Bausch Health Reports Q1 2024 Results

Bausch Health Companies Inc. reported its financial results for the first quarter of 2024, showcasing a robust performance and significant growth across all business segments. The company achieved total revenues of $2.15 billion, reflecting an 11% increase from the same quarter in the previous year. On an organic basis, revenues rose by 8%. The company’s adjusted EBITDA was $665 million, marking a 13% improvement from the first quarter of 2023.

CEO Thomas J. Appio expressed satisfaction with the company's strong start to the year, highlighting the fourth consecutive quarter of year-over-year revenue and adjusted EBITDA growth. He attributed this success to the company's focus on advancing its research and development pipeline, improving the balance sheet, and executing commercial strategies. Appio also noted significant business developments, particularly the favorable appeal decision in the Xifaxan® case, which is crucial for the full separation of Bausch + Lomb.

Key updates from Bausch Health's R&D efforts include positive Phase 2 data for Amiselimod, a treatment for ulcerative colitis, and the completion of enrollment for a global Phase 3 trial for RED-C, aimed at preventing hepatic encephalopathy. The company also announced the U.S. launch of CABTREO®, a triple combination product for treating acne vulgaris, and approvals for Thermage® FLX in China and Clear + Brilliant® Touch in Australia and New Zealand.

The court ruling in the Xifaxan® appeal upheld the company's intellectual property, preventing the approval of a competing drug until October 2029. This decision supports Bausch Health's strategy for reinforcing its Salix segment, which reported revenues of $499 million in the first quarter of 2024, a slight increase from the previous year.

The International segment reported revenues of $265 million, up 7% from the same quarter in 2023, driven by growth in Canada. The Solta Medical segment saw a remarkable 21% increase in revenues, reaching $88 million, primarily due to strong performance in the Asia Pacific region and the U.S. The Diversified segment reported a 3% increase in revenues to $202 million, with organic growth of 6%, led by gains in Dermatology and Neurology sales. The Bausch + Lomb segment posted revenues of $1.099 billion, marking an 18% increase from the previous year, with significant contributions from all business units.

Consolidated operating income for the quarter was $281 million, up from $175 million in the first quarter of 2023. This growth was primarily due to increased revenues and higher gross profit, partially offset by higher selling and promotional expenses and research and development investments. Bausch Health reported a GAAP net loss of $64 million for the first quarter, an improvement from a $201 million loss in the same period last year, attributed to higher operating income and a gain on extinguishment of debt.

The company also generated $211 million in cash from operating activities during the first quarter of 2024, compared to $154 million in the previous year, reflecting improved operating results. As of March 31, 2024, Bausch Health had $755 million in cash and cash equivalents and significant availability under its revolving credit facilities.

Looking ahead, Bausch Health reaffirmed its full-year revenue and adjusted EBITDA guidance, with anticipated total revenues ranging between $9.3 billion and $9.55 billion, and adjusted EBITDA expected to be between $3.2 billion and $3.35 billion. The company remains focused on strengthening its balance sheet and exploring various strategies to reduce outstanding debt and enhance its debt maturity profile.

In summary, Bausch Health Companies Inc. started 2024 on a strong note with significant revenue growth, strategic legal victories, and advancements in its R&D pipeline. The company continues to focus on its strategic goals to drive global growth and improve patient health outcomes.