BHC - Earnings call transcript Q3 2021 | Bausch Health Companies Inc.

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Operator

Good morning. And welcome to the Bausch Health Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Arthur Shannon, Senior Vice President, Head of Investor Relations and Global Communications. ahead. go Please

Arthur Shannon

Joe Good quarter Andrew. today's And to Eldessouky. and the Q&A Also Officer, of welcome will are Financial Thank financial as Scott morning, are Hirsch, today's portion CEO as Solta for results third Mr. will CEO Executive who who Chief XXXX Chairman on Appio, and conference serve our joining Chief our Medical. of Officer, Sam you, and of everyone. Papa; call. call call Mr. Tom Bausch Pharma; serve Participating

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

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

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

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

Joe Papa

today. the with third will I detail And discuss I Sam the Then the quarter results then over before for to Thank our update Eldessouky, XXXX highlights start cover financial before shareholder to alternatives to for on call the I review us briefly and questions. the will the have review unlock line opening you, Art. will segment guidance. our made progress in strategic results turning CFO, accelerating thank joining you on an we value.

me start, XX,XXX quickly Bausch thank team members. I the let Before Health

launch pleased EBITDA to IPO regulatory team approvals, a drive value. and our performance, process alternatives and December projects launch of January shareholder by our XXXX. of ratios expect subject disclosed Solta And of simultaneously remaining made to existing Lomb on IPO, shareholders the Solta proposed lock-ups, after was spinoff I'm achievement and advanced & that, XXXX Third to on IPO net with that necessary significant & progress Bausch to shares strategic customary the to effort conditions for then to After strong R&D quarter we great another days process or great share page target market progress delivered our expect we XXXX we approximately the our alternative Bausch Bausch market to XX in Lomb Subject four. the to leverage approvals. expiry conditions, the other the strategic necessary the occur previously regulatory again fee approvals. can the other following subject the and

net times. are of $X.X XXXX. also great by are year. $X.X September was company reduced have leverage Bausch Total debt. as the in progress Year-to-date, reducing repaid of XX, as making debt this XXXX, quarter of debt we of XX, billion We September in Health X.X third We billion

now Moving to slide five.

a of total results company rate third quarter was recovery revenue rebound to in pandemic on our our across at flat a due declined progress, organic comparator 'XX third was a region, the markets. certain third by the on Our and many overall, continued the strong international quarter that to of 'XX, impacts an X% basis in COVID-XX of quarter despite ongoing a demonstrate efforts of reported thanks team. basis from our In

quarter. $XXX on a items, adjusted basis, and recoveries, the cash was from operations $XXX and of generated GAAP in on our other generated strong adjusted third the separation operations business from Importantly, insurance cash for flows million costs million

to continue recovery strong our see and brands. from leading performance We

For XXXX of compared example, to last revenue XX% reported year. quarter grew by third the during LUMIFY

the approval we first alternatives unlock that catalysts, in dysfunction, in on trial delivered the which R&D exciting made on our XIPERE, both NOVXX expect summarize, associated very also and Meibomian eye from news detail I’ll of quarter FDA term XXXX, Phase of disease launch we significant discuss progress with in which now value. shareholder accelerating to significant to near dry To we have second gland We III more including later. received the topline have strategic results statistically we

R&D I'll Sam are to Our term more detail. are that results Key call and financial cover recovery the on With share, in demonstrate quarter products delivering the we that, the results turn remains progress. third market and catalysts. near growing to gaining over in

Sam Eldessouky

you, Thank Joe.

discuss third before organic a discontinuations. our to talk performance. on we growth, basis a reminder, and impact revenue currency quarter about adjusted the constant we When I Just of and remove divestitures mean

the we quarter, sale during reminder, business. Another pharma Amoun, third completed our the of Egyptian

to turning Now results. our

billion, X% COVID. the reported basis In saw out of a $X.X and year we flat organically. down demand quarter, surge prior in the a Third quarter depth on QX totaled coming revenue of

is reported not fully organically. recovered. it point, key our A to Year-to-date, and X% revenue third quarter basis recovery from COVID. yet organically But sounds. be continuation clear, up being our confirms X% So better flat of revenue is than we're on the a

grow and our recover, levels to markets well to positioned our businesses there. teams return around the stabilize our As from and pre-COVID world are

you the to If slide B&L turn six, segment. with starting

businesses organically. growth, Third organically, the Care Global XX% X for the posted B&L up Three quarter Vision was the X% year. segment with of was B&L months same revenue up business. the period the last compared starting year-to-date, to as organic million And $XXX four within of

of our SiHy share growth. With INFUSE up X%. retail million Care, and SofLens. ago up of drive consumption led daily lens the and ONEday, X% to quarter International US, was was a Vision up Biotrue our year US gain versus the X% and was e-commerce driven was Third third of by from while In $XXX Vision the growth revenue key continuing XX% X% including organically, pre-COVID XXXX. Care and ULTRA, brands, quarter International promoter growth by

compared year-to-date business, of XX% We growth in organically our see year. to a Vision continue steady as to a Global last recovery with Care

our Moving Surgical business. on Global to

up cataract international Surgical quarter Third up with were US X%. compared XX% $XXX in the our grew and to the reflects levels. up Global business million was retina procedures XX% and versus exceeding XX% organically growth and Year-to-date, Surgical QX revenue business as organically The XXXX XXXX, XXXX. recovering now

