BHC - Earnings call transcript Q2 2021 | Bausch Health Companies Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Bausch Health Second Quarter 2021 Earnings Call. [Operator Instructions].

As a reminder, this call is being recorded. I'd now like to turn the conference over to Art Shannon, Senior Vice President, Head of Investor Relations and Global Communications. Please go ahead, sir.

Arthur Shannon

Rocco. you, Thank and results everyone, our quarter second Good call. welcome financial conference XXXX morning, to Participating are today's on call Mr. Executive Officer, Chairman and Chief Chief Joe Officer, and Papa; Financial Mr. Scott Appio; Bausch CEO CEO, Eldessouky; Tom Sam of former Solta, Hirsch. and

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

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

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

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

Joseph Papa

then Thank the the the Art, the quarter briefly I by will before and review and covering in detail CFO, results us financial XXXX everyone, Sam thank We'll start segment joining our you, for turning Eldessouky, to guidance. call today. review over highlights our second you, to recovery. discuss and results

Medical that topics, Bausch would we the announcement pursue of before on an & before on these we'll Finally, questions. our IPO update of to comment decided this like line I spin-off But Solta an opening Lomb provide business. I have address to morning's the for

alternatives believe months, including of the Solta last objectives. for We IPO the and help opportunities. performance, future we review financial a X thorough accomplish important completed a few drivers growth Solta, will us the revenue audit, Over strategic

spin-off of use pay will effectuate Bausch to announced to down of & the the help intend the we which debt, previously Lomb. First, proceeds proposed IPO

that very believe value IPO focused Lomb, to while compare in believe creation terms medical would optionality. pure-play we peer will actions Solta unlock Simply stated, valuations we've of high-growth market. integrated the diversified attractive, of aesthetics an in we Medical the eye help will favorably of a in Bausch the future Bausch Pharma, global & maintaining companies result Second, business health the medical X of a leading that pharmaceuticals a Solta and companies: provider global aesthetic company; announced a Medical, business;

X. to now Moving Slide

While progress organically, XX% variants, a consumer reported global the there the third-party supplier I of are pandemic impact year-over-year when second on from total strong remains detail offset This strong to recall driven the in business the QX quarter. grew product consumer the XXXX, more by across recovery by a some by pockets growth XX% that to company issue our will business. COVID of variability basis we of quality and impact an due international cover was units. at a revenue a overall new of recovery in due over the In by discuss

business and cash second generated GAAP strong cash a from an on million operations basis our the quarter. of Importantly, operations flows $XXX in million from $XXX adjusted of

strong leading and including from share see recovery performance, to market continue We gains brands.

of on sales in to be an $XXX record annualized quarter, it we a achieved and brand now second expect LUMIFY fact, In $XX a million basis. the million

the continue unlock accelerating in for priority of additional the We of quarter repayment we launched ClearVisc, completed catalysts trial including billion, using completed plan million NDA announced XIPERE X, and which strategic our which from debt the connection during an debt second $XXX enrollment includes to on will date a a delivered a with of to bonds, Debt we alternatives million by repaid we million III with Year-to-date, we debt obtained $XXX an divestiture, closing FDA we announced year a approval submitting generated the of for XXXX in quarter, $X.XX October remains also value. of we reduction as have bring operations. PDUFA near-term Phase XX, and Amoun cash $X.X reduced August NOVXX. shareholder R&D when we are which XXXX. We of We yesterday. today, that for redeem of $XXX as aggregate to to for And the the focus billion.

that Finally, we legacy XXXX relates to I on back have settlement settled mention legal a matter Glumetza. another want patent to that agreement

in plaintiffs. XX-Q To in principle agreements we to in second progress. that summarize, remains recovery filing, now class claims we and reached demonstrate the the quarter our As resolve our of have disclosed non-class the results

Sam Our in more generating enabled to financial to to from And operations, shareholder process over detail. cash our we paying make action it to us and which progress results great business the is I'll that, taking flow accelerate With turn alternatives unlock cover strong down debt. has strategic value. are

Osama Eldessouky

Thank second you, XX% report quarter $X.X up of basis on pleased billion, XX% We're and reported revenue Joe. to organically. a

and businesses, very second sequential growth in nice our more nice we're recovery XXXX. and quarter XXXX seeing in importantly, year-to-date a at performance, Looking all our

you from As most our had current it's this to this that Therefore, a benefits point comparison. recall, quarter impact year, business being second negative impacted. with quarter out COVID-XX last on important XXXX

QX to to and towards normal. by continue general, steady to and the market recovery, to delta If varies Similar commerce countries emergence to we're recovery market turn the helpful you U.S., a teams pre-pandemic today last the country. date, of might of Slide In challenges thought appears impacting the continue it are year, to variant to despite COVID-XX that XXXX our face outside recovery. you XXXX. U.S., of and seeing certain be towards during back But our a with business our starting compares segment. X, to COVID-XX my on of trending how the which to -- order believe progress stabilize in sense and give good the the be for To our a color life performance be execute others in strategy, we recovery. by type I pace with minute recovery. we a provide the comments levels. some of spend B&L and I addressing on As to want QX reference our

$XXX of up million revenue within All growth quarter XX% this organically. contributed Second the was segment to our B&L businesses quarter. the

business. turning Now Care Vision the to Global

of and and of Second second quarter overall U.S. contributor Vision XX% ULTRA demonstrates the The revenue the growth XXX% market, for organic of Europe. steady which up The brand, coming organically. INFUSE, with the market quarter Biotrue International success XX%. recently and International launched that ONEday, key quarter. SiHy in ULTRA with coupled in recovery in the SofLens Vision U.S. in up family $XXX Care. in from U.S. growth growth million parts the recovery a up the XX% was ONEday in in was mainly was participate growth international contributors our the of Care reflects Asia and Biotrue were the the all to we key the

expect imposing way pleased to with return the growth to new gradually pre-COVID of International note face the do COVID-XX pre-pandemic and restrictions. are growth some we're levels, it's challenges this with to not While our rates. all countries to levels of continuing We important we're business to Vision that back Care quarter,

to on Global Moving our Surgical business.

