BHC - Earnings call transcript Q1 2021 | Bausch Health Companies Inc.

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Operator

Good morning, and welcome to the Bausch Health First Quarter 2021 Results Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I’d now like to turn the conference over to Arthur Shannon, Senior Vice President, Head of Investor Relations and Global Communications at Bausch Health. ahead. go Please

Arthur Shannon

Officer, That’s to Drew. call. Good everyone, Herendeen. Chief morning, on Financial and Thank Mr. Officer, first quite quarter welcome Paul Executive and Chairman our call conference Joe XXXX and Papa; today’s Chief you, are impressive. Mr. financial Participating results

In under conference today’s be call presentation addition available webcast, the a and on of this copy live website Investor will section. Relations replay to our a slide of this

our the presentation like would beginning we’d to legend it that information. presentation as information. take remind begin, contains at presentation contains we We This today you contains ask a Before forward-looking moment forward-looking the you financial that non-GAAP our important to of read statement measures.

please presentation. of Slide in measures, refer on be presentation found For to Non-GAAP appendix can website. more the of the our the posted about X reconciliations information these

update It disclosure. quarter the today Finally, policy to guidance, it’s to the over as or public update through effective financial other not to pleasure my of that, until call Joe. is affirm guidance than this broadly our is not presentation to guidance disseminated the With only. in generally turn and following

Joe Papa

and opening XXXX, three and review will driving We’ll line turning provide of thank in update announced with of results an guidance. detail we for Thank you, Beginning to plan the spin-off to of CFO, previously through review and recovery XXXX call in Today, thoughts the Lomb and strategic the our areas X, and XXXX on the businesses then I before financial and focus. beyond, Paul in have questions. everyone our Art, Bausch over us. growth briefly for Slide first joining share the the quarter on you to discuss before some run the highlights Herendeen, our

related of a COVID; third, drive background, accelerating been value. With recovery growth strategic on as First, our second, business a showed despite variability, progress that and organic Care, by International Total shareholder Overall, Slide was the few team where company our flat to individual to adapt from reported pockets to last recovery X, continued to in and an areas. alternatives execute on X% has revenue we is business. Vision our revenue unleashing year these each let’s to the and move drivers; basis in pandemic rebound of and to across compared able Global by driven grew progress Rx business. Salix in the challenges,

million from cash the strong first our in quarter. $XXX of generated Importantly, businesses operations flow

market share We and are TRULANCE, strong seeing PreserVision Thermage, brands, leading performance, from including LUMIFY. gains recovering ULTRA, and including

with science And statistically progress of process, have also trials. strategic million. advancing significant taking generated from on the resulted cash agreed $XXX repaid using two our in $XXX we results during Phase focus quarter made in approximately million to We to X accelerate from and Amoun recent favorable quarter, action for which good of line first divest debt alternative top announcement the the operations

and XXXX Bausch have total first results business, XX% a the what approximately about our company first Finally, as and that from XX% our summarize, in quarter current and we five strong by to refer To Bausch in is Pharma. provided Bausch with generated X. Lomb, and the or demonstrate recovery quarter, segments entered the the Slide remaining Healthcare we our momentum revenue work on progress. the we to breakdown accounting have is revenue the In re-segment of completed for chart

markets. Our poised business in cash generating is are and flows for growth our strong leading products key

the process. accelerate and actions science to advancing are taking we addition, trials In clinical strategic alternative and

on May but and we five tenure great new forward the in my and years years. in to cover turn I over an transformed sincere a that, He’s to the Sam importantly, for company efforts who’s you, been I’ll company his to your for financial Health Special Advisor closely appreciation the we to almost also Health to welcome our leadership want with role role first new five instrumental express the our as and the to results more concluding unwavering it detail. look to Eldessouky Before Chairman, want XX, Paul, strategic CFO as of he Bausch him team, to contributions for his CFO. the focus, turn to Paul, and ago. I playing to I the thank his finance of made the call of Paul over turnaround organization, On With continue behalf partner over commitment many for Bausch joined course, to Paul, as entire your in work

Paul Herendeen

role of very value you. you, Thank to of We’ve all team. of and unlock a to Joe, accomplished to our and that’s been this I’m a privilege of BHC new be shareholders. nice certainly It’s the looking working forward together part for my lot

So let’s quarter. the go on

I’ll Before new in to and you I changes minute global our our pure see business now our segment Bausch highlight made now. eye performance structure, discuss for the our to reporting, health quarter, segment play a it’s spending business worth call B&L we’ve pharmaceutical the with Pharma that the

segment future. Pharma show business. a pharma Within some P&L Bausch the point Bausch the rebrand international will Pharma, We we for now at in

diversified Revenue the characteristics prior in the the that has slides current. ability the the over generates with to and map several is profitability sense of performance. the time you on segment format financial a word, flat margins to consistent reporting, you basis QX is that help On quarter was this the drive of first To get organic financial from cash appendix of to to the growth revenue, look there the are attractive flow first in the XXXX. to an the changes business long-term. every of So and at with

yet not impacts of from We’re fully the recovered COVID.

in our a was recovery is QX and was strong the are step road reasonably versus to well last not we there COVID businesses, All year as the regions what the way. in the important to tightening an due still continued we’re all, to flat setbacks to uneven. be So recovery, getting is back of all There Across but on along way yet. flares various recedes. restrictions and

B&L Toric U.S. Biotrue Of a XX% a growth business. revenue and second additional Care and this ULTRA the big our for Multifocal one down Vision QX year Care the was year, more INFUSE X, turn the particularly was is factoid, that factor in If highest impressive in revenues of Toric. the strong Vision again, COVID, In were with recovery. U.S., of was Vision X% growth U.S. Slide Outside ever a significantly XXXX you by quarter Interesting markets, SofLens the of very the U.S., XX%. actually the impacted Care rebounded year last Vision SVS with segment off two, the quarter XX% OUS in QX XXXX, of ONEday Global organically, the coming and to family from ago. up against the were was to up theme revenue our OUS U.S. the and business China. important is major nicely, was ago. Relative up X% organically soft up we’re more Care In contributors. a ULTRA The has organically, quarter again