Consumer Global to business. Turning

the vitamins our the quarter, The a Artelac, year in of brands, the flat. strong our revenue of experienced share an market vitamins, solution. business US. Ocuvite International driven The sale was Consumer X% was Consumer organically, while and LUMIFY quarter Soothe. by quarter business the business current impact to in and multipurpose Third gaining US PreserVision Consumer mainly Biotrue the was U.S. million Consumer International ReNu with the XX%, up $XXX up of onetime eye strong and strengthened a very ago In and eye continued due to growth opportunistic growth deliver

Rx in of revenue Finally, branded the XX% The quarter down the quarter business, business. Ophtho was organically natural XXXX. and by third $XXX products million generics Global the decline the US erosion versus of the driven third LOEs was

XXXX. VYZULTA expanded Our current coverage. continue showed quarter and the access versus from promoter third to Med-D XX% quarter brands TRx growth benefit In

turning to Salix. Now

Breaking to increase, to recovery TRx the of XX%; million third due XXXX. of with increase QX XIFAXAN, TRULANCE XIFAXAN X% XIFAXAN up X% the of for price RELISTOR, up year. was XX% net XX% XX%. of the was X% revenue, and demonstrate of revenue impact in volume the and down driven in continue was trends quarter $XXX took up Performance it from XXXX. from XIFAXAN the Third components TRx we up which versus the X% growth mainly the beginning quarter by

patients facilities those an long-term settings. especially As important Long-term impacted indication. care for we for less the discussed quarters, negatively in with in prior segment COVID-XX HE XIFAXAN, the care is

price care recovery continue the as volume. to RELISTOR same from feel care driven within business growth the within about XIFAXAN to business. volume XX% and up expect to mix period in see We The the was Salix our recovery XX% TRULANCE We throughout compared rebound good the XX% in of and expand trajectory the long-term the was XXXX our to XXXX. successful sales and steady up XXXX. coverage brand. continue in Year-to-date, to by and QX efforts grew we for channel, prescriptions a managed for growth the was

Now segment. turning to International the Rx

Mexico million down organically. organically the due in comparison by sales of demand. was driven is up offset LOE The impact strong X% Poland, Ivermectin was that growth XXXX. $XXX year, quarter by several combined in revenue by Canada, Covid-related These versus were nearly to QX, decline quarter very last XX% driven against including markets, Third with in declines a

Derm Ortho segment. to on Moving

by derm it's in local business. shutdown business for organically, in Asia are out impressive revenues for a X% QX, realized Year-to-date, lower was by Also, in down important was up global X% revenue mainly down in a quarter Third markets The $XXX saw COVID-XX COVID-XX products of continuation X%, we to demand This XXXX. markets QX driven trends global organically. business Europe. was medical large was of Solta of point surge coming the in shutdown and mainly XXXX, reopened, pricing. Solta the Solta growth this out The organically. that down driven the Southeast as million net XX%

Diversified organically. quarter segment, third of million revenue Finally, $XXX our declined XX%

realized pricing volumes on down XX% was narrow Wellbutrin. and business Our lower due net to

Advent, which prior the We benefited saw the volumes in quarter. also and competitor from year on Pepsin issue lower supply

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

volume XX% impact. by up Finally, growth prior was it organically, dentistry year in as from driven COVID-XX ARESTIN rebounds

was reduced return The divestment $XX had million by XXXX. basis for identify to QX on revenues, XXXX. to XXXX. gross The margin $XXX QX of slide adjusted a XXXX. activities margin, now which to full Global EBITDA rate that versus absorb XX% key enable and expenses, Amoun for quarter. we X% QX $XX spending, level for pressure in was down guidance versus run mix as global normalized the on gross Adjusted an roughly other increased projects. in quarter for pipeline of the to R&D quarters, to Similar promotional from flat continue EBITDA XX%. more we designed current our product EBITDA the future our operating a operating currency levels compared supporting constant a adjusted In as million. and our seven. with support us return to and to an by with terrific, the efficiencies margins reflects XXXX. adjusted more to reported current profitable in driver were is to on with P&L QX to was are our margin normal to normalized in were We this rate the QX with a the The roughly - did basis, factor versus of last and quarter in believe I'll quarter essential a promotional we a have promotional quarter, unfavorable EBITDA and year key supply we in growth so in more operating costs impacts. to investments the especially QX by Note but within normal run of the QX reflect QX rate. not XX.X% run compared had that we Within XX.X% be prior continue future. expected elevated programs adjusted Care, deliver an organic XXXX, in covered Vision coupled start chain, million year, key implement We of Mix SG&A launches our Turning inflation

to Turning eight. slide

total of During for billion generated we management $XXX insurance real QX year-to-date. items, in been basis. from XXXX the in $X.X than recoveries, to-date. our due in our cash XXXX. and making seen is payments operations line and lower will was cash This what strides million, operations $XXX quarter, We've our to-date, billion on of address from generation expectation of mainly cash a have run roughly other operations implies to related With our cash adjusted leverage. generated to Adjusted in the cash costs are separation working from be capital that in the GAAP on we operations rate improving $X.XXX our QX bringing adjusted to million we timing in deliver QX XXXX. generated This a to at

Turning to slide nine.

