olivLaw · US equity research
Bausch Health Companies Inc. BHC
Pharmaceutical Preparations · SIC 2834 · Vertical: Pharmaceutical Preparations (SIC 2834)
Bausch Health is a specialty pharmaceutical and medical device company focused on gastroenterology, hepatology, neurology and dermatology, which also holds most of Bausch + Lomb, active in eye health. Consolidated revenue grew strongly in the second quarter of 2026 and the company raised its full-year guidance, which makes it relevant to assess how the planned Bausch + Lomb separation could change the group's structure. Fiscal 2025 revenue was 10.266 billion USD, and 2026 guidance sits between 10.790 and 11.040 billion USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Bausch Health Companies Inc. (BHC) stock was 8.34 USD (+2.46% on the day), with market capitalisation 3.1 bn USD, dividend yield 15.35%, beta 0.84, 52-week range 4.43–8.91 USD. Latest reported quarter (Q3 2026): revenue of 2.9 bn USD (+9.7% YoY), net income of 436.0 m USD (+143.6% YoY), diluted EPS 1.15 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 71.5
- overbought (≥ 70)
- Bollinger (20, 2)
- 4.93 – 8.65
- in the upper half of the band · %B 0.92 · band width 54.8%
- SMA 50 / 200
- 6.34 / 5.72
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.58 / 0.37
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +41.6% | −2.0% | +43.6 pp | — |
| 3 months | +32.6% | −2.2% | +34.8 pp | — |
| 6 months | +47.6% | +4.3% | +43.3 pp | — |
| Year to date | +20.0% | +10.6% | +9.4 pp | — |
| 1 year | +23.7% | +10.5% | +13.3 pp | +4.2% |
| 3 years | +10.2% | +73.7% | −63.5 pp | +4.9% |
| 5 years | −70.2% | +61.7% | −131.9 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.6 bn | 2.3 bn | 2.5 bn | 2.7 bn | 2.8 bn | 2.5 bn | 2.9 bn | 2.9 bn |
| SG&A | 820.0 m | 867.0 m | 894.0 m | 795.0 m | 882.0 m | 861.0 m | 907.0 m | 834.0 m |
| Operating income | 558.0 m | 276.0 m | 444.0 m | 619.0 m | 474.0 m | -950.0 m | 740.0 m | 983.0 m |
| Depreciation & amortisation | 307.0 m | 305.0 m | 307.0 m ≈ | 306.0 m ≈ | 290.0 m | 295.0 m | 281.0 m ≈ | 284.0 m ≈ |
| Interest expense | 337.0 m | 330.0 m | 465.0 m | 412.0 m | 397.0 m | 402.0 m | 396.0 m | 398.0 m |
| Pre-tax income | 209.0 m | -47.0 m | 140.0 m | 218.0 m | 56.0 m | -1.4 bn | 348.0 m | 597.0 m |
| Income tax | 111.0 m | 39.0 m | 12.0 m | 37.0 m | 159.0 m | 77.0 m | 88.0 m | 151.0 m |
| Net income | 93.0 m | -58.0 m | 148.0 m | 179.0 m | -112.0 m | -1.4 bn | 258.0 m | 436.0 m |
| Diluted EPS | 0.25 ≈ | -0.16 | 0.40 | 0.48 | -0.30 ≈ | -3.82 | 0.68 | 1.15 |
| Operating cash flow | 601.0 m | 211.0 m | 289.0 m ≈ | 405.0 m ≈ | 495.0 m | 230.0 m | 670.0 m ≈ | 814.0 m ≈ |
| Capex | 106.0 m | 115.0 m | 99.0 m ≈ | 91.0 m ≈ | 92.0 m | 109.0 m | 77.0 m ≈ | 66.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 8.4 bn | 8.6 bn | 8.0 bn | 8.4 bn | 8.1 bn | 8.8 bn | 9.6 bn | 10.3 bn |
| Revenue YoY | −3.9% | +2.6% | −6.7% | +5.1% | −3.7% | +7.8% | +9.9% | +6.7% |
| Net income | -4.1 bn | -1.8 bn | -560.0 m | -948.0 m | -225.0 m | -592.0 m | -46.0 m | 157.0 m |
| Net income YoY | −272.4% | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | -11.81 | -5.08 | -1.58 | -2.64 | -0.62 | -1.62 | -0.13 | 0.42 |
| Diluted EPS YoY | −272.9% | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -49.5% | -20.8% | -7.0% | -11.2% | -2.8% | -6.8% | -0.5% | 1.5% |
