Bausch Health boosts full-year guidance as second-quarter loss narrows, sales edge up

Headline results for the second quarter:

Revenue

$2.2 billion (matching forecasts)

+1%

Loss

$171 million

Versus $873 million

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

What the company said:

"Delivering a second consecutive quarter of reported and organic revenue growth, our second quarter 2019 results demonstrate that Bausch Health is clearly pivoting to growth," commented CEO Joseph Papa. The executive added "Bausch + Lomb/International delivered its eleventh consecutive quarter of organic revenue growth…and Salix reported more than $500 million in total quarterly revenue for the first time."

Meanwhile, the company attributed its smaller net loss to an increase in operating revenue, while expenses fell 20% to $1.9 billion and loss on extinguishment of debt declined.

Other results:

  • Bausch + Lomb/International: $1.2 billion, flat year-over-year, with the segment recording 4% organic growth, excluding divestitures, discontinuations and currency impacts, due to higher sales volumes
  • Salix segment: $509 million, +15%, driven mainly by sales growth of 21% for Xifaxan to $356 million
  • Diversified products: $313 million, -7%, mainly caused by lower sales as a result of a loss of exclusivity for a number of products
  • Ortho Dermatalogics: $122 million, -13%, with 41% revenue growth for its Global Solta business and new product launches partially offsetting lower sales due to loss of exclusivity for Elidel, Zovirax and Solodyn

Looking ahead:

Bausch Health now anticipates full-year revenue in the range of $8.40 billion to $8.60 billion, lifted from prior guidance of $8.35 billion to $8.55 billion. The company also expects adjusted earnings of $3.43 billion to $3.58 billion, versus a prior forecast in the range of $3.40 billion to $3.55 billion.

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