Good afternoon, and thank you for joining us here today. The J.P. Morgan Healthcare Conference brings together companies that are not only competing in healthcare but shaping where the industry is going, and we're very proud to be part of the conversation. Special thank you, Robbie, for hosting us here today. As we shared at our Investor Day in November, we are transforming Bausch + Lomb with a clear strategy, disciplined execution, and a relentless focus on innovation grounded in patient needs. The world's demand for eye health solutions continues to grow, and we believe we are uniquely positioned to meet it through the breadth of our portfolio, the depth of our pipeline, and the strength of our brand trusted for nearly two centuries. Today, we'll show you some of the momentum we've built, some of the bold steps we're taking to drive our next chapter of growth and beyond.
Here it is now. I'll spare you the details on this slide. Before we get into specifics, let me remind you of the cultural shifts that we've helped us to rebuild our company to win. Over the last few years, we've been very intentional about bringing in leaders and teams who are not only highly skilled but have the mindset, urgency, and accountability required to win. We surrounded ourselves with A players whose work habits are infectious. We also brought back the innovation mindset. This isn't innovation for innovation's sake. We're investing where we believe we can lead across all of our businesses. We're advancing meaningful products and platforms that solve real problems, not incremental ones. We've built a faster, more focused development engine. Decision-making is sharper, timelines are tighter, and the organization is aligned around moving good ideas to the market with speed and agility.
Finally, technology isn't only enabling our strategy. It's accelerating it. From R&D platforms to manufacturing to digital tools, technology is now a competitive advantage for us. It's not an afterthought. We've modernized how we operate: better systems, better analytics, better connectivity across the enterprise. That means smarter decisions, improved efficiency, and better outcomes for our customers and patients. Over the past few years, we've seen a dramatic increase in the number of patents we filed. In 2025, we filed the most patents since last year of my first stint as CEO back in 2013, which was more than a decade ago. That's not an academic, and it's not an accident, and it's not cosmetic. It's the clearest evidence that our R&D organization is now operating at a different level of creativity, productivity, and strategic focus, and it's also a leading indicator of durable growth.
But the increase in patents isn't just an R&D story. It's a company-wide mind shift. Teams across Bausch + Lomb now think differently: more curious, more inventive, more collaborative, and more focused on what's next. Innovation is no longer confined to our labs. It shows up in our product design, digital capabilities, manufacturing technology, customer engagement, and essentially how we run the business. We've built a culture that encourages people to push boundaries, challenge assumptions, and bring bold ideas forward. That patent trajectory, that patent trajectory proves it, and it speaks to how fundamentally different and stronger Bausch + Lomb is. The growth over the next few years, in particular margin expansion, will come from execution: strengthening the core business to drive revenue growth and predictable performance while continuing to advance our pipeline. Better cost discipline, supply reliability, and technology-enabled efficiency. Capital allocation focused solely on creating value.
To borrow a line that my CFO, Sam, says, "This is our say-do moment, consistently delivering what we say we will deliver." In 2028 and beyond, we expect to introduce transformative value drivers as our pipeline converts into commercial reality. It's important to understand that our pipeline isn't building toward a one-time peak. Our innovation mindset and plans to expand addressable markets are expected to unlock long-term revenue potential. That's made clear by this timeline, which shows our pipeline is designed for durability, not just a moment of growth. Our opportunity spans consumer, surgical, contact lens, and pharmaceuticals, reducing dependency on any single asset and creating multiple shots on goals. As we shared at Investor Day when our R&D leaders took the stage, these aren't science projects. Our pipeline products are purpose-built to solve meaningful patient and eye care professional challenges with clear commercial pathways. It's a simple formula, really.