| Free cash flow | 1.3 bn | 1.2 bn | 809.0 m | 1.2 bn | -946.0 m | 817.0 m | 1.3 bn | 1.0 bn |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 1.3 bn USD
- Financial debt
- 20.8 bn USD
- Net debt
- 19.5 bn USD
- Equity
- 377.0 m USD
- Total assets
- 26.4 bn USD
- Debt / equity
- 55.22x
- Current ratio
- 1.47x
- ROE
- unavailable
- ROA
- 0.6%
- FCF margin
- 9.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 8.0 bn | 8.4 bn | 8.1 bn | 8.8 bn | 9.6 bn | 10.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| SG&A | 2.4 bn | 2.6 bn | 2.6 bn | 2.9 bn | 3.3 bn | 3.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Operating income | 676.0 m | 450.0 m | 454.0 m | 963.0 m | 1.5 bn | 1.8 bn | SEC (XBRL)· 19 Feb 2026verified |
| Depreciation & amortisation | 1.8 bn | 1.6 bn | 1.4 bn | 1.3 bn | 1.3 bn | 1.2 bn | SEC (XBRL)· 19 Feb 2026verified |
| EBITDA | 2.5 bn ≈ | 2.0 bn ≈ | 1.8 bn ≈ | 2.2 bn ≈ | 2.8 bn ≈ | 3.0 bn ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Interest expense | 1.5 bn | 1.4 bn | 1.5 bn | 1.3 bn | 1.4 bn | 1.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Pre-tax income | -934.0 m | -1.0 bn | -129.0 m | -390.0 m | 167.0 m | 367.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Income tax | -375.0 m | -87.0 m | 83.0 m | 221.0 m | 239.0 m | 247.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Net income | -560.0 m | -948.0 m | -225.0 m | -592.0 m | -46.0 m | 157.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Diluted EPS | -1.58 | -2.64 | -0.62 | -1.62 | -0.13 | 0.42 | SEC (XBRL)· 19 Feb 2026verified |
| Weighted average diluted shares | 355.0 m | 358.9 m | 362.0 m | 364.9 m | 368.0 m | 375.0 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 605.0 m | 582.0 m | 564.0 m | 947.0 m | 1.2 bn | 1.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Inventories | 1.1 bn | 993.0 m | 1.1 bn | 1.5 bn | 1.6 bn | 1.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Current assets | 5.3 bn | 5.6 bn | 4.2 bn | 5.6 bn | 5.8 bn | 6.2 bn | SEC (XBRL)· 19 Feb 2026verified |
| Property, plant & equipment, net | 1.6 bn | 1.6 bn | 1.6 bn | 1.7 bn | 1.8 bn | 2.1 bn | SEC (XBRL)· 19 Feb 2026verified |
| Goodwill | 13.0 bn | 12.5 bn | 11.5 bn | 11.2 bn | 11.1 bn | 11.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Intangibles (excl. goodwill) | 8.4 bn | 6.9 bn | 5.8 bn | 6.5 bn | 5.6 bn | 4.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Total assets | 31.2 bn | 29.2 bn | 25.7 bn | 27.4 bn | 26.5 bn | 26.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Accounts payable | 337.0 m | 407.0 m | 521.0 m | 719.0 m | 589.0 m | 600.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Short-term debt | 0 | 0 | 432.0 m | 450.0 m | 2.7 bn | 225.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Long-term debt | 23.9 bn | 22.7 bn | 20.3 bn | 21.9 bn | 18.9 bn | 20.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Current liabilities | 4.9 bn | 5.2 bn | 3.9 bn | 4.3 bn | 6.8 bn | 4.2 bn | SEC (XBRL)· 19 Feb 2026verified |
| Total liabilities | 30.6 bn | 29.2 bn | 25.4 bn | 27.4 bn | 26.8 bn | 26.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Equity | 605.0 m | -34.0 m | 260.0 m | -82.0 m | -322.0 m | 377.0 m | SEC (XBRL)· 19 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.1 bn | 1.4 bn | -728.0 m | 1.0 bn | 1.6 bn | 1.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Capex | 302.0 m | 269.0 m | 218.0 m | 215.0 m | 337.0 m | 397.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Free cash flow | 809.0 m ≈ | 1.2 bn ≈ | -946.0 m ≈ | 817.0 m ≈ | 1.3 bn ≈ | 1.0 bn ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Investing cash flow | -261.0 m | 409.0 m | -303.0 m | -2.1 bn | -454.0 m | -595.0 m | SEC (XBRL)· 19 Feb 2026verified |