our debt on We to progress make paydown. continue

operations, During cash hand from repaid billion Amoun the the debt we of on divestiture. from proceeds with million quarter, $XXX coming cash million of $X.X third and cash from and $XXX

in commitment recovery Our net end and with debt, of times the the our as combined reducing strong X.X XXXX, to of resulting focus quarter our of in of third XXXX. leverage

make or expect ahead in XXXX, we our even maturities XX, mandatory XXXX. net that QX our paydown to remain slightly keep progress we as X.X our of to mind, have very today. Something don't our debt leverage leverage we pleased the to On any with end while amortization we're increase with times until maturities continue of have or and debt flat progress, debt nice to year-end payments slide looking versus we

recorded. liability, that and the And no at we law therefore, IRS will discuss tax we disclosing today. this the we later and Granite tax be I is that our income Before want transaction we known this now in XXXX, that is contest as time challenging. capital loss on that few full the intend internal did position provision In to a year to This last the we clear. the we'll in guidance, feel result XX-Q that We in don't confident resulted been one restructuring Trust any side, IRS development filing mention years, tax in has believe transaction. our disposed

our this full slide, Now can the XX. our turning year and XX see to On slides of guidance. guidance you progression on

chain our being continue While on expectation said, to the to our for we out fully different and what taking of macro $X.XX We've assumptions as our forward. a business. challenges, mitigate revenue adjusted the range and move businesses billion. these in supply have continue billion that the steps recovered, overcome market. recovery guidance and full rate of to at expect and into we Also pressure, by challenges, across of that level, seen to and see to billion important updated holding reflect grow overcome several seen With We're inflation pressure we expect the to not $X.X in we we're but the with that is XXXX. recovery the duration EBITDA billion consistent do will we our proactive yet pandemic guidance have $X.X you which in QX range it's will $X.X year. is to also expect We're guidance our and point the of margin and

Now back to Joe. you,

Joe Papa

Thank you, Sam.

Vision trends revenue share. Infuse. revenue reported the were in Daily Infuse, estimate beyond. in year. Consumer of driven the XX% surgeries in organic third & gained delayed symptoms outside approximately to the cataract of consumption Let's a We by delayed last Ocuvite both increased creating X% by or XXX,XXX by and Care XX% our were Global in saw growth dryness. primarily growth from second LUMIFY was growth lenses, Bausch surgeries with by quarter XXXX XXXX, demand. US with which begin US, Lomb US the surgeries about positive Surgical revenue worldwide In continue XX% we XX% sales the XX. launch strong helped minimize while strong and and the rebound the organic for driven in XX% PreserVision, growth consumption driven slide estimate tailwind international by on of of of about X%, organic ongoing US US delayed by quarter X%, contact a Global over for COVID-XX as of revenue which was the grew both SiHy and see driven lens Global sequentially we the demand organic The business in revenue

highlight and XX, four B&L late-stage advancements Global Ophtho quarter TX demand of Rx, compared the grew recent XXXX, in we've slide of by in coverage. driven we by Finally, achieved access primarily On to market third the increased in the US VYZULTA programs. XX%

category. XXXX. billion, be SiHy estimate for US First, billion in Daily launched SiHy it fastest-growing lenses and market we will B&L contact $X lenses $X Daily is by infused approximately the were lens The

Daily several additional We launch year. SiHy to next in countries also Lenses expect our

the opportunities, NOVXX, results slide. abbreviated XXXX the for more biologics these the on and for the for and meibomian we line biosimilar an to top Next, FDA of Phase & in I minute following future for US license want finally, bringing an X XIPERE Xbrane, FDA the of I'll have first-in-class reported Lucentis in cover trial Based efficacy candidate, catalysts detail the on tremendous exclusive an for Canadian our the disease XX, important with rights top the our on which of partner application potential as anticipate the associated fourth we to show its and market spend And Bausch X line results Page the Phase and STADA the upcoming quarter treatment endpoints with NovXX is a gland markets. eye which dry approval we filing charts. a milestone dysfunction. trials for believe Lomb for second NOVXX, well-positioned IPO. second on

of significant Importantly, XX. the X support early profile Furthermore, NOVXX half the trial as in all the trials efficacy dry are of of reinforce and further we first an findings safety NOVXX. first achieved, anticipate baseline of clinical differentiating other and with primary XXXX. in day and planning the eye from from endpoints the a were and space. objective We results preclinical NOVXX second as competitors number statistically including These dairy filing for of the Phase changes NDA

We in to if loss. space, on to uveitis, to associated of may the Baush announced trends show X XIPERE key recovery which therapy in edema XX US anticipate available segment. the this of which slide & now point based for trial which treat XIPERE We from only its slide patients, charts superchoroidal a first in endpoint. clinical that lead all on XXXX. macular last week permanent in to The left in business, the the Lomb with of available quarter untreated, vision progress areas recovery US making XXX of from patients approved suffering met Phase primary that is XX. first and utilizes the XIPERE Moving FDA a results

with an in by to demand XIFAXAN neurox of the pre-COVID-XX and quarter, XX% compared of Salix. in Turning third share compared near revenue XXXX year X%. in slide was revenue levels the XX.X% growth third year. to quarter to recovered last market driven to primarily now the of last on grew organic update Organic revenue XX in by quarter XX% XIFAXAN IBSD for XXXX,

shown We long-term versus to and trends of grew pre-pandemic levels. market clearly also future driven rate quarter the have care by number volume oral levels see revenue TRULANCE on year Sales third growth slide the growth volume returned compared recovery year. progress favorable of occupancy the to third RELISTOR as TRx outpaced very by X%. opportunity the chart significantly last by grew a market RELISTOR in as not yet of XX%, XX% quarter the growth XX. last XX% TRx potential in the by in