Innovation grounded in real clinical and market need, plus an intentionally balanced time and risk profile, equals long-term shareholder value creation. This pipeline gives us great confidence not only in the next chapter but in the chapters after that. So let's take a look at the opportunities in each business in the same way we looked at broader expectations. Near-term growth drivers on the left, pipeline upside on the right, and we'll start with consumer. Bausch + Lomb is number one overall in global OTC eye health position. Our position is built on scale, trust, and clinical credibility across consumer categories, including eye vitamins, redness relief, and dry eye. While 7% constant currency revenue growth over the last 12 months speaks to our momentum, our consumer business is where we'll see the most immediate pipeline impact.
The anticipated launch of Blink Triple Care preservative-free drops in the first half of 2026 will enhance a thriving, growing franchise and provide new optionality for consumers and eye care professionals in a fast-growing segment. We also expect to launch PreserVision AREDS 3 in the next few months, which incorporates B vitamin science to support retinal health and reduce the risk of developing age-related macular degeneration. Treating early AMD will significantly expand the addressable market. Finally, we'll elevate a category-defining brand with the anticipated launch of LUMIFY Lux, which is a working name, in the first half of 2027. By combining brimonidine's proven redness relief with the moisture-retaining properties of hyaluronic acid, we'll improve comfort and offer a smoother, more premium experience for our consumer. While we show expected peak sales by franchise, we expect each of these innovations to play a significant role in reaching those milestones.
Growth over the next few years in our contact lens business is expected to be driven by strategic introduction of new daily eye offerings around the world. There's no one-size-fits-all approach, but we continue to see a category lift by country and region as our suite of lens offerings expands and we provide eye care professionals with more optionality. When it comes to contact lens pipeline, one of the highlights from our Investor Day was introducing Project Halo, the development of the first-of-its-kind bioactive contact lens. There hasn't been a contact lens material breakthrough since 1999, which means this new lens, bioengineered with a double dose of hyaluronic acid, wouldn't just disrupt the market. It should create an entirely new category. This technology was developed by our in-house R&D team and, importantly, can be mass-produced on existing lines, meaning minimal capital expenditures.
Other lenses under development are expected to launch in 2029, following the anticipated 2028 launch of the bioactive lens, all have significant upside potential: a second daily disposable SiHy offering, a premium frequent SiHy option, and a cutting-edge SiHy product designed to slow the progression of myopia in children. Expected peak sales from these lenses under development totals $1.25 billion, which would roughly double the size of our contact lens business. Turning to pharma, the focus in our pharmaceuticals continues to be MIEBO and Xiidra, and rightfully so, given both are significant revenue contributors. MIEBO growth continues to exceed expectations, which is especially encouraging given we moved beyond our heavy launch investment Phase. Our resurrection of Xiidra has gone according to plan, with consistent performance aligned with growth expectations. Both medications are expected to drive top-line growth with margin improvement over the next several years.
The future of our pharmaceutical business model is about bold science, meaningful innovation, and category-defining firsts: medications that elevate the standard of care and create lasting value. We're developing the first dual-action eye drop to treat dry eye, combining the distinct mechanisms of the active ingredients of MIEBO and Xiidra to address tear evaporation and inflammation in a single therapy. Our glaucoma pipeline asset would be the first to lower intraocular pressure and improve visual acuity, resetting the treatment for this market. Current options don't sufficiently address ocular discomfort and pain, the number one reason patients visit eye care professionals. Our neurosensory agent under development has shown promise to change that.
In fact, we just completed a Phase 1 study in healthy volunteers where we showed no dose toxicity limitations with the tested doses, no effect on corneal sensation, and there were no AEs reported at the highest tested dose. Looking further out, game changers in AMD and geographic atrophy could generate more than $1 billion in peak sales, putting total peak sales opportunity for our pharmaceutical pipeline at approximately $3.9 billion. Turning to surgical, we anticipate the premium in our ocular lenses will continue to be the primary growth driver for our surgical business, and we believe we are well-positioned to capture market share following significant portfolio expansion over the last few years. That expansion is expected to be across our enVista and Lux platforms, allowing us to cover all segments in a category that continues to rise in popularity.
