Wall Street analysts forecast that Bausch Health (BHC) will report quarterly earnings of $1.01 per share in its upcoming release, pointing to a year-over-year decline of 1%. It is anticipated that revenues will amount to $2.25 billion, exhibiting an increase of 2.4% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial es ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Bausch Health (BHC) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 22, 2024, might help the stock move higher if these key numbers are better than ...

Bausch Health (BHC) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the syst ...

Here are three stocks with buy rank and strong value characteristics for investors to consider today, February 7:Mitsui & Co., Ltd. (MITSY) : This investment and trading company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.8% over the last 60 days.Mitsui & Co., Ltd. has a price-to-earnings ratio (P/E) of 8.84 compared with 21.60 for the industry. The company possesses a Value Score of A.J Sainsbury plc (JSAIY) : This diversified retail an ...

Bausch Health Companies Inc. (NYSE:BHC) Q3 2023 Earnings Conference Call November 2, 2023 8:00 AM ET Company Participants Lisa Wilson - Investor Relations Thomas Appio - Chief Executive Officer John Barresi - Interim Chief Financial Officer Conference Call Participants Jason Gerberry - Bank of America Securities Umer Raffat - Evercore ISI David Amsellem - Piper Sandler Douglas Miehm - RBC Capital Markets Les Sulewski - Truist Securities Operator Greetings. Welcome to the Bausch Health Third Quarter 2023 Ear ...

Q3 2023 Earnings November 2, 2023 BAUSCH Health Forward-Looking Statements This presentation contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, "forward-looking statements"), including, but not limited to, statements relating to Bausch Health Companies Inc.'s ("Bausch Health" or the "Company") future prospects and performance, financial guidance, research and development efforts and anticipated timing thereof, proposed plan to separate its ey ...

