BHC.TO - Earnings call 2 2023 | Bausch Health Companies Inc.

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Operator

Greetings. Welcome to the Bausch Health Second Quarter 2023 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, John O'Connor.

You may begin.

John O'Connor

to Second welcome Conference XXXX and Call. morning, Bausch Quarter Health's Earnings Good O'Connor, Investor Vice Health. is Senior This John President, Relations Bausch for I the a looking company at recently ago, joined I'm and Bausch few Health. forward Relations Investor weeks leading effort here to the Health; call Bausch Tom in Officer today's Appio, Executive Financial me with Participating Vadaketh, Tom Chief are Chief of and Officer.

We forward-looking moment like our of that presentation at forward-looking important information. Before to beginning that today a information. take the you we ask to begin, the you remind accompany statements as I'd the this read that they contains slides presentation contain

refer Our our our filings and the vary forward-looking cause materially place the SEC may Canadian actual you with for results a could our that Securities and of those our Please expectations. should differ some not results actual any expressed list to to in statements, from factors on of undue filings or implied reliance Administrators from statements. materially forward-looking

to accordance used We measures performance. but an be measures titled use similarly along non-GAAP financial be and comparable to considered in may alternative help investors financial should as measures Non-GAAP calculated with, our other not with companies business by GAAP. not ongoing understand to, measures

website. to Relations will this the slides presentation, in You that reconciliations our Investor the find accompany Bausch on which measures non-GAAP appendix Health's of are available

not this undertake guidance financial in is We presentation to any obligation effective today update do the Finally, of as only. guidance.

today excluding + discussion Bausch Lomb. Our focus on will Health, Bausch

Bausch results + announced Lomb's yesterday. we However, briefly comment on will

unless otherwise year-over-year comparisons with We same the last to will year, period refer noted.

call X, held or may be XXXX. and archived of recorded those webcast, to listening the August who the benefit on replay was this For

our turn is the my CEO, pleasure to With that, Appio. Tom? it Thomas over call to

Thomas Appio

joining this outcomes dedicated a create enriching quarter focused Thank that tirelessly relentless call you, will progressing This of At results team those to our through our this and Health, patients is business objectives. lives performance, BHC for was key welcome to touch better the morning. health The on with Bausch is highlights team of strategic you our number and display to physicians. and John, dedication full delivering upon. drive I on

additional in X. Bausch B received the reinforces Xifaxan quarter enhances $X.XX that which or a strong growth continued XX% a Slide sheet further Health, up initiative to Salix and an We We excluding our $XXX liquidity for the ruling billion, + our an organic revenues with motion investments Turning reported L, XX% on basis. proactive had litigation, favorable million strategy. We in balance executed profile.

to continue our we continued evaluate We take + Lomb pipeline. distribution, we progress thoughtful of steps the Bausch potential R&D and as implementation optimal a to

some our me business Let X. start of sharing as performance Slide on shown by highlights,

L Medical, double-digit B non organic The Salix, Solta where and double-digit This declines. + business on the International diversified of revenue -- a quarter, we saw posted out decline, few quarters from X last an reported growth, basis. modest segment improvement and both have X seen segment a

taken has we While that these the pressure businesses. neurology are remain team the help will and hopeful challenging, generics temper actions on

Salix, am are to we this than marketing and I laid levels have QX in to commercial we segment. plan the in the the in investments on historical Building pleased out this to to profitable continuing revenue segment that investments a I growing each our we net to segment take off. million, Let's XX% higher for this turn. $XXX were quarter. increase beginning are since growth pay in report became segment drive sales CEO, in sales made

understand new we will Xifaxan customer our team. This primary AI how drive to field at needs our made way time. engine by the have team address the engagement key initiative AI we customer AI to pleased to and part with the transformation. engine launched best improve force care are The to am our to significant engaging our I we AI strategy physicians in of at initiative share patient revolutionize to potential customers, that we help progress right of interact growth. a and with be has the We excited the the engagement forefront is to right believe that this our

