BHC.TO - Earnings call transcript Q1 2024 | Bausch Health Companies Inc.

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

Operator

Greetings. Welcome to the Bausch Health First Quarter 2024 Earnings Call. [Operator Instructions]. Please note this conference is being recorded. I would now like to turn the conference over to your host, Garen Sarafian, Investor Relations at Bausch.

begin. may You

Garen Sarafian

Interim welcome Conference and Appio, Health's Quarter John First Executive Good Participating to in Earnings Barresi, and Health Call. of Thomas Financial today's XXXX Officer. Officer morning, Bausch Bausch Chief call Chief are

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

Our results should of from measures materially along other performance. be with the not financial risk in filings an used titled to, expectations. We could to our actual some of ongoing alternative with, forward-looking as use those financial measures accordance expressed cause help comparable measures our forward-looking to may vary list to non-GAAP business and from results in materially be considered undue our the any or not and should calculated Canadian statements, not on refer GAAP. may that filings similarly implied and Non-GAAP understand factors actual differ reliance securities with but our Please you to administrators statements. SEC companies measures our investors a place for by

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

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

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

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

is over pleasure otherwise the CEO, year-over-year Appio. to noted. With Tom? to same turn We that, period last comparisons call to year with will Thomas our the unless my it refer

Thomas Appio

while XXXX quarter revenue delivered welcome to year-over-year year making Building strong and adjusted of footing. have our our started fourth excellence and mentality. the on in those the of We focus another consecutive Thank patient-centered EBITDA. We our both established operational you, momentum, of last we maintaining quarter on this on joining morning. call you and growth growth

of excluding basis. For reported growth or Health, Bausch segments quarter X% an when B&L, the a on growth. quarter prior by organic X% year. delivered were was of basis to the billion, organic first Health, first $XX both XXXX, organic Bausch XXXX, revenue $X.XX for million on on to a All basis compared up Solta revenues and excluding B&L, approximately an led million, and EBITDA compared of $XXX XX% for Adjusted X% with increase reported the

on timing the progress R&D with quarter, our during line make to key our continue initiatives also in established We goals.

First, for a Phase ulcerative colitis, Amiselimod, III meeting we in and of UC. with Phase for met FDA for mild II to end meeting April, planning severe the an

at XXth. a presentation In addition, we pleased were Digestive to accepted for have been Amiselimod Week podium on May for also

completed enrollment first second ahead Second, of Phase which for goal the April, of we III of for completion is slightly global of the end trial our by late RED-C XXXX. half in our

Overall, we of to And the our year. made good we shared we to time have and half anticipate could February. continue for this the and are lines in pursuing occur according of in progressing progress approval third, we pipeline feel second are the CABTREO about the R&D Canada on

the of Circuit court's and the On of Norwich. Federal our order. XX, April judgment U.S. also modification XXXX, August of Turning the for the the had that Norwich affirmed Pharmaceuticals to Delaware's litigation with motion XXXX, Court final May decision Court XXXX, U.S. Appeals for XX, denied XX, District

version patent Amneal XXXX, of On filed the Paragraph that IV notice FDA We until formally FDA we approval a of are the the maintained to the under pharmaceuticals a Xifaxan potential against lawsuit of Circuit receipt XX-month ANDA pleased ANDA XXXX. April an initiates any judgment litigation submitted the preventing the approval of Hatch-Waxman's certification Federal for a the had for ANDA. a Norwich's and of generic Amneal Xifaxan. This stay Act approval action triggers market X, October Amneal's that stating following seeking process to

in intellectual to property deserves health patients our benefited chance to we to to every As from most the health, are and continue our to the forward the to have gastroenterology for better of vigorously leader make of advocating continued who life. look outcomes a Xifaxan. We defend committed serve patients as access safety and patient continuing

matter, we in coming the with Trust to On settlement the the months. IRS the be expect continue finalized Granite to

company's As we the have have of material flows. results indicated, previously the impact cash not anticipated the on does or settlement outcome

first on million liquidity we $XXX of bonds sheet focus to billion debt of $X.X approximately continue million our quarter and on of balance as $XXX XXXX the repaid and including our noted maturities over the We with QX, and year-end XXXX ended with call. liquidity. In