U.S. States, Care modest plus In pre-COVID with the surgical quarter the to down the to was back was all X%. outside Vision from quarter COVID. for year Global the way OUS organically United with levels not X% the X% up ago close a real returning only we’re We’re decent and U.S., growth. impact to

United The as States, are United to while consumer Europe surgical our So close grew suggests X% was recovered. off seeing of the Outside down in X% and was we’re quarter Asia-Pac we that QX business strong, to also quarter social States. deal to lagging. region sounds in United Global not to a strong X% able a growth the XXXX to quite not due the that Canada the restrictions. we U.S. COVID. The down and very grew year XXXX, be recovered minus soft U.S. but States. quarter close than X% Europe organically, as to X%, the soft in loading year was we’re that of nicely QX very it pantry OUS, ahead in with is ago, recall Eastern were of flat the in recovery of close in the revenues is at better as and surgical as a ago Western repeat X% of in in you’ll a up great remained outside

of Rx offerings. of Ophtho the of our the includes by Rx segment in U.S. for recent B&L, ophthalmic U.S. was the for the including versions the generic now third Finally, U.S. XX% branded the was Lotemax decline. about Reminder, where the accounted performance U.S., LOEs, LOE driven organically. Gel decline The a off business Ophtho

products. within natural branded the versions by one-third decline our the Another the And of third the branded U.S. driven our the of sales U.S. of from came Ophtho of decreased volumes generic was final portfolio. degradation

B&L for quarter. the So X% of TRULANCE assets that’s revenue that Salix better organic in XIFAXAN of X%, from to mainly XXXX, XX% other offset revenue growth net down due part QX portfolio. was and was the by in realized up pricing in

If you clearly look right we’re XIFAXAN, at the moving TRx in the trends direction. for

Term this other Long for XIFAXAN slower Long and recovering Term especially to parts market, of number are setting our has setting, a than Care including the The in impacted patients decreased is Care Rx of However, the volumes, market. HE.

on will business Care come and the up generated of timing a that in organically. in our QX sector, from brands in me, Egypt confident safety. Bedoyecta. FLX rebuilds excellent LATAM medical Solta a the international uncertain plus nicely strong X.X% Eastern that see the P&L and of due the COVID medical products dermatologics Russia the growth – This Ivexterm the Thermage The generate of the XX business. Ortho organically. the lot charge was can led we’re will X% in patient that growth segment. was business business opportunity balance derm portion appendix, look as part accounted a by sorts derm can Rx the XX largest organic for in revenue portfolio. Ivexterm our only assets rest so and led we segment for in that he XX%, and grew While organically. to continues you was margins while to The total the the Hirsch trend remains by the revenue. also put we performance X% and concentration pharma and We products top declines due products Poland Also, derm Term platform. to see XX% your confidence The about offset ortho product in was X% segment, Mexico, versus and this of worth of top rebound, United at business growth of Of portfolio. X% States, very was can for review China top growth XXXX. the International especially Long Scott you not first a and due see if here, Europe. Canada, across the of XX% off the weakness excuse the The this only you general market segment grew mainly XX% LOE product colleague, segment there’s in and back by a note in In of the said you of of our It’s International XX have to Rx the region,

for derm future is business During the that a the led of from full of outlook our expectations me. quarter, in our expecting affordably that of adjusted still longer operating the quarter, And level that segment, we investment excuse as work are result expense med for actions work and the relook at the that we’re revenue was of in within derm. for the to impairment OpEx med That we a and goodwill charge business seeing response derm R&D shifting not this work our our to The we business. took We based emphasis investments. on took term were the ongoing, intensity, those all promotional med business. we reduce

generative. way to going that value believe reposition a we will be in this We’re business

Our down X% were segment diversified organically. revenues

volume we for Zantac volumes Branded business net PEPCID saw X% organically benefit that in franchise, MYSOLINE the with order to offset quarter. improvement APLENZIN quarter-over-quarter from in nice the realized issues Our strength continued was as and neuro quarter. PEPCID, not in in our enough government our were and Within ATIVAN branded prices, to quite a the strong but prior selling declines. was up WELLBUTRIN and mail

call being generic those factor some pricing was Our and of Diastat. after We of launch. the off competitors erosion that our economic a gradual lose were tail as generics business exclusivity, XX% Offsetting and Moviprep volumes additional is biggest brands the Migranal, declines with enter products, expected market to decline example, capture generics it generic Apriso, they the launches, unit, including the for natural Isuprel. for and new progression Uceris and with net us the associated our helps our after

Our generics us. of great does capturing value a unit for job

so business posted promotional dentistry and the away. product, inputs. lead adjusted XX% called Finally, its as managed converted over buy-and-bill line business went base, is covered model at prescription a on operating the to in that The a ARESTIN the the line, This went quarter. product changes turnaround. but at and ARESTIN, was the organic growth team formerly After essentially a appropriately resetting significant through by the coverage branded business spending even more revenue care, growing great top

by P&L. quarterly growth COVID About and XX% QX unfavorable including revenue. We variances. revenue, that’s I’ll basis Slide let’s points profit XXXX. to down right margin of movement to covered so the was and by manufacturing was Please write-offs So turn negative XXX that driven versus that of go X, factors, walk

us was in cogs revenue factor and of it’s are Where tailwind was other meaningful in Many gross currencies. Canadian headwind for relative a at FX of profit Another QX and zloty, our to in FX. a dollars euro, XXXX, margin. manufacturing denominated inputs

for to I drove about mix adjusted by margins well. a of our QX roughly were XXXX. call. guidance, versus our we movement expenses QX on operating the million reduced SG&A the Finally, Note full XX%. our in from portion favorable an expectations basis, unfavorable on of talked this XX% have $XX roughly gross XXXX costs Within year as that