educate models IBS-D to improve improve and team for to of MSL team. care physicians reinforce now our trained of team guidelines. treatment part working is physicians engage with patient The Xifaxan As the largest we establish care, continued The medical understand thousands and gaps patients. care patient advanced commitment HE expanded leverages analytic field from and to fully expanded and insights to

products for have as connected and and we in addressable health consumers health our for not options increased well social potential targeted that are to are Xifaxan channels portfolio untreated These they IBS-D believe currently approved provide deployed as our wide digital media both across the undiagnosed, efforts We many their indications, our care a with as need. range Finally, such investment different GI other patients media and care have yet HE. being and met activation effective of full platforms. of education providers campaigns to in TV

a XX% reported International. basis, and organic EMEA by in the strong both Canada. to Turning grew second Revenues quarter and of performances by in XXXX, led on

growth Emerade was year, did we Tom the of cover prior V growth our epinephrine with still a which the International will voluntary from recall the in benefit a more impacted by detail. the in our comparison quarter pleased business, While to auto-injector, in quarter's are favorable which

and to our view, While voluntary prudent to action our in decision was, nature, decision take. recall the responsible in the

Solta on year limited growth of included reported impact unfavorable markets Asia was Asia in very Pacific strong Medical. Pacific the an and in a strong. activity related lockdowns, XX% region, reflecting also other while increased XX% in China COVID to basis, which due QX on to performance organic in by Revenues last

build and The teams listen quarter, to generated than what results our teams durable of Solta visit to significant Solta products see we pleasure XX% China profile as build motivated revenues to This and long-term new sales, a working business I on franchise. very the where highly business. doing deliver launch Kong opportunity our and they aesthetics U.S., had dedicated are aesthetics to an are to continue with world-class continue growth. from and are More for represent and consumable attractive to we global Hong

authorizations growth new We the of largest markets and are to advance -- teams actively generation and and working our new by in new in accelerate Europe our products. our expanding pipeline sales product market U.S.

dentistry the by generics Turning moderate helped on organic neurology and in growth Revenues a Dermatology decline to in businesses. Diversified. and which basis decreased quarter. the reported and had QX, X% in the

our our last business to in campaign our is and business. increase and marketing our investments Jublia in for noted intention expand quarter, Aplenzin for dermatology awareness As to consumer advertising our neurology

For grew X% driven the by revenues dentistry second Arestin. year-over-year, by quarter,

for have awareness growth. We our restructured force to our expanded sales efforts Arestin this consumer drive in business and

performance am overall business in second our with the I pleased quarter.

for as increasing B always, value remain our revenue + we excluding for are delivering We stakeholders. Bausch committed this long-term year guidance Health, and to L, for

In business addition of strong we the other the in to performance, positive quarter. had number developments a

final shared X, ANDA final XXXX. Court the Pharmaceuticals' to to positive in the Norwich the Xifaxan judgment Norwich's granting XXXX court's and Delaware approval District from before of X. the May FDA Turning motion prevents U.S. denied for news for October U.S. modify that XXX Slide We milligrams

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FDA the of that ANDA the Xifaxan X, final it Following XXXX. the tentative receives of approval then launch remains Norwich's but Court the the the confirmed District October cannot different final United to Norwich modify than the court a D.C. separate motion is the a the matter FDA final the This the granted Norwich District action final in District from a and lawsuit. expect final direct we this Delaware decision issued have Court States bared lawsuit in denial approval in until fall. approval for The that judgment. from intervened product briefed, in FDA notwithstanding court requested FDA opposed the to district judgment. approval final its until the being it Columbia. is XXX, This to FDA. Norwich sued ANDA Norwich's Norwich's ANDA that for judgment, granting we the currently Court's of grant and

providers safe care fully and our represents. Xifaxan health with treatment the options and vigorously intellectual and that providing committed We patients are to defending property effective

successful additional liquidity. receivable, balance addressing continued proactively $XXX with providing of We KKR a and nonrecourse an facility be million into entering sheet source to collateralized accounts by financing us our

of completing potential the complete to We make + Bausch continued makes efforts and that sense. Bausch to strategic progress separation Lomb + believe continue our on Lomb of to distribution the

relevant are completed. any factors to As distribution distribution, optimizing and for we is continue related evaluate to we a exploring structure the when if options all