+ separation now The + a priority. Bausch of Turning potential to the Lomb of be Lomb. full strategic full continues to separation Bausch

the regarding strategies evaluate to full separation. continue potential We

be result toward occurs be full other that and at appeals transaction approvals. companies. The two based to to if relevant on objective subject in all its B&L. assessment a of decision the an and Any of shareholder Norwich structure Any when milestone and will the separation and factors potential will circumstances. a any subject outcome significant of of applicable the also capitalized quarter or represents separation With ensuring matter separation the in appropriately regarding

reported of non-promoted X. Salix our to X% and of Slide overview growth grew by driven segment Relistor X% Xifaxan with by year-over-year now organic revenue performance Turning offset for for and pressure the quarter, growth on net of pricing and certain slightly an products. starting Trulance

year, in expect demand an see Trulance, and in X%, to TRx grew X% will products Relistor, X%, continued of year. strategy reinforcing tools, our for continuing revenues respectively. to our quarter Overall, we of X% last this DTC primarily further over Xifaxan we investments the important quarter, increase growth first sales make advertising, franchise with growth key this drive which Xifaxan, in of the During AI-enabled

year-over-year Organic growth Canada, quarter. saw X%. Contrave of by organic during led with X% solid We international. revenue quarter and growth first where strong we to growth from performance the of in was saw a growth Turning the reported

on DTC for pleased product foam through we this We XX% Asia this our our in public driving the also growth and promoted XX% long-term build to also investments have ongoing begun organic products on health in efforts. are first Aerosol an revenues focused were UCERIS Pacific. marketing by Canada. Across investing for in Medical, and to receive increased segment, on business We listing plan led Solta basis, a development reported In by momentum. on

Thermage in with meaningful as growth year-over-year where organic in a we pleased focused the reported delivered believe Asia we solid highly on the China driving business. We quarter there revenue. U.S. medical over growth is prior Diversified, now see Importantly, X% the dermatology return growth to on are This and FLX a and X% to approved in year. was and device posting by momentum remain in markets XX% with EMEA led growth opportunity. In we U.S. maintaining

late As been early we volume discussed on encouraging. our has U.S. year-end call, January CABTREO and the launched script in in

the capitalize new as over contributor opportunities the to market the significant created supply by constraints. product expect slightly Neurology more competitor continue the we be a to remainder on year. the We grew in to the of revenues dermatology business

higher of investments business challenging expect offset and cash our by on and growth and our in Wellbutrin in we we the to where strategy opportunities declines Aplenzin, managing pressures investments targeted slight pricing generics reinforcing consistent our led script dentistry profitability. competitive generation appropriate. products as profitability our continued focus of on to a net these was volume make a see did where will in we sales XXXX. Overall, through remainder this mature expected, decline pricing business in continue growth and improved While portfolio lead of while to for for environment looking managing This products to

R&D the GI pipeline. starting developments our in on pipeline Slide X, with latest Turning to our

antagonist and you presentation including XXth gastroenterology As December, for has in evaluating Annual Disease prestigious international on this Japan for our a expect of recall, with EMEA of later Amiselimod II Digestive May are positive selected FDA Amiselimod at the professionals. with we Conference, to a held year. most April authorities, and results UC. We largest and we Phase In been announced the events podium pleased the that the III in one top meantime, Week's the for meeting treatment Phase study meet and will planning line in from SXP

continue a program move for the II end the by for that with initiate to forward Phase We of planning expect Crohn's to disease year. and

Turning to cirrhosis. with RED-C in early for program our rifaximin reduction decompensation for of

hepatic XXXX. Our global our the underway. deformulation program program Both mentioned, completed Enrollment in efficacy global hospitalizations. previously X,XXX of which as trial, XXXX, trial our rifaximin North and for XXXX, first the of; over across related versus to America, in of focused and half enrollment encephalopathy to this the on Pacific. the expected these SS of Phase first trials December placebo of III occurrence second goal are for assessing delay the include completed the was ahead Asia studies are for for April Europe patients Together,

now pipeline. our to Turning aesthetics

Products and following for an quarter in and could We by return We the to laser in year. National have of half for approval to skin are Thermage file second plan January be in FDA approval TRX Fraxel pad anticipate resurfacing in as this received available QX, second the to submission China the a fractionated the XXXX. Administration of pleased customers next-generation device our the SLX Medical

skin and clear to laser rejuvenation Finally, for advance. brilliant for fractionated our program a touch, continues device

we this New Zealand on products representing our continue and we feel Europe, are Pacific to this products. and the outside new in our United we regulatory the remain durable in first of markets. XXXX about portfolio global year, and progress on good and have of focused authorization submissions on these R&D grow pipeline remain aesthetics as approvals We in received for track other key initiatives, of States Asia making next-generation Australia market approval We and Canada

making committed by assets, leadership investments existing driving team, are and a with leveraging excellence. As targeted commercial we to our growth executing

first to a to continuing mentality. With will further that, pipeline, details John? call the patient-centered with all performance, over turn the I who John our provide Barresi, on will progress quarter While

John Barresi

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

Solta First X% and an basis X% strong mid-single-digit over growth on and quarter reported $X.XX up with organic on were revenues year in last reported organic billion, segments. our an Health, growth the to quarter other low same a for Bausch B&L, basis in excluding

to performance, with on starting revenue XX Turning segment Slide Salix.

