Bausch Health Companies, Inc. (BHC) CEO Joseph Papa on Morgan Stanley 19th Annual Global Healthcare Conference (Transcript)

Summary of Bausch Health Companies, Inc. Conference Call Company Overview - Company: Bausch Health Companies, Inc. (NYSE: BHC) - Date: September 13, 2021 - Participants: - Joseph Papa - Chairman & CEO - Osama Eldessouky - CFO - Arek Kurkciyan - Morgan Stanley Key Points Strategic Initiatives - Bausch Health is moving forward with IPOs for both the Solta and B&L businesses, having submitted confidential draft registration statements to the SEC [4][4][4] - The company expects to complete the IPOs and separation on previously communicated timelines, subject to market conditions [4][4][4] Rx Segment Trends - XIFAXAN, the largest product, has seen a 7% increase in the last 10 weeks compared to the same period last year, outperforming the market growth of 4% [6][7][7] - The IBS-D segment of XIFAXAN is up 19%, while the long-term care business is growing at 5% [7][8][8] Legal Settlements - Bausch Health has resolved approximately $2.5 billion in legacy legal settlements over the past five years, including a $300 million settlement related to Glumetza [10][11][11] - The company aims to clear legacy issues to focus on future growth with the Solta, Bausch & Lomb, and remaining Bausch Pharma businesses [10][11][11] Bausch & Lomb Segment - The consumer product business contributed 36% of revenue, with a 9% organic growth compared to Q2 2020, driven by products like Ocuvite and LUMIFY [13][14][14] - LUMIFY reported $29 million in revenue, a 93% increase year-over-year, and is projected to exceed $100 million in sales [15][15][15] - A recall of a multipart solution product cost approximately $50 million, with $30 million reflected in Q2 [16][16][16] Vision Care Performance - Vision Care experienced a 56% organic revenue growth compared to Q2 2020, with the U.S. business up 103% [21][21][21] - The AQUALOX product in Japan saw a 114% revenue growth [21][26][26] Surgical Business - The launch of ClearVisc, a viscoelastic product, is expected to tap into a $120 million market opportunity [28][28][28] - COVID-19 has caused variability in elective procedures, but there is an expectation for a backlog of surgeries to be addressed once conditions improve [30][31][31] Pipeline Developments - NOV03 for dry eye disease has shown promising Phase III trial results, with a potential FDA submission in 2022 [38][39][39] - Amiselimod for ulcerative colitis is in Phase II trials, with recruitment ongoing [39][39][39] Capital Structure and Financials - Bausch Health repaid $300 million in debt during Q2, reducing net leverage from 7x to 6.5x [41][41][41] - Year-to-date debt reduction totals approximately $1.6 billion [41][41][41] - Full-year gross margin is guided to be around 71%, with a 60 basis point improvement in Q2 compared to the previous year [43][43][43] E-commerce Growth - E-commerce now accounts for 10% of the Bausch & Lomb U.S. consumer business, up from 2% in 2017, indicating significant growth in this channel [18][18][18] Conclusion Bausch Health Companies, Inc. is actively pursuing strategic initiatives to enhance its business structure and financial health, with notable growth in its Rx and Bausch & Lomb segments. The company is addressing legacy legal issues while focusing on product innovation and market expansion, particularly in the e-commerce space.