Bausch Health's loss widens in first quarter

Headline results for the first quarter:

  • Revenue: $2 billion, up 1%
  • Loss: $610 million, versus a loss of $152 million in the prior year

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

What the company said:

"Bausch Health entered 2021 with strong momentum as our recovery from the COVID-19 pandemic continues," remarked CEO Joseph Papa, adding "many of our leading products have increased market share in key markets." The company noted that first-quarter revenues took a hit of about $100 million as a result of the pandemic. Excluding a favourable foreign exchange impact of $33 million, and a $10-million impact from divestitures and discontinuations, it said quarterly sales fell $8 million compared with a year ago.

Bausch Health attributed its greater loss during the first quarter mainly to an "unfavourable change in our operating results." Quarterly results also included a $469-million goodwill impairment charge in its Ortho Dermatologics business, as well as an impairment of $71 million related to a product line in that division.

Other results:

  • Bausch + Lomb: $881 million, up 1%, hit by the negative impact of the COVID-19 pandemic
  • Bausch pharma: $1.1 billion, up 1%
    • Salix segment: $472 million, down 1%, primarily driven by the impact of COVID-19, although the company noted that organic revenue recovered to near pre-pandemic levels
      • Xifaxan: $366 million, down 2%, due to lower prescriptions mostly in the long-term care channel
    • International Rx segment: $306 million, up 5%, boosted by higher sales in Latin America
    • Diversified products: $227 million, down 5%, largely due to a previously reported loss of exclusivity for a basket of products
    • Ortho Dermatalogics: $141 million, up 8%, driven by 39% growth of the Thermage franchise, partially offset by a decrease in net realised pricing for medical dermatology products

Looking ahead:

Bausch Health reaffirmed that it expects revenue this year in the range of $8.6 billion to $8.8 billion, with adjusted earnings between $3.4 billion and $3.55 billion.

The company also provided an update to the planned spin-off of its eye health business, saying that Papa will serve as CEO of Bausch + Lomb following the separation, while Sam Eldessouky, who is set to take over duties of chief financial officer at Bausch Health on June 1, will head the eye spin-off's financial operations. 

To read more Top Story articles, click here.