Financial Data and Key Metrics Changes - Bausch Health reported a revenue of $2.681 billion for Q3 2025, reflecting a 7% increase on a reported basis and a 5% increase on an organic basis compared to the same period last year [8][9] - Adjusted EBITDA was $986 million, an increase of $77 million or 8% year-over-year, while adjusted operating cash flow was $508 million [8][9] - The company reduced its debt by approximately $600 million using cash on hand, leading to an increase in full-year guidance for revenue, adjusted EBITDA, and adjusted operating cash flow [6][9] Business Line Data and Key Metrics Changes - The Solta business achieved a 25% growth on a reported basis and 24% on an organic basis, while Salix delivered a 12% growth on a reported basis and 11% on an organic basis [7][10] - XIFAXAN revenue grew 16% in Q3, with volume up 9%, driven by strong performance in the AI-driven customer insights engine [10][20] - The diversified segment saw revenues decrease by 4% on a reported basis and 6% on an organic basis, primarily due to challenges in the neurology business [14] Market Data and Key Metrics Changes - International segment revenues were $286 million, a decrease of 2% on a reported basis and 4% on an organic basis, with mixed performance across geographies [11] - EMEA led the international segment with a 12% increase, while Canada and LatAm contracted by 8% and 17%, respectively [11] Company Strategy and Development Direction - The company is focused on five strategic priorities: people, growth, efficiency, innovation, and unlocking value, which guide its vision for the future [18] - Bausch Health is committed to enhancing its patient assistance program while exiting the Medicaid and 340B channels to optimize sales channels [75] - The acquisition of DURECT Corporation is expected to enhance the R&D pipeline and support innovation and growth priorities [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic macro backdrop and achieve financial targets [6][18] - The company anticipates continued growth in its Salix business and is optimistic about the future potential of its Solta Medical segment [21][22] Other Important Information - The company raised its full-year guidance for revenue to between $5 billion and $5.1 billion, with adjusted EBITDA expected to be between $2.7 billion and $2.75 billion [15][16] - The company is assessing all initiatives for driving shareholder value creation following a significant refinancing transaction [16] Q&A Session Summary Question: Revenue growth for XIFAXAN outpacing script growth - Management explained that the disconnect is due to a one-time benefit associated with gross-to-net accrual and strong new patient starts [29][31] Question: Dynamics of XIFAXAN in relation to CMS negotiations - Management confirmed ongoing fruitful negotiations with CMS and expects pricing to be published on November 30, 2025 [34][35] Question: Revised guidance and one-time impacts - Management acknowledged one-time adjustments in Q3 but indicated that the fourth quarter is expected to align with prior expectations [44][45] Question: Impact of IRA on commercial dynamics - Management clarified that the renegotiation impacts 2027 and does not change the commercial dynamics significantly [55] Question: Benefits of exiting the 340B program - Management highlighted that exiting the program allows for an enhanced patient assistance program, providing better access to medications for eligible patients [75][76] Question: Debt refinancing and deleveraging strategy - Management outlined that free cash flow and potential asset sales will be key sources for deleveraging the company [80][81]

Financial Data and Key Metrics Changes - Bausch Health reported a revenue of $2.681 billion for Q3 2025, reflecting a 7% increase on a reported basis and a 5% increase on an organic basis compared to the same period last year [8][9] - Adjusted EBITDA was $986 million, an increase of $77 million or 8% year over year, while adjusted operating cash flow was $508 million [8][9] - For Bausch Health excluding Bausch + Lomb, revenue was $1.4 billion, up 7% on a reported basis and 5% on an organic basis, with adjusted EBITDA of $773 million, also up 7% [9][10] Business Line Data and Key Metrics Changes - Solta Medical achieved 25% growth on a reported basis and 24% on an organic basis, while Salix delivered 12% growth on a reported basis and 11% on an organic basis [7][10] - Xifaxan revenue grew 16% in Q3, with volume up 9%, driven by strong performance in the OHE indication [10][20] - The diversified segment saw revenues decrease by 4% on a reported basis and 6% on an organic basis, primarily due to challenges in the neurology business [14] Market Data and Key Metrics Changes - International segment revenues were $286 million, a decrease of 2% on a reported basis and 4% on an organic basis, with mixed performance across geographies [11] - EMEA led the international segment with a 12% increase, while Canada and LATAM contracted by 8% and 17% respectively [11] Company Strategy and Development Direction - The company is focused on five strategic priorities: people, growth, efficiency, innovation, and unlocking value, which guide its vision for the future [18][21] - Bausch Health is raising its full-year guidance for revenue, adjusted EBITDA, and adjusted operating cash flow due to strong performance in the first nine months of the year [6][15] - The acquisition of DURECT Corporation is expected to enhance the R&D pipeline and support innovation and growth priorities [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro backdrop and highlighted the strong operational performance across various business lines [6][18] - The company anticipates continued growth in its Salix business and is optimistic about the future potential of Solta Medical [21][22] Other Important Information - The company reduced its debt by approximately $600 million using cash on hand [6] - Adjusted gross margin was 72.7%, which is 40 basis points lower year over year [8] Q&A Session Summary Question: Revenue growth for Xifaxan outpacing script growth - Management explained that the disconnect is due to a one-time benefit associated with gross-to-net accrual changes and strong new patient starts [30][32] Question: Impact of CMS negotiations on Xifaxan - Management confirmed ongoing fruitful negotiations with CMS and expects pricing to be published on November 30, 2025, with a minimal impact on overall EBITDA outlook [35][36] Question: Revised guidance and one-time factors - Management acknowledged one-time adjustments in Q3 but emphasized positive trends across the portfolio, leading to increased guidance for EBITDA and cash flow [46] Question: SG&A spending trends - Management indicated that Q3 SG&A was unusually low due to non-recurring accrual changes, suggesting Q1 and Q2 as better indicators for future run rates [47] Question: Capital allocation and debt refinancing - Management outlined a focus on servicing debt and reinvesting in the business, with potential asset sales as a means for deleveraging [81]