prior million period grew represent prescriptions Retail the saw of versus for period. TRx products, strong another long-term basis, increased Revenues double-digit $XX and year for IBS-D year. and growth on in channel divestitures quarter by in revenues $X included growth million on underlying X% prior Salix We Relistor units XXX, revenues reflecting in X%, the to QX the an HE. products. Xifaxan grew organic Extended care a in certain saw discontinuations million, $XXX which Xifaxan QX basis TRx solid quarter XX% key year nonretail X% impact X% this the non-promoted Trulance. growth over clinics. net quarter units over of reported growth and attributable from with growth grew outpatient our year. continued relative Relistor a prior of and solid growth Xifaxan benefit in driven First XX% prior favorable revenues TRx to to of the pricing compared to the delivered Salix and in QX of segment increased of to demand. including

declined TRx offset of X% of revenues solid was Trulance last compared by year year-over-year to growth QX pricing net X% pressure. as

key was EMEA growth and while non-promoted nonpromoted meaningful purchases experience to were the million of timing by basis portfolio growth were on organic basis our compared LatAm net quarter, basis continued offset the of an certain products. in in on We in prior was an government X% to increase this was EMEA, with the flat private revenues sales products year an $XXX LatAm and segment. in pricing showing effects by Canada. The by of competition impacted reported on channel a on X% our organic also during led Organic International the of growth, promoted period. pressure

on XX% prior revenues year million during quarter, XX% over of the Solta first period. the and Medical reported basis an on basis a an organic were $XX increase

Solta's by led remainder South and growth to of a lesser degree, Korea, Asia was China and the Pacific.

XX% a this sales in to quarter reported this drive and increase growth sustainable Importantly, this over revenues in and on U.S. our net $XXX to continuing quarter-over-quarter, a prior revenue to of an quarter year Dermatology, returned X% organic million XX% reported period, on moderate volumes pressured. an for year and as are XX% compared were while market. Diversified returning to in during growth by which from first continued in basis the prior focus we a force increase quarter the we on business to on period. of quarter, the related the invest for to year, on and nonpromoted grew the pricing prior we over the consistent favorable In the to Growth with basis tools organic basis be key X% the the revenues products in will benefited basis growth. continue expect comparisons an remainder year our

in driver of As grew lower revenues Tom become saw a from are progresses. although early continue response our improve benefit grew increase since to January noted, dermatology levels in business. expect in competitor year-over-year and supply growth the a and continue we it slightly, the we this revenues Aplenzin our as at of not with overall to its market in profitability same more execute the pleased late Neurology volumes we to Wellbutrin as meaningful the we CABTREO business launch X% year strategies XXXX. despite disruptions, that as QX to to posting

to While investments last continue remainder for revenues term business year, and the in the making the sales expect are modestly we quarter related this we durable growth compared of XXXX. tools QX invest this the long in to in to business dentistry of team to declined through and the return

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

first to Slides on P&L XX. Turning the and quarter XX

gross higher compared consolidated year. XX.X%, margin quarter the with adjusted basis was First XXX points prior

an approximately margin for higher than gross of year's basis Health, XX.X%, of for excluding for adjusted XX.X% of XX XX.X% by expenses Bausch QX driven operating mix, Xiidra. Consolidated For gross the B&L, was were million, margin adjusted including increase adjusted to first product impact the first last $XX compared quarter. points At quarter million. was first quarter XXXX, for XX primarily of the $XXX QX B&L,

by we compared the Health, excluding of dentistry R&D expenses decreased Bausch businesses to to approximately A&P For $XX cost management. by by investments on were B&L, Higher lower driven XXXX. in quarter dermatology offset and operating G&A as adjusted continue the and first million focus expenses

for to and to We by annualize of represented the in increase increased for A&P, we Miebo. of of sales increase Salix. launches, period. the the our addition expenses X.X% was the of increases Xiidra over an and and moderate prior product expect B&L compared A&P of course operating prior investments in as for selling with quarter product selling million, including year compared to an million to Consolidated adjusted adjusted X% the year primarily driven in year marketing R&D expense begin $XXX reported due the $XX X%

as our the continue for we R&D line expenses For is same to and quarter increased excluding pipeline. B&L, Bausch the of Health, quarter approximately in our expectations in aesthetics year. as with GI compared increase invest This $X million $XX million by last first to