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We the unmet pipeline, the medical program formulations shown to cirrhosis. are global remain as progress for RED-C decompensation early on needs. our focused is for about in working Slide on We hard of program to address developing Xifaxan excited X. novel reduction The

the with is Specifically, aimed for treatment the HE, hepatic patients occurrence first cirrhosis. encephalopathy, at of mild presenting

enrollment underway. in from of in and Medicines III Canada Evaluation Netherlands to meetings National completed Phase Health completed feedback program To studies positive QX Medical and currently date, XXXX. with have we we Administration global expect studies the are on Board in is have these in progressing be received Enrollment in scientific China. Products the trials both and advisory the Two

to later authorities planning are in this year. Japan We the currently with meet

programs. have I are noted, these global As

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is Touch program and also Brilliant with for Touch Asia XXXX, for a is for laser Brilliant and device advancing fractionated Clear rejuvenation. planned Clear XXXX Europe Our skin submissions Canada Pacific and

next-generation under VASERlipo energy which aesthetic for system, ultrasound contouring for release in body late uses Our is planned and development XXXX.

leading features developing improve for to Lastly, is we a are what on already in noninvasive exciting product skin FLX tightening several treatments. Thermage

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will With will our over I provide Vadaketh, on Tom to who Tom? turn details call quarter second that, the performance. further

Tom Vadaketh

joining with same Health and Bausch for year. everyone, last consolidated up on thanks for Hello, organic billion, revenues Tom. XX% of quarter over us. the the an We second Thanks, basis $X.X quarter closed

basis. modest revenues on quarter Health, Solta Salix, billion, + for our Diversified in segment we quarters. a experienced than $X.X more in B businesses XX% organic L, We recent decline saw up in Bausch while were International growth and Second excluding an our

each for detail, Slide more into starting dive performance segment Salix. on with the XX revenue Let's in

organic and Xifaxan XXX, including million, an growth Second core basis products, driven revenues to $XXX increased and our in Trulance. quarter reported Salix on Relistor XX% by

Tom increased the X% As Salix same commercial quarter in overall we're grew begin X% and Salix's Xifaxan, Growth mentioned, in awareness the in to quarter which investments of pay And led organization demand. by seeing demand the was form second compared year. off brand grew to last our year-over-year. in

generation demand from levels. care increases remain rebound our efforts, a addition the that In while are occupancy benefiting long-term in with to channel increasing we levels below in still pre-pandemic

XX% and and and Relistor the posted XX%, performance growth year-over-year of We total with XX% are also growth XX% with quarter pleased of Trulance, sales second respectively. of which scripts

In quarter, reported Canada on increase prior the of $XXX organic XX% the period, of in a strong year future market. key our revenues reduction of compared also EMEA. a were by an year to $XX markets a change in and benefited growth in and to led was our estimates basis promoted related EMEA, in million revenues International the from returns growth during in one in portfolio prior million

Health May XXXX between and Bausch Emerade lots distributed April May, recalled In auto-injectors epinephrine XXXX. for

there While as in the totaling well in purchase cost we million together outstanding of revenue and goods $XX other impact for quarter. was quarter had a commitments limited write-offs from as inventory perspective, charges finished the

back bring actively this product important patients. for are to working market We to our

by QX XXXX. prior was in with year the in in for decline overall the Asia during the soft million in supported is COVID-related Pacific Solta Revenue long-term Medical the quarter, Solta quarter. near- continued pipeline XX% growth. were was compare of markets an other second prior the an U.S. several by primed over XX%, upcoming milestones, Medical strong quarter and year tempered in Solta of a revenues to Growth a growth a growth lockdowns increase With China due on in basis organic period. $XX

on revenues dermatology neurology sales sales offset Diversified down an a primarily due and dentistry. across were and in in by partially second X% increase million, quarter, generics, basis decreases to organic in in and the $XXX reported

see Wellbutrin. continue to volume We for erosion

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For Jublia example, and dermatology. dentistry for in Arestin in