Moving to X% slide the segment. Rx XX. Organic in by declined revenue International

year-to-date and However, broad the X%, organic prescription strength revenue the Rx for diverse segment our reflecting International up portfolio of our of is products.

to continues Solta on on performance. grew On XX% China. This up and business Solta strong by Medical revenue deliver organic in to in an revenue Moving XX%. US organic slide basis, is XX. Year-to-date, the XX%

decline X% COVID-XX the revenue to and organic to compared Europe. of year third impact on The quarter quarter of reflects related parts headwinds Pacific prior Asia

Additionally, third by compare, markets as reopened was demand driven quarter closures. the after strong COVID-XX of a XXXX

number process. Bob by Carson alternative Appio US Spurr, CFO, Tom we I building. Tom with CFO. lead Vadaketh Moving Sam Eldessouky strategic We of CEO, Bausch Counsel, as as as members of along as President be are CEO, identified will Seana will the Lomb will on key the three business. the to & XX as to Baush lead and slide led companies update an for that attractive Pharma team General

ophthalmology will Tom Consumer, beyond Christina key led and Joe be business General Solta leader as global Counsel, Counsel. businesses. In a General COO, as Hart as the prescription expanding the Care, and be Hirsch, as who of addition business Bareli well, to running Global separation business. join by And Judah us as Scott to upon the as legal the for will Ackermann, Vision Surgical Medical, Gordon, CEO, leads serving

in We Solta expect to announce the the CFO for near-term.

to slide XX. now Turning

We've conditions, As the over and IPO XXXX I subject earlier, The XXXX, approvals. regulatory made we mentioned expect January Solta necessary have three Solta also to leadership months. proposed December engaged progress other syndicate launch in to to great the the out confidentially with SEC. timeframe, a submitted financial have banking the past prepared has team market And a in been to SX for statements carve full preparation and made. been IPO. appointments has Key

on XX slide spin-off of update for Turning & an the planned to Lomb. Bausch

regulatory or of proposed spin-off IPO completed de-lever. shareholders. as B&L again, & utilized expect We disclosed. approximately with to It use receipt pay of to Bausch businesses. the launch customer Solta, and approvals. we limitations, XX and will the Solta across After days the and just lockups, have on Bausch conditions, full to for our launch debt what a spun internal laws to customer we to ratios, intend lockup subject following stake approvals. of expiry ongoing from not the IPO to a securities the corporate for beyond B&L necessary down necessary - in spin We of the leverage Pharma target remaining IPO of we distribution post the light Lomb of asset the have of necessary COVID-XX than be the In achievement incur not transactions be of that, To Solta pending objectives now net be achieved. remaining proceeds summarize, Solta is shares comment recovery the will after will Pharma's off Bausch IPO, to other market the

across advancing team three been businesses And me our diligently working for the process. business been operator, our to accelerate open With term our committed we attractive R&D will to have that, unlocking up We strategic near position questions. as shareholder future as that the finally, possible. line soon value And catalysts alternative remain has for growth. let

Operator

Instructions] begin with now session. ahead. first The from [Operator We Chris Please the question-and-answer question comes JPMorgan. go Schott will

Chris Schott

questions. the for Thanks great. Hi, so much

I businesses Or you were it at in help for me Asia are pressure? So, kind Can a some those results? Solta dynamics? that's those the about get there on should guess, point? recovered the kind how around anticipate quickly IPO this short kind your the the be thinking think post just a like of of about separate COVID. from question, you thinking just as Europe just But think post to sounds do trying kind that, separate that Solta XQ and kind be impacts first frame? don't tied the on XQ those on was some sheet. just given I'm we as still the of two much how a company's think dynamics. the recovering? how Southeast I this know mentioned guess against in short-term the how going hand in bit second balance business. you a we me, and Just IPO of to I you growth remaining be I impact can to forward its going under that My ability And of gating is stake will different answer, about of Or we just as treated time that should factors key just of we're given Is fully targets? leverage B&L relatively as netted should IPO? a asset debt that factor? your And to leverage maybe

I'm get is a helpful much. leverage, terms timelines trying couple separation? on billion have So, the a Solta, in sense B&L that in Thanks as so stake we're of you of calculating the if of

Joe Papa

of Pharma. Sam, and going let bringing we'll results. Solta be then how Scott – for the And separation that that to talk talk value perhaps of Chris, quickly I'll B&L. the you the talk through thank the we Bausch about third plan to at you could about questions. full utilize I'm quarter

don't you first that So question? take why Scott,

Scott Hirsch

morning, Joe. Thanks, Chris. Good Sure.

on quarter, this quarter patients the given year. particularly strong very year-over-year timing de-normalized aesthetics in third shutdowns comp, given of COVID with owing last said, is With quarter Solta are to for XXXX a slow especially in had a a holiday. had COVID-XX the in outside shutdowns what Solta market, period, practitioners and and third seasonally that

access we So rate, organic on. world that the exactly XX% year-to-date very. metric is vaccine XX% the say kind or or growth Those more growth. reported around targeting you're seeing are which the stand I'll normalized executing growth of today, we are and where trend the rates is numbers

who market vaccines across across market keep of Solta access that's that seeing and pushing shutdowns what quite really businesses, on. So what what included we're we're to to we're has going the Overall, rates in we're shutdowns targeting, the is and forward globally within those vary. well managing Bausch and through the year-to-date rates and

Joe Papa

Thank you, part Scott. Chris. question, I'll of second the take the

So will an we're at the somewhat It very you can I that to this, be say course. I about tax looking am do customary seeking approvals. of full IPO. I subject of way. the are efficient made of to B&L. I some remind what of Also, regulatory limited separation lockups on we But mention

[ph] can. look in make at to get And So IPO, But to take expectation appropriate we for that stake forward with things depending separation as sure that to sure we to take do the we want obviously, a doing after seven six, Solta make three, in to those lockups during be we need regulatory as that customary remaining able we we looking quickly want Sam, you somewhere full are occur. But that. that regulatory month approve valuation? proceed approvals. type we our that, is will – in the the frame time how on

Sam Eldessouky

thanks Sure. leverage raising point. And the for Chris,

little path color try thinking of we're terms about give me more how a forward Let leverage bit and in and the here to the deleverage.

