Bausch Health cuts outlook as Q1 sales take $35-million hit due to pandemic

Headline results for the first quarter:

Revenue $2 billion (in line with forecasts) Unchanged
Loss $152 million Versus loss of $52 million

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

What the company said:

Bausch Health reported that sales during the quarter were negatively impacted by approximately $35 million due to COVID-19. CEO Joseph Papa commented that while the pandemic has presented "significant challenges to our business, Bausch Health has a global, diversified and durable business model, and we believe the company is well-positioned to return to growth after the impact of the pandemic fades."

The company noted that the wider loss was primarily driven by decreases in the benefit from income taxes and by income from certain operations.

Other results:

  • Bausch + Lomb/International: $1.1 billion, unchanged from the year-ago period, with gains recorded in the international prescription and global consumer businesses
  • Salix segment: $477 million, up 7%, primarily driven by Xifaxan, which grew 23% during the quarter, partially offset by the loss of exclusivity of products in the segment, mainly Apriso, which negatively impacted revenues by $40 million
  • Diversified products: $288 million, down 9%, attributable to a previously reported loss of exclusivity for a basket of products
  • Ortho Dermatalogics: $133 million, down 4%, hit by loss of exclusivity for certain products, mainly SolodynZovirax and Elidel, which brought down revenues by $15 million, and was partially offset by higher sales in the global Solta business unit

Looking ahead:

Bausch Health lowered its revenue guidance for 2020, "primarily due to the actual and anticipated impacts of the COVID-19 pandemic." The company now expects sales this year to range from $7.8 billion to $8.2 billion, down from a previous forecast of between $8.65 billion and $8.85 billion. Analysts anticipate sales of $8.4 billion for 2020.

 

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