XXX%. steady business compared up strength and growth reference our in international To recovery. you was of organically, Second Europe. second and performance. by U.S. to growth quarter international U.S. driven the regarding with surgical Both interior point a up a with all as reflects The XX% XX% provide were the up disposables recovery, our revenue million by regions of quarter recovery in surgical the market was current led in with performance XXXX Asia organically quarter and X% $XXX the

Consumer. Global our to Turning

growth $XXX commercial consumer with consumer a X% and pleased in strong XX% consumer the LUMIFY the in organically PreserVision, Second consumer up the quarter growth coupled Ocuvite the million was U.S. down and business performance. business business business. in We're our U.S. revenue vitamins, was U.S. execution with up eye very with strong X%. The international driven of

half driven in year-to-date, favorably XXXX, a solid For consumer the the impacted was of recall business current mainly by down International pantry was Europe. consumer which by quarter organically, and growth against strong loading. U.S. demonstrated product X% first the

of line trajectory. growth growth. Overall, with well, global international continued business U.S. consumer to impact a business the product the consumer recall, the perform was healthy the Excluding with in growth consumer business gaining share the market

of quarter impact the X% roughly current product the recall, performance. XXXX quarter Excluding second performance was to the as compared organically

second quarter We've revenue MedD XX% postponed quarter quarter to VYZULTA. XXXX. eye due a in Finally, last volumes XXXX brands, VYZULTA SM. $XXX for The SM and for current expanding and driven a promoted comparison Rx benefited B&L, growth versus and the LOTEMAX organically business to quarter second due the surgeries in making being The higher COVID-XX. was Ophtho of million quarter PROLENSA, of to soft access was from year in our key steady progress Besivance, second by LOTEMAX coverage been up

Although current growth the saw second and rebates, the quarter improved XX% VYZULTA access continue trajectories. In will SM position versus XXXX. level VYZULTA this LOTEMAX both the TRx increases impressive of growth a TRx to quarter

of be Rx was factor continue LOEs from XXXX, was versus and on LOTEMAX XX%. to Finally, versus prior a big Ophtho a gel QX the portfolio, quarter drag year which continued erosion U.S LOE down our

Salix. to turning Now

consumption increase volume year drain of experienced increase XX%. was XIFAXAN, was Performance COVID. the that Second up was remainder QX result by driven a with quarter of the retail million XX%; XXXX XX% was up as due up in end the volume, and $XXX and inventory up revenue all of to The wholesale was a increased XX% nonrecurrence and XIFAXAN increase due the RELISTOR the from due the to QX TRULANCE XXXX. XX% mainly of of was X/X was that to then we last

direction. our the XIFAXAN of in our trends and with As trends. certainly TRx QX moving of in end the levels line historical right XXXX, expectation were are inventory

COVID-XX impacted long-term As we care setting. has quarters, in prior Rxs the in discussed negatively

trend prescriptions was in lag, Despite business with driven TRULANCE by expect the the care have growth for not While we're levels. overall, within pre-COVID-XX to volume. XX% and prescriptions recovered the sequential long-term recovery the The mainly channel rebound. fully long-term this we care will XIFAXAN pleased increase

reference, recall, of you about TRULANCE, with good Uceris XXXX volume a quarter up despite we point X% the ago, Salix impact mass Overall, we the about business. to care as pre-COVID to Apriso current feel year growth LOEs. wins us and within for meaningful several levels you If recovery provide second growth. of compared was the helped trajectory Rx drive secured trends To the and performance core a and our which

the business current in impacts, quarter QX XXXX. the as the LOE grew X% compared of organically to base Excluding Salix

to segment. International Now turning the Rx

segment. Rx up pricing. by lower led organically, mainly offset of partially of growth XX% revenue for the realized million Second International driven Poland quarter net XX%, and $XXX was volumes higher by Europe the

Moving segment. Derm to Ortho

was delivered Second quarter mainly million another global quarter impressive The Thermage growth FLX realized with strong to an mainly medical business XX% growth U.S. revenue lower $XXX China Solta of pricing. down organically. net business declining XX% up in on trend and The assets organically, demonstrate the continues by LOE XX% organically. driven derm was of

Finally, our Diversified segment.