So think the when you about business. Solta

help sell-down EBITDA it ways. debt growth to remaining the proceeds The will Solta the at some Solta The level. from used of farmer us repay First, ownership, back IPO in be question Solta will two or the help through asset delever and a equity two. which a or corporate the future use either to for Pharma be of real Bausch combination best will

the about side, roughly raise debt IPO, IPO on as B&L, ratio. B&L which from think you forward we X.X that, P&L Just the X.X, will net the X.X million well also with levered as we'll that to be is from go putting in about and have the when which proceeds the the

the all items, in from of about combine of target that's those with we we're de-levering cash done with achieving combining natural the moving generation, expect we've you quarter how when divestiture terms that with So forward what to X.X. the thinking and it X.X this Amoun

Joe Papa

Thank you. please. question Operator, next

Operator

question go ahead. comes Miehm Doug The next RBC. Please with from

Doug Miehm

little Yeah. us to XIFAXAN it Thank and maybe the out a give terms Can gating a second went rolling see you. you Could that further in the just very want care bit Thank growth to acceleration quickly. thing to I bit little being tax growth review an in with get you. then with respect that more that is, situation or to in facilities. a long-term of on detail how you bit more just you more the And in factor XIFAXAN? you detail? through Sam, review a respect

Joe Papa

Sure. to pre-COVID. We population the with anything And had overall long-term of that didn’t have do general had long-term It in XIFAXAN in a long-term - on something in did I’ll in care. decline with XIFAXAN. below, the And population certainly the was population population Clearly of it COVID that that is start see do care. care. is to slightly we long-term census care. patients census but starting regain see specifically just was below where occurring, that impact

it, up we XX growth care the year-over-year X%. about in now have been last the long-term XIFAXAN weeks tracking However, is

up total X%. little weeks total a below So was XIFAXAN, XX what XIFAXAN we're for last seeing of

and the of something care, back little commentary, the grow, So XXXX. it come very But expect we clearly we're long-term long-term into as is think a seeing we population the pre-COVID, is that, monitor but of a population XXXX that rest continuing closely. care certainly The do as as where was back. But it we're at starting census we're of general XIFAXAN. it will will and tailwind, about XX% it that's to is potential that looking a come something bit to about behind that in

it's a market some you closely. we're sense tracking gives it of very So

We XIFAXAN in is behind frame. overall mentioned, year-ago growth, growth the starting some about XX% IBS-D. Once slightly XIFAXAN versus was the a as I'll to but Sam of see make comment are it That total. again, on a up time quick

the growth take to once long-term question do the population there the care Sam, in seeing that's So lot continue the to care. to second on you're clear. a the census We're want you on be long-term again, that of of it's And waiting to boost? tax for rebound. of part mostly

Sam Eldessouky

for thank Doug, Sure. for you the - question. thanks

our me just Granite that It's our facts you and in where recognize a start economic of the law. Trust loss. on let the underscoring the commonly level monetize structure, The used based and transaction. confidence by cost position So

the that on feel comfortable what our and very believe tax So position. law, our based with we we

external of have the position. have and as received evaluations, that been they applied we And the for in look merit. have terms and has at that legal and believe their both IRS position, the no We basis how no how internal supports much transaction our [indiscernible] we

is, here law, the law well the is the pretty clear contradicts view facts. position argument So in our as current in IRS and our both our as

Joe Papa

Thank you. the next question, take we please. Operator, can

Operator

Gerberry with Please ahead. of next comes America. Yes. Bank from The go Jason question

Jason Gerberry

Hey, about about if be data parts like little guys. And what doesn't business, was you the for detailed AAO the talk you sense other any have when here? Good at you will be all the a you presented Solta, guiding Meeting. - of when but the be XXXX, data do data will bit the can when the Medical how next at get But of morning. sense Thanks. then of AAO also, weeks moving published? Thanks get talk your Can businesses looking NOVXX, my can do the for NOVXX? you're XXXX, couple curious for for questions. business it in than of a of that? or I I thinking taking look it you to we’ll component to have looking for we sooner parts might imagine about guide some given

Joe Papa

Jason, you, Thanks your questions. question. for Good

Let how about for guidance our the of think business. with we me XXXX each start

for later But days comments the our that, XX February December for Having on time think frame. you business, is though, in and think I you business, the be obviously, to I the said, make any we by February our XX IPO. XXXX, we're expectation that as the the about by guiding IPO on to IPO said will as As as make businesses XXXX for days then normally we of you comments go plans up expect Solta an as can we'll the Lomb about we us right IPO. we in that is Bausch after have Solta that follow B&L Solta, case, And followed a it will additional with & our within going following the more that, it. can't through comments because now the understand as process. future IPO,