effective that resources We’re promotional in of sales are sales filling vacancies the in out forces needed mode that in the means and the conditions. in efforts company throes demonstrably programs revenue growth our more COVID in market hole COVID, and process with redeploying but of driving been to to back the that promotional have inefficient of solid normal get supporting the would a growth

operating selling, you it strong as roughly expectations on advertising XXXX, will the but XXXX. assets. for Net-net, $XXX SG&A said, for basis expect So sustainable. as of posted X% would are but from adjusted a EBITDA $XXX spent resulted year. we but the R&D full to drive have more for currency QX currency of if adjusted could sort million basis, full year of near-term was in this of was not savings for That not reducing than by $X.X expense for QX XX% XXXX QX shake-off spent still quarter, up We a of level have so up full that just on growth of a nice of from as from a effectively, and revenue said a expect R&D we spend margin I see like, margin, we we as posting million monies We our projects our moving COVID. design. longer-term that in the portfolio slower and in us not to the end roughly constant we’d some promotion done operating the we XX% billion are year QX billion not $X.X roughly bit in but XXXX will favorable constant in that’s the

for With adjusted the XX%. are slides operating show the to that target spin-off. of product business margin the segment the the concurrent P&L the like plan Segment, In for more that a is represents configuration solid portfolio that there Appendix our we near-term B&L

results you You make four a sense can to the for Bausch that which in the up getting segment use Bausch P&Ls Pharma. also have the components QX for Pharma for you assist will

about that And share-based different depreciation, allocation provide between helpful Bausch cash of businesses. expenses businesses. the we and and G&A of B&L capital as characteristics estimates be R&D and show also may of splits the corporate included think of finally, profitability to have slides information and Pharma. comp the We generating two This the you

a Pharma, are will the I you to a mid-single B&L digits generated in cash If strong in million. to the believe We QX, revenue segment was high $XXX $XXX activities some up legal generation but on margins. of the grow business costs to and Slides I to our The Bausch ability separation at from gross here. a the want have balance cash take of want that strong slides, you call X, do XX GAAP next adjusted legacy for moment basis cash Pharma three provide EBITDA payments, the strong Bausch that years. self-explanatory, will out operating profit of generated million liabilities for organically and with and margins see and a number and both make settlement related look XX a and P&Ls

a everything cash right from period in We’re that XX-day favor. perspective a could generation was essentially about discrete our period this talking XX-day in go

that roughly $X are in from of on you’ll Slides repaid cash we generate of XXXX another cash from and quarter billion close, May $X.X billion repayments announced after during billion and in the XX $XXX to track of QX debt see aimed the XXXX, debt We operations XX, $XXX adjusted then we million roughly debt and to June. prepay flow. of On of of

on So for a quantum couple guidance would our elements And a and our the start. reduce that headline reduce the revenue we’re Amoun is of good transaction, my leverage. upon the quarter. Onto of and the our of we our during prior EBITDA. off guidance, we’re the further remarks adjusted the guidance debt ranges I closing reaffirming to referenced

margin from to We XX% XX%. roughly are reducing gross expectation of profit

billion. expected our We’re $X.X SG&A to $X.X roughly billion reducing expenses from roughly

based with increased adjusted from cash for from rate expected roughly We’re year, are than roughly $X.X continuing around we generated on where X% generated higher in increase a shift debt the pre-tax of paying had jurisdictions forecast. we percentage target of we’re from and tax the roughly X%. a billion cash mix generating with is to up Part pre-tax and greater the world offset tax a of the this The we roughly ops. billion total adjusted income $X keeping by making down

to global two model part operating steps increase the as this taking our due we’re is prepare the Another into to reorganize companies. of we for separation

Pharma continue than currently tax few Joe. be adjusted As higher hundred to into and and be me, for focus. Bausch XX% B&L back B&L tax the process, you rates Pharma we for for the of estimates the coming our earnings Bausch to XX% range We rates on better of points forecast That’s that to a with go-forward basis it in to that. are

Joe Papa

Thank Well you, Bausch begin with let’s Lomb Slide XX. Paul. & on

believe revenue we most business integrated have we Vision Ophtho provide Consumer, health on with the the the breakdown segments and core left. Care. eye First, Rx for the in chart in sales businesses Surgical, We’ve

revenue it businesses XX% LUMIFY ULTRA to to Kong in which are by year. stages Daily revenue was by Hong of segment all for of Consumer by Care while the XX% now of and e-Commerce in COVID XXXX. highlights, organic XX Care revenue areas U.S. Rx TRx organic year. strong loss and and Bausch point year. was versus year. international, key been of last compared XX% launch. XX% the U.S. from by level, is a accounts by And Canada, in we Performance of the few quarter Ocuvite progress and by trends Ophtho growth of charts lenses driven see and grew Consumer performance versus U.S., was show although by near exclusivity versus Australia, last just reported Biotrue Vision VYZULTA last The versus And in our driven in each Global just Putting for revenue last of launched PreserVision grew While grew year. now grew X%. Slide which as versus growth up last INFUSE the pre-COVID Vision Surgical SiHy impacted business. the e-commerce XX% Lomb it year. on in total have Bausch to received organically approval International grew Global as And finally context, X% continue grew across and in Taiwan. in we Global recovery, well Lomb X% Business, with by the And organically XX% was which And last recovery call in first different the segment, ONEday,

trailing The quarter Salix Starting Slide down first market of on we to year the by there. the was discussed long-term last compared XX% the X% I to XX% compared XX rates driven now channel is XXXX, TRxs a revenue reported and last up quarters X.X% lower to report of now quarter nearly by COVID. first the up TRULANCE prescriptions by year, IBS-D commercial X%. XIFAXAN last so Turning to with in levels X% acquired near where TRxs latest industry XXXX, rate seeing care doubled of Rx for good lower prescriptions. that grew from share versus about occupancy are Salix, the happy XX weeks in XX% seeing and the has headwinds IBS-D now update versus because pre-COVID decline grew growth recovery revenue some year. product to am at TRULANCE faced market revenue although in reported to the I March, in XX%. recovered XIFAXAN new few of are the since Compared last we also