XX% shown on XX, L Bausch during year, $X on organic the + a basis across basis Slide + billion to the reported segments. on B with up compared all prior quarter, As growth revenues Lomb were and XX% an second

P&L on quarter XX. second the to Turning Slide

basis Second quarter with consolidated adjusted compared year. lower gross XX margin was the XX.X%, points prior

last XXX changes by a product Bausch Health, -- the gross was excluding adjusted decrease points the lower + year. mainly For the The and for that B quarter basis margin charges was in XX.X%, mix L, the recall International in driven I than second Emerade change segment covered earlier.

of L On and expenses QX a $XX reflecting R&D. gross currency driven compared an million, XX% margin of in increase side, the B adjusted or operating + by was flat expenses basis, Consolidated constant adjusted second investments $XXX higher million XXXX. sales the marketing on for were with and SG&A higher quarter

of while B excluding increased $XX increase L expenses Health, approximately B $XX L, million Bausch operating For an reported expenses. + operating million by in +

we costs advertising investments due The increase Selling companies. L, activity. reflects force, standing the channels go-to-market year. to G&A Salix for and of our making for and Adjusted flat B Bausch increased to promotional excluding Health, and public are with compared the costs L, sales + marketing B consolidated in associated Health, the prior Bausch was the adjusted + G&A excluding in X

prior represented year expense increased the quarter to for sales for compared R&D period. the XX% prior and with X% the net of year X% Consolidated compared

Salix million, in R&D our For focus primarily and + activities our Bausch development programs by segment. the on the support approximately L, and to Health, late-stage mid- excluding due expenses $XX B increased product regulatory clinical to

spend providers, restructuring and have accelerating clinical our is planned with which RED-C our the in We program. activity in approach successful been third-party

of adjusted a and $XXX or $XX was a basis on on X% currency million, X% reported an million increase quarter constant Second basis. EBITDA consolidated

adjusted of Health, year. L, previously for XX.X% For B margin Adjusted excluding and increase XX.X% consolidated Bausch margin factors a was last X% EBITDA basis, B On Health, excluding adjusted EBITDA from year, + second Bausch $XXX Bausch the last + XX.X% + XX.X%. L, was with was million, was quarter the for Lomb an EBITDA compared described. reflecting

million cash Turning primarily Health the of Antitrust in decreases was X legal positive legal On operating consolidated months. flow. of payments year insurance Glumetza versus a the from the to $XXX due flow and to accrued increase prior business Bausch The generated related to settlements Litigation, settlements prior in basis, cash the impact first in in changes recoveries performance.

issued As a $XXX also of from part result with Adjusted reclassified cash the payments accounting our was flow million. recent cash bonds as flows treatment to first on we have our a for of financing consolidated operations half debt XXXX a quarters, portion of cash basis interest as in the exchange.

L, For first costs cash contractual half, payment flow transformation from Bausch operations settlement $XXX separation the in conversion was net cash of in + Health, payment also and was includes proceeds flow the million the full B strong and our Adjusted -- from interest. expectations. costs, for line year-to-date adjustments includes cash adjusted which excluding with insurance the of business

to balance turn let's Now sheet. our

delevering quarter the Bausch of our prioritize B to second for L, XXXX, payments continue excluding debt sheet, Health, in million, our + by repayments. $XXX reduced balance the We including and -- revolver we of

year. at excluding of excluding senior unrestricted Slides the issued and on $XX.X issued created shown + of third last the $XX.X end B restricted quarter for secured billion Lomb, billion, of the total of which + debt Bausch by the of subsidiary by and was consisted Health, quarter XX L, notes Bausch As Health, $X in XX, debt Bausch billion

our L company's debt Excluding consolidated fixed. XX% a on debt approximately approximately the of basis of is debt, B XX% and + is fixed

draw Health quarter, second Bausch X additional source of corporate facility million end not approximately to for access million for X. facility we We liquidity years quarter, available the in the subsequently purposes. $XXX drawn $XXX giving but general with of entered KKR, have proceeds with into the receivable on as a the did At accounts an August

the and cash closing facility, revolving liquidity in under accounts the capacity With available our receivable credit of of excess and facility, $X cash company billion. has of inclusive equivalents the

