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    Does Advancing First-in-Class Dry Eye and Pain Drugs Change The Bull Case For Bausch + Lomb (BLCO)?

    Simply Wall St·09/02/2026 05:39:12
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    • In August 2026, Bausch + Lomb announced that two first-in-class eye health therapies, including a dual-action dry eye drop and the BL1332 TRPV1 antagonist for ocular pain, will advance to new clinical trials following encouraging early-stage results and a safety profile aligned with existing products.
    • An interesting angle for investors is that the dual-action eye drop showed a meaningful benefit at an FDA-accepted Day 15 endpoint using over 50% less lifitegrast and reduced dosing frequency, potentially enhancing both patient convenience and product differentiation within the company’s dry eye portfolio.
    • We’ll now examine how advancing this dual-action dry eye therapy into Phase 3 could influence Bausch + Lomb’s broader investment narrative and growth drivers.

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    Bausch + Lomb Investment Narrative Recap

    To own Bausch + Lomb, you need to believe its dry eye and surgical franchises can convert a growing eye care footprint into improving profitability, despite current losses. The dual‑action lifitegrast/PFHO eye drop moving into Phase 3 slightly reshapes the near term story, strengthening the dry eye pipeline while underlining a key risk that clinical and regulatory setbacks in late stage programs could slow the path to better margins and limit the upside from Vision 27 cost initiatives.

    The most relevant recent announcement alongside this update is the raised 2026 revenue guidance to US$5.440–5.540 billion, which came with continued net losses but shrinking deficits. Together with advancing first in class therapies, this points to a company leaning on incremental top line progress and a fuller pipeline as near term supports, while investors weigh whether ongoing negative earnings and execution across multiple programs can improve fast enough to justify current expectations.

    Read the full narrative on Bausch + Lomb (it's free!)

    Bausch + Lomb's narrative projects $6.3 billion revenue and $247.8 million earnings by 2029. This requires 5.9% yearly revenue growth and a $418.8 million earnings increase from -$171.0 million today.

    Uncover how Bausch + Lomb's forecasts yield a $18.62 fair value, a 4% upside to its current price.

    Exploring Other Perspectives

    BLCO 1-Year Stock Price Chart
    BLCO 1-Year Stock Price Chart

    Yet even the bullish analysts, who were penciling in about US$6.4 billion of revenue and roughly US$491 million of earnings by 2029, see faster dry eye market growth as critical and investors should be aware of...

    Compared with the baseline view, the most optimistic analysts were banking on faster dry eye expansion, with revenue reaching about US$6.4 billion and earnings near US$491 million by 2029, so the new trial data on the dual action drop and ocular pain asset could nudge those expectations either higher or lower and you should remember that reasonable people can read the same news very differently.

    Explore 5 other fair value estimates on Bausch + Lomb - why the stock might be worth just $18.62!

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.