revenue of Second organically. quarter was down $XXX million X%

business due LOE Neuro X%. Ativan was growth by The decline in was partially to Our and down Aplenzin. assets offset

factor with our generics pricing the the biggest Our the of entered and generic business market net volumes erosion additional organically natural as of was down competitors XX% products. being

impacts. ARESTIN organically from strong year as COVID-XX posted dentistry Finally, XXX% it prior by driven growth rebounds

favorable versus Turning by of businesses Slide points gross We is a already I'll higher now to improvement on year-over-year margin, the as to start volume covered a comparison. profit. result with favorable was with the which from All favorable gross revenues, X. our contributed sales variance the so in XXXX. profit Gross coming XX QX basis core margin manufacturing P&L

beyond. the our full gross versus XX%. and our operating $XXX in were factors within be to in promotional Within an to market adjusted enabled for trajectory to We margin expected as QX the chain, COVID-XX support efforts guidance and costs to identify This other by on expenses, resources impacts. unfavorable XXXX, XXXX sales our continue redeploy recovers growth supply XXXX. basis, operating our Note to is implement SG&A and global million represents absorb roughly which mix our efficiencies us that year

projects. our If for full OpEx QX negatively impacted you of XXXX expectation XXXX expectation from performance $X.X year trend. restrictions, said, last by for second our $XXX recall, roughly roughly by as gradually for rate half we're $XXX roughly expectation our which We for reducing second updating from reflect That key $XXX and million required basis year. our our full current spend Keep a consumer the continued million more do from expect that COVID-XX a R&D adjusted billion negatively recall XXXX. in SG&A in currency the mind of billion future $X.XX X% the the quarter, in by that Adjusted the normalized to of pipeline on increase quarter That to year EBITDA we us constant year dramatically run the up to R&D reduce the supporting EBITDA XXXX business. to return XXXX. increased will XX% spend spend said, trajectory impacted million. of our full to we're was compared roughly for as product to to quarter was QX in

current quarter XX%. is Our adjusted EBITDA in margin the

Excluding run adjusted our rate XX%. have of been our EBITDA in of recall, with normal the the would impact margin line

EBITDA Looking margin approximately full our forward XX%. do to expect to be the year, adjusted we

Turning X. to Slide

separation-related of a from $XXX million. liabilities, and operations from sum During generated the the cash was legacy GAAP for quarter, basis. legal we cash Adjusted divestiture of the costs, Amoun generated operations million $XXX on

very are guidance we're cash generation the adjusted generation the cash billion. year-to-date. roughly year $X.X billion strong the our in full roughly for pleased updating $X.X to quarter and We the with for Therefore, from

Turning X. to Slide

to progress make debt very continue in We paydown. our nice

repaid quarter, $XXX to our debt million from million. debt we with During operations, of $XXX repayment the bringing cash year-to-date second

repayment. bringing strong focus We're cash leverage $XXX in billion. reduction cash additional net effective has of a today, we our close, recovery quarter X, last year, and X.X repaid commitment bringing an we divestiture, announced today to and our And X.Xx in QX. this of $X.XX continuing have ratio hand September Furthermore, whole the debt operations. Amoun debt with on total repaid debt, planned year-to-date million QX million will accomplishment, repayment debt as connection Xx using decline $XXX aggregate to last of we today quarter cash our from $X.X bonds year-to-date of on with proud the of progress to Our a to our $XXX our reducing XXXX, from with of combined very operations, from turn drove redemption After debt from million on to billion.

to Something keep in mind.

XXXX we're looking half we in While still leverage XXXX exceptionally so due rapid far, second our decline pleased in don't Recall, such from QX debt and half the the expect COVID-XX, to to our our progress a second spend. EBITDA our on to reducing negative XXXX. forward, down see with in of had an impact low began of recover we while very pay ratio the OpEx

and As the impact EBITDA coupled such, and the from QX half strong XXXX, second leverage QX our with will down. pay ratios anticipated legal XXXX debt settlement,

we until debt of debt or make don't X, leverage any maturities. mandatory continue our nice to of remainder the have For we with as our net On our XXXX, leverage we X.Xx to expect we amortization have Slide increase slightly versus today, maturities remain today. or payments And flat progress XXXX.

the EBITDA closing; updating contribution the of new $XXX X relative XX. loss EBITDA it second, to also Now following the Today, guidance guidance million. XX million; result million year revenue of to is it guidance of and July billion reflects reflects it by reflects Slides full factors: to roughly our and reflect range currency XXXX of $X.X change This on the $XXX the guidance to the $XX to unfavorable unfavorable we $XX billion. XX for million May in revenue movement of our guidance We're of recall $X.X First, a Amoun third, impact Amoun of of for our product $XX of million turning our revised million. adjusted $XX movements the from currency

$XX $X.X the million $X.XX product guidance to after absorbing billion the of revised impact recall. even for the EBITDA adjusted of billion, in range Our roughly is

also assumptions our addition, number updated a we In key on Slide guidance XX. of

Joe. Now back to you,

Joseph Papa

Thank you, Sam.

we daily growth and supplier multipurpose the a recall as bottles Global by In based driven PreserVision XXX% Consumer initiated product quality determined solution Milan, for organic the saw on Let's at mentioned, begin Ocuvite, a quarter of the where saw Slide that sterilization was by Asia caps strong with driven lenses. provides XXXX. a on the and B&L growth Vision safety for organic I of we solution Pacific on AQUALOX was performance a in the care third-party services XX. a of facility. in the analysis, revenue that our this our region of our lens did Japan, Care previously growth Global LUMIFY. both organic of issue Based of was internationally, growth, and X% it revenue not affect Italy performance U.S. internal product. issue But and revenue strong second and revenue rebound versus

conducted consumer we number affected the However, of out lots. a on abundance of caution, limited recall to a of down level

the is Importantly, total our this full facility the quarter addressed, impact Approximately reflected and issue the million from million production returned to Milan in has of results. $XX capacity. expected been has $XX now recall second

