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Bausch Health Companies Inc (BHC) Q2 2024 Earnings Call Highlights: Strong Revenue Growth Amid ...

Published 2024-10-09, 09:39 a/m
Bausch Health Companies Inc (BHC) Q2 2024 Earnings Call Highlights: Strong Revenue Growth Amid ...
BHC
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GuruFocus -

  • Revenue: $1.19 billion for Bausch Health (TSX:BHC) excluding B+L, up 5% reported and 6% organic year-over-year.
  • Adjusted EBITDA: $614 million for Bausch Health excluding B+L, an 8% increase from the prior year.
  • Consolidated Revenue: $2.4 billion, up 11% reported and 8% organic year-over-year.
  • Salix Revenue: $558 million, with Xifaxan revenue growing 10% year-over-year.
  • Solta Medical Revenue: $102 million, up 16% reported and 19% organic year-over-year.
  • International Revenue: $276 million, up 7% reported and 6% organic year-over-year.
  • Adjusted Gross Margin: 79.9% for Bausch Health excluding B+L, up 40 basis points year-over-year.
  • Operating Cash Flow: $380 million consolidated, with $264 million for Bausch Health excluding B+L.
  • Debt Reduction: $360 million debt reduction for Bausch Health excluding B+L in Q2.
  • Liquidity: Approximately $1.5 billion, including $320 million in cash and $950 million available under the revolving credit facility.
Release Date: August 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bausch Health Companies Inc (NYSE:BHC) reported its fifth consecutive quarter of year-over-year growth in both revenue and adjusted EBITDA.
  • Revenues for the second quarter of 2024, excluding Bausch + Lomb, were $1.19 billion, marking a 5% increase on a reported basis and 6% on an organic basis compared to the same period last year.
  • The company saw significant organic growth in its segments, with Xifaxan achieving 10% growth and Solta achieving 19% growth, particularly in the Asia Pacific region.
  • Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb, increased by approximately 8% compared to the prior year.
  • Bausch Health Companies Inc (NYSE:BHC) has made strategic leadership changes, including the appointment of Aimee Lenar as Executive Vice President, US Pharma, and JJ Charhon as the new Chief Financial Officer, to drive transformation and growth.
Negative Points
  • The company is facing pricing pressure and volume declines in its non-promoted portfolio within the Salix segment.
  • Relistor experienced a 9% decline in revenue due to lower net pricing and softer demand.
  • Trulance revenues declined approximately 50% year-over-year, largely due to net pricing pressure.
  • The generics business saw an 11% decline in revenue on a reported basis, reflecting the highly competitive nature of the market.
  • Concerns were raised about the company's leverage and debt maturities, with significant maturities approaching around the same time as Xifaxan's potential loss of exclusivity.
Q & A Highlights Q: Can you comment on whether you're having any dialogue with the co-op regarding the company's financial situation?

A: Thomas Appio, CEO: It's our general policy not to comment on discussions with particular stakeholders. However, I want to reiterate that Bausch Health is not considering bankruptcy or insolvency proceedings of any kind. We are focused on growing the company and generating results, as seen in our strong quarterly performance.

Q: What is the plan if the full separation of Bausch + Lomb becomes less likely?

A: Thomas Appio, CEO: The separation continues to be a strategic priority, and we are diligently working towards that goal. Regarding Amiselimod, we plan to accelerate the program into Phase 3 for moderate to severe UC, addressing a real unmet need in a large market.

Q: How do you reconcile the good NBRx growth with flat TRx for Xifaxan?

A: Thomas Appio, CEO: The NBRx growth is promising, indicating new starts on the drug. We see a lot of untreated patients, especially in OHE, and believe there's significant runway for growth. Our AI engine and DTC campaign are helping to target the right HCPs and educate on disease states.

Q: Can you provide an update on the RED-C trial for the new formulation of Xifaxan?

A: Thomas Appio, CEO: The RED-C trial is for preventing the first encephalopathy episode, a new formulation with better solubility. We believe this will not be used off-label with generic Xifaxan and see it as a significant opportunity to expand the market.

Q: What are the timelines for the rulings on the amended ANDA lawsuit versus Norwich and Amneal?

A: Thomas Appio, CEO: The FDA cannot approve Norwich's ANDA until 2029. Our expected generic entry date remains January 1, 2028. We are vigorously defending our intellectual property and have new IBSD patents in dispute.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This content was originally published on Gurufocus.com

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