Bausch Health (NYSE:BHC) FY Conference December 02, 2025 10:50 AM ET Company ParticipantsJean-Jacques Charhon - Executive Vice President and CFOConference Call ParticipantsNone - AnalystModeratorLooking forward to this conversation. Really excited to have Bausch Management join us at this venue after a while. I think last time we did it was with Paul Herendeen, and Paul used to say this is his favorite conference of the year. Now, I want to give it a caveat. Paul loves Boston, and this conference used to be ...

Core Insights - Bausch Health Companies Inc. (BHC) reported better-than-expected results for Q3 2025, with shares gaining 7.3% in after-market trading [1] - Adjusted earnings per share were $1.16, surpassing the Zacks Consensus Estimate of $1.07 and up from $1.12 in the previous year [1] - Total revenues reached $2.68 billion, a 7% year-over-year increase, also beating the Zacks Consensus Estimate of $2.6 billion [1] Revenue Breakdown - Revenues increased 5% organically year-over-year when excluding foreign exchange impacts of $29 million, acquisitions of $3 million, and divestitures [2] - BHC's revenues are categorized into two segments: Bausch Health and Bausch + Lomb [5] - Salix revenues totaled $716 million, up 12% year-over-year, driven by a 16% increase in Xifaxan sales [6][7] - International revenues were $286 million, down 2% year-over-year, but still exceeded estimates [7] - Solta Medical reported revenues of $140 million, a 25% increase year-over-year, beating estimates [8] - Diversified Product revenues were $258 million, down 4% year-over-year, but still surpassed estimates [9] - Bausch + Lomb revenues totaled $1.28 billion, up 7% year-over-year, although it missed estimates [10] Guidance and Outlook - The company raised its 2025 revenue outlook to a range of $10.050-$10.250 billion, up from previous guidance [14] - Excluding Bausch + Lomb, revenues are projected to be between $5.000-$5.100 billion [14] Pipeline Developments - Phase III studies in the RED-C program for rifaximin are ongoing, with top-line results expected by early 2026 [11] - The FDA granted Breakthrough Therapy Designation for Larsucosterol for treating alcohol-associated hepatitis [12] - The Clear and Brilliant Touch program for skin rejuvenation is advancing with approvals in multiple countries [13] Strategic Moves - BHC recently acquired DURECT Corporation, enhancing its R&D capabilities and expanding its therapeutic portfolio [16] - The company faces significant long-term debt obligations of $21 billion as of September 30, 2025 [17]

Company Overview - Bausch Health Companies Inc. is a diversified specialty pharmaceutical and medical device company with a global reach, focusing on improving health outcomes through a mix of branded prescription drugs, generic medicines, OTC products, and medtech devices [2][9] - The company operates across therapeutic segments including gastroenterology, ophthalmology, dermatology, neurology, and aesthetic devices, with significant commercial activity in the United States and other international markets [3][20] Product Portfolio - Key products include Trulance and Xifaxan for gastroenterology, ophthalmic products from Bausch + Lomb, and aesthetic devices from Solta Medical, illustrating a broad product mix that helps mitigate market volatility [4][21] - The operational structure supports targeted R&D and regulatory strategies tailored to each market segment, enhancing the company's ability to manage diverse customer needs [20][24] Financial Information - As of 2025, Bausch Health's market capitalization is estimated to be in the low single-digit billions in Canadian dollars, with annual revenue in the multi-billion CAD range [10][18] - The company has a conservative dividend policy, with yield typically modest or not consistently sustained, and earnings per share (EPS) metrics are sensitive to share count changes and restructuring-related expenses [13][19] Corporate History and Leadership - Bausch Health was rebranded in July 2018 to reflect a renewed focus on healthcare products, following a history of acquisitions and restructuring aimed at restoring investor confidence [25][29] - The leadership team emphasizes operational discipline, regulatory compliance, and strategic capital allocation, which are critical for the company's future growth and value creation [31][34] Market Position and Index Membership - Bausch Health is listed on the Toronto Stock Exchange under the ticker BHC and its index membership varies based on market capitalization and liquidity thresholds [35][38] - The company occupies a mid-cap position within the Canadian healthcare sector, making it significant in the pharmaceutical subsectors [42]

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]

2Q 2025 Earnings July 30, 2025 forward-looking statements speak only as of the date hereof. Bausch Health undertakes no obligation to update any of these forward- looking statements to reflect events or circumstances after the date of this presentation or to reflect actual outcomes, unless required by law. The guidance in this presentation is only effective as of the date given and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. Distribution or r ...