Finally, by in B&L on first quarter trial for key top we recovery charts the and III in results this of the grew for received to areas the TRxs significant Slide across XXXX, segment, VYZULTA Phase NOVXX. line recovery the global business. ophthalmology prescription from to XX% of in second a show all statistically business, compared progress trends point which XX The

compared market growth second TRULANCE X%, X% by to quarter in the in second of TRx XX.X% by XX for last XX% of Turning quarter second approximately a of XX.X% compared versus year. grew in now to quarter to market an the XIFAXAN and and share overall XXXX. quarter high to grew year demonstrates grew recovery market to all-time an Rx the on X.X% TRxs Organic share XX% XXXX. of of the second in quarter progress last new in compared revenue a revenue update grew to the Salix. Slide

pandemic, compared grew last market the the on in Salix TRULANCE promoted key the a RELISTOR. The to perform our are impact the X.X%. from growth and are Finally, charts Slide recovering XX.X% seeing as XX quarter of second case products, trends which positive such well of year the of for continuing by in about the in or demonstrates TRxs of versus case to we TRx either XIFAXAN RELISTOR

segment this of to Moving moment diverse segment ongoing Rx going driven quarter has to broad to about the compared IPO we've we to Solta shown a the I'd XXXX of record key top the business quarter, The take Slide And organic the proposed This XX. outlined like growth business recovery. now that quarterly prior The for by talk on by organically the and our left. products. a grew portfolio segment of are International first the Rx year back XX. to track strong chart terms morning. on Slide and announced Medical this XX% and

be of an Solta Medical, in IPO, global mid-teens, in are rate We finally would we Post in leading company medical tax we list on Solta provider Canada, NASDAQ. the pursuing aesthetics the have market. domiciled expect IPO a the to intend and would the a

revenue Solta EBITDA and is today adjusted Officer. who as and XX%. Hirsch, XXXX Medical effective currently Health OraPharma XX% in the had from President With a Ortho XXXX, an will as $XXX CAGR XX% lead Bausch revenue million Dermalogics the of margin XXXX. margin and Scott Solta to me XXXX, in XXXX our a of gross X, Chief business and of of Strategy joined September CEO of serving Scott

background I'll post for Chairman and Paul is Solta turn serve IPO. why think Herendeen some us Medical to growth. poised business to on over addition, continued now of the as will Solta we additional give this In Scott it the

Scott Hirsch

Thank and everyone. you, good morning, Joe,

the continues opportunity growth Global XXXX, EBITDA growth entire the of let of and has an organic to am to how Solta me revenue excited half growth XX%. made our make but exciting first franchise Solta Hart the team, XXXX First, Medical And the appreciation Tom organic by and express saying especially anchored Solta and versus this business. Solta the generated business. first by XX% half start growth such during I which let Thermage me the team adjusted with management, XX% really of about Solta incredibly collective

operating margins some mentioned, the branded Bausch has within Joe As Health of strongest the businesses. Solta

along of of and technologies way Health and Moving to has acquired its the launched background, Slide commercial track XX. record nonsurgical in was in XXXX skin a founded first pioneering in skin tightening product XXXX, in by body with resurfacing Bausch categories, XXXX. Solta contouring. was By It

are practitioners medical Solta spa devices Medical's around to surgeons, medical the and energy-based sold plastic world. dermatologists, physicians

Clear key the and Fraxel in Thermage, + Slide each VASER, products include Brilliant, detail appendix about and XX contains product. Solta's more

for FLX several Over the has a geographic Thermage the business' business new years, Brilliant as launched past pay the no R&D products, Touch footprint. risk. Bausch Solta. cash Clear Furthermore, in reimbursement and Health invested and effectively expanded including + business We

business portfolio to drivers The Moving the geographic the market primarily on the in with the the to advancements. potential next include business in Slide the of a expansion underlying to industry, of market dynamics along today strengthening Latin European States in is exposure and centered early expansion XX. America broader stages The growth and United aesthetic with product and Asia as systematically enter.

adjusted the on the XXXX. of scales, costs. we Here, double-digit $XX leverage, than Solta, the significant expect approximately the an with the And XXXX where we to growth and resulted growth Strong we Solta through generate of with consistent business revenue in the of mid-teens CAGR financial CAGR Medical had XXXX million X can growth from these but for has chart EBITDA will we rates bottom from can to revenue I large XX% do the business line. continue moderate have provide believe from see has that law expect historical Solta demonstrated while XX% to as of do note numbers, XXXX. sales extraordinary stand-up years, leveraging approximately for greater that operating through Solta revenue performance left a the past you

XX business. to help will Joe. back the reference you and about over the XX the you, you to it the in peer your appendix additional and on develop Slides portfolio I to information for point now Finally, I'll group contextual turn

Joseph Papa

Thank you, Scott.

and and to unlock business. value grow the Scott the Solta looking forward to Paul working of are we as continue We with

XX. to Moving Slide

I'm of will Tom as to identified have company August that Tom lead as post serve of the has Bausch pleased in Pharma. our IPO, Bausch upon & the completion the of members since separation. key Pharma Appio and a Lomb that been of will business joined from Bausch XXXX. & President the note Bausch Co-Head serving Lomb team We XXXX, CEO International

are addition, business. who's Spurr, Pharma's that Salix President of Bob the Bausch announcing will currently the we In be of U.S. Pharmaceuticals, President

Finally, Bob current separation. Power I'd one of Appio serve is completion say Bausch our the Chairman Board will a of who of of upon to words. directors, Pharma the as like to invite Tom few

