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1. Company Snapshot

1.a. Company Description

Bausch Health Companies Inc., together with its subsidiaries, develops, manufactures, and markets a range of pharmaceutical, medical device, and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology, and dermatology.The company operates through five segments: Bausch + Lomb, Salix, International Rx, Ortho Dermatologics, and Diversified Products.The Bausch + Lomb segment offers products with a focus on the vision care, surgical, and consumer, surgical, and ophthalmic pharmaceuticals products.


The Salix segment provides gastroenterology products in the United States.The International Rx segment offers Solta products, branded and generic pharmaceutical products, OTC products, and medical device products, and Bausch + Lomb products in Canada, Europe, Asia, Australia, Latin America, Africa, and the Middle East.The Ortho Dermatologics segment provides dermatological products in the United States; and Solta medical aesthetic devices internationally.


The Diversified Products segment offers pharmaceutical products in the areas of neurology and other therapeutic classes, as well as generic and dentistry products in the United States.The company was formerly known as Valeant Pharmaceuticals International, Inc.and changed its name to Bausch Health Companies Inc.


in July 2018.Bausch Health Companies Inc.is headquartered in Laval, Canada.

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1.b. Last Insights on BHC

Bausch Health Companies Inc.'s recent performance was negatively impacted by a correction in its Q1 revenue forecast, which is expected to narrowly miss consensus estimates. The company's financing initiative with J.P. Morgan has been ongoing, with the next steps announced in March. Additionally, Bausch Health has been exploring strategic alternatives, providing an update on its financing initiative with J.P. Morgan in March. The company's Q4 results, reported in February, showed a net income of $93 million, but the recent correction in revenue forecast may indicate ongoing challenges.

1.c. Company Highlights

2. Bausch Health's Q3 2025 Earnings: A Strong Performance

Bausch Health reported a robust third quarter, with revenue reaching $2.681 billion, up 7% on a reported basis and 5% on an organic basis. Adjusted EBITDA was $986 million, an increase of $77 million or 8% year-over-year. The company's EPS came in at $1.62, beating analyst estimates of $1.3. Excluding Bausch + Lomb, the company's core business delivered 7% year-over-year revenue growth on a reported basis and 5% on an organic basis, with adjusted EBITDA growing 7% to $773 million.

Publication Date: Oct -31

📋 Highlights
  • Revenue Growth:: Bausch Health (excluding Bausch + Lomb) achieved 7% year-over-year revenue growth ($1.4 billion) with 5% organic growth.
  • Adjusted EBITDA Surge:: Adjusted EBITDA rose 18% to $773 million (excluding an $81 million R&D charge), up from 7% with the charge.
  • Debt Reduction & Guidance:: Reduced debt by $600 million and raised full-year guidance: revenue $5–5.1 billion (+4%), adjusted EBITDA $2.7–2.75 billion (+7%), and cash flow $975–1.025 billion.
  • Product Performance:: Cabtreo and Ryaltris grew triple-digits, while Xifaxan saw 20% non-retail extended unit growth and Thermage delivered double-digit gains.
  • Strategic Expansion:: Acquired DURECT to enhance R&D pipeline, including larsucosterol, and advanced RED-C Phase III trials with data expected in early 2026.

Segment Performance

The company's key growth areas, including Solta and Salix, continued to drive the business forward. Solta achieved 25% growth on a reported basis and 24% on an organic basis, while Salix grew 12% on a reported basis and 11% on an organic basis. Notable results were also seen in Cabtreo, Ryaltris, Xifaxan, and Thermage, with triple-digit and double-digit growth. As the company highlighted, "Xifaxan growth continued to accelerate through 2025, driven by innovation in marketing and operational excellence."

Guidance and Outlook

Bausch Health raised its full-year guidance across all three metrics: revenue, adjusted EBITDA, and adjusted operating cash flow. The new guidance is: revenue is expected to be between $5 billion and $5.1 billion, with a 4% increase year-over-year, adjusted EBITDA is expected to be between $2.7 billion and $2.75 billion, with a 7% increase, and adjusted operating cash flow is expected to be between $975 million and $1.025 billion. Analysts estimate next year's revenue growth at 3.1%.

Valuation and Debt

With a P/E Ratio of 6.77 and an EV/EBITDA of 0.59, the company's valuation appears reasonable. The Net Debt / EBITDA ratio is -0.25, indicating a healthy debt position. The company has made significant progress in reducing debt, with a $600 million reduction. JJ Charhon mentioned that the company has two main sources to reduce debt: free cash flow from operations and external funding sources, with selling the B+L equity stake being a probable option.

Operational Highlights

The company continued to drive growth through innovation, with the launch of Fraxel FTX expanding its Solta portfolio. The acquisition of DURECT Corporation and the addition of larsucosterol to the R&D portfolio are expected to bring a novel treatment to patients with cirrhosis. The company's commitment to operational excellence and disciplined execution is expected to drive long-term value for shareholders.