and in expect demonstrate both add the increased next key in in to to life continue in to XX months to Even positive TRULANCE three TRULANCE. another recovery charts commercial trends access the the The patient access products. grow for for million Part-D. Slide commercial share we We better, see XX, promoted we on

of this Latin segment and top Slide by the we’ve our the Rx in organic diverse Moving the the products region driven organically the chart for performance top strong have segment We’ve record shown Number last by strong to X% segment and growth XX, year on broad to the of listed in portfolio left, first on a for back this each track map. XXXX going quarter to compared America. grew quarterly new three International product

segment our profitable focus driving in Dermatologics on Ortho now Moving growth. is number this Slide on XX, to

grew the chart of and quarter the segment’s shown first margin Organic XX% XXXX. has the first levels pre-pandemic the Solta, to compared year in X% A to XX% XX%. left, year in by prior Thermage quarter. revenue year, versus EBITA Solta from grew revenue in quarter to which segment organic organically few last by recovered note the highlights organic demand the growth the saw XX% expanded of last in of As strong in driven by revenue for

Turning number now we listed drivers key for Slide have business the and in to beyond. XX, growth XXXX our

have expected approvals First ramp our Many in the share. first that market to already of about and sales. daily country SiHy lenses, share revenue in the SiHy SiHy asked at we now you approximately daily is the global up we of Japan, our million our with XX% we’re is daily – the lenses spherical X% additional in shows $XXX of about Bausch estimate in U.S., and expected Japanese Lomb market performance have exceed data

COVID Next, in were XXXX we backlog due to anticipate the tailwind and cataract surgeries XXXX. delayed that for of from beyond

headed R&D Bausch year, pipeline, into salesforce finally and in the XX and Pharma franchise Europe of expect milestones are for strong leading recovery to into given a the Thermage Slides Both performance we of Bausch brands. catalysts near-term and upcoming which momentum and XX. have in and outlined expanding Lomb number and we We’re the which our see

dry with where Last eye co-primary form as known early the XX signs end Lomb. potential in cases. results NOVXX dry a statistically and the significant of GOBI start XX is for treatment end with as for Phase met of The States – adults we Let’s trial of X have disease majority met for both points readout sorry, millions and of Bausch showing a meibomian patients. both in improvements points eye the gland for option million let’s in of also XIFAXAN received start these of disease, some disease treatment an cause United dry secondary dysfunction a the NOVXX its as symptoms and with eye month, days. all investigational first-in-class

FDA with we expect complete the help The we to the and the to due treatment of second to Phase to the is second positive, Phase trial trial results a investigational trial file Phase ongoing, also loss in an XXXX Eyenovia to dry are XXXX, X AMD. if enrollment X for X start expect and vision reverse half for in

in a we Moving Pharma, is line trial evaluated weeks weeks we see the and following Phase study approved Slide in would development be we antibiotic a first-in-class IDP-XXX also where acne. IDP-XXX we two the comparative for from are If and lesion to XXXX. hope the charted second have each timeline. gel, in counts, as topical IDP-XXX second so Bausch on, combination four combination. Slide ago a for results of a application XX, of can than the triple results the for retinoid anti-bacterial announced a in early the significant the greater now demonstrated with reduction as The bridging few XX% a submit data XX top On patients statistically a X of we we which benefit this drug novel new to a half rifaximin formulations are working

novel these commercial opportunities. We are and about rifaximin excited their formulations

drive Moving accelerating alternatives create shareholder unlock will XX, two number value, strategic to to to we our area dedicated now Slide we’re of third turn for expediting you strategic great focus that of value believe if shareholders to companies. and alternatives

have We third B&L by achieved are for of XXXX. the the of completed end to segmentation the objectives be necessary new for internal on of and all quarter track spin financial the

strong that Also path target the we annual be of improving enjoy great many. expect We expenditure deal times of improvement confident capital Pharma are show leverage. Bausch efficiency. of very we of shareholder a fair X.X and an to leverage With and able We Health and value, for to including and Bausch we leverage, cash and leverage, are formerly Health EBITDA cash to be as earnings all its to improvement articulated working was a Lomb and attractive increasing the four roughly leverage. requirements, to regarding X.X free one anticipate deliver times flow for will leverage capital commitment generator to convert as expedite will in question to it debt modest reduce by the Bausch it that to use actively debts cash of a net pursuing and tax a has rapid rate X.X times such the carry prioritize handle degree Bausch opportunities

the side equation, peer to more without the debt to of to enable the being March comparable capital show and Slide start Amoun actions companies spin-off paid announced now leverage that quarters On two in quarter. consider of the last to consistent close will with significant we taken continued the relevant value we such as B&L the as with XX structure. the expect to market we we most want its down in the have expedite August since over On in the this second need and differences XXXX sale B&L

Paul BHC and Lomb corporate addition, the will list and have on remain Lomb we Jersey. In Canada mentioned currently in is Bausch Exchanges and as New Bausch rates tend to and provided for we offices tax Toronto York and expected will have domiciled listed. Pharma. companies continue New Stock apply to in earlier, Bausch to as Both We Bridgewater,

role Bausch across team in step as Lomb Eldessouky And leadership to next announce an are remain We As will will a represents I’m decisions. focused to Lomb our CEO over Lomb’s I initial that separation. announcement today’s pleased Tim serve to be attractive pleased the value promised the months. and that CFO on SpinCo and on building unlocking forward will and of two Slide announce as and Bausch the take B&L spin possible. soon several a out I Sam XX, as we committed process. and Bausch upon leadership businesses as

attractive on businesses ahead, the opportunities markets open serve. positioning they these and operator, process With Looking line and for that, budget-similar strong let’s growth in up for the remains two our growth execution, questions.

