Bausch Health Companies Stock Earnings Reports

Bausch Health (ex-Bausch + Lomb) reported its 10th consecutive quarter of year-over-year revenue and adjusted EBITDA growth. Q3 revenue (ex-B+L) was up 7% reported / 5% organic; adjusted EBITDA was $773M (up 7% and +18% ex an $81M in-process R&D charge related to the DURECT acquisition). Management reduced debt by ~$600M YTD and raised full-year 2025 guidance: revenue $5.0B–$5.1B, adjusted EBITDA $2.7B–$2.75B (ex acquired IP R&D), and adjusted operating cash flow $975M–$1.025B. Key commercial drivers included strong performance in Salix (Xifaxan growth driven by new patient starts and AI-driven marketing), double-digit growth in Solta (aesthetics, led by South Korea), and strong dermatology product momentum (Cabtreo, Jublia, Cabtreo #1 in new branded topical acne starts). The company closed the DURECT acquisition (adds larsucosterol with FDA Breakthrough Designation for alcohol-associated hepatitis) and plans a Phase III start for larsucosterol early 2026; RED-C Phase III readouts are expected in early 2026. Management reiterated capital-allocation priorities: deleveraging and optimizing capital structure first, reinvesting in the business second, and potential shareholder returns only if excess capital is available. They exited Medicaid and 340B channels (effective Oct 1) with an enhanced patient assistance program; this change produced a one-time gross-to-net benefit in Q3. CMS negotiations under the IRA have concluded with published pricing expected Nov 30, 2025; management expects Medicare Part D to be an important headwind (≈30% of Xifaxan volume) but indicated the average EBITDA across 2026–2027 should be broadly in line with 2025 when smoothed. Potential de-leveraging options include asset sales (Bausch + Lomb stake highlighted as a logical candidate).