3. NewsRoom

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BHC Stock Up as Solta Acquires Shibo's Aesthetics Distribution Business

Dec -02

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Is There Now an Opportunity in Bausch Health Companies After Recent Debt Restructuring Developments?

Dec -02

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Why Bausch Health Companies Stock Rocketed 11% Higher Today

Dec -02

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Stock Market Today: Nasdaq, S&P 500 Mount Midday Recovery As Market Returns From Holiday

Dec -01

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TSX Down 140 Points at Midday With Info Tech The Worst Performer

Dec -01

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Bausch Health's Aesthetics Business, Solta Medical, Acquires Longtime Distribution Partner, the Shibo Group, to Strengthen Presence in China

Dec -01

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The Bull Case for Bausch Health (BHC) Could Change Following Debt Exchange and Maturity Extension Initiative

Nov -27

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Do Options Traders Know Something About Bausch Health Stock We Don't?

Nov -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.47%)

6. Segments

Bausch + Lomb/International

Expected Growth: 2%

Bausch + Lomb/International's 2% growth is driven by increasing demand for contact lenses and surgical products, expansion in emerging markets, and strategic partnerships. Additionally, the company's focus on innovation, including the development of new products and technologies, contributes to its growth. Furthermore, the segment's diversified product portfolio and strong brand recognition also support its growth momentum.

Salix

Expected Growth: 3%

Salix's 3% growth is driven by increasing demand for gastrointestinal products, particularly Xifaxan, which treats irritable bowel syndrome. Strong sales and marketing efforts, as well as expanded product offerings, contribute to growth. Additionally, strategic partnerships and acquisitions, such as the purchase of Hypothesis, further boost Salix's revenue.

International

Expected Growth: 1%

Bausch Health's international segment growth is driven by increasing demand for its pharmaceutical products, particularly in emerging markets, expansion of its geographic footprint, and strategic partnerships. Additionally, the company's focus on ophthalmology and dermatology products, which have high growth potential, contributes to its international growth.

Diversified

Expected Growth: 4%

Bausch Health's diversified segment, with 4% growth, is driven by increasing demand for its eye care products, expansion into emerging markets, and strategic acquisitions. Additionally, the company's focus on R&D and innovation in ophthalmology, dermatology, and orthopedics is expected to fuel future growth.

Solta Medical

Expected Growth: 5%

Solta Medical's 5% growth is driven by increasing demand for non-invasive aesthetic treatments, expansion into new markets, and strategic partnerships. The company's focus on innovation, particularly in radiofrequency and laser-based technologies, has also contributed to its growth. Additionally, the growing trend of self-care and beauty investments among consumers has fueled demand for Solta's products and services.

7. Detailed Products

Xifaxan

An antibiotic used to treat travelers' diarrhea and irritable bowel syndrome with diarrhea (IBS-D)

Vyzulta

A prostaglandin analog used to reduce intraocular pressure in patients with open-angle glaucoma or ocular hypertension

Latisse

A medication used to treat hypotrichosis (inadequate eyelashes) by increasing the length, thickness, and darkness of eyelashes

Silenor

A sedative-hypnotic used to treat insomnia

Ortho Dermatologics

A range of dermatological products used to treat various skin conditions such as acne, psoriasis, and atopic dermatitis

Solta Medical

A range of medical aesthetic devices used for skin tightening, body contouring, and hair removal

Therapeutic Pharmaceuticals

A range of pharmaceutical products used to treat various therapeutic areas such as gastroenterology, dermatology, and neurology

Bausch + Lomb

A range of ophthalmic products used to treat various eye conditions such as cataracts, glaucoma, and age-related macular degeneration

8. Bausch Health Companies Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bausch Health Companies Inc. is medium due to the presence of alternative treatments and products in the pharmaceutical industry.

Bargaining Power Of Customers

The bargaining power of customers for Bausch Health Companies Inc. is low due to the company's strong brand presence and limited switching options for customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Bausch Health Companies Inc. is medium due to the presence of multiple suppliers and the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for Bausch Health Companies Inc. is high due to the growing demand for pharmaceutical products and the increasing trend of new entrants in the industry.

Intensity Of Rivalry

The intensity of rivalry for Bausch Health Companies Inc. is high due to the presence of several established players in the pharmaceutical industry and the high level of competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 104.78%
Debt Cost 3.95%
Equity Weight -4.78%
Equity Cost 8.46%
WACC 3.73%
Leverage -2190.61%

11. Quality Control: Bausch Health Companies Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 7.1

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Momentum: 10.0

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Bausch Health

A-Score: 4.1/10

Value: 9.5

Growth: 3.9

Quality: 6.1

Yield: 0.0

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Value: 6.2

Growth: 6.1

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.61$

Current Price

9.61$

Potential

-0.00%

Expected Cash-Flows