Operator

question Ken first The Instructions] and [Operator go with Cacciatore comes Company. Please Cowen from ahead.

Ken Cacciatore

morning, good Hey, guys.

Just the question different potential possible had analyzing process a of of for divisions a here about dual sale.

to simultaneous, do something then give you’d a want how be terms in if levels sales your you should be timing, commentary comparing second maybe Can talk you Thanks if asked Just that to about desire would that also differences to or of different often something affect you the of announce it there. similar separately? that’s why there some much. say, question, that similarities rationale going eye businesses care is your just are value and And interest, eye plural business to so divisions, is of out and other about And those ascribed were wondering to of maybe franchises? can about we’re some the that you care sales. then

Joe Papa

Okay.

up $X.X realized. of assets. until multiple Let’s just Amoun, billion Paul what with timing They of over we’ve we’ve joined bit a the and it’s XX to what we potential have asset recap have $X.X done. times about start now I of with billion the And are Amoun, little and proceeds now the company, the announcement EBITDA received. we’ve at maybe divested of sales Since

we today, been specifically, we’ve the what So I understand assets opportunities absolutely all can asset and value will any that of comment businesses. create can’t investors you that’s all shareholder to we’re our increase willing across and our to of increase explore I the to to all value and consideration as shareholder value. help to under going help consider you take reassure serious, divest process to alternatives Well, very us specific this about all want

sure really here. we’re from are shareholder about you make would check for since approaching are all when in the to understand, to I at we’ll the creation. possibilities things and been day got And be that we we I what near-term long-term. to thinking opportunities continue – this the and all one currently we’ve to But that create look do, from that’s value fall how hope going we is So do value shareholder different that going that the

we different your peers, B&L across all opportunities. to part question, of On look the comparison the second the

think said I’m businesses the I that, my that’s surgical company. earnings in having part we that important Lomb comments, more consumer. do, prescription, by of EBITDA. we is I vision side, By and have an Bausch integrated be the most we And the company. that think divided that thereabout on where EV, over we XX look plus, what health correction, help relative by to Alcon and belief platform, versus We very we the have the the probably we We Alcon accepting the in enterprise the and that will or have always biased, As have Cooper mean is terms in compare to XXXX we integrated successful times economic to the than value eye a do somewhere you Lomb have create in opportunity in value very favorably pure the we of XX. the Zeiss XX today. the at, is Bausch

market can obviously multiples. us other market good the will value decision. I economic are company on favorably can’t make those that. gets a of think versus as indication very compare comparing the we comment for opportunities that We So and

On the though. question – final area,

to One a we than the And versus companies. part that relative we of did for thinking of leverage a through was for we X.X the business. the less of we B&L put areas debt times were ourselves want other future place decision look the that is at as of contemplate in leverage that

Bausch about that a and doing very thinking So valuable health. importantly of asset having approach care can we’ve eye take And lot create patients integrated in we’ll one it we been is of and to our by that Lomb. a view

I got Ken. think all I questions, your

Ken Cacciatore

Yes. your tenure on Thanks, here. Paul, and congratulations, Joe,

Joe Papa

Thanks again.

Our next question?

Operator

The Please with Nachman go comes Gary next Capital Markets. BMO from question ahead.

Gary Nachman

that’ll how types products of of sort the of spending ultimately it? to one is talk Solta just restructuring for terms take some about that advantage And it. the you the said medical to for rest can there the on DTC for on would businesses of If you more think then morning. you you’ve coming been divest, spending? business be Good haul, side, of play committed and out year how consumer how long you’ll Thanks. in of the of And Thanks. challenges out those be the derm given the the of recovery you

Joe Papa

Once the we aesthetic the We Sure. and to of – growth that assets large business on at all performance think are again, will look the I’m very, see business. aesthetic simply that pleased with on for divestment. say we very a the Solta comment I think of question, And not Solta going part individual that growth. saying to than nowadays they sure of we able their improve make is have driven people many travel, culture they investing aesthetics And parts by not Zoom also they’re want screens themselves of in the face. to and to what as they the definition high at can theirselves. looking of more where been the refer world in

trend continuation So of business. think the there’s clearly we and real on Solta our growth a

what able question comment business that been we IDP-XXX and at Scott the can do derm for med growth for do the that because the do think has The is business, what we look speed and come up able to relief. been in a lesions investing not when number dynamics, compounds us but we’ve to of, On that going about with view medical advantages with I’m to its overall is ability which can side, divestment favorable, we acne very very, or the patients looking we and provides quickness it profitable especially derm of Hirsch patients. that of for offer in at reduce that data to the importantly the

future. med we that as it for to to certainly profitable growth divest something to I what for derm is So look look the we’ll something will and continue at in referred

On the want do you – Paul, to…

Paul Herendeen

I Paul. on want well. it’s Gary, in weigh to this as Sorry.

med ago. a remarks, thinking the are we XX, repositioning way called business, business about different derm in even it, say, that in XX that that think prepared I than my months I out were it we

there think opportunity I was terrific there.

clear, of, talked of what two, in intensity, even a solid say, is see that even derm, it’s great sorts med should we number that thinking than I have quite but one. we different R&D pivoting XX or what a about have You months products. position, capability to of way Number the XX or in substantially opportunity the can were very activity process terrific We reducing in we’re terms the we have different it, we ago. refocusing I think about OpEx what a to be

long-term about excited the there, different. but we’re prospects So it’s

Joe Papa

The consumer been dramatically. consumer grow Obviously, are numbers grow. that business business able you’ve continues quoted to to very amazing. We’ve the the entire e-commerce on business

that I very is surprising call, great a show continuing responding year are – to to look products we activities. versus at example, products the direct-to-consumer are are mentioned to feel and our growth our But in LUMIFY growth. well. We very its patients continues great is last

it’s business If at chart. you you forth data in overall can of the data consumer LUMIFY Page well XX how in trends performed and the the on the put that we as charts, see the look our as

consumption in change saw increase increase and year You those can ago dramatic what see a the continue. year-over-year, Lomb U.S. versus consumer we trends Bausch and

progress. We see happening what recovery clearly LUMIFY, and also was with

that to spend going behind we’re So to continue business.

the consumer the question, strong believe of We point a long-term forward is continued take please. believe that’s business. have integrated business, the demand see view, one truly growth factors helps Operator, to expect continue recovery going important move From we’ll next to health an to of be to we that going that. be and what B&L with we eye

Gary Nachman

Thank you.