So how planning in guidance. well Bausch Obviously, February remaining frame that will on XXXX rebrand, the XXXX we of which for business that timing timing. would that the be additional the address we'll Pharma business, we'll as have comments

that. how plan to the that's take at a we're look of going So

eye have, we associated I as this we about think dysfunction. gland my very really having very that have patients near data, obviously, dry don't the in NOVXX tell of comments, data Meibomian excited that that yet. from present the can date specific opportunity you are to disease the an data future. date for We with have type will On

As the late-breaking second understand, trial obviously is can II you Phase information.

the we very But make would We we'll XX the approved see see statistically that of associated strong FDA, that start gland if the symptoms it product Meibomian will important disease a out we point and with get dysfunction. published. significant is and I both is dry by efficacy within have time that, day signs efficacy, And data. as eye what frame, in the efficacy to

have a publication very we approved, means. get We very but specific that knowledge, if to it the about are my excited near out will what in date So future. we don't

was said, a I information. As it late breaking

Jason Gerberry

and say, branded about being versus, Xiidra Do with on for the drops par you that worthy as like of RESTASIS peers? see artificial pricing think being the you pricing eye like

Joe Papa

Yes.

do based think price that we disclosed So – think yet, be category. but for based the is has a it with think we have we major efficacy to products what fact on the this rapid the a of it a of the not competitive will products on for product very that specifically the relative space, in pricing onset other out in it other action we

know, this about you is market. $X.X billion category US a As

going what can But the and very very onset very as it excited, relatively specifics about into days. rapid as of not that it guess. as saw we we're XX activity, means once again, to fact you So and go excited I'm early we have efficacy good

it So really we're our excited for if approved, what company. means

Jason Gerberry

Got it…

Joe Papa

please. let’s question take next Operator,

Operator

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

Gary Nachman

morning. Hi, Good guys.

most delayed? have the how for gets So you first that some B&L the First, order reason, B&L in that a confident Scott, for And talk rate I going come of order growth where a growth just Solta IPO? delayed about you for in a Solta, to from more product bit of happen then standpoint? business or and the little Is for get on dependent to from sense need that does to maintain B&L gets the talked independent how Solta valuation want automatically you're just both Thanks. those in to are? and year-to-date type to IPO, a there trajectory? is achieving to to XX% for events if facilitate that Solta hit level happen? about, Just with geographic

Joe Papa

linked the frame happen it's question But these something if do by right can Solta, that B&L was December, dependent not to B&L Good we planning think with asking, horizon, time start. Gary. IPO. have then one planning They're XXXX - Solta our you are to have we IPO XXXX, we now, absolutely forward think want that events? is happen. December happen January followed question, The and we IPO. Solta the could in our to to IPO not it's Scott, planning purposes, do Solta this for planning think The Right We specific for I'll IPO, that second question? that go first. current to do But could take right horizon, we we the the it Solta. with the absolutely B&L prior January does time said, I first? happen you're are it now, does How planning in to as frame. answer to

Scott Hirsch

the about is me dynamics point long-term which rest, I'll focus the of shutdowns more are Yeah. now. number Gary, and talk shifting drivers right of given a a COVID kind business really not the the to what related of probably for

there think four Solta. I are of main drivers

over is just Pac is and maximize to US our geographic which the Asia growth current footprint, First today. predominantly

Second portfolio footprint. is to current our expand over the

geographic do So have we right distributed our full now our through footprint. current portfolio not

all have that products currently that opportunity to So the of an and we expanding have expansion taking markets some markets. in we

and Third, we just geographic expand to expansion, the we have EUX. have started into

went started we're Pac US organic pipeline us. Latin opportunities So out have then America, America as and are tap yet now Latin inorganic again, branching we both Asia to And then well have to for both Europe drivers. impressive EUX. we into we and And growth as and lastly,

and attractive being for with a attractive structure our and is absorbs to cash very to generation become respect us. new with and products ability easily a very have structure Canadian very and Irish products so will that We

main Solta. drivers of the for the those long So articulate term are growth four that I'll

Joe Papa

lets Operator, take please. question, another

Operator

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

David Amsellem

Thanks.

the couple just business. questions So a the of piece on Pharma Bausch of

that key new for? further had you the about thinking brands investment that Just you're role First, dynamics organization, segment, in can the talk with particularly how and medical business high landscape seeing the you about difficult dermatology business on spin. reimbursement once that hopes that the as Ortho, just the pharma had that in talk business you're the about of given with you associated effectuate

And of on do you on words, Pharma? I you're can Bausch latest about just R&D spend, spend Joe, then largely maybe before, business for Thanks. this Or but thoughts talked So know other how thoughts you resources one. some that's for significant a secondly, thinking cash? number there? about you've R&D just that In focus manage amount updated

Joe Papa

Sure.

the on questions. So good –

in challenges XX everyone terms Med can growth, we approach business, refer where we On an profitable making environment. what profitable to find is as Med growth. terms focus last, to the Derm, as were the the that of in invest that the taken what say, we've in I months knows I'd reimbursement really There Derm sure now on of some over would

in profitable of looking And so, terms approach make in marketplace. migrated dynamics the focused the growth on are we've our there that we difficult to sure at

very dermatology.com profitable we especially certainly as at of we has that and an that, we that efficacious to data efficacy that comment think it the places differentiate do on a Derm. We very itself good therapy about still going the market, the way IDP-XXX, do growth, changes believe dermatology.com. think looking to is a triple make consumers, to opportunity Beyond the for a do really treatment sure some as we -- the where is for access has place, for we we – believe we think make the we Final some by acne unsurpassed of we're available. wanted Derm in be we the have like what that some Med can believe that the are with have opportunity products exists call that on