Similar to our consumer business, our surgical business is expected to see pipeline benefits in the not-too-distant future, beginning in the second half of this year, 2026. Elios, the first clinically validated excimer laser for minimally invasive glaucoma surgery or MIGS, has already proven successful in Europe, with an anticipated U.S. approval later this year. We'll provide surgeons with a differentiated treatment option for the leading cause of irreversible blindness. Solera, our next-generation femtosecond laser, was designed to improve the clinical experience for cataract and refractive surgeons through greater efficiency and more optionality. enVista Beyond and extended depth of focus IOL will round out the enVista family and provide a one-stop shop for surgeons who have grown to love the enVista platform.
Continuing a theme of developing products based on input and specific needs of surgeons, Cynova, a new phaco/vitrectomy platform, will offer enhanced fluidics and multifunctional handpieces to make surgery more efficient. Expected peak sales from these products, with anticipated launch dates through 2028, are nearly $1 billion. I like to refer to this slide as walking the walk slide. We're not just talking about M&A innovation. We have real meaningful clinical milestones expected in 2026, in addition to the anticipated product launches I covered earlier. These milestones, which again touch all of our business, represent tangible progress, not theoretical opportunity. Our pipeline is advancing, with ideas being converted into clinical value in real time. You'll be able to see, not just here, the impact of the work we've done to rebuild and strengthen our innovation engine.
Each milestone reinforces that this is a different Bausch + Lomb than it was just a few years ago: faster, sharper, and more disciplined in advancing high-value opportunities. Stay tuned for more updates throughout the year. In October, we introduced a new metric to measure our progress: financial excellence. We earned the right by making significant headway in the three categories of focus we committed to when I rejoined the company three years ago: selling excellence, operational excellence, and disruptive innovation. Financial excellence means growth that outperforms the market, meaningful margin expansion, solid cash generation, and a strong balance sheet. It's not an aspiration. It's our operating expectation. This is our scorecard, and when we are presenting at this conference in three years, I'm confident we will have met or exceeded each of these goals. So before we do the Q&A, Robbie, just three quick takeaways.
First, we're flexing new muscle developed under the past few years: operational rigor, accountability, and a relentless focus on results. They've moved us from stability and potential to performance and delivery. Second, we're unlocking real value through efficiency gains, cost discipline, operational excellence, driving top-line momentum and bottom-line upside. Third, we're shaping the future of eye health with innovation that matters clinically, commercially, and competitively. Bausch + Lomb is fundamentally stronger than it has been in years. We're delivering today, building momentum for tomorrow, and working to create meaningful long-term value well into the future. Robbie, if you want to come up, we'll do some Q&A. Thank you all.
Well, great. Maybe if we start off, you had your analyst day in November. You went through the whole pipeline. You reiterated a lot of stuff and highlighted it here in the slides. As we're sitting here, January 2026, you had a lot of new product launches coming over the next 12 months. How would you rank order the most important, both to the top and bottom line for Bausch + Lomb that people should be focused on?
For 2026?
Yeah.
Yeah. So I think there are three in total of size. Two, I think I would highlight. I think AREDS 3 and consumer is a very important launch for us. We built a very nice business with PreserVision, working with the NEI and clinical data for patients suffering with AMD. But AREDS 3 does. It allows us to expand to the more moderate population, effectively tripling the size of the target market. So a really important launch with great science behind it. The other is Elios, our MIGS procedure for glaucoma surgery in the second half of the year.
It's a procedure that's been around for about eight years. Great data. Patients do very well. Surgeons can be easily trained. And so I think it's a real paradigm change for glaucoma surgery when we get it approved this year. I started my career in biotech spec pharma, and peak sales was a very common term that we would see there all the time. In med tech, it's a little less common. Maybe just for those not as familiar, when you put up peak sales, is that what you're forecasting Bausch + Lomb sales can be at the highest level, or is that closer to an addressable market?
You want to take it?
