Bausch Health swings to greater loss in Q2 on charges, tax costs as Xifaxan, Relistor post double-digit growth

Headline results for the second quarter:

Revenue

$2.1 billion (in line with forecasts)

-5%

Loss

$873 million

Loss of $38 million

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"For a second consecutive quarter, the company delivered overall organic growth, driven by solid results in our Salix and Bausch + Lomb/International segments, which together represented approximately 78 percent of our business in the quarter," commented Joseph Papa, CEO of the company, which changed its name to Bausch Health Companies from Valeant Pharmaceuticals in July. "Growth in the Salix segment reflects higher sales of our promoted brands, most notably Xifaxan and Relistor, while organic growth in the Bausch + Lomb/International segment was primarily due to volume increases and strong growth across Europe and China," he said.

Bausch Health attributed its quarterly loss primarily to an asset impairment associated with the loss of exclusivity of a certain product, as well as a larger provision for income taxes than last year.

Papa added that Bausch Health is raising its full-year adjusted earnings guidance range, "and despite significant foreign exchange headwinds, we are maintaining our full-year revenue guidance range."

Other results:

  • Xifaxan: up 26 percent
  • Relistor franchise: up 43 percent
  • Apriso: up 3 percent
  • Uceris franchise: up 3 percent
  • Bausch + Lomb/International: $1.2 billion, down 1 percent
  • Salix: $441 million, up 14 percent
  • Diversified products: $336 million, down 27 percent
  • Ortho Dermatalogics: $142 million, down 12 percent

Looking ahead:

Bausch Health maintained its full-year revenue guidance of $8.15 billion to $8.35 billion. The company said full-year adjusted earnings are now projected to be in the range $3.2 billion to $3.35 billion, up from a prior forecast of between $3.15 billion and $3.3 billion.

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