise their 2026 forecasts for adjusted earnings before interest, taxes, depreciation and amortization (Ebitda), excluding acquired research and development costs, based on preliminary third-quarter results. Bausch + Lomb’s current full-year adjusted Ebitda forecast is between $1.025 billion and $1.075 billion.