Yeah. It tends to be more on what could be our peak sales based on where we operate in the addressable market.
So it does really look when you get the product out on the market and you invest behind it and the potential of what this asset could do, that'll be in that range.
Got it. Just a helpful clarification for some.
Yeah. No problem.
Maybe if we dive into some of the markets, you talked about, I think it's mid-single digit, if not better, for contact lenses. That's a market we've seen slow down at a lot of competitors, not so much at Bausch + Lomb, whether it's sort of consumer confidence or trade down, or we'll see in 2026 really what's driving it. But it has taken a step down, but again, not for Bausch + Lomb. What are you expecting this year for contact lens market growth? And maybe just help out with your positioning in the market and how you feel about contact lenses overall.
Yeah. I would say that historically, the market grows somewhere between 4%-6%. 2025 was probably on the lower end of that range, closer to 4%. I think there were a lot of factors, but two most important that I would say is it was a little bit of a slowdown in the private label part of the market and some destocking by big retailers. And the second was some weakness in Asia, particularly China, just not related to contact lenses, but the entire Chinese consumer. And so that probably put some pressure on the growth rate. I do expect it to be a little better in 2025, maybe 4.5% or thereabout, 4.5%-5% is my prediction. But I don't think there's anything secular or worrisome about the long-term prospects for the market.
I think that 4% to 6% is going to hold, and we're going to trend sometimes at 5% and sometimes at 4.5% and sometimes at 6%.
How do you feel about the ability for price in that market with consumer confidence where it is? Do you think, I would say, A, the market is able to take price, and B, is Bausch + Lomb able to take price?
Yeah. So I think the market, I think it's pretty typical. It would be the word I'd use. I don't think there's anything extraordinarily different about the pricing environment, and I would say that the consumer is strong. It just depends on where, and so in the U.S., the low-end consumer is challenged, but the middle and higher is thriving. I think 2026 is going to be a good year for the U.S. economy.
I think when you look at markets like China, same thing, but you're seeing GDP slow a little bit. So you're seeing a little bit of a pullback. But overall, I think that price is very typical. I don't see any real change there, and we're going to continue doing what we do, very disciplined and measured, but I don't see it as an issue. And your daily silicone hydrogel, since it's launched, has taken a good amount of share. Is that a trend you expect to continue in 2026? We do, because as you think about a contact lens launch, you have to launch all the modalities, and most importantly, the toric is quite important. And we haven't done that except in the U.S. market.
So the next two years, as we wait for the bioactive lens to come online, we really have a lot of growth still left in our SiHy platform because we're going to launch all the modalities in different geographies around the world.
We've done a number of doc checks, and they're actually really excited for that lens. It could be very differentiated. Are you past the point of proof of concept? Are you at the point now where you got the lens, it's locked, and it's now just in clinical trials and approval processes?
Yeah. So lens development doesn't quite work that way. It's a little bit more iterative. So Yehia's team has done about 10 internal clinical studies in our Rochester facility. We are now enrolling in our first large-scale external study.
And you may have to do that again, or you may have great results from that and go right to registration. Typically, there's always little iterations you learn. Maybe you need to smooth an edge or other things like that. So we'll get data in a few months, and we'll know. But we're pretty confident, but I think the data from this study would really solidify our confidence in that product.
Got it. Okay. Is that fair, Yehia?
Yeah. Very fair, I think.
So we'll know later in 2026 if you're filing?
Not too late. Yeah. I think in a few months.
Okay. Great. Maybe if we move on to IOLs. It seems like you've successfully brought enVista back to market and relaunched. What's been the reception since the relaunch? And do you feel like you're on track now in all the geographies around the world?
Yeah. So we are on track. Clearly, the recall was an unfortunate, but I think well-handled situation. We did the right thing for patients and for surgeons. No one really talks about it anymore. So I think it's in the rearview mirror. A few investors ask us about it, but we don't hear from doctors or surgeons anymore. So that's a good thing. It's on track to do exactly what we said. We're back to where we were in the first quarter of 2025 by the first quarter of 2026. We feel very good about that. And I think adoption is really starting to take off. When you launch an IOL, there are always surgeons who want to try new things. There are BNL docs who want to try the next thing from BNL. But the larger surgeon population tends to want to wait to see performance.