EBITDA Health to the $XXX excluding was Bausch XX%. million of or a Bausch first of in adjusted $XXX million X% for Health, increase $XX for million, from consolidated Adjusted attributable an increase quarter, million the EBITDA was B&L quarter XXXX. quarter First $XXX

quarter. Turning the cash million consolidated $XXX million cash to operating flow flow Health of adjusted basis, first a cash flow. $XXX of Bausch and in generated operating On

performance. compared improved first XXXX, B&L, adjusted flow million the adjusted of excluding was reflecting first Health, for cash business Bausch flow $XX For for to with changes operating $XXX the million quarter quarter cash primarily of operating the

of interest a Adjusted we've are contractual payments payments matters as as as of insurance the adjustments costs, cash notes the senior classified the part other includes a result in debt cash for flow prior and the portion transformation our XXXX for As well our exchange, as as issued business of of discussed cash financing flows. treatment of quarters, interest costs, net full payment proceeds. separation of and litigation accounting

on Slide sheet balance our to turn let's XX. Now

by million. the the net and management liquidity our Health, we quarter, reduced of sheet. B&L Bausch $XXX prioritize balance excluding cash by debt to for million, decreased our continue $XXX We of debt first while delevering In

evaluate maturity reduce overall We to on also to continue leverage focusing our profile. while alternatives our

the As XXXX in market of approximately XXXX, $XX principal [indiscernible] we on earnings in and discount repurchases, of process. year-end capturing call, value January open XXXX maturities discussed million in through $XXX million the

excluding debt facility. credit of million of We availability the $XX of additional facility our and $XXX amortization repaying AR approximately outstanding the million also under million quarter, AR term and outstanding under our B&L, consisting borrowings $XXX of facility. portion repaid Health, mandatory our At Bausch of first revolving had no loan and a had end

excluding XX, of includes $X.X created unrestricted unrestricted Lomb issued billion and end As third Bausch shown billion of of under debt the which billion, $XX.X notes approximately total issued Slides $XXX of $X debt our $XX.X senior and subsidiary and Health, excluding XX approximately debt, the on B&L, by Health, quarter million + and AR of billion the at was of Bausch for Bausch which restricted quarter in drawn secured the XXXX facility. by the the consisted

debt, facility. of of is of and fixed ended basis $XXX quarter with B&L is $X.X which our XX% XX% a our approximately the consolidated approximately liquidity, debt of includes availability debt of and million the fixed. million under cash approximately $XXX approximately on Excluding billion company's credit revolving We

agreements, are maturity to strengthening based various appropriate and strategies our manage along our sheet, our leverage. liquidity focused with profile We of and on provisions the debt balance our both including tools our on existing as overall evaluating and utilizing existing

guidance. to Turning

the our year We maintaining for guidance XXXX. are full

adjusted of growth and X% adjusted to flow B&L, of $X.XX back Health, $XXX of $XXX revenue to with $X.X to million cash expect X%, of million. continue range the hand Bausch operating the call For I'll to approximately Tom. billion billion now we with in along $X.XX organic to billion, EBITDA excluding $X.XX to billion

Thomas Appio

Thank you, John.

urgency deliver Health health to Bausch with their Every my outcomes. take on With please of make us the have in better worked your enrich Health behind to focused We portfolio commitments. objectives work. and strong the a our drives we results-oriented continue out last and businesses adjusted for again interest priority. These now with business and to continuing the of company open and the also questions. to health and EBITDA I to strategic position efficiency mindset adjusted B&L health our cash on development operating team, investors extend the team trusted on Operator, achieving and to ambition integrated hard Executing products providers, by our relentlessly and long a term. delivering deserves our laid we deliver better full of culture most of remain care patients, and highly thank business globally lives. On that, separation focus accountability, behalf support across like remained flow patient support to excellence employees evaluate and thanks of our we I would once patients a for on are against for their the the you This and as our entire all drive operating life. need intensifying the company. global will to delivering priorities to enterprise, being build valued of most revenue, for helped rigor alternatives, driving the chance They of care Bausch Q&A. tirelessly and and the entire including R&D operational quarter, cost-focused health line

Operator

Instructions]. [Operator

first is Glen from question Santangelo from Jefferies. coming Your

Glen Santangelo

Tom, quick me. just ones of a for couple

the milestone. milestones had in is mind? separation, the separation go? major for are tax-free number the the on you strategies being you still the follow-up full to decision Or as might way the spin evaluating? balance exist? the it Is sort you significant quick highlighted or full then just Norwich are And the -- as of And a be you I might sheet. think there then other or a your of that maybe a strategies about committed and reiterated What that a remain to You times milestones

Thomas Appio

Glen. Okay, important milestone. the appeal of for the an Thanks Norwich course, question. is Clearly, decision

know, that need consider. really outcome. to about So with and really we the there's we pleased multi-factors as that you happy here are But

