Bausch Health Says First Quarter Results Highlighted by Strong B+L Performance

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LAVAL, Quebec—Bausch Health Companies Inc. (NYSE/TSX: BHC) reported that its first-quarter revenues totaled $2.016 billion, an increase of about 1 percent (or $21 million) compared with $1.995 billion in the first quarter of 2018. Excluding the unfavorable impact of foreign exchange ($59 million), the impact of 2019 acquisition ($6 million) and the impact of 2018 divestitures and discontinuations ($18 million), revenue grew organically by 5 percent. The growth was driven by organic growth across the Bausch + Lomb/International and Salix segments, the company said in its announcement.

Bausch Health (formerly known as Valeant Pharmaceuticals) reported a net loss of $52 million in the quarter, and cash flow from operations (on a GAAP basis) of $413 million, which was “in line with company expectations,” the company said. Bausch Health also noted that the quarter marked the “highest quarter of Bausch + Lomb/International organic revenue growth since Bausch + Lomb acquisition.”

Within the Bausch + Lomb/International segment, revenues totaled $1.118 billion in the first quarter, an increase of $15 million compared with the year-ago total of $1.103 billion. Excluding the unfavorable impact of foreign exchange of $58 million and the impact of the 2018 divestitures and discontinuations of $14 million, the Bausch + Lomb/International segment grew organically by approximately 8 percent, primarily due to higher volumes, the company noted.

“Bausch Health is off to a strong start in 2019 with the continued growth of Xifaxan, which grew 11 percent in the quarter, the launch of Bryhali, the successful acquisition of Trulance, and the approval of Duobrii and [its[ expected launch in June,” chairman and chief executive officer Joseph Papa said in the announcement. “We believe that our promising pipeline and focus on Project CORE (cost optimization and revenue enhancements) has positioned the company to build on our growth in 2019 and beyond,” he added.

Papa noted that nearly 60 percent of the company’s revenues come from a diversified mix of medical devices, OTC products and prescription and branded generic products “that are not exposed to the U.S. branded prescription drug pricing environment.” He added, “We believe that Bausch Health is uniquely poitioned to grow in health care.”

The Bausch + Lomb/International segment (including contact lenses) comprised approximately 55 percent of the company's revenue in the quarter, with reported revenue in this segment rising 1 percent compared with the year-ago period. Revenue in this segment grew organically by 8 percent, due to an increase in volume across all business units particularly in global vision care, global consumer and international prescription business, according to the announcement.

In terms of product development, Bausch Health noted that it has received 510(k) clearance for use of the Tangible Hydra-PEG custom contact lens coating technology with some of its leading Boston gas permeable materials, including those utilized in the Zenlens scleral lens family. In addition, it has acquired the U.S. rights to Eton Pharmaceuticals' EM-100, an investigational eye drop that, if approved, will be the first over-the-counter preservative-free formulation eye drop for the treatment of ocular itching associated with allergic conjunctivitis.

Bausch Health also raised its full-year 2019 guidance range for revenue from $8.30 billion to $8.50 billion to the range of $8.35 billion to $8.55 billion. It raised its adjusted EBITDA (non-GAAP) guidance for 2019 from $3.35 billion to $3.50 billion to the range of $3.40 billion to $3.55 billion.