Brent Saunders leaves by mutual agreement with the board, and both companies expect to raise 2026 adjusted EBITDA guidance.

Vaughan, Ontario-based eye health company Bausch + Lomb Corp. (NYSE/TSX: BLCO) named board Chairman Thomas J. Appio interim chief executive on Oct. 12, effective immediately. Appio remains CEO of parent company Bausch Health Companies Inc. He replaces Brent Saunders, who has led Bausch + Lomb since 2023 and is leaving by mutual agreement with the board. The announcement gave no reason for the departure.

Appio joined the company in 2010 as managing director for China and became president of Bausch + Lomb International in 2016. He has been Bausch Health CEO since 2022.

The board said Appio’s knowledge of the business, global leadership experience and long connection to the company position him to lead it. 

Saunders returned after Allergan tenure

Saunders had an earlier stint at Bausch + Lomb from 2010 to 2013. He later led Allergan until AbbVie Inc. acquired it in 2020 for about $63 billion.

Analysts weigh timing as shares fall

Analysts at Citigroup Inc. (NYSE: C) said Saunders’ departure “seems sudden,” but Appio’s long experience at Bausch + Lomb positions him well to lead through the transition. Its U.S.-listed shares fell in Monday trading.

Parent holds majority since 2022 IPO

Bausch Health owned approximately 87% of the shares as of Aug. 6, Bausch + Lomb said. Four new directors, including Appio, joined the board Aug. 5 at the parent’s request. Appio succeeded Saunders as chairman Aug. 10, and Saunders remained a director, an SEC filing shows. In its July 29 results release, Bausch + Lomb said a proposed separation from Bausch Health may include transferring all or part of Bausch Health’s remaining stake to its shareholders.

Companies hold back new guidance figures

The third-quarter results are preliminary and unaudited, and remain subject to quarter-end closing and review procedures. Both companies are in a blackout period and gave no new figures. They attributed the increase to third-quarter performance and anticipated stronger performance for the rest of 2026. The current range for Bausch + Lomb, set July 29 and reaffirmed Aug. 6, is $1.025 billion to $1.075 billion for the measure.

Based on preliminary third-quarter results, the companies expect to raise full-year 2026 guidance for adjusted EBITDA excluding acquired in-process research and development (IPR&D) costs.

Outlook

The announcement did not say how long Appio will serve as interim CEO. Bausch + Lomb and Bausch Health will report third-quarter results on Oct. 28 and provide additional guidance details.