[Part I. Financial Information](index=2&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) This section presents the unaudited condensed consolidated financial statements for Bausch Health Companies Inc. as of September 30, 2023, and for the three and nine-month periods then ended [Note 4. Licensing Agreements and Acquisitions](index=13&type=section&id=Note%204.%20LICENSING%20AGREEMENTS%20AND%20ACQUISITIONS) Bausch + Lomb acquired XIIDRA® and other ophthalmology assets for an upfront cash payment of **$1.75 billion**, with total preliminary purchase consideration of **$1.753 billion** - Bausch + Lomb acquired XIIDRA® from Novartis for an upfront cash payment of **$1.75 billion** on September 29, 2023. The deal also includes potential future milestone obligations of up to **$750 million**[99](index=99&type=chunk)[122](index=122&type=chunk) XIIDRA® Acquisition Consideration | Component | Amount (in millions) | | :--- | :--- | | Cash consideration paid at closing | $1,750 | | Estimated fair value of contingent consideration | $3 | | **Preliminary aggregate purchase consideration** | **$1,753** | - In July 2023, Bausch + Lomb acquired the Blink® product line of eye and contact lens drops for an upfront cash payment of **$107 million**[128](index=128&type=chunk) - In January 2023, Bausch + Lomb acquired AcuFocus, Inc., an ophthalmic medical device company, for an upfront payment of **$35 million**, plus potential future milestone payments[128](index=128&type=chunk) [Note 8. Intangible Assets and Goodwill](index=20&type=section&id=Note%208.%20INTANGIBLE%20ASSETS%20AND%20GOODWILL) The company reported net intangible assets of **$6.73 billion** and goodwill of **$11.19 billion** as of September 30, 2023, with significant impairments in Q3 2023 Goodwill Impairments in 2022 & 2023 | Reporting Unit | Impairment Date | Impairment Amount (in millions) | | :--- | :--- | :--- | | Dermatology | Q2 2022 | $83 | | Dermatology | Q3 2022 | $119 | | Neurology | Q4 2022 | $622 | | Dermatology | Q3 2023 | $151 | | Neurology | Q3 2023 | $251 | - The Q3 2023 goodwill impairments were triggered by revised forecasts indicating lower future financial results for the Dermatology and Neurology units, combined with increases in market interest rates[16](index=16&type=chunk)[152](index=152&type=chunk) - The Salix reporting unit was tested for impairment in Q3 2022 due to the Norwich Legal Decision regarding Xifaxan patents, showing limited headroom with fair value exceeding carrying value by less than **5%**[10](index=10&type=chunk)[26](index=26&type=chunk) - The Bausch + Lomb reporting units (Vision Care, Surgical, Pharmaceuticals) were tested in Q2 and Q4 of 2022, with fair values exceeding carrying values by more than **25%**, indicating no impairment risk[7](index=7&type=chunk)[36](index=36&type=chunk) Goodwill Balance by Segment (in millions) | Segment | Dec 31, 2022 | Sep 30, 2023 | | :--- | :--- | :--- | | Bausch + Lomb | $5,246 | $5,262 | | Salix | $3,159 | $3,159 | | International | $789 | $811 | | Solta Medical | $115 | $115 | | Diversified | $2,238 | $1,840 | | **Total** | **$11,547** | **$11,187** | [Note 10. Financing Arrangements](index=28&type=section&id=Note%2010.%20FINANCING%20ARRANGEMENTS) As of September 30, 2023, total long-term debt principal was **$21.0 billion**, with key activities including a **$2.47 billion** debt reduction and new **$1.9 billion** debt for the XIIDRA acquisition Total Long-Term Debt (in millions) | Date | Principal Amount | Net of Premiums, Discounts, etc. | | :--- | :--- | :--- | | Dec 31, 2022 | $19,110 | $20,766 | | Sep 30, 2023 | $20,952 | $22,430 | - In September 2022, the company completed an exchange offer, swapping **$5.6 billion** of existing unsecured notes for **$3.1 billion** of new secured notes, reducing outstanding principal by **$2.47 billion** and resulting in a net gain of **$570 million**[157](index=157&type=chunk)[158](index=158&type=chunk)[209](index=209&type=chunk) - In June 2023, the company established a new non-recourse Accounts Receivable (AR) Credit Facility for up to **$600 million**, with **$350 million** outstanding as of September 30, 2023[223](index=223&type=chunk)[224](index=224&type=chunk) - In September 2023, Bausch + Lomb financed the XIIDRA acquisition by issuing **$1.4 billion** in new 8.375% Senior Secured Notes due 2028 and entering a new **$500 million** term loan facility[226](index=226&type=chunk)[263](index=263&type=chunk) - As of September 30, 2023, the company was in compliance with its financial maintenance covenants[156](index=156&type=chunk) [Note 17. Legal Proceedings](index=41&type=section&id=Note%2017.%20LEGAL%20PROCEEDINGS) The company faces significant legal proceedings, including an appeal of the Norwich Legal Decision on Xifaxan® patents, ongoing individual investor lawsuits, and antitrust litigation - The company is appealing an August 2022 court decision (Norwich Legal Decision) that found patents for Xifaxan®'s use in treating IBS-D to be invalid, while upholding patents for hepatic encephalopathy (HE) until October 2029[335](index=335&type=chunk) - While the main U.S. securities class action was settled, **twenty-one** individual "opt-out" investor actions remain pending against the company[290](index=290&type=chunk) - The federal class action for the Glumetza® antitrust litigation has been settled, but related state-law insurer litigations are ongoing, with a trial scheduled for December 2024[305](index=305&type=chunk)[331](index=331&type=chunk) - The company is fully indemnified by Johnson & Johnson for all potential liability and legal costs arising from product liability lawsuits involving the Shower to Shower® body powder product[390](index=390&type=chunk) [Note 18. Segment Information](index=53&type=section&id=Note%2018.