Looking have B Health, excluding the XX. be XXXX updated + Slide second on ahead Bausch we the year, half which our of for guidance towards can L, viewed

billion both favorable Health, B due of billion, of unchanged. is range organic Bausch to in X% an end high our in change X% of + million expect the leaving foreign This L, $XX increase and now view $X.XX on of range. $X.X growth low to revenues we For the movements the of excluding primarily to exchange,

In terms patient seasonal first step typically and to we insurance second in within the half, Xifaxan, in half dynamics, of inventory second as particularly level related patterns in activity. see dynamics half well as a deductible sales Salix, to primarily wholesaler due up

We also organization. from expect the to positive in see investments our impact continued Salix commercial

For These recall into and revenue Emerade of consideration new International, with be declines. revenue to entries momentum we generic brands as the assumes guidance shortages. result positives tailwinds a our as to loss promoted due well of driving as takes the offset product by volume somewhat that competitor expect supply will of see ongoing the

segment, neurology, to and Diversified prior driven half in offsetting increase half, by first Jublia, year, mature sequentially declines in with Aplenzin, revenue second the dermatology. from compared the and we flat relatively sales in Arestin the our For across expect generics brands half to growth second

expect margin XX% prior gross continue line We in guidance. range, be in to to the with

billion billion. be L, excluding for is $X.X Full to still + to year expected Bausch EBITDA $X.X B Health,

from for foreign cost These includes offset the by and EBITDA currently in favorable of the programs, XXXX recall. reflects than for providing Emerade expect guidance savings. also partially adjusted R&D R&D are contemplated the in the impact the critical investment initially guidance of approximately and we impact higher million of items exchange acceleration spend Adjusted XXXX year. Our when $XX

advertising continue side, invest expense force in will our and key sales and activities to in we growth our segment. drive marketing expenditures tools. sales the in investments direct-to-consumer include brands These Medical expansion, Salix, sales International in On to Solta force and

initiatives the this which revenues, we year. impacts see we're on from these As Tom continue expect mentioned, positive to to starting through

EBITDA. adjusted below Moving

to expect to full be tax year rate We continue non-GAAP effective XX%. our approximately

at approximately cost expect remain We $X.X interest contractual to unchanged billion. our

L, we continue adjusted cash in Bausch Health, to operating $XXX approximately + to expect generate excluding Lastly, million flow. B

higher line of have will less we're first half adjusted second cash the the our earlier, cash year. We benefit expectations flow of expected than to generated I and half flow from is said this EBITDA which through second the half with the quarter, in expecting adjusted as compared operating

includes adjusted the Granite tax the tentative the said months. I'll costs, As call earlier, of inclusive interest settlement, IRS now adjustments I payment cash the cash full be coming the which of payment the finalized contractual for includes to also back hand expect separation Tom. of we and of to Trust flow the in impact payments,

Thomas Appio

do, we business have you, have Thank I much work Tom. still progress pleased with the to am quarter and summary, we In the made. although performance

you on can Our XX. see strategic priorities remain intact, Slide as

We enriching patients drive have for relentless create a physicians. through on lives health better our and clear outcomes our to purpose

We sales have made key our marketing programs and teams, focused drive future investments in will which growth. R&D projects,

We key strategic have progressed objectives.

entire importantly, is now an behalf Bausch you that, Q&A. interest our thank I of and company. With please our support for line all-in the we team focused. we for open have team, your and that results Operator, will and principled, Health take problem Finally, of creative, questions. On solvers

Operator

is Santangelo Jefferies. [Operator Instructions] for Glen first Your question from coming today with

Glen Santangelo

is a this mean. little of now if that's and it I as to of changed. tax-free had I'll the reduction of plan maybe you pivot like curious like seems mind. kind why of point? think a about I'm in of put what kind seems Everyone I on you And everyone's a terms curious them. pivoting may Because finer could ask you I'm a in kind guess of wondering bit you Tom, it be point question what this at capital.