Thomas Appio

forward It's leading and to see and lead Joe. business We will to internal been with dermatology, you, Bausch privilege shareholders. the history. value an The and complete have to of point positions teams necessary the for global ahead neurology to in objectives management important for deliver Power hard the in build the this Bob businesses, honor to pharmaceuticals. Bob I'm to opportunities over working working international team gastroenterology, Pharma's and diversified the looking Bausch Pharma back pharmaceutical Thank rest Joe at I separate its turn all with and now. Spurr and many call a of

Joseph Papa

forward Thank new role. as transition you, into closely with Tom, look working your you you and to

Slide to #XX. Turning

the & for spin-off our on we We the Lomb. shareholders, value of are good dedicated and Bausch are progress to unlocking making planned

segmentation. financial Bausch the completed Lomb & have We

our X to named achieved. have the of track internal the of and objectives leadership members and B&L We Lomb necessary Bausch be for to team by & spin Pharma October are Bausch key complete on

outlined. Lomb achieve the Bausch SEC, leverage working ratio an and we the S-X & previously financial with for filed are and we to targets objectives that have We now

value, delever, equity IPOs optionality, deleveraging have We opportunities a proposed are pursuing and IPO the this The Medical cash of working improvement organic effort. efficiency. improving using And deliver from key selected markets part we leverage actively Solta help Chairman the capital through to expedite all and to accessing including capital CEO. with shareholder divestitures and is of

our quarter XXXX unlocking of by Morgan B&L Goldman S-X process. steps first alternatives. accessing Sachs Stanley the X announcement soon unlocking the XXXX across and Medical advise by IPO of attractive to proposed to with and the are as anticipate pay first assets and value in attractive for the have and fourth step equity We value shareholder Solta Solta submitting To believe be will we quarter as We summarize, a today's the us capital by us XXXX. company. that Medical committed completed third half part the as of an or a of We IPOs aggregated to in strategic on of Solta have hired that can of enable the the possible, forward represents the been down these businesses taking markets that debt undervalued remain

Solta Our the goal businesses: for health please. is and questions, to a operator, & pharmaceutical distinct like leading to line With create X open a provider Medical, up integrated that, eye the Lomb, pure-play Bausch diversified a market. business; Pharma, global and global focused Bausch I'd company; in medical aesthetics

Operator

Instructions]. Today's question JPMorgan. first Schott with Chris from [Operator comes

Christopher Schott

separation. had timing trying appreciate probably at the implies for I to IPO B&L just of get the what the centered questions. Solta I two topic, around the same a

Or be of, but IPO heart larger I'm really spin of just the Would raise? Or distribute financials So early it question, just get later Solta is maybe second to Obviously, capital just the say, the a time to after my plan to then XX% maybe how first the IPO smaller unlock, my next, time IPO reasonable you that a we occur the on the that a assume shareholders? event? guess, trying need load. separation do shares on assuming would year, value guess line for should frames, nice this a address business be? the be similar what's specifically point? these about a is around where are which seems do debt then B&L in I And kind they the like let's these Solta done relatively a load. hands much to IPO. really could processes the B&L could Solta I help with and to think debt separation this at look

Joseph Papa

Thank you, question. Chris. I'll take that

question. good First of all,

IPO a believe in Medical, Solta somewhere that is debt. that as Solta equity the XXXX. we We that XX% of of on to that can expectations XX% range to our sale the to end of would type do of an address register Our of help somewhere look early as IPO it we in do normal

try So quarter, on, could to said fourth on go do it but back it obviously, previously. go spin. we'll question to in longer. I conditions. market the B&L obviously, depends look It what the The we to

internal we after B&L complete on Our X, objectives necessary XXXX. October will be for of the all spin view spin the B&L is to ready

you appropriately through will need targets that And that to the our the debt is get of point front unlock debt about. talked as out, in the of However, previously value Solta we've do view us to IPO Solta. to sort issues we

If will the in space, it think see to opportunity. some I debt the opportunity of companies company. But you'll down pay with us we the that use to compare clearly other peer you for our that help

cash all about the value. Amoun the had, helping on us based the efficiency, year talked I'm Obviously, after all on We that all not to capital unlock this improving today, in EBITDA, paid other based the down saying sale So great just generation a you that's to XXXX. solve will going on things give already need for be to of we the progress saw timing we've business, on working debt ready made the than what X, based we are plan. this we've question. the before specific October the B&L we've based

Operator

Our Miehm RBC Capital with next from Markets. comes Doug question today

Douglas Miehm

talk using we go and this expected back the over just expecting, cash puts takes want I a $XXX quarter. you're about know can how should we explain that to than shy Sam, a just million to impact flow. me on the million the quarters? of an can is reported $XXX legal But you or bit to lower that next Like be to that? you for something And that several the I ongoing settlement outlook basis? going

Osama Eldessouky

And Sure, question. Doug. good

been very the So cash pleased generation. far we've with

quarter good million As year-to-date. this and I for $XXX which a in mentioned, it's number adjusted really brings

from And initiatives. I'll about progress I we've couple while As it, think into down We've working inventories of in that billion. the roughly think lowest our our year have think to year to back of a probably, call shy very nice you we and had made seen I about factors starting last just on level we've look a forward, come $X capital a this here. step

