http://seekingalpha.com/article/149...e-conference-jun-11-2013-09-20-am?part=single
excerpts...
"You've seen the contact lens business. I think they're spending $60 million, $70 million on lenses. Once the new materials are out, that would come down under their own plan to the $20 million, so -- and there should be some further savings. But a lot of it, Prolensa was coming out, the IOL's, the VICTUS machine, a lot of it was meant to wind down in any event. And then we have our core, the -- all of the stuff that's needed to keep our existing products on the market, which we don't need 2 groups. There'll be one group that were doing it."
"The -- and the trick in contact lenses isn't the R&D and -- or the D&R in new material. J&J hasn't come out with the new contact lens, and I believe well over a decade, not because they can't come up with the new contact lens but because the capital laid up $2 billion or so invested in capital and you have to scrap that and put $2 billion plus more in capital. It's very capital intensive. So I -- and -- if you ask the Bausch guys in the future, their view would be, they don't need to do a lot of internal R&D on the material, they can go to a polymer house and have that designed. So there's lots of tricks down the road to continue to invest in development where we don't necessarily have to do alone ourselves. We don't invest quite as much, and the innovation cycles, for some of these products are much longer than, I think, some of other businesses."
This isn't about what percentage of reductions to expect, the indication is that there simply won't be any part of Bausch + Lomb left in Rochester. er, "Bausch", as it were. They will extract the name, commoditize the new products, and pull a Medicis on the vast majority of employees.
excerpts...
"You've seen the contact lens business. I think they're spending $60 million, $70 million on lenses. Once the new materials are out, that would come down under their own plan to the $20 million, so -- and there should be some further savings. But a lot of it, Prolensa was coming out, the IOL's, the VICTUS machine, a lot of it was meant to wind down in any event. And then we have our core, the -- all of the stuff that's needed to keep our existing products on the market, which we don't need 2 groups. There'll be one group that were doing it."
"The -- and the trick in contact lenses isn't the R&D and -- or the D&R in new material. J&J hasn't come out with the new contact lens, and I believe well over a decade, not because they can't come up with the new contact lens but because the capital laid up $2 billion or so invested in capital and you have to scrap that and put $2 billion plus more in capital. It's very capital intensive. So I -- and -- if you ask the Bausch guys in the future, their view would be, they don't need to do a lot of internal R&D on the material, they can go to a polymer house and have that designed. So there's lots of tricks down the road to continue to invest in development where we don't necessarily have to do alone ourselves. We don't invest quite as much, and the innovation cycles, for some of these products are much longer than, I think, some of other businesses."
This isn't about what percentage of reductions to expect, the indication is that there simply won't be any part of Bausch + Lomb left in Rochester. er, "Bausch", as it were. They will extract the name, commoditize the new products, and pull a Medicis on the vast majority of employees.