In early August 2020, Bausch Health announced that it is planning to spin off its eye care business, Bausch + Lomb, into an independent publicly traded company. This will allow the company to concentrate on its gastroenterology, aesthetics/dermatology, neurology and international pharma business.
If Bausch Health had spun off Bausch + Lomb when it was announced in 2020, we would have made a healthy gain; but the two-year delay has considerably eroded the prices that Bausch Health could have fetched for Bausch + Lomb.
In hindsight, it was a mistake to wait for the spin-off of the Bausch + Lomb unit. At the time, we felt this would have been the much-needed catalyst to get Bausch Health to trade closer to $40 per share.
In consolation, in 2021 and the first half of 2022, we were able to sell approximately 61% of the shares that we had in Bausch Health for an average price of US$24.30 per share. In addition, we received close to US$8.00 per share in premiums for writing covered call options on some of the shares.