So to as we capitalized distribution, timing a we really making companies. the the it, at potential point is sure have look appropriately the that most take of fundamental

terms comes So comes as to our what things of have know, at as you or when we balance litigation it there's parts it moving you. look to when sheet, it, other in

kind and look making a to of through needs it through say when the So us. going progressing really take it, I a full we priority be would what we is when it done. separation, for is at at thoughtfully What look sure

for the in making to our can it we've XXXX, And two we're talked a as separation you priorities on key with full before, again, appropriately totally is about As of see sure, B&L. priority basically, capitalized companies. line

Glen Santangelo

while leverage be? in committed commented sort to appropriate you level you maybe tools a as down. follow that up strategies lot on of on highlighting gotten Tom, using investors remain leverage it debt When I ratio And mean, it you think the haven't RemainCo, post sheet. of we've How about but maybe targets, to do put related various of RemainCo think work leverage you pushback you of point the about just a those leverage kind spin. on seems that the the balance the any what from and on towards might the to

any through about the balance that of thoughts the So should sort on of year? think we how

Thomas Appio

what overall, quarter one let is key and then Glen, really in of I'll quarters, John. focus Look, saw first X it my me the performance. this of focus is do as give driving Yes. just point -- you take I'll driving But consecutive last that, the growth, to my

able Of us always helps debt. be course, continue to to that retire

quarter, this U.S. internationally, is in So business as results broadly. growing the and a we the and growing healthy business have saw globally. the And both for you really

performance performance the the about great growth. the saw performance You really U.S. we Solta, of feel and in to of the the return really

portfolio of appropriately. -- our and the have we products. is doing we're R&D executing a investing on well. And clearly, really healthy So pipeline business and Diverse then is

I'll at things, it positioning look can our on those ourselves sheet. balance look we the specifically to as hand we as we're do. sheet and over we to balance So John all what speak at

John Barresi

John. it's how minute a Yes, Glen, point right? on the ago, we're of two to it think I think one there's -- measure we've for we're that. no It's And on those capitalized both what binary comes Thanks very of target, said question. maturity as that's for about with we our point a I focused about Fundamentally, think focused really companies. back And said, do our balancing to Tom leverage managing leverage profile. appropriately the effectively.

We have our a lot at of tools disposal.

focused Tom $XXX operating business. We're said, of cash-generative As business year. in to we're guiding on very $XXX growing to cash a million adjusted this million the flow

We working both done have all really And in We're use the earlier. we the in as in We've you geographically, asset we'll sales Tom's heard there's have product-wise think of tools footprint, market the a past. value past. debt and that. pipeline, and done prepared do repurchases, we available, that's to broad and the exchanges that whether we've on diverse remarks open

and our billion have We the stake X% at of of BLCO approximately disposal $X.X liquidity.

we So it as your about think doesn't things and maturity but of about all profile the are question directly leverage. a the managing we both target, point those think answer

Operator

Your next Nedelcovych TD Cowen. from from is Michael question coming

Michael Nedelcovych

the Great. question. Thank you for

Xifaxan that in noted, explicitly full I is think been that the time, connected likelihood the recent Bausch to of least the completing Lomb. + of separation the has has As look for past at first management this

will face generic XXXX at mean XX-month take outlook would just the right us at challenge Xifaxan's consider So the competition doorstep full if puts which secure, that value, for we uncertainty stay that the of persistent be until when Xifaxan. the of Amneal almost question and begs

to circumstances? Lomb those So under + the I'm it wondering how Bausch possible will complete separation be

Thomas Appio

asked a lot press of in the I've seen It's going for you -- glad Yes, Michael, thanks Amneal. forth because I'm things the question. and back it regarding

performance make product. continues firstly, the is it. just is that perform I interested Xifaxan clear huge looks Everybody So is great, we're They're to a it in grow. at sure and and want to it,

record, up quarter highest on TRxs high. You saw round we the with where all-time

and it's investments and growing the well, behind doing it's we're making So it.

That So here Norwich was one, Paragraph the issue here number most the the I patents thing is unexpected. the Amneal same. think that -- in not What not on issue IVs, case. the important are is, were

new there's So patents.

So to outstanding really, we I this is legal team have and in hard. have is legal -- such really team. it at an it great position looking a a am really working and who on

at work it, many we consider Amneal through. it as patents there to So the look we issue as

on be. I But speculate that's working strategy a So a cannot it. it again team it surprise, we will wasn't have the that what clearly, and was on

that So -- see see I to situation has, that time don't work see real continue. to we're we but we move forward it Again, probably going we're that others, going we'll really could as the as frame it hard.

Michael Nedelcovych

a follow-up? I May ask

Thomas Appio

Sure.

Michael Nedelcovych

generics anything the thing? companies Are them to settlement prevent would doing the indication, in just from for with file you same ANDA there is a the you you others other preparing for that Norwich new IBS suggested may see just the And now.

