Bausch Health Companies Inc. Q3 FY2025 earnings call

· Bausch Health excluding Bausch + Lomb delivered 10th consecutive quarter of revenue and adjusted EBITDA growth, with revenue up 7% reported and 5% organic, adjusted EBITDA up 7% (excluding $81M in-process R&D charge, up 18%). · Xifaxan revenue grew 16% in Q3 with volume up 9% and 71,000 new patients started, marking 7th consecutive quarter of top line organic growth in Salix. · Cabtreo launched in Jan 2024 became #1 prescribed topical branded acne product with 105,000 new patients year-to-date. · Solta Medical had double-digit growth across regions, led by South Korea up 96%, Thermage reached milestones with over 5M treatments worldwide and Thermage in Korea surpassing 1,000 unit installed base. · Acquired DURECT, adding larsucosterol with FDA breakthrough therapy for alcohol-associated hepatitis, Phase III study for larsucosterol planned to start early 2026, and RED-C Phase III studies on track for early 2026 data readout.

For Bausch Health excluding Bausch + Lomb in the third quarter: Salix had revenues of $716 million, up 12% reported and 11% organic, driven by Xifaxan volume growth and onetime net pricing favorability. International segment had revenues of $286 million, down 2% reported and 4% organic, with EMEA up 12% but Canada and Lat Am down. Solta Medical had revenues of $140 million, up 25% reported and 24% organic, led by Asia Pacific with South Korea up 96% and growth in U.S., EMEA, Canada. Diversified segments had revenues of $258 million, down 4% reported and 6% organic, impacted by neurology nonrecurrence but dermatology (Cabtreo 186%, Jublia 11%) strong. Bausch + Lomb had revenues of $1.3 billion, up 7% reported and 6% organic.

· Raised full-year guidance: Revenue expected between $5 billion and $5.1 billion (midpoint increased by $25M), adjusted EBITDA expected between $2.7 billion and $2.75 billion (midpoint increased by $50M), adjusted operating cash flow expected between $975 million and $1.025 billion (midpoint increased by $150M).

· Impact of CMS pricing negotiations on Xifaxan, with CMS to publish final pricing Nov 30 and potential impact assessed but EBITDA outlook unchanged. · Potential erosion of Xifaxan sales due to generic competition starting in 2028 and beyond. · Macro-economic uncertainties affecting consumer behavior, such as cautious behavior in China impacting Solta Medical's China operations.

Q: Disconnect between Xifaxan revenue growth and script growth?

A: Due to onetime pricing benefit from Medicaid/340B exits, with pricing typically mid-single digits year-over-year and volume growth including 9% volume increase and 14% new patients in Q3.

Q: Thoughts on CMS pricing for Xifaxan?

A: Negotiations ongoing, CMS to publish final pricing Nov 30, impact assessed but EBITDA outlook for 2026-2027 average expected to be similar to 2025.

Q: SG&A spend seasonality?

A: 3Q SG&A was unusually low due to nonrecurring accruals, with Q1/Q2 being better indicators for future run rate.

Q: RED-C Phase III data expectations?

A: Phase III studies are fully enrolled, data readout of both trials expected in early 2026, including primary and important secondary endpoints.