Operator

question comes ahead. Sandler. Please Amsellem David from Thank The go Piper with you. next

David Amsellem

Thanks.

but the pharma from And things deteriorate? given I’m this one materialize. X.X I see the each also that going sustainability looks the business you and could of a with derm, how is called times the and situation wanted significant the you is had business. of where really ratios I growth here instance, aspirational business, have those other, about of for a time conceivably surrounding like leverage going is, maturation over ratios for XIFAXAN? question guess with seven I’m So point I on for leverage – understand guess that something transpired this that is, as the the what didn’t At I to thought business do where this thinking process drill your down where

about how time? that business that should you longer And the thinking of structure do about how think cap we term? over So Thanks. be

Joe Papa

Sure.

I’ll add business, a to as about it. lot of very Pharma on this. margin of and But business. back thinking may then it high to want a Paul want couple Bausch I we’re the thinking done that we’ve remind I and So make step to And has you comments,

high first the at pages XX% put together margin, diversified that If XX%. we you is was businesses, XX%, Salix for margin comment. look a They’re over derm very

mid-single-digit rates, advantageous very the and tax to Pharma business an CapEx. do Second Bausch that have diversified growth, low expect comment is we

of point of pay that used view, the for will of in And cash. cash generate majority that will high we be debt from they as So stated down. call, amount

opportunity the that is an be great and one Lomb Bausch believe we other. So as business two I this, contemplate being do and that for we think do to there of businesses

looking are we appropriately each to that you can point business carry Paul, leverage. of from add at to So of wanted anything what view comment? the it for

Paul Herendeen

Yes.

hit call has it rephrase is, Joe is delever digits that near-term. and think And good that Bausch will that quickly, pace. let prospect representative on the Pharma key it I is, we a to at that, me the the the of business and mid-single portfolio believe pretty grow over

more short period to invest implicit that productive back a flexibility of R&D be and that invested you’re business. course, you in get think R&D. relatively in is in I your to time, investing So able And of in in

You will as demonstrate to the long-term prospects growth have well. ability

one say X.X I you in also Bausch my prior When times leverage. of way used when to convert think relatively to an all if you that lot an awful leverage rate, your I’ve a a Pharma, net been helper. handle you flow characteristics quite of that earnings clear you your EBITDA and excellent the certainly cash improve to equal. cash is prioritize to tax lives, have And can is X.X it CapEx, adjusted of have cash. back big created I not modest

is order. to getting ability the that leverage big have statistic helper that to in short down you grow a If relatively certainly

Joe Papa

Operator, please. next question,

Operator

Thank you. The Gilbert next question with go comes Gregg ahead. Please from Truist.

Gregg Gilbert

morning. Good

your market Thanks. value urgency, on that would the credit. versus to any announced? to open Secondly, value changes the what will to a it, Joe, it decision successful up business? time the been sort possibility chance that care you’re changes multiple appears tended the B&L a sale spin for play and lastly, leading enhance pharma, RemainCo of reinvestment And specific over timeline? clear if your are Is And once has and the more about pure M&A what will to you structure, have arbitrage. make shareholder variables realistic of spins First, rates, you that to and team what thoughts end management cost you a not cetera, action strategy that you’ve factor very just that company, the be et into eye

Joe Papa

Sure.

Let asked leadership me with start question you first. that the

a the made health back to eye decision back great play pure a pharma a company step a diversified two companies, create Just going year and bit, Board last business.

healthcare move can the we’ve of that time and the through the Bausch Board that through team, evaluated very leadership team same as continues thought how which the the build has this, ensuring As to at well gone continues process, the we SpinCo and with Board has while SpinCos, to other business this do forward. already organization existed,

to The those first new big spin issue got we’ve that is we have teams. build with that the

the XXXX Sam team and ready timeframe. October So that build SpinCo separation to after get sometime Board asked myself the has an and or out B&L it for IPO

sometime a there soon IPO additional remaining very We’ll to was a with Pharma due is feeling do. My I several But the we is team. the decisions there though healthcare for But after Bausch what that we’re sometime team start team in realizing XXXX internal that it that B&L building and was that obviously team or needed the spin the with make spin just external some remaining Bausch on remind that have with candidates, and decisions like underway decision, made months. in be total is the expectations to the place. Bausch to that healthcare we will be in date. So to that make next October that the you there process course, want ready that’s going separation

of I I’m any the sell to phrase I comment sell guess it able not the the obviously versus that process. obvious I’ve as to seen be question going B&L spin, way the is seen On them. specifically have rumors you on versus

value is is others want are – up I’ll that and business. steps spin-off the sometime types if opportunity Bausch we’ve company there do shareholders we to is in Our mind to the we our IPO all is to to to do value, But separate to we right our But we’re an believe business have set take an that for going timeframe, that to XXXX a or those view as evaluate Lomb. me, that do at take required that offers. pay to simply be to for IPO a can a October a that after say Lomb and what to going to price this Bausch always and what thing equivalent of that pathway got that

always you value team, We’re and a a going shareholders. add can make Board going create our pathway. to as want be or anything that we’re pathways that? for on to to to help do other open that to progress to Paul, alternatives continue leadership And