Thomas Appio

Yes.

is or we October the can't right got do the I I until the What is, market for So will it at denial say months. off Norwich This know, team of of Norwich legal who's it and milestone and motion, the monitoring us. the feel we as speculate it, is large great we have a we'll see you just of the how ruling, now, weeks coming a in would affirmation looking works what XXXX. out.

Operator

Douglas Miehm Markets. coming RBC is from next from Your Capital question

Douglas Miehm

potentially be comment discussed would you anything to past, pursue the may capital question, or event it take do distribution the Is that as there update company of on or First the the just separation? separation has approach whether whether in the you butterfly. the would in us can company not return a the to or on you its that in the potential approach

Thomas Appio

I focused on is thanks Yes, has tax-free making that point, say question. would deemed no the sure in talked we at been this shareholders. for are made. But Yes, a the What have still past. it's we about Doug, decision to

So continuing as progress. to we keep all options open and evaluating it

Douglas Miehm

important we situation. trying Okay. you've getting court are may thing, is part that, long And you just give is stock I know the a an believe, able drop thought why not could but maybe this you But on know been be to really to on to of I second when I update situation taking date, relative you to And or then that close finally, then resolve so material. IRS that? resolve that? the

Thomas Appio

of slow. and IRS, then on I'll come ask back the out. that, question course, John moving to to opt I'll is your the Doug, take

John Barresi

that expeditiously Doug, we've behind really we past, us cash matter I through flows. as a getting to complicated on the results settlement settlement in we'd think, at well. IRS currently our have on matter of the can. our impact a point. disclosed still as I with the that official It's working think the process, a or yes, love as and have as and not expect We're the we this material will It's

Thomas Appio

of this. a question working then out. the And We've been point, has again, part -- at date. take second the legal I'll I earlier, team knew consistently trial Yes. on the that some we're have the just going team, out first pointed your regarding to opt as The

narrowed. we as we remaining very it on would how have been And are claims is we have and would some settled settled strong a date. had you a We to this, XX dismissed. we As on of out what it. we'll judgment work of closer have opt-out say, XX focused or move -- also either class. the litigation XX. What summary progresses to The I been the on continue team say had pending we'll And is success see total settled trial know, I actions we've on opt-out actions have,

Operator

is question coming Raffat from from next Your Evercore. Umer

Umer Raffat

here, couple I if Maybe a may.

within body, one. envision for two, 'XX And or U.S. months ex debt spin to down do the take held care creditor gating needs path? well intending go investors? so be of plans? you First, number important on then that That's to as are completely to has the as Are possible aggressive very debt of what the the situation. of any in amount liabilities your you where point the scenario is any XX Xifaxan off finally, or separation. And Xifaxan an regulatory clarity some post U.S. potential a Is that or for coming up there number factor

Thomas Appio

to just Yes, let for now, Umer. questions. Thanks the he on comment question can the that. give issue maybe me the -- John, debt Right

John Barresi

certainly 'XX, of what I our our or 'XX all back disposal. in I'll We a number our of Umer, questions, and the tools in really 'XX, our we're think right? earlier said I go of Yes, focused have one leverage on to maturities at 'XX.

We have $X.X of billion liquidity.

above We a cash-generative assets, that very the of have of distribute that business that a with tax-free BLCO broad we stake we have distribution number cash while have valuable threshold. including in generate to portfolio the ability flow staying we can the significant and

And all those ways so at our we're as manage looking to maturities. of

things on to comment things these and the won't specific we've of other sales, say we'll continue any may I of past, that, all combination of look levers. all Beyond to in at that we debt done asset a do than exchanges, those OMRs,

Thomas Appio

I've really of that our And say B&L. the have would first Yes. priority making we is of the aware I'll specific or is said companies. capitalized not What times your body U.S. the part two I question last Umer, any of regulatory is Xifaxan I'm take appropriately ex And point separation is the to many in of full U.S. sure question. your

So and question. we really But prepared it. updated and -- the as remarks earlier, my we there's as work as Thank keep appreciate is I on progression I said really, it, some a work as it into we we'll through you. questions earlier work everyone through

Operator

Your next is Fong from Chi from question Bank America. coming of

Chi Fong

now secured this. you I on conveyance with after settlement? a fraudulent the Gerberry discussion ruling, Chi has manner And the of guess in at the Norwich potential on I about that for been BFA. is the one, couple have a follow-ups company in This Jason first claimants

Thomas Appio

in can't can't I been we're what again, at that I on But comment discuss this time. always have we looking discussions. basically, discussions options. really at Chi, the to Yes. open and

had follow-up You a question?

Chi Fong

on of one One A follow-ups. the Yes. on SG&A. is couple first --

than ratio So I'm usual? in to look coming if do ratio the see higher not, if XQ, SG&A seasonality at high little years? any the we as XQ how evolving ratio drive spend a you spend in Or looks that mid wondering the XXs. the there's

Thomas Appio

you looking are consolidated? Chi, Yes.