%20SEGMENT%20INFORMATION) For the nine months ended September 30, 2023, total revenue was **$6.35 billion**, with Bausch + Lomb contributing **$2.97 billion** and Salix **$1.67 billion** Segment Revenues and Profits (Nine Months Ended Sep 30, 2023) | Segment | Revenues (in millions) | Segment Profit (in millions) | Profit Margin | | :--- | :--- | :--- | :--- | | Salix | $1,667 | $1,129 | 68% | | International | $781 | $236 | 30% | | Solta Medical | $244 | $114 | 47% | | Diversified | $684 | $417 | 61% | | Bausch + Lomb | $2,973 | $699 | 24% | | **Total** | **$6,349** | **$2,595** | **41%** | - Sales of the Xifaxan® product line represented approximately **80%** of the Salix segment's revenues[381](index=381&type=chunk) Major Customers (% of Total Revenues) | Customer | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | | AmerisourceBergen Corporation | 19% | 16% | | McKesson Corporation | 15% | 13% | | Cardinal Health, Inc. | 13% | 11% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, strategic initiatives, and business trends, including the Bausch + Lomb separation, capital structure management, and R&D investments [Overview](index=57&type=section&id=OVERVIEW) Management's overview highlights the continued strategy to separate the Bausch + Lomb business, significant debt reduction efforts, and key growth drivers including R&D and strategic acquisitions - The company continues to plan the full separation of its Bausch + Lomb eye health business, which is subject to achieving targeted debt leverage ratios and receiving necessary approvals[414](index=414&type=chunk) - In 2022, the company reduced its aggregate debt principal by approximately **$3.8 billion** through a series of transactions, including a debt exchange offer that alone reduced principal by **$2.47 billion**[416](index=416&type=chunk)[426](index=426&type=chunk) - Strategic growth initiatives include R&D on a new Rifaximin formulation for OHE, Amiselimod for ulcerative colitis, and the recent FDA approval of CABTREO™ for acne[469](index=469&type=chunk)[470](index=470&type=chunk)[492](index=492&type=chunk) - The company faces potential loss of exclusivity (LOE) and generic competition for several branded products between 2023 and 2027, including Aplenzin®, Bryhali®, and Prolensa®[509](index=509&type=chunk) [Results of Operations](index=68&type=section&id=RESULTS%20OF%20OPERATIONS) Q3 2023 revenues increased **9%** to **$2.24 billion**, but operating income sharply declined to **$14 million** due to **$283 million** in goodwill impairments Financial Performance Summary (in millions) | Metric | Q3 2023 | Q3 2022 | Change | 9M 2023 | 9M 2022 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $2,238 | $2,046 | +$192 | $6,349 | $5,931 | +$418 | | **Operating Income** | $14 | $244 | -$230 | $601 | $690 | -$89 | | **Net (Loss)/Income to BHC** | $(378) | $399 | -$777 | $(553) | $185 | -$738 | - The primary driver for the sharp decrease in Q3 2023 operating income was a goodwill impairment charge of **$402 million**, compared to **$119 million** in Q3 2022[534](index=534&type=chunk)[576](index=576&type=chunk) - Salix segment revenue grew **13%** in Q3 2023 to **$614 million**, driven by higher volumes and pricing for products including Xifaxan®[597](index=597&type=chunk) - Bausch + Lomb segment revenue increased **7%** in Q3 2023 to **$1.007 billion**, reflecting volume growth, price increases, and contributions from the Blink® acquisition[625](index=625&type=chunk) [Liquidity and Capital Resources](index=87&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Net cash from operating activities significantly improved to **$642 million** for 9M 2023, while total debt principal increased to **$21.0 billion** primarily due to the XIIDRA acquisition Cash Flow Summary (Nine Months Ended Sep 30, in millions) | Cash Flow | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | **Net cash from operating activities** | $642 | $(1,203) | +$1,845 | | **Net cash used in investing activities** | $(1,997) | $(167) | -$1,830 | | **Net cash from financing activities** | $1,554 | $(198) | +$1,752 | - The **$1.8 billion** positive swing in operating cash flow was primarily due to a decrease in payments for accrued legal settlements compared to the prior year[676](index=676&type=chunk) - Total debt principal outstanding was **$20.95 billion** as of September 30, 2023, with significant maturities scheduled for **$2.8 billion** in 2025, **$6.6 billion** in 2027, and **$7.2 billion** in 2028[730](index=730&type=chunk)[432](index=432&type=chunk) - As of September 30, 2023, **$360 million** of the company's cash was held by Bausch + Lomb entities and is generally not available to support the operations of other Bausch Health legal entities[704](index=704&type=chunk)