And they generally want to see about one year of data. So we're at the one-year mark, and the data looks good. The feedback from surgeons is very positive. And so we're seeing more adopters come in and saying, "Hey, I heard great things. I'd like to try enVista." So I feel very strongly we're just in the process of launching in Europe in the first half of this year. And so I think it's going to be a very important lens for us, but also for surgeons, for patients.
If I go back to the analyst data or even the slides you had up here recapping a lot of what you said, the pipeline is really deep on the surgical side, both on the hardware side and the implantable side.
If you look at the margins and you disclose the margins, your surgical margin is single digits, well below the rest of the company. Maybe walk me through. A, is the pipeline going to help with margins? And then B, overall, as you think about the 600 basis points of EBITDA expansion you've committed to over the next three years, how much is coming from the surgical business getting better?
Yes. Maybe I'll start and Sam, you can weigh in. But look, the most opportunity for margin improvement is in our surgical business for the reasons you stated. We've been well aware of this opportunity for a couple of years now. The way I think about it is simply there's two levers for us to pull. One is transition to higher margin products like premium IOLs, and that's happening. So that's underway, and that's real.
And the second is to improve our manufacturing COGS and efficiency, particularly around the consumables business, which is the largest part of our surgical business. And that's happening. A lot of work over the last year and a half to do that. You'll start to see probably by mid-year or end of this year real improvement on that part of it. And the combination of the two of those is very powerful margin improvement.
Yeah. And if I can add more detail on this. So when you think about the margin here, Robbie, there's about 250 basis points out of the 600 that's going to be coming and impacting what I refer to as the gross margin line item. And majority of that impact is coming in from the two elements that Brent discussed, which is the first one is the product mix.
And product mix, especially in the surgical business, will play a big factor as we shift more into the premium category and with the launches that we talked about. The other part of it is going to be around the efficiencies in the manufacturing supply chain. And that's an area we've been investing in. I think we are feeling confident where we are today in terms of having all the pieces together, and the execution is on its way to be able to get many of the vertical integration that we need to do within our surgical business.
And many of those premium products are coming towards the later years in the long-range plan. So do we think of the margin contribution as more back-end loaded from surgical relative to some of the other businesses?
Not really. I think you're going to start to see that margin.
You're going to start seeing that. You didn't see it much in 2025 because of how we were actually stepping out of the voluntary recall, but you'll start seeing that into 2026, 2027.
Great. Maybe moving on in pharma. Your dry eye business has done exceptionally well. MIEBO has been a great launch. How much more is there to go here?
I mean, it's probably one of the more successful four-time-a-day drugs that I can remember over the years, but the fast mechanism of action has really generated a lot of interest. Yeah. Look, first, we're very pleased with the performance too, but I don't think there's any end in sight at this point. MIEBO is becoming the medicine of choice for ECPs running for dry eye. It works. It works quickly, and its risk profile is very beneficial. So it's a really good option.
Most people do have evaporative dry eye, then inflammatory. Then those are the two biggest markets. So with Xiidra and MIEBO, we really cover most of the needs of a dry eye patient. The combination that kind of sets it up to R&D, right, but the combination then becomes the perfect solution for a physician and their patient.
So you had key opinion leaders at your analyst day. There are some combo products in development that they were very excited about, and we kind of hear that in our own checks. Maybe walk us through sort of how you rank order the most important or potentially the most impactful pipeline products in the dry eye space. We'll let Yehia, since he runs R&D, pick his favorites on this one, Robbie.
So as I mentioned, I think we have great opportunities with a very high potential of upside.