[ph] and still So profitable growth, roll out. some it's to we have to going Derma.com that be we products pipeline plan

patients of X what the going a hospitalization. be think that that we of we to circulating novel on have only an prove we example, of before. sickle interesting or We We a think us business avoiding there's also encephalopathy for past We after potential those things reduction are some the the R&D. on disease formulations do rifaximin that for with that spend, rifaximin by neutrophils. where able previously going our certainly terms of and are there and space not absolutely cirrhosis. the it to we're as We look will Pharma. relative calls, cell I looking are in the indications. new Pharma think at one to have that, that opportunity, spend opportunity forward we in is, for out mean move are would that's very thinking we're RED-C, Bausch talked the also the as activated we're that seeing that the On of referring have the that we've can or as we prevent that what an encephalopathy clinical question with. do based we to our for application seeing certainly R&D from the formulation. reducing to patients can talked We rifaximin - treat cash about we continue Bausch manage of into I at spend treating for mentioned with in we've need taking some patients what about R&D in we hepatic cirrhosis and place If hepatic about important could trials our

So there we're things a of number there. doing is

some inflammatory of we're clearly have into, thing very know novel is what's that other We The disease. in clinical run the the started area we the tracking like of products a products our the bowel in product TYKX trial. that inhibitors, happening that that of JAK some closely challenges the tracking are and We have therefore, believe could amiselimod the application. treatment we

think enrolled. that patients that. some get we if get also got have Obviously, have data But understand we we to We to the point data to there, value. could

side So what Appio pipeline that out for in have to we do next please. money And I'm see build and forward. the Operator, like. projects to to an the R&D the think will question to the wait those opportunity there's obviously to data Tom Bausch sure, spend looks Pharma. We'll move others continue

Operator

go from Yes. Please Umer The ahead. next comes Raffat Evercore. with question

Umer Raffat

I ones, much Hi, so guys. my taking if three quick Maybe questions. for may. Thanks

it helpful super growth on First, would in be the I thought but better. to disclosures understand just slides helpful today, Solta the

Gen perhaps, machine? Thermage Scott, launch from in for the in look that of the light X growth years I of of versus in or device consumable XXXX. So, prior Thermage, of is so ask at three how if light And revenue I much

of in Secondly, artificial commercial could Because XXXX. result, NOVXX, that of launch appropriately the inventory estimates derm dry set finally, and the Street the my the will like more perhaps feel then Sam, I in that changes And the into seen a like version an or Thank anything launch. expectations help eye level tear? of an heading Restasis Rx more you. drug quarter? as to make expectations on of And launches I as entering a of profile we're this where characterizing opportunity is, business guess going tweaking realize one perhaps, you closely forward. Joe, be the B&L question zone for be are the highest very will I

Joe Papa

then Hey, I'll you Scott, why the the and question. don't could take on Sam, you take final Solta, question NOVXX take that the question, first

Scott Hirsch

of the Sure. has it revenues. approximately question. is reusable consumable the XX% Good of for significant business Actually, fact XX%, most returnable Thanks the one I Umer. that characteristics Solta, the differentiating which highlights or think morning, revenues

machine stream to street and and Like for so And the said, today. we're corner. a base growing our asset to put XX% piece on out really is great business opportunity sure a the out a we looking that ratio and reusable do maximize business our able that's of What business, to of of Solta. dynamic XX%, have We're do looking in been And that consumable has not of every means great Solta well. the there. a model extract I we every fantastically equipment just revenue a it's that about it's make

Joe Papa

is on information X Phase the now commercial the near question significant think based two We forward trials, do On to clinical that have we believe that that opportunity. the your completed on having the future. second NOVXX, X a Phase do FDA in to submitting this very data look we we

on disease. view this eye good a meibomian efficacy with Our dry certainly with that dysfunction associated is have compared to gland we disease. I very has the be commercial it for seeking dry want eye opportunity clear, we -- are

differentiate that therapy. versus In help made marketplace. say the my will look comments, show look targeting. So, that to We that data we will able is believe a us symptom from differentiator release being be I existing that are brief the to we important But at specifically clinical what but that, onset comment, and going at to to within time days. a very XX preclinical we're I and data

So, compared a Restasis at opportunity. significant a look we very that really a it to will Xiidra product as have or

be bit do to want that Sam, NOVXX little nonetheless, Rx comment? real there a opportunity it. take here a patients But different that do is you product. - last Now, we that's think our get we stat segment going for to

Sam Eldessouky

the Yeah. And we timing around look really we little various inventory, between we derm, it's inventory. just at to a month, one orders. bit fluctuation to the it's let the that's at look Umer. try stay natural target Overall, where you of one-month, scores, me when in the a When fluctuates touch stay the on

Umer Raffat

Thank you, guys.

Joe Papa

Operator, next question please.

Operator

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

Balaji Prasad

for Hi. from Good couple me. morning A and questions. thanks

of the takes it launch commercial to launch as and think me us next I and the year? next with around Firstly, about on it into for expectations XIPERE. the the the also the form next question. drug of spend going that's help And investment of year, you the kind needed the Can

you you XXXX? So forecasting the currently, $X.X I consensus But commenting levers around Street we year. about will be as you that for Joe towards that $X.X on. the out can know think billion variation for is EBITDA, this on billion is next said, this guidance EBITDA call later Thank major forward for you.