Paul Herendeen

to keep come going, but you after. No, want back I

Joe Papa

think very it’s in are a would XX, know age that’s the correction. health continue be that to first think have the we or On by position is, over to going we important of investment United the Lomb, practices, X we we prescription, going build which changes make States the surgical, eye drive a We to we in use the the going I eye and business, comment than in eye the times consolidated. know to to with B&L more we business, got as great in think especially business the legacy business correction, and under M&A, vision so Bausch of XX having on, the are one important. can what integrated people number age more of We think two, Number great having continue opportunity more foremost, that think a trends and consumer, what being for question business health are we us mega driving about that’s the people and one. we’ve to that XXX-year vision a need regard eye health the to by know the the put significant first to myopia

where to practices being supplier offer we’ll be are can place we important integrated going practices formed. approach, think able a be those important, for we an is that be so having So group to those

that Bausch to So that part grow it’s of all has been us limited the been the look overall to R&D has help Bausch the organically, we organic and but leverage with is can importantly, look in Clearly what of invest Company, at comes of overall to the ability our that Health opportunity on leverage those would to growth things the I with think are down, that else Lomb important, bolting one and rate. as me. the assets

think I Bausch in see thinking changes you things Lomb. future some the of the are So exciting we’re we Paul those that all of anything and want? of some about,

Paul Herendeen

spin that as very about Yeah. on like, is, start point I It’ll access to the side. do will it jump brothers ability position, capital areas last you and yes. and and life it the eye once business want capitalized without with out, the well the that well to company strengthen with It allocate health is for sisters it will answer competing will is capital. capital entity’s to to so competitive that on pharma have better its

do businesses. that And I types the here, I XX good seen we job is, last for rotated be last think did little order a over that we pipeline example the think that capitalize Joe, of to Ophtho it the we’ve of myself, Rx a to and what quality pretty months. you’ve of call needed we of what allocating the bit Sam, rest done over several between the to, able different improve team years, in

will Vision say, invest you the to you’re eye I entity Care out really ensure entity that necessary back, the ensure solid invest Those when a health a looking the SiHy there, to with portfolio took that we well-capitalized decisions. to ability to it business to Back we lens. the prospect Daily can decisions that to B&L position in for set filled were hard the up, further be best I here to the the steps and If having able day, sustainable again or starting life entity and growth. improve competitive as were deliver go has the have a take that can

Gregg Gilbert

gentlemen. you, Thank

Joe Papa

Operator, next please. question,

Operator

Thank you. with go next Balaji ahead. question The Prasad Please Barclays. from comes

Balaji Prasad

some the opportunity. Hi, and your recent around this on just for focus sense to Joe, want get questions. good the top line morning expectations thanks of NOVXX of and

call a billion population Restasis is of our So expert currently, we where $X did three is market. is times trading expert the what highlighted which an already or Xiidra that

not in care, seems on been Thanks. will So some dysfunction? opportunities that? market from topic, helpful. eye other around we potential launched to meibomian color any On any be say has similar the around what the it to tracking And the so large well but market secondly, same commercially see, Europe, be thoughts gland product

Joe Papa

the ocular then once a we in may Sure. also chance endpoint dryness we significant important and thing and about NOVXX very, is the Phase statistically think data again did real Well, see in significant in who that And XX-day effect product data, both that very potential. exciting data, a are first works data this and of and a disease market is that’s have think Number the eye XX-days eye. to get We really We corneal time with if level of Americans the if not had and staining the both and and timing product the and We problem two, has statistically patients but dry point side confirms both we XX-days. that for XX-day market. look, had excited trial that very foremost who United X a very the the dry others results a kind alone a speed show second XX could this the million, as have XX know by the profile, you we have million of placebo. that a and effectiveness that to potentially, opportunity. similar having big States X it’s said, Phase of kind

data the make of that we the take that be shows on the and it other this the what the data importantly, out versus relative marketplace. exciting. States products action data share out most to through products And that able to product think so there. United speed quick We we can view in in prescription had there to really for we the alternative it’s appropriate sure did was the that Our pathway,

currently with differentiate have second the we claims So it We’ll We Rx because say trial, very timing comparative, being side timing utilized I’ll very we we’re claims. significant have what think on that’s be think in from happening. see some that that but Europe, claims. the X help is it though excited. the positive to clear additional going to way certainly happens it’s product Phase we will

think with question, On didn’t – or for XIPERE in we say I the will the yesterday new to that that’s macular to importantly of just mention associated at having good another the opportunity for also we’re that’s edema looking filed good Uveitis U.S., with previous XX,XXX causes on another addition AMD. other it, think blindness we but in a dry questions in product that are partner data, And I think a us for opportunity. uveitis. I re-filed up so cases about NOVXX the we working also

for And business term opportunity for short is and another final us. those of the myopia looking one Bausch & prescription goal good course what the overall for we we’re of future. that’s Eyenovia at think Lomb So number give with the a really

Balaji Prasad

Joe. Thanks,

Joe Papa

next the Operator, let’s please. take question,

Operator

Please the one Raffat go moment, just – with next from ahead. Umer question next question comes Evercore. The

Umer Raffat

NOVXX, taking much for Perhaps, SXPX for head and leadership more have many on was sort I with I realize of SXPX, pre-sell sense for so or those presales. just Bristol remind folks quick also thanks in the SXPX, more last or team of a remain be now? heard very what the or do cetera, Arena, quick the think or companies are Xiidra? patients ones, for if to you curious Hi, Celgene, may. saw a is at Rx co-formulation I from but the Salix agree your could a the competitors if could question of RESTASIS Secondly, don’t on Joe, helpful? you the the the product in in that where on been it right And you us opportunity in artificial a artificial for looks on my your what market as I new three you like lines. of largest Paul feedback give something your think question. an first I your very which side, co, perhaps the us that’ll possibility U.S. programs the tears important all Salix on tear of And finally marketplace trials mild SXPX is you’ve you mild-to-moderate and thinking one et an the I just then what’s along follow-up of it’s as from necessarily