But just to be specific, I think the two that are most advancing now, one is related to the combination between Xiidra and MIEBO. And the potential here is really related to the very innovative formulation that we created with the potential that we get even much more symptom and signs relief than what's currently each product separately can do. And then obviously, we think also where the dry eye market is going is really there is a potential of high unmet medical need because many patients do not require one single treatment for their dry eye. And it becomes a compliance issue when you have multiple eye drops in your pocket. You need to put this one three times, four times. So combination therapy, we think there is a great place to be. And this is most advancing.
We are having readout of the data by the second half of this year. It's a Phase 2B study, and it's large enough that it could be considered as one of the pivotal studies. The tie to it is another glaucoma neuroprotection one. As Brent mentioned in the presentation, all the treatments available currently focus on reduction in intraocular pressure, which is the right thing to do. However, glaucoma is not only an IOP. Glaucoma affects ganglion cells, affects optic nerve, affects all the retina. We think that a lot of patients reduce their functional activity with chronic glaucoma. With this product, it will be the first product that we can reduce the intraocular pressure, but it has also a neuroprotective mechanism of action. We are confident in this because we have some preclinical data as well as clinical data.
We had a proof of concept study that demonstrated for the first time in these glaucoma patients that we can improve 15 letters in low luminance visual acuity. Those are, and we also have a second confirmatory study that is already ongoing now, and we will have readout towards the back end of the year from this study.
Great. As we think about Xiidra, it's been impacted a bit by some of the government pricing actions. Is that an asset you think you can grow on a dollar basis in 2026?
We do. In fact, I think 2025 is kind of a rebasing. I think what you'll see in 2026 is the way we've dealt with managed care, in particular our CVS contract, is you're going to see TRX growth perhaps come down a little bit, but revenue go up.
And so you're going to see better, lower gross-to-nets driving higher revenue growth.
Now, a couple of years into the deal, is this a deal you still like the returns on? It's hard for us to see on the outside. Is this one that hit your model?
Yeah. So yes and no, right? Just to be completely transparent. It hasn't quite hit the model because of the managed care, gross-to-nets. That being said, MIEBO wouldn't be MIEBO without Xiidra. We wouldn't have been able to make the investment in the field force and in the promotion. And so I think if you were measuring this at the two-year mark, you'd probably give it a B, perhaps.
But my hope is, like all deals, you should measure it probably at the five or seven-year mark, and it could still become an A. Great. We touched on surgical margins.
If you think about consumer and you think about pharma, how should those play out to get to the 600 basis points? And what are the key drivers of expansion there?
Yeah. You'll see a margin lift across all of our businesses. So maybe the best probably way I will frame it is if you look at where we are today, we're seeing roughly about 17% EBITDA margin. Expectation based on the targets that Brent shared on the slide here today and what we shared on Investor Day is 23% EBITDA margin by 2028. That's about 600 basis points.
250 basis points of that we already discussed, which is what we'll see in the gross margin. That leaves roughly about 400 basis points that will be coming from the SG&A. And that's really where you're going to see the lift through across all of the businesses, both on reduction of our fixed cost as we think about it within sort of operating. And that's through the program we launched earlier in the year called Vision '27, but also driving that leverage through how we reposition our investments around our businesses, especially in selling an AMD and driving leverage through the P&L.
I imagine none of that's touching the physician-facing field force. It's more on the backside of the investments.
That's exactly. We're definitely prioritizing around what we need to do on the front line and really looking at the back office or I'll call it back support expenses.
But more importantly, also how we are deploying and being more efficient and effective in how we're deploying our A&P dollars. And using AI and generative AI for production and placement of ads.
So we have the top line. We have EBITDA. Let's walk it down to EPS. How should people think about over that time horizon, interest, tax, and EPS growth?
So interest for us and the capital structure in general has been a really good story, especially with the work that we did in 2025. We did a refinancing in the middle of the year. In the beginning of this year, we just did a repricing of almost $2.8 billion for our Term Loan B . So it's really setting us up well to start bringing the cost down of our interest expense and the cost of debt.