$X I very little other progress think elements working capital. of over billion. made So all And it's we've on a nice

the second half, specifically So the our still second I from you the thinking not be that's don't in will see year-to-date. capital see much further where with when to from upping coming first you the the working strength as And inventory we've the $X.X we that on capital, look down inventory we're to expect but be the why and we cash into and coming why working capital, generation the that's at flow billion. about half. benefits levels half. it's guidance billion That's $X.X working going seen start that to same the

the legal legal and The second of will is will that's to timing terms have a plan, do expenditure in that the not our XXX% our $X.X factored but and terms of billion. expenditure, half do determined, we in cash. elements year. be the pay of certain we column still certain and In that the We into expect

Operator

Our next question Annabel Samimy with Stifel. comes from

Annabel Samimy

amount here derm. you high-growth value. the bigger diversified you So as, of GI as in And you're well there. leverage Salix is Bausch years, left platform, a because have build company of going secondly, which components in clearly help is? the to much that the you of this terms are with I could any tremendous you'd is Or Bausch of doing about to last Health? pattern Pharma, then And there a Derm component a infrastructure is of as it all say, always just have with of Do intention the unlock to already valuable is companies what relatively have Ortho guess, keep we've company, bit there? a company picture, a pure-play growing leverage to Solta such with this growth how several noticing spoken a but How greater

any with intentions there here are Bausch So further Pharma?

Joseph Papa

Sure.

here. in try take them me Let to order

on business business. mean, that XX-plus revenue on excited. of that the go we Solta seen we've this significant all, that terms Solta percent side, opportunity, are compounded that EBITDA after really that high-growth the And importantly, growth, annual revenue I see we of the for compounding of XX-plus capability you percent with value unlock IPO. speaks in First obviously, business, and some it growth to kind an any growth to think, can

about excited really we're So that.

But ballpark In terms that $XX comment of the cost on approximately belief exactly that. of a our infrastructure, we take overall will do on standup could have put that, made forth million to we that today. in focus what's put us there it to growth the the will feel the opportunity accelerate business, Solta future. business to into we in with the that our only the allow continue Scott it going with Solta

we've that the a be derm. the So increase with we've about in is that been we're profitability that's and opportunity. the derm managing where of with do business great doing what promotions smart the we the in the to medical rest going And meantime, medical been think to

continue intention the So The further question much going we anything back had the approach other answer is think I'd XXXX, our to way a as it to I with of about Salix too that debt. that about knew any we do we're to future. businesses, company, going or we as think any

reduce working debt. X too time, debt that to we had we had $XX over that -- of $X.X down much, I we of billion we've and We billion time. over that think debt. since paid very diligent But plus been at knew

up, up think We that also somewhere legal had you of sum to range. I clean issues. it's in if $X.X legacy the all And the billion some

to of good our we've done They've think in starting job The in the is done really well. all We seen we've business. going to going somewhere bounce Having we continue of incredibly So to a had ourselves close to sales to in to shareholder back try to found challenges up, quarter. said businesses. of value billion back XIFAXAN some $XX of clean the resources as behind look the say, that, promotion X we've unlock years. incremental Salix we're putting I'd

are So I the to specific future, all for spin part business. about any the comment don't plans of with IPO things want Salix those an or but our make

today, to health company, the obviously are pure-play with we and the think I B&L Pharma eye now the think the just Bausch business. X what Solta great then aesthetics announcement excited unlock leave global I'll it businesses, business

leave think at that in in our of it alternatives I terms we'll strategic of terms So where we're going.

Operator

Raffat Our today Evercore. comes next question Umer with from

Umer Raffat

if three, had I I may.

want across and was, the Solta leadership congratulations very leadership as a across team as my Tom, First, capable it's across Joe, to really Pharma, to Bausch I Spurr, to Paul. question And Bob B&L, well the to say team. Scott

had -- is be the spearheading, if asked However, you they current what of guessed. have which each business, each investors group of presentation where would a this team of leadership will this not

and heading background Tom's business example, is vice the in non-B&L For he's versa. but B&L,

just on $X trying shielded one with you ever then strategic liability? Board -- about trying a how Secondly, Solta thought understand offer from about more to of debt, the much the finally, how leverage ValueAct on not? a are that? or get that put is much willing departure for I'm Sam. did real to on this? was how reasons all legal than about I'm the billion? of understand How you thinking what more or not? Solta importantly, So this And you And Scott, from How And you're structuring Solta, -- to are

Joseph Papa

Okay.

start, I'll question. answer will part Scott that your last I for over then Sam to I'll it So the second and and between turn question. And of

So We leadership. a conducted search.

thought we was made to the given for business opportunity to externally. today, involved with search, we Tom. shareholders of as Solta, up we our also very that done combination job we great the of he's about that has Paul Tom thought about importantly, the CEO, resources that a create therefore, that -- opportunity best obviously, business. search. Chairman, some Bausch within have we Bausch Pharma we I'd say went decision great business has Appio, As felt through Paul that as thought the with head person and to value And And of well. we as great believe we team. Scott as advantage the job Board done internally And we take a another Pharma, the for as the and the We looked as about with Scott the was great thought

was process terms forward. for in and and Scott was So it's the going on be was Tom We Board for best conversations felt, the candidates. We've best roles very a the of done though, involved Bausch that had Pharma the that clear with taking internal-external the CEO to searches with. business, Solta

with believe answer I probably I ValueAct. So can question. -- that has that's that ValueAct has -- nothing the this do to way best

strategy I our significant as in he think with he stated has is importantly company a the as and our Hale shareholder Rob departed agrees still business.

time Solta -- ValueAct incremental was their has issue for positions. to So he this do -- take Rob the and please? Board. to Hale some want was no depart legal, you really just leverage impact no the and and legacy on taking Board decision really on a That management what Sam,

