Bausch Health (BHC) Q2 Earnings In Line, Xifaxan Boosts Sales

Core Viewpoint - Bausch Health Companies Inc. reported second-quarter adjusted earnings per share of 89 cents, matching the Zacks Consensus Estimate, with total revenues of $2.4 billion, reflecting an 11% year-over-year increase and surpassing the consensus estimate of $2.3 billion [1][2]. Revenue Breakdown - Salix revenues were $558 million, flat year-over-year, with Xifaxan revenues increasing by 10%, offset by declines in Relistor and Trulance [3]. - International revenues reached $276 million, up 7% year-over-year, driven by strong growth in Canada and Latin America, exceeding the Zacks Consensus Estimate [4]. - Diversified Product revenues amounted to $251 million, a 10% increase from the previous year, with notable growth in dermatology sales [5][7]. - Solta Medical reported revenues of $102 million, a 16% year-over-year increase, primarily driven by strong results in Asia Pacific [8]. - Bausch + Lomb revenues totaled $1.21 billion, up 17% year-over-year, with growth across all business units [9]. Pipeline Development - The phase II study on amiselimod for ulcerative colitis has completed enrollment, and a phase III study protocol has been submitted to the FDA [10]. - Phase III studies for rifaximin in hepatic encephalopathy are ongoing, with regulatory submissions for next-generation Fraxel expected in the second half of the year [11]. - The Clear and Brilliant Touch program is advancing with regulatory submissions planned for 2024 [12]. Legal Updates - The U.S. Court of Appeals affirmed a decision preventing Norwich Pharmaceuticals from obtaining approval for a generic version of Xifaxan until October 2029 [13]. - BHC filed a patent infringement lawsuit against Norwich and Amneal Pharmaceuticals regarding generic versions of Xifaxan [14][15]. 2024 Guidance - The company raised its revenue guidance for 2024 to a range of $9.4-$9.65 billion, driven by an increase in Bausch + Lomb's expectations [16]. Market Performance - Despite the positive earnings report, BHC's shares have declined 24% year-to-date, contrasting with the industry growth of 14.8% [2][17].