Financial Data and Key Metrics - Total sales for Bausch Health, excluding Bausch & Lomb (B+L), were $1.13 billion in Q2 2023, up 10% reported and 11% organically year-over-year [20] - Bausch & Lomb revenues were $1 billion in Q2 2023, up 10% reported and 12% organically compared to the prior year [6] - Consolidated adjusted EBITDA was $727 million in Q2 2023, up 4% reported and 7% on a constant currency basis [32] - Adjusted EBITDA margin for Bausch Health, excluding B+L, was 50.2%, while Bausch & Lomb's adjusted EBITDA margin was 17.3% [32] - Full-year EBITDA for Bausch Health, excluding B+L, is expected to be $2.3 billion to $2.4 billion [14] Business Segment Performance Salix - Salix revenues grew 11% in Q2 2023 to $557 million, driven by Xifaxan, Relistor, and Trulance [21][38] - Xifaxan grew 9% in Q2 2023, with overall demand up 3% year-over-year [38] - Relistor and Trulance posted year-over-year growth of 42% and 73%, respectively [38] International - International revenues grew 11% in Q2 2023 to $259 million, led by strong performances in EMEA and Canada [22][29] - The growth was partially offset by a voluntary recall of Emerade epinephrine autoinjectors, resulting in $12 million in write-offs and charges [29] Solta Medical - Solta Medical revenues were $88 million in Q2 2023, up 60% organically year-over-year, driven by strong growth in Asia Pacific [13][37] - More than 70% of Solta revenues come from consumable sales, representing a durable business profile [12] Diversified - Diversified revenues decreased 3% in Q2 2023 to $228 million, with growth in dermatology and dentistry offsetting declines in neurology and generics [24][30] - Arestin in dentistry grew 4% year-over-year, driven by sales force restructuring and consumer awareness efforts [5] Market Performance - Growth in Asia Pacific markets was strong at 23%, though tempered by a decline in the US [13] - The company expects second-half revenue to be relatively flat compared to the prior year, driven by growth in Jublia, Arestin, and Aplenzin, offsetting declines in mature brands [14] Strategic Direction and Industry Competition - The company is focused on separating Bausch & Lomb, with plans to distribute 80% of B+L shares to shareholders [15][26] - The company is exploring a tax reduction of capital for the B+L distribution, which could provide additional strategic flexibility [26] - Investments in AI customer engagement and R&D are key to driving growth, with significant progress in the RED-C program for Xifaxan [10][95] - The company is advancing its pipeline, including Amiselimod for ulcerative colitis and IDP-126 for acne vulgaris [104] Management Commentary on Operating Environment and Future Outlook - The company expects full-year adjusted operating cash flow of $625 million for Bausch Health, excluding B+L, with higher second-half adjusted EBITDA anticipated [7] - Management remains committed to deleveraging the balance sheet, with $181 million in debt reduction in Q2 2023 [41] - The company is optimistic about the potential of AI to revolutionize customer engagement and drive growth [10] Other Important Information - The company entered into a $600 million non-recourse financing facility with KKR, providing additional liquidity [39] - The company expects a decision on the Xifaxan litigation appeal in Q1 2024, with confidence in its intellectual property position [36][71] Q&A Summary Question: Strategic flexibility and debt leverage post-B+L distribution - The company clarified that the revised distribution mechanism does not change the debt targets or liquidity needs, with the focus remaining on deleveraging [16][17] Question: Xifaxan litigation timeline and impact - The company expects a decision on the Xifaxan litigation appeal in Q1 2024 and remains confident in its position [36][71] Question: Use of the $600 million financing facility - The facility is for general corporate purposes, with $350 million drawn as of August 2, 2023, to pay down the revolver [43][64] Question: Long-term solvency and debt maturities - The company expects to generate significant cash flow growth between now and 2027-2028, with plans to prioritize debt reduction and refinance remaining debt [52] Question: RED-C program timeline and physician adoption - The company expects data readout for the RED-C program in late 2025 to early 2026, with a focus on educating physicians about the benefits of prophylactic treatment [56][93]

Q2 2023 Earnings August 3, 2023 BAUSCH Health Forward-Looking Statements This presentation contains forward-looking information and statements, within the meaning of applicable securities laws (collectively, "forward-looking statements"), including, but not limited to, statements relating to Bausch Health Companies Inc.'s ("Bausch Health" or the "Company") future prospects and performance, financial guidance, proposed plan to separate its eye health business, including the timing thereof, the timing of regu ...

• a decrease in Amortization of intangible assets of $70 million primarily attributable to fully amortized intangible assets no longer being amortized in 2023; • a favorable change in Other (income) expense, net of $62 million primarily attributable to: (i) insurance recoveries and (ii) adjustments to reflect changes in estimates of the liability for Acquisition-related contingent consideration. RESULTS OF OPERATIONS Revenues 57 | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------- ...