Bausch Health Cos., Inc. Q1 FY2025 earnings call

Financial Momentum

• Excluding Bausch + Lomb, achieved 8th consecutive quarter of revenue and adjusted EBITDA growth. Revenue +6% reported, +7% organic; adjusted EBITDA +14% vs prior year.

Refinancing

• Completed $7.9 billion refinancing to extend near and medium-term maturities.

Litigation

• Received favorable DC District Court ruling in Norwich Case against FDA, confirming FDA's decision was not arbitrary.

Strategic Priorities

• Focus on unlocking shareholder value, growth (Salix Xifaxan 8% growth, Solta strong results), innovation (RED-C program, business development in cardio metabolic market).

For Bausch Health excluding Bausch + Lomb:

• Salix: Revenues $542 million, +9% reported, +6% organic. Xifaxan grew 8%, with retail scripts +1.5% and extended units +1%.
• International: Revenues $262 million, -1% reported, +5% organic. Canada's promoted products +18%, Wellbutrin sales benefited from generic shortages.
• Solta Medical: Revenues $113 million, +28% reported, +33% organic. Asia Pacific (South Korea +136%, China +30%) drove growth.
• Diversified: Revenues $205 million, +1% reported, flat organic. Neurology business +double-digit growth. Bausch + Lomb: Revenues $1.1 billion, +3% reported, +5% organic.

Full Year Guidance

• Maintained revenue ($4.950B-$5.100B) and adjusted EBITDA ($2.625B-$2.725B) guidance.
• Updated adjusted operating cash flow to $825M-$875M to reflect higher interest rate expense from refinancing.

• Tariffs: Impact on Solta business in China, monitored fluid situation; limited exposure to new tariffs, China market relatively small in revenue profile.

Q: Tariffs and operating cash flow impact A: Tom and JJ discussed monitoring tariffs, especially on Solta China; adjusted cash flow affected by higher interest expense and refinancing transaction costs.

Q: Solta growth sustainability A: Solta's growth in Korea, China, U.S., Canada; installed base in Korea driving consumable growth.

Q: Recession resilience, RED-C, Xifaxan manufacturing A: Business resilient; RED-C SSD formula different from Xifaxan; Xifaxan manufactured in Canada, IP in U.S. licensed to Ireland.

Q: Debt refinancing, share buybacks A: Refinancing provides flexibility; capital allocation prioritizes capital structure, reinvestment, then share buybacks.

Q: Shareholder rights plan A: Shareholder rights plan to protect against unsolicited bids; proxy filing related to evaluating shareholder value.