Osama Eldessouky

Umer. a it's And Sure. question, good

value and have Scott business that and So unlock at the very we look unlock through what me here by start the you that our that went is covered, Solta. to strong let it's a slides objective the main a if saying value And for EBITDA.

maybe about it, onetime As assume it. of it's probably maybe debt on a you probably purpose, think for we modeling type

it's So the to continue that you really structure the that sort want would to growth that growth and have be, that from sure you position to and in going where that have of be unlock they continue business actually the unlocking we to the make a perspective and value. trajectory value

terms there's legal liability, that's liability with the In associated legal Solta. of direct legacy liability or no

an will therefore be a Solta exposure there's from really there perspective. nothing -- So

Joseph Papa

think think that do to we it's I the but -- a realizes multiple level certainly, we've said everybody we've leverage can to I'm to expect tell let about well been probably a X to as we at what the Health B&L total been raise issue what what attractive our attractive had the So add Bausch the trying the is market in think where, solve position at debt issue. only I debt Sam would because trying also the not we company. think as for an thing significantly the What to but to the overall comment you equity, going IPO at I'll a than of individual say, businesses the IPO solve Healthcare and at Bausch company, highly with this which me higher businesses, with if Solta level, important to is we've

the know So to want B&L of judgments on you look Solta, at or the on business some all Cooper Alcon things that. make any and the I trades where don't comment like you sense think the and that And make of peers can I gives your but peers B&L. trades, you specifically

to to do you the that's So the business. Scott, do there. of want Solta we're about talk trying what concept

Scott Hirsch

And market profile stages exponentially. expansion IPO enables and and the that's do over a valuation question, to business, its to thanks. geographic I as I time. answer accretion say deep also I early the to its and of deal its growth, the been but to because say, in remains I'll that's at Umer, in won't of this great will there's growth your valuations. that directly enhancement it Bausch on Yes. Solta as think But product the a to you needless dive of interest well participate the growing forward and exposure peer leave Health

in really your say, a confidence high And it. in on logic I to been valuation. and ability will But behind business, yes, deep dive there's so the have do great there's interest the I

Operator

today question from And Piper Sandler. comes with David next our Amsellem

David Amsellem

a on and Solta dermatology. medical So on one one couple, just

of been just So But a has space, angle, realize this Solta, a the a little backward-looking as medical sort could know theme maybe in different certainly a here. question. on bit of you M&A I be real historically aesthetics and

Number as the out dermatology, route. quite how potential medical to M&A hoped. of way just trying for your imply backward-looking regarding interest And of you a what high that of realizing significant little have launches you should there. thinking question, the got buyers? might in decision a have background to this terms Haven't terms regarding opposed that's decision to I'm route and particular could but Solta interpret That's strategic X. you on bit in IPO how we I'm new panned is historically number to hopes had again, the Joe, So one. two the certainly go of get

So the about of can business? effectuated, once we investment of medical broader being it part core that think is talk in dermatology pharma terms the about in and as how should you business spin a

Joseph Papa

questions. Sure. Good

on Solta kind So terms very angle, thinking M&A of about the be it clear. I think of to said from an portfolio. in you want I

spent time for over have Solta. a months think of the all several lot We about we last thinking iterations could different at the

inbound interest -- As Scott expressions receive said, several interest did we of the in business.

different was But And it today. an the we opportunity expedite do. is financial the also realize allow additional CAGRs, also Health it that us couple we today. EBITDA walked a by you we to one of this own revenue that, about our it of provide Pharma terms I forward our sure optionality XX-plus value part know that going to of wanted understanding you the think is the capitated felt price compounding about at do you with business side, that an the that as value, what judgment percent for that -- rate historical XX% go make company the Bausch in business an That's What IPO, cap growing creation to mean if today business growth you B&L and one through the business, good Scott of certainly price whatever does look spin, companies, it's that we think peer each obviously, we business to to at on your understood of to whatever could than allows we think important. we As wanted outlined of of our in current as it. we with relative going we upside at there's at you'll some And forward. But the for done thought the what clearly also was sold what shareholders look it. value have the when ways today in rather at you to a that we would and wanted that let And I opportunity that, business to have for performance. that us value Solta, And as funds the of is growth it that it. look simply of importantly, said raise through the is probably as belief, Bausch the which do, one make compound we that. thought EBITDA, If you performance you gives value -- the have about shareholders I'll a remain of rate generation at to we until we the seen thing haven't help growth terms financial was

mean I promote looked return over. the several we've on On question med is let's And medical made get decisions at have the of investment. the derm what the absolutely we on that products correct. derm, times we'll

move to We have we return Our investment going move business approach with are number on forward forward. in in med we return that a portfolio, and certainly to some R&D continue the a business to some there on get very way opportunities derm derm. go eye all on products We critical and the med there opportunity approach this with it business we looked shareholders. is and had launch approach. is for our at launch products. all still about But And we're looking on products is ROIs best some continuing for with investment that at think make return still those sure the We've our for an as where some our clear but business. of investment can did we'll positives, to we're appropriate attempt a that of we've to decided negatives,

Operator

comes Cacciatore and Ken with next question our Cowen Company. And from

Kenneth Cacciatore

to here. back the going the kind Just theme of

we think value. markets Solta better all agree Lomb that will can and & the public I give a Bausch

markets kind diversified maybe think growth businesses given no that private would kind I the equity give value of of correspondingly though a agree can we or private the better profile.