Financial Data and Key Metrics Changes - Bausch Health reported a year-over-year revenue growth of 7% on a reported basis and 5% on an organic basis, achieving $2.681 billion in revenue for the third quarter [4][8] - Adjusted EBITDA increased by 8% year-over-year to $986 million, with an adjusted gross margin of 72.7%, which is 40 basis points lower than the previous year [8][9] - The company reduced its debt by approximately $600 million, leading to an increase in full-year guidance for revenue, adjusted EBITDA, and adjusted operating cash flow [5][15] Business Line Data and Key Metrics Changes - The Solta Medical segment saw a remarkable 25% growth on a reported basis and 24% on an organic basis, while Salix delivered 12% growth on a reported basis and 11% on an organic basis [6][10] - Xifaxan revenue grew 16% in the third quarter, with volume up 9%, driven by strong performance in the hepatology segment [10][20] - The diversified segment experienced a revenue decrease of 4% on a reported basis and 6% on an organic basis, primarily due to challenges in the neurology business [13][14] Market Data and Key Metrics Changes - International segment revenues decreased by 2% on a reported basis and 4% on an organic basis, with mixed performance across geographies [11] - EMEA led the international segment with a 12% increase, while Canada and LATAM contracted by 8% and 17%, respectively [11] - The Asia-Pacific region contributed significantly to Solta Medical's growth, with South Korea achieving 96% growth year-over-year [12][22] Company Strategy and Development Direction - The company is focused on five strategic priorities: people, growth, efficiency, innovation, and unlocking value, which guide its vision for the future [18] - Bausch Health aims to enhance its operational assets and continue executing its innovation and profitable growth agenda [16][18] - The acquisition of DURECT Corporation is expected to complement the existing portfolio and enhance the R&D pipeline, particularly in hepatology [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro backdrop and highlighted strong operational performance [5][18] - The company anticipates continued growth in its key segments, particularly in Xifaxan and Solta Medical, while also preparing for the impact of CMS pricing negotiations [19][33] - Full-year guidance has been raised, reflecting positive trends across the portfolio, with revenue expected between $5 billion and $5.1 billion [15][16] Other Important Information - The company exited the 340B program and Medicaid drug rebate program to optimize sales channels and enhance patient assistance programs [61][62] - The focus remains on deleveraging the business and optimizing the capital structure, with plans to use free cash flow for debt servicing [66][68] Q&A Session Summary Question: Revenue growth for Xifaxan outpacing script growth - Management explained that the disconnect is due to a one-time benefit associated with gross-to-net accrual and strong new patient starts [30][32] Question: Dynamics of CMS pricing negotiations - Management confirmed ongoing fruitful negotiations with CMS and expects pricing to be published on November 30, 2025 [33][34] Question: Revised guidance and one-time factors - Management acknowledged one-time adjustments in Q3 but emphasized positive trends across the portfolio [40][41] Question: SG&A spending and future run rates - Management indicated that Q3 SG&A was unusually low due to non-recurring accrual changes, suggesting Q1 and Q2 as better indicators for future spending [42][43] Question: RED-C phase 3 results timeline - Management confirmed that both phase 3 studies will have a combined readout in early 2026, which will be the final readout for the program [45][46] Question: Impact of exiting the 340B program - Management highlighted the decision was made to optimize sales channels and enhance patient assistance programs [62][63] Question: Debt refinancing and deleveraging strategies - Management outlined plans to use free cash flow for debt servicing and mentioned potential asset sales as a means to support deleveraging [66][68]

Core Insights - Bausch Health Companies Inc. (BHC) reported mixed results for Q2 2025, with adjusted earnings per share of 90 cents missing the Zacks Consensus Estimate of 97 cents, while total revenues of $2.53 billion exceeded expectations, marking a 5% year-over-year increase [1][7] Revenue Breakdown - Salix segment revenues reached $627 million, up 12% year over year, driven by strong demand for Xifaxan, Trulance, and Relistor, surpassing the Zacks Consensus Estimate of $589 million [3][4] - International revenues totaled $278 million, a 1% increase year over year, but fell short of estimates, with organic growth also at 1% [5] - Solta Medical reported revenues of $128 million, up 25% year over year, driven by global volume expansion, although it missed the model estimate [8] - Diversified Products revenues decreased by 13% to $219 million, with declines in neurology, generics, and dermatology segments [9][10] - Bausch + Lomb revenues amounted to $1.3 billion, a 5% increase year over year, exceeding estimates and driven by growth in the vision care segment [10] Pipeline Development - BHC is reviewing pipeline candidate amiselimod for ulcerative colitis treatment and has submitted an application for Cabtreo, which was approved in Canada [11] - Phase III studies for rifaximin are ongoing, with top-line results expected by early 2026 [12] - The Clear and Brilliant Touch program is advancing with approvals in multiple countries, and the Fraxel FTX system was launched in the U.S. in April 2025 [13][14] Financial Guidance - BHC updated its 2025 revenue guidance to a range of $10-$10.25 billion, with Bausch + Lomb revenues projected between $5.05-$5.15 billion [15] Acquisition Activity - BHC announced plans to acquire DURECT Corporation for $63 million, with potential milestone payments of up to $350 million, focusing on larsucosterol for alcoholic hepatitis treatment [17][18][19]