Thomas Appio

good Glen, Yes, question.

the CEO and the it. and do what from to a It really management point It's spin the the best took was the of when and it, really ago. IPO to way would was years at that it over say It's be at to look team X over, a team is -- take complicated. at different good I going we top. question. announced Let trying What as was looking as me just course, took I

we to So capital. process for flexibilities basically, that reduction of that we companies when some believe both strategic looked we a we the to able could And manage way risks a of we're that create at some it, work help if trying find to believed can the under identified. additional simplify

Tom Vadaketh

couple just I'll a things. add of if Tom,

just transactionally difference. Glen, what So the

So what this result shareholders. this is reduction And the like B value B and + of in it's being the the + term the suggests, a in those L reduction shares is case, capital. L, effectively of the returned to

So sense intended there. the is efficiency, result the the slightly. bookkeeping change talking the change exactly shares L the scenes end What almost as changes is about that cetera. No cetera, we're distributed et + the in behind really B same the are before. tax et we No in

Glen Santangelo

a you that? clarify of spin. bit? tax-free move preserve the X% obvious or nature thought XX% the was about you can X% so I Tom, just sell than I thresholds, little the that to that different Are BLCO Because talking another but But maybe of something maintain

Tom Vadaketh

the No, same no. Still numbers.

in still the is We change same. it's So XX%. plan now same, is the distribute No right -- to that. the

Glen Santangelo

just of And ample much want generating you then Because my cash? I But what like expected it do you're sure little would didn't uses about I'm already bit about the is because BLCO, just it you talking you're maybe depending upon debt of have buy very question, a to -- capital Perfect. of that million or now make hop you're those last to liquidity, just in of And spin and I kind money it. maybe understand more are cash quarter, potentially have what going how is, the which flow facility. curious some I the $XXX Okay. and I'll more. more back you of selling seems raise the transactionally use would that

curious to proceeds. just use So kind I'm of those of as

Tom Vadaketh

the us. scheme an I Yes. things, was It source cost-effective for of and efficient grand of available. it's capital in look, mean,

It's So we like X now for next of it. capital the source a years.

just end draw $XXX the have in prepared of as about happens revolver. shortly said the the quarter, I it did after paid remarks, we my down million As down and

for example. one general corporate essentially that's So But purposes. it's

it listed, We that anything But including of OMRs, the haven't all cetera. to it's do earmarked et in just things particular. for kind available you

We in and to expect will -- I reduction that, our more operating deleveraging debt in cash generate said, to flow be $XXX million continues as than to priority. addition and

Operator

Your with next Gerberry America. Bank of question is coming from Jason

Jason Gerberry

question to little a bit So more. just Glen's wanted on follow up

I talked the so strategic the RemainCo. flexibility, via added strategic Just growth in PR think, pursuing you about

So side would -- on under about less the guess, have or the I favorable like entity would RemainCo thinking kind or more revised, mechanism what Just might look a curious debt ratio? that distribution leverage of carry other lot the and how that much firepower turns because M&A. like leverage a company thought X.X carrying north to company have deploy RemainCo and as was not might a we've long of of of leeway like of for capital

Tom Vadaketh

Yes.