That's not factoring in what we'll see hopefully from the Fed as they start working through. So that will be an incremental benefit for us as we go forward. So where we are right now, I think I'm very optimistic about what we have seen in terms of the interest expense in 2025, which is roughly about 8%. That will be below that as we go into 2026, and we'll provide more as we get for 2026. Taxes is also a good story for us because we have a very efficient and effective tax structure. We've been running roughly about, I'll call it a 15% tax rate. We did guide to by 2028, there will be about 19%-20% tax rate. And that's really just a factor of what we're seeing in terms of actually expanding the margins and increasing the profitability within our business.
So you're seeing that step up as we go forward.
And so as we think about EPS growth, is that faster or slower, you think, than EBITDA growth?
It will be faster. We'll say it will be double digits.
Double digit. Okay. On an average per year, double digit?
Correct.
Okay. You won't comment on 2026 at this point, double digit EPS growth? In about five weeks.
We'll talk through it more specifically when we give guidance.
I got to try. Free cash flow has been one area that I think investors pay a lot of attention to. I know you talk about adjusted free cash flow. I think a lot of investors care more about reported free cash flow. How do you think about reported free cash flow during your long-range plan? And what are the key programs or improvements you're putting in place to capture that?
Yeah. So I think the delta between the reported and adjusted free cash flow or adjusted cash flow, that will be something that was done deliberately as we were actually investing behind Vision '27 in the last 12 months or so. You'll see that continue to decline and sort of migrate to a much closer gap as we go forward. But when you take a step back and just look at our actions around cash flow and liquidity in general, we've been very focused on trying to drive working capital. And I think the results really in the third quarter for us was really the outcome of many of that work where we had roughly about 66% conversion of our adjusted cash flow to adjusted EBITDA. So as we go forward, I think we guided for 2028 to be 50% plus conversion.
I think we're really feeling good about how we're thinking about those targets based on the actions we've done so far. What are the key drivers of the improved free cash flow? It's multiple factors, but really, I'll call it back to basics around working capital initiatives, managing inventory, managing all the different elements of working capital. How do we think about CapEx within that improvement? You will see a meaningful impact also coming from CapEx. So again, CapEx was an area where we invested, I'll call it higher investments in the last couple of years, especially to build up the capacity around our lens business, which we've seen the growth of the 24% on INFUSE. You're seeing that capacity come into play. So we were roughly about 6% of revenue in terms of our investment in CapEx.
As we go forward, I think there's two inflection points the way I probably will describe it here, Robbie. The first one is that investment has already taken place. So we're going to start seeing sort of a pullback in terms of the CapEx spend. And more importantly, the bioactive lens, which is coming into 2028, is not going to require demand the same level of CapEx that we've had with INFUSE. So we expect that to drop roughly to be about 4-4.5% of revenue in terms of CapEx spend.
At the analyst day, I think you highlighted reinvestment, M&A, and reduction in leverage as the key priorities for capital allocation. How do you think about them in order of one, two, three?
I'll start with, again, maybe I'll use the, I'll steal what Yehia said.
They're all important, but I'll focus on the balance sheet, strengthen the balance sheet, lowering the leverage. So I think our target is three and a half times. I think that's going to be our main focus. I think we're going to be also continuing to invest in the business and focus more in terms of, I'll call it, opportunistic M&A.
Yeah, but I think as you think about M&A, we're in a very well-positioned. We have a very strong plan for the next three years that really doesn't require a lot of new product launches. We have a deep pipeline of product launches sitting right outside of that horizon. So our growth is quite durable. So M&A for us is only; there's no hole to fill, right? It's only if we see something exceptional to do.
And it would be an accretive tuck-in or perhaps some IP or science, but nothing big that we have to do at this point. Well, great.
Unfortunately, we're out of time. Appreciate the great discussion. Thanks everyone for coming. Great. Thanks for having us. Thank you.