end going scenes? the Or through spins. stage you Is eventual we what process there can kind is talk be parallel nuance it? of be around of on that about it as the the you think behind give us here any would active, the might might call happening So can still you

Joseph Papa

those and of the since $X.X Amoun an that. our think and average the we XXx. businesses. date, shareholders. Well, to the I here range EBITDA accounting return optimize the for opportunities arrived, is Sure. I right received we're we've Paul before. our we've to of in been always sold in that's going for get value billion arrived multiple somewhere businesses that the shareholders sold proceeds sold of We how we've EBITDA appropriate on The think decision That's that now look somewhere to to much in range think for business about And based included I

in business which think eye track aesthetic fact, to will good value best pure-play of do create, IPO to that our unlock course, Solta strategic both it clearly, will forward, businesses: Solta, we continue -- think, B&L of go we're -- we we public stated, diversified alternatives, listen have I always the way going a the B&L, And before, medical Bausch we as the the and to markets, think be great you health; will be the the a business, which of to X but very IPO said of the good As aesthetic those record as for they the Pharma growth. for company; businesses.

show look a that business. at continuing a done nice with to If business, do that to pharma really that's international the with and that Appio Tom you pharma look he's as at you able we've business what been business led, growth job of international

now, to think that, in best way going done that do on clearly can these balance, believe to proceed So is We'll We've past. the open businesses. but continue I other great that I the we we're considerations. to create be right three

Operator

Our Balaji today next from Prasad Barclays. comes question with

Balaji Prasad

same of lots reimbursement aesthetics Solta, together, business dynamics, being or any cash you clarifications team back the and Solta components the to where management of iterations same did consider and maybe eye the again, and together you appeal this. on have Just going it point of the time, that of care keeping on at IPO

Joseph Papa

very out successful a recognize a there do there it's eye companies some So that of question. aesthetic very care have been fair an business. combination with with business We

best the we pure-play to to pure-play We felt So forward for the this it health and in evaluate. synergy we fair. was us market is then a pure-play Solta. the B&L, The value some with best eye your are pure going approach is the our will some to companies. but create There allow on company -- individual something the value Health shareholders. aesthetic is way the felt which business company, and for these comment are synergies, would unlock that play we There with Bausch focus future medical realize

Balaji Prasad

Just a headlines the Solta? -- follow-up spin-off, around both yes, billion for Lomb the on and also recent on claim the & and Bausch $X the implications

Joseph Papa

in agree some recent a think the the of against have now Bloomberg -- and spin-off we connection litigation, to plaintiffs terms story. us announced we has that back Yes. obviously Lomb with seen and that Bausch the there's We We We it. don't no believe the of in misrepresentations year spin-off B&L & going ago. think mischaracterizations pending claim terms that the the by we

with obviously rationalize believe it we're there's And there's we've basis that the numbers, litigation the think And for majority to certainly legal merely we suggest misrepresentation. We try billion leave we that. what to concerns care And able for with $X they've they We settled think are don't taken move why don't mischaracterizations just of going this. tactic a forward that And we'll plaintiffs. with forward think to is class. certainly misrepresentations. that have the that to continue any made we this. to to believe they by already be they've the stated. our We But misrepresentation, of suggest we programs. them go think any think So raised employing we to of

Okay.

we Let maybe more question, have me one for take please. --

Operator

Flynn Terence question Goldman our Sachs. And at final comes from

Daniel Ziment

Dan for Terence. is This on

the the seeing the I seeing you commentary what if upcoming SiHy provide on market. the on terms dynamics normalized? of more from pandemic? one you're back-to-school within Just you season was will space? be daily whether could little in lens wondering contact you're think a then the U.S. somewhat And And recovery

Joseph Papa

through space. we what is the includes a has ago. talk albeit just an date, product of of their new And what Care have But Sure. in they we And to be entire in that important great an team with and in the actually I have great the we've opportunity marketplace. products day. got U.S. the coming doctors me SiHy SiHy wearing of product of are really patients patients really to data hours team ocular Infuse the with weeks as United help daily to majority with States are where something day terms electrolyte Obviously, seeing found patient the And players the allowing they're are that -- think able Vision outstanding. greater to product. to are of from where that seen seeing very went had opportunity was They the the quarter data. really we comfort a shared believe the patient, important other they're excited about the the in our the an of growth infused protect is data, daily day. facing truly off those their we SiHy full opportunity To we've about of actually of XXXX terms COVID-impacted with we X where quarter, the who United difficulty INFUSE receiving for a the their been XX is entire in are through the Sam the some in pleased product. known the about opportunity daily data we terms -- our a uptake product have States outside with ULTRA We in our that ONE

other cannibalizing not own business, for which we're we share to helps companies, think, our to obviously, market continue the future. pick So us up

to in market percentage do today continue expect the that the business, to SiHy growth see future in the somewhere grow as to call it, do let's mid-teens a we for but mid-teens and us in So growth is real United the we level, beyond States we'll Care significant the of the, world. a think Daily potential United see Vision care the eye that around overall from but SiHy also States,

just been out They've motivated. working really is team pleased, and off coming very meeting. So sales a new

what thank joining Look company. for So We everyone, Well, it's mean for much future. really us you, Thank interest talking to appreciate in today. your very about excited much. very you the the going future. the in forward to

Operator

Thank you.

concludes you today's this for today's presentation. conference. So thank all attending We

disconnect a now your lines, have may and day. You wonderful

Bausch Health Companies (BHC) 3 Aug 212021 Q2 Earnings call transcript