Bausch Health Chief Executive Presents 2019 Outlook at J.P. Morgan Conference

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LAVAL, Quebec—Bausch Health Companies (NYSE/TSX: BHC) this week provided a company update at the 37th Annual J.P. Morgan Healthcare Conference in San Francisco, and chairman and chief executive officer Joseph C. Papa used the occasion to forecast a strong sales year for what the company calls its “significant seven” products. The presentation to the financial community was called “Pivoting to Offense” and highlighted the company's recent performance and accomplishments in its overall business transformation. (The company changed its name from Valeant Pharmaceuticals to Bausch Health in mid-2018 amid an ongoing attempt to reduce a high debt level.)

The presentation is available on the investor relation’s section of the Bausch Health website.

Bausch Health is “the most integrated eyecare company in the world,” Papa said during the investor conference. In his presentation, Papa predicted revenue of the company’s seven key products will approximately double in 2019 compared with 2018 results, driving overall sales growth for the company. The seven products include eyecare treatments Lumify, treating eye redness, and Vyzulta, which is indicated for the reduction of intraocular pressure in patients with open-angle glaucoma or ocular hypertension.

Papa, who joined the company in 2016, has shifted from an acquisition-focused strategy to an emphasis on reducing debt. In the presentation, Papa noted that the company repaid more than $1 billion of debt in 2018 with cash, which was generated from operations. As of late last year, Bausch Health had total long-term debt of about $24.4 billion, according to financial reports.

Papa also said the company expects cash generated from operations to exceed $1 billion in 2019, and this will be used to reduce debt and/or making “bolt-on” acquisitions. In addition, the company expects to increase R&D investment by roughly 10 percent in 2019.