Chi Fong

consolidated. Yes,

Thomas Appio

Yes.

bit Miebo. spoke So of think product I significant BLCO some the like And I both consolidated to a has think is launches their basis, the well. BLCO side Xiidra been on yesterday A&P supporting investment and driver a biggest There that little a on this as there.

Chi Fong

the trial trial Crohn's Amiselimod, to any on curious UC. is Crohn's. thoughts Okay. this you entire international III II of you a come I meeting? on then continue there have also pipeline. with with if as understood Phase -- points Phase investment your there? But the thinking as have And the end up considering from to Got were you look that you're of my surprising to in you do that last any discussions capture think On of Crohn's, feedback Phase spectrum moderate III recent it. II the [indiscernible] I'm I Phase early agencies. one meeting, about strategy Phase And in And you're FDA still you still mild mention of III have

Thomas Appio

on question you appreciate and the Chi, thank the Yes, really I pipeline. for that. the business

the As we completed. them interested in later presenting had we this our and are are on podium up we accepted and that coming you know, which month were the happy When Amiselimod, data. getting on we as at two pipeline really RED-C focused fully really trials is these look enrolled DDW, really at

were that in really release, II, know II on large pleased data had with trial. press very our we you Phase we As our Phase the

it, product we look a progressing Our -- strategy at here It UC with the that very large, we see market perspective, compete this We the can FDA. and here a is we think when nicely. meeting this. on and well, went from we're have very we

a launch, to So probably by billion. we're the $X billion we're of between market looking time $X to really, ready

growth great for back really decade. half So of in a driver us the the

and hoping to to to to we later this we've plan III think think on Phase XXXX. On year know, beginning UC that we Phase here. II as Looking at a participating the II Crohn's, seen We get -- a out would market of have $XX moderate again, this the over you a trial, love we're run be our compete. We have, trial, going what Phase really that can billion we data, real severe that or the of drug market. based in and again, And CD. up running is large a

it, the course, and structure this some SXPs that how appreciate we Now I we're look in have on Crohn's, the yes, at II question. failures of we really but success. mentioned going Phase the can pipeline. to you we think the Thank of trial when in you question for

Operator

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

David Amsellem

of a just couple focused questions. Long-term So questions.

once of product the erosion you as I are a And see guess generic about generic terms at surrounding the thinking materialize. you of trying rifaximin of your rifaximin do competition your are of expectations of competition. some means impact how cushioning next-generation I'm In get what franchise business, to what is the

alluded extent the sense you potential of novel potential market increasingly number commercialize own have two, on So on the that thinking about know you that's your question, to it? think in to such agents based crowded you here the research, number the Amiselimod, with but one. context as how then have sales do about for How TLXA? that an market other I prior on do mechanisms the And Amiselimod you're it you sales a

Thomas Appio

David.

we really -- really with pipeline. is of also, again, one we over mentioned we point for trying with the that Xifaxan you things firstly, the I this When Xifaxan have and we're global launch So pipeline took on get with questions today. is I'd program, Clearly, -- on out excellence it patent. And CEO, get execute RED-C, fill prior as Head at the timing the look there of when I'm program. we're the going the and accelerate thanks where of do our as I we're just to off here, going how business for trial. on progressing and that to R&D this to the a off the to gap. to are glad really I question going at this worked RED-C, look to to patent, I like

We have a global new rights. formulation. This is

as in in gastroenterology and So, really up, opens liver. Salix, you this know, history long us U.S. the

This globally -- just we this is just us just a this Now, prevention. of around is the look prevention. We RED-C. towards platform some really when kind at going put gives alone. Again, in it, with U.S. numbers the a

in the pool can the U.S. much So larger is look that we to

And just we're and have now treating -- only And and XXX,XXX. [indiscernible], patients So if you're you Xifaxan have that given XX% out cirrhotic look you if the if take today prevention, XXX in of you it's so were patients the at say then about today, today, over [indiscernible] you at around the have that that. XXX,XXX. U.S. XXX,XXX XXX,XXX you

in prevention. And to of just pool So on that's have if look you the at that a the we patients U.S. then

If out the portfolio to in international model international you a GI that then and building space. markets, liver

see question about our course, talked great platforms as as really opportunity of data, it Amiselimod we're about, look the excited we take great second I'm When on is it's here And got international around -- we we have the really what As I really business you at we we exciting your need I talked as world. a but -- about the well. is, RED-C. a

-- Looking III into III our Phase forward program. Phase to getting

we're R&D the real Xifaxan. losing again, because we know team And focus

be team. RED-C, them with we also I can say where these is would our close gaps? of with is So another can BD One What Amiselimod.