Joe Papa

guidance Okay. commentary. that I terms I'll first do Sam take the and second one on combination and XIPERE one of in will the of

which all, in to terms XIPERE the it of deliver is the treats products about the that the it that patients space, be because important commercial First the eye. think suprachoroidal into will made during in my call going and I very way we only the comments comment we're first launch, excited to product of an

it able be do launch of mean that for Second to that quarter comment, us? thinking to to -- though, starting what we're in does about of What terms XXXX. in going first in

ongoing as today, process needed So here that for side, I'm with this can I launch. believe the in we we sit here is force that when we some product. the investment the ready get as we activities the commentary commercial the think have be of and headquarters for the Probably have it. do our out with there of all are in making we really on and sales today we

going as treat position not can it comments part already exact patients make we is the required think consequences be the launch be treating. believe the only superchoroidal we've an expense. be it's to not activities and expectations, can that space, vision, having not are of we that their first we to of That important patients happened. successful. treated of to has specific able I'm It's is So, an important initiative, the the that we through think, this consequence - treat and product but believe lose on and going to got ongoing a activity our sales any being

the opportunity we XXXX, talk as a will there's for we've we're the made Sam, we make not the really guidance the comments about with think the as IPO. going any real XXXX to question we specific on out So go here. on Solta comment, do

as talk will that we Lab out Bausch We go with IPO. & about

we also Pharma this be Some are now. February on anything XXXX time comment making frame. further say And for Bausch that really. then will else prohibited on Anything that question, can in in total,

Sam Eldessouky

Solta, point, from mentioned, moving was us one of where Not the with but of you'll we at probably the IPO areas this as we the as as we'll I think hear it's IPO. start more forward -- launch Joe --

Joe Papa

I Operator, question, have question. for the one for you Thank more please? time maybe Okay.

Operator

Thank you, that And with question Truist. from sir. comes go Fraser Greg Please ahead.

Greg Fraser

thinking second you get question label are any on that with you current And Good as Thanks re-financings? Bausch is Can walk leverage separate through do LUMIFY. ahead the the such necessary address debt to structure on Thank morning, you And for folks. reaching you'll expansion you. target, label? the product my think Pharma spin of how for taking what questions. B&L about from need could the How on your opportunities?

Joe Papa

the take Sam, first, take the I'll LUMIFY.

Sam Eldessouky

question. for So Greg, thanks your

couple of about loan. a don't is of think unsecured job nice of things we you debt which and debt about about the have roughly we that XXXX. when about it's of you terms which So the term $X.X until we've the XXXX, making the about billion, our $X.X of manage did years, any the and very maturities, And consists landscape debt, billion, secured $X in one that of over it think done of and billion the sure maturity our and in maturities when

as point at if like terms maturity. you think a we about with Solta, either to we which I are said, from delevering, is path value raise thinking will remaining bring EBITDA. or we we sold be as the the need well action But able where feel able through the specific today, about this we money again, as one about for think we be to take as and we'll use be will to leveraged dealing as Solta the of anything down of that IPO in where don't to start to So path monetized debt, any

us majority and P&L level of this that for That's and in able You IPO deal for debt it for the as were of and outstanding at thinking we of would will the to with XXXX. combine our really pretty the that XXXX from you be that about approach see with give what how point. dealing And we're it proceeds potential raise think funds and the well as sufficient proceeds impact will I that B&L. the much with

Joe Papa

LUMIFY, you question on opportunities. Final about was the how had think expansion we label

a let So in terms me start bit where start. little of we

allows a and First think the integrated the are but an got surgical number be successful new a for both all, in also platform the We with seeing we're believe is very integrated to the of we time treat LUMFY of eye launch one having the us think seeing seeing optometrists of We for great an ophthalmologists for we very that product that business. optometrists reason product, of that frame. by ophthalmologists, recommended platform Rx that the and we're any because having example we was doctors business, the our health business situations. also we many where doctors, part in consumer different rapid have

think LUMIFY. eye red it's of of clearly with action. think I months LUMIFY a the the continue action. was better Number within two, the mechanism see it of expand because simply XX we treatment We first category that will to of the of mechanism

we because to that's, the do. which that of other products think the eye, arterial we the So flow blood some constrict don't

the part the mechanism reason we're action. the - that's of believe because Final opportunities, comment extension it simply category, seeing category and it the We have be of of are just is the growing than that we but terms line that expanding action share, of rather the to We also the believe mechanism of a continues is number is why think why different in taking I And also one product. we're long-term also you're we there growth. category, expanding view reason bring But We if have clear the continue relief, LUMIFY opportunities as line think can products. you can of think other eyes, it's to products patients at look forward with the allergic as label about in eye also for help have quickly redness clearly, we're also the certainly than redness there example, who just with combination to it for with products the more that are to eye. combine have to one trying we ingredients active going extension new indications well. LUMIFY opportunities

lot ways of very we address the it we're for optimistic can and about different a future. that So LUMIFY

Joe Papa

comments concludes today. That my

want we plans to of busy I tell few a next and that everyone many months. active First all, have for

today. stakeholders Have communication a have great to for and I expect to us We our everyone. day, frequent thank that everyone all with of time over joining period, want

Operator

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

You now disconnect. may

Bausch Health Companies (BHC) 2 Nov 212021 Q3 Earnings call transcript