Thomas Appio

ahead, Tom. Go

Tom Vadaketh

the company, we're our of the in targets I From or has X.X% those complete will continue with plan, as we it that. as no and we be will the too a there the of this perspective down like no considering CFO to debt need go we a that is -- forward. debt liquidity anything high, the company put talking structure are particular as This to pay right? target at change threshold that -- we connection we that's has put Tom X.X%. reduce to order remains or kind in the about That Essentially, transaction and the add start, that of of to that my So maybe comments. and and distribution. change out in that I'll some case, up to

Thomas Appio

this Yes, Tom. Jason, is

we just as and Let we much looked possible see to flexibility could me just strategically the both add -- changed. for to create at future. companies it, really in and that. now The how objectives then haven't and the the the when goals transaction key was simplify We it as of

Jason Gerberry

ask follow-up to was the I on a appeal. Circuit Federal just Well, going Xifaxan

[Technical court all XXXX, reviewing could the about Difficulty]. the is or kind still? of think if and court what early look place the that is injunction reviewing we wondering, outcome patent the So rulings like just whether be Just in should

Thomas Appio

Yes.

on motion appealing I said remarks, are is polymorphs, on and appealing on as patents motion. we which So my Norwich the in the XX(B) the the prepared IBS-D

So that's where it stands.

Of expecting now we're going on in course, court and to the together We of it. QX strongly XXXX. feel to appeals defend are rule we're vigorously the and with position our patents, our

Operator

question is ISI. Evercore Your from coming Raffat at next Umer

Umer Raffat

construction behind me. There's

versus with whatever does ruling, is plan District is My have change, And expecting? this bear into the Norwich are that plan Court or whatever me. please what is you updated Xifaxan how you now So the going spin? question a on FDA, the

Thomas Appio

the the that When at we FDA, here. we Norwich feel for look again, Thanks, question. confident filed Umer, case the against

We have intervened well. as

So to again, we And Delaware. what the is court feel confident -- that's FDA's ruled the in in where position are upholding they progress. going

that good So thinking therefore, to Time if case, we talk on we -- about of in that. line, feel line, a again, hear the we're real time of outcome a confident just is shape. XXXX fall we're the fall that of

Operator

Your next Sandler. from David question Piper Amsellem with is coming

David Amsellem

the do later longer what So are solvency help term, 'XX P&L? in 'XX address LOE importance on you of as us the that And the long-term could you you based for the that this and a debt is -- looking place, settlements think the Xifaxan, given how in and facing about the maturities in Xifaxan the decade. the companies better be light of of just understand in to

Tom Vadaketh

the said, long-term but as line. significantly say, we generation including in maybe year, the Yes. a that's specific or cash $XXX down see business right to should to business investing any cash I just highly forecasting And call, now about generative. growth increase that from growth. starting we momentum and 'XX, to have drop see this on grow in won't Xifaxan I build. including We're million. That expect generalities, from get Salix. any bottom will revenue We're This 'XX and the into between here

expect or would the years, we we'll company so as And X as for debt prioritize to we do have to and continue leverage has use the or that. last X

we our we'll going at is course. time, forward-looking then, out refinance we then investing that of debt it, we so that to a point, At over, be chunk of And will ratios. that what lenders between leverage think David. And to any in at have debt there now are we're And offset and if of knock you looking And left drop yes, a these will other and see in generic 'XX, from fruition. we play and growing. heard will into many be by to those in revenue, products as of pipeline though, and in expect a go to the bunch come coming it Xifaxan would even will Tom, products

Board that And focused so obviously, management on and through. it's of things The a are we're the key very the and question. working it one team

Thomas Appio

for accelerating last what and making. clearly, quarter, me in add that program, talked to we about exciting my progress we're an said. And RED-C the R&D really That's that the why David, this program saw, just as and pipeline. prepared about Yes, let in remarks, to the talk we're us. the quarter, continue making I Tom And that you investments is

and product Clearly, will we lose have now making will the through we if accelerated have, course, we comes sure the before of that data Xifaxan.

it. -- and excited very So we're very, about

Xifaxan current the larger population, much Of course, than is a patient today population. this huge

is So RED-C a track. program. global is accelerated. This on It's

about have we And the will global Bausch product excited first our so rights. Health it. global be and we're at therefore, This will

the II have of probably get as course, as the Phase completed comes studies data enrollment, and to the of really end Of beginning next year, it we through amiselimod, at year. excited are the

Operator

question is RBC next Miehm from coming Your with Douglas CM.