Joe Papa

rebrand. board’s Let comment Pharma health me eye that leadership we for the gave is said of What take companies diversified I on about, our pharma leadership. the external we that Bausch Bausch them and want that well this as position called with at you view me, pure Pharma. looking thinking and to try order What play as to we’re that candidates them create two well, in of until to are Bausch is great as Pharma the we being business view the business internal

team mild-to-moderate what work, looked and the patients and But I at the they Our five-years, on XX-years population. market expectation Pharma population, where to as is another is The after the have something Bausch reason is that how that the and has SXP, XXX% other Bausch the going in these select patients in where needs this and months targeted will take we’ll mild-to-moderate where side individuals to is next how did business opportunity. the the we team. question team that and want this this this with at is course. going you both to five targeting we portfolio point existing of to is in market build team years. second look side. we’re Bausch this place, we to On years of have be But we In in put that’s We And have two in Healthcare the that correct. that of of relative Bausch as you’re view differently process the to go hold, words, we the in leadership, at and build well already as be understand view market Lomb went on is this XX in that together and trying couple future our Healthcare believe and today. different look a due going we’ll the that announcements a new from some additional will

is that leaders we an an clinical number go available show a it view Our based think we’ve is it We for armamentarium additive will after key think important the about results, population. this is be trial had what’s if going this opportunity. to we of important, the as in to on opinion they be that discussions, docs, should currently can the mild-to-moderate

be referred On contributor dysfunction We meibomian to of think we it artificial dry we dysfunction, we as first-in-class area pharmaceutical such I as the much a of bigger bigger the this major you’ve treatment a NOVXX, gland a think much that. tears. And cause than gland think for We disease. than eye disease. of I have is eye meibomian will mentioned think major what treatment much dry of that’s to believe as

statistically ability I’m symptoms, So of if significant, a the having it’s patients seen at I we for do opportunity and as result to you you’ve population. results help you statistically sure think patients. the think tell data, offers significant significant that significant and that having will a the as look signs quick data both both patient we XX-days very these in

clinical very to if to the one got do trial close a disease it patients turns we’ve So that but out indeed, opportunity believe dry first this confirm we trial the have for for obviously is with eye this who anything future. significant second

what stay and a great the of tuned are, Operator, we’ll please. Xiidra. opportunity results next versus question, rest clearly the take to think So the products see the trial like but Restasis we significant

I think time for we our last please. question have

Operator

And that David come will ahead. Thank you, Please Jefferies. Steinberg from with sir. go

David Steinberg

two questions. have I Thanks.

is onset. because so times you’ve the question third was the highlighted NOVXX on First, Joe number a intriguing. just the just aligned of data

Restasis, it Allergan’s stinging and with contrasting you’re assume I slow So which despite onset still.

$X.X sales peak think billion. about were I

I how there monotherapy leading and see year comparative used but And are first And year and the mostly since XX%. that acquired U.S. is disease first when my develop with just the and much have two big then months of question XX%, versus so you the was as doubled a products being it’s first include many graveyard Xiidra? year and it quarter to area curious, and many growing leader, But product view it leader this in seemingly failed, then the tried has in half And the you market has of my XX% of on was given the market. onset half likely is, showing that the growth you a and a going was Europe? is so growth you the being then product, second question And generic or products so companies growth the peak do on only do or years, the and like you coming market market been this study good, would last some you over faster than noted the see market. second in the the TRULANCE, in the XX% conjunction with other the and shares dry

And that just so, Thanks. you getting curious rates showed sort might’ve caused growth, the a year. do last basis drop-off. on quarterly XX% year, see growth and of if the throughout what I’m closer you is quarter growth accelerating one-time first to a So

Joe Papa

the try get all I you going comments sure make questions. NOVXX Great I’m that to asked. to

to be, currently that are for eye going about do favorably foremost I it other think First but not to dry product compares bigger drugs comment could it and specifically there this very I’m being disease. used treating out

is I who both patients have – very at the to think to symptoms I show any $XXX drug favorably the see this. over combination certainly advantages the eye think it’s timing million up And that shared share winning the gland ability at help dry of and in $X we dysfunction. of a Xiidra and relative the as a combination to that which trial, to you both X to clean profile, Phase Restasis first We more meibomian we’ll least but we specific about is the showed least type will category, think stated very compare initially us range already. side that in are billion, We plus disease signs very to profile. effect the

So big more opportunities. these big XX drugs, real Kansas. it’s million and in Americans a And are unfortunately problem for

these we with data the patients. that share in to So having second getting of terms forward trial to and you look for results the

because of works used products, monotherapy going or to other for the I question be, it quickly. with the is probably it so answer could think especially On be both,

quickly, we to time. going take we other be products. opportunity adverse that’s add Some who of to relatively getting think to therapy, profile or placebo, may be existing tear that increase a to patients limited sufficient longer if can but And similar a from production these drugs work relief a have not on event an

to trial product have same to help problem be opportunity, large get So results. Americans this clinical we many able hope we the if confirming who

market market share, the almost of and we’re it as to pleased, have, very with of from share just importantly, then up doubled, share we each said the be question we two already we’ve years around And TRULANCE, XX% had grow every outgrowing market when the quarter. I to market Jeff it work the of add one doubled Hartness our based might’ve is lives I On made somewhere but that access clear been what and access, top comments team picking on I’ll able pick you and million just to we of to on missed, commercial up that, lives XX have. on we’ve the the incremental repeat we expect already another what great it’s

I a for great shows our it think it’s TRULANCE. number, if think Slide you I So look at trajectory XX

On is questions as a the is one we be of the it slide, really terms we overall that’s And people that future and really about this TRULANCE of is – that to at we’re I Pharma look continue you excited we I in asked where we TRULANCE grow. think future contributor it, going business think business. going. think think If to very what and the we’re our will powerful think great seeing another of of about Bausch there balanced, about

So question. thank the for you David,

Joe Papa

joining have everyone. that concludes everyone day a to thank call I us want great our today, and for Operator,

Operator

for you today’s Thank concluded. now has conference presentation. attending The

disconnect. now may You

Bausch Health Companies (BHC) 4 May 212021 Q1 Earnings call transcript