the the strong have over X things last one really we team. that of BD have built I we a done think years,

And we we therefore, close international looking slot gap in that States can in are so be bring can able find the to businesses to as United to well. our some into assets the in and that

the to bring making So quality and really priority also a -- perspective, screened that the the we for cost? that have we product. sure What of BD why does really from assets, pedantic the be of it this pillars a us. of one we make is but And asset to to a making accelerate our it sure it fit? right is you also real number quality That's in -- from priorities is how and in of see have sure our the about pipeline, remember,

thank we can So the as for great this the into diligence, continue a products bring that build making do it. appreciate question. quality Really sure we're pharmaceutical and you company we to are high company. that But

Operator

Securities. Leszek coming from from is Truist question next Sulewski Your

Leszek Sulewski

couple a of on have do actually pipeline. the follow-ups I

the in trends what Thermage, you're the there to go-to-market this -- And you would program feedback And product would within is regarding for ultimately on Canada complete, strategy And category how then can you that disclose secondarily, what from initial is is the So how any China? data third, on that seeing? preliminary on release study market line in data? And your into is once plans or market the launch? also both for one both then the line there enrollment time now approved. top And prescribers is trials handicap your from a for launching CABTREO, opportunity RED-C or sizable results? And and you with possibility there on big together? strategy you

Thomas Appio

question. Thanks for the

So loss to in it being able I'll only Again, now, registered take Xifaxan in and the RED-C. but prior U.S. data to see, early can the 'XX, and track world. first making hoping then, we'll it key. again, trying get that deliver file sure sure is of course, and that, we of around on that get late the trial XXXX, to have one on would be Right RED-C make we not and the

this. look done ahead the it's has the a to acne. set. Again, really down having our had been XXXX. team we The and the of again, for really patients our launched has great driving then a ahead stages. feedback sure think it. to the a this I crowded time on previous in space, the really would is knowing R&D it's but And We love really it's from and product. team If just on customers CABTREO, Xifaxan frame comes What in We script we're at that The And also samples. making filling see great that, gap in focus back excited is goal question We about it generic a So product is we going is -- I going and actually early that's where job it. here. strong. all the wonderful product. I say launched our growth,

have excited really we samples we're on. the now coming that So

the campaign up in happen DTC few coming have the next also months. will We that

FLX has R&D the of really is great business this a and in product job for am a China, really our So derm I here focus bringing the excited. done team market to for again, patients. Thermage an outstanding

know, As you years. lived China in for I many

know well. So extremely market I this

have think an outstanding I opportunity. we

saw the of our performance you As business.

by led Asia been led quarter by This was well. as Pacific has -- China, outstanding

at the our looking on last meeting would had say just I are launch it strategies Thermage. We week, and went we extremely well.

at is, the you hear strategy and of you in about opportunities China look again, here if lot today, China. Our the economics a

But market. was though hear impact, -- the took an of you post-COVID, about you but you in savings property even we target also if a terms at that a look In that there lot the look the lot China, and at the patients place. COVID had of

doing So they things. weren't many weren't traveling,

that in there, So very, treatments see we products. our our see are popular. see economics that you patient And has what and you very to China, the use population also the opportunity noninvasive

China. name a has in great Solta

a brand. have We great

having be the great think we device have opportunity. building team. a now We're approved, the it as So our approved by we first to [indiscernible] RF

accordingly. I in we team, there In But the so we many we're I'm the to on Thank have be confident China then talk years, and weeks question. lived strategies those that. we executing the for strategies sure we make but going of place already China. And do, successful to to in real next to the are for I'm really a fact, going piggybacking couple business in more -- just have I'm on going in you it, grow to

Operator

for the question end to answer now closing Thomas Chief Executive Appio, reached and session. ahead. Please remarks. I'll go of the conference hand We've Officer, back the

Thomas Appio

the I just future of we're looking and everyone's say can to is, today, pipeline really call, making questions is on our at the and I try really what and would to What sure appreciate the performance Yes. business the what that be. everyone

today. joining for everyone thank really I So

all at want the also I said QX here is know fourth momentum in build had in. consecutive I As Bausch growth. what need really making is execute do say many excellence. and really quarter with a of to this we QX. would team We I solid Health on times, to we sure we

future. say commitments priorities, sure your saw a look is and great the day. support what -- like our and forward interest all making continuing Really and So company. appreciate to have for you you we our keeping lastly, this our company the for position delivering what it, of are, to thank to I'd And I priorities the and really you updated

Operator

you, Thank everyone. event. This concludes today's

at have disconnect this for wonderful Thank may participation. and day. a You your time, you

Bausch Health Companies (BHC) 2 May 242024 Q1 Earnings call transcript