Douglas Miehm

reduction could like the occur bonds could what parent the holdco the moving back the going change, the that by that BLCO? remainder has an capital, to billing example that the Is be shares, distribution just say, in of that addition to, question, of in or First XX.X% XX.X%? something of from affected to the the in the tax-free the and

Tom Vadaketh

follow-up of I in know discussion this got know know XX% after don't more is whole first distribute followed we tax-free in I you or the question, the tax-efficient some a to no don't your end I or call. there right, the I question. to we'll will more. about in maybe I But bit Happy completely to think I said, to spin. order sense little change Doug, the now result, preserve as I than distribute. the what talk right have the The it asked. nature if plan is of if XX% that

Douglas Miehm

to through happy Yes. I'm really go that.

when just But those to complete maybe know X RED-C. expect our that the in in do expect to hands? expect enrollment you do data the has We with QX clinical do Tom, XXXX. one, we of When trials III Phase Second we readout?

Thomas Appio

Yes.

So be approved patent, completed XXXX, Xifaxan product get have course, we'll course, then, of Doug, file. early we've order going to of and late this of yes, And to data in readout see enrollment. off to XXXX, prior looking to probably in

I range. probably XXXX somewhere -- would in So say that the would

Operator

from at coming next Nedelcovych Mike Cowen. question TD is Your

Michael Nedelcovych

I first the litigation. regards to have My two. Xifaxan question

population, year question is but prophylactic do now, complete in is administer physicians what a of whether regimen that prepared first rather it's second the get litigation is adopt that I HE IP risk than the given the below know and realm we sense that That's a symptoms lifetime patient RED-C. to you you relates well any Xifaxan -- a Given simply [ question. And in it ] present? of bigger patients thioctic XXX%, are a to Xifaxan possibility know much resolution once there within the then XXXX? have

Thomas Appio

Mike, on -- the we in Xifaxan quarter. have a the appeal, in and appealing said of complicated appeal X And to as we IBS-D expect and they're prepared polymorphs. questions. on questions, When the decision earlier my remarks we to ruling this because first the I It's are course, the litigation, appealing is answers motion. good

our polymorph have is So and think real briefs. a IBS-D we as And out, patents plays position would we what we patents. our I submitted on say good it have

in So this see favor, but So and be -- will it resolved on patient how goes, said to it's Again, it. Getting it clearly, about goes if larger next -- to said on feel we'll confident feeling previously, I our and have you the a population. -- RED-C. question, we your all appeal, question it be in specifically right? as our as will much we're

things accelerate we program. of talked about why have we've the the One that of is to reasons invested one that and the

have is on prevention physicians to why medical working really teams educate will and for will HE. -- We be teams sales our our the way go to

not you in patients the If first about the after today, we're as talked my episode. making see in HE today, Xifaxan investments getting side. remarks the a take prepared medical treatment look that you Still on I

the if want believe is then or And as data, at versus a prevention be that from patient to a look HE from we perspective, to in. pharmacoeconomic having episode prevention people you episodes, clearly, that and an going will multiple something payer perspective, interested so HE really be

caregivers they If that but also what to goes only what really the have patient, what look to educate today to only -- caregiver. episode if -- them patients, of but HE direct-to-consumer, of you at you the we're is educate some on today, advertising doing not the not the happens an work to

education is a prevention Thank think but of going accepted, that will really question. we be a very be be sales and it's our our there team affairs medical you. something to lot much good will So teams. between But

Operator

are There no in questions further queue.

Thomas Appio

Okay.

no advancing focus just our performance, profitable further summary, unlocking So the today. progress value. QX with good made to R&D BD I of performance key look we for growth, We say, half of had call the questions, forward Thank and driving joining would and strategic solid second a with in on you and XXXX, objectives.

Operator

for your Thank may your this This participation. concludes time. at lines and disconnect you you today's conference,

Bausch Health Companies (BHC) 3 Aug 232023 Q2 Earnings call transcript