| Financing cash flow | -2.3 bn | -1.5 bn | -474.0 m | 1.5 bn | -868.0 m | -742.0 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 54.2% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.1 bn USD
Key indicators
Coverage and freshness
Score by group
54% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 16.82 – 565.74 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)172.25 – 565.74 (Mid 273.92)WACC 5.6% · starting FCFF 3.2 bn USD · terminal value share of EV 86%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDA56.46 – 110.70 (Mid 80.79)3 companies used · median multiple 20.2x · quartiles 16.4x – 24.9xTEVA, VRTX, VTRS
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)16.82 – 22.62 (Mid 19.29)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 54.2% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -7.6% | 47 (vs peers) | 12% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 8.1% | 68 (on a fixed band) | 15% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 7.6x | 0 (vs peers) | 19% |
| Interest coverage · Balance sheet | 0.8x | 0 (on a fixed band) | 12% |
| Current ratio · Balance sheet | 1.6x | 63 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | 8.9x | 100 (vs peers) | 19% |
| FCF yield · Valuation | 59.7% | 100 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet13/100 · 3/3 factors with a value
- Growth· partial68/100 · 1/2 factors with a value
- Quality· partial47/100 · 1/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation100/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Bausch Health Companies Inc. (BHC). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 10.3 bn USD in 2025; YoY growth 6.7%; net margin -7.6%; net debt/EBITDA 7.6x.
The estimated value range is 56.46–110.70 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 80.79 USD, the price of 8.34 USD leaves a potential of 868.7% (value / price − 1) and a margin of safety of 89.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 54.2% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EV/EBITDA: 8.9x
- FCF yield: 59.7%
- The price is below the estimated value range
What contradicts it
- Net debt / EBITDA: 7.6x
- Interest coverage: 0.8x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, P/E (TTM), Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Pharmaceutical Preparations (SIC 2834) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LLYEli Lilly And Company | 1,325.9 bn | 45.7 | 86.1% | 31.9% | +44.7% | +31% / +138% |
| JNJJohnson & Johnson | 640.8 bn | 40.4 | 20.0% | 16.2% | +6.0% | +29% / +72% |
| ONCBeone Medicines Ltd. | 524.7 bn | 817.5 | 14.7% | 10.7% | +40.2% | +4% / +90% |
| ABBVAbbVie Inc. | 505.5 bn | 49.2 | — | 15.7% | +8.6% | +26% / +101% |
| MRKMerck & Co., Inc. | 356.9 bn | 115.6 | 7.0% | 4.8% | +1.3% | +38% / +41% |
| ABTAbbott Laboratories | 190.6 bn | 30.6 | 12.4% | 13.9% | +5.7% | −15% / +5% |
| PFEPfizer Inc | 171.0 bn | 42.7 | 4.4% | 6.3% | −1.6% | +17% / −2% |
| VRTXVertex Pharmaceuticals Inc | 134.6 bn | 34.2 | 20.8% | 30.7% | +8.9% | +22% / +50% |
| BMYBristol-Myers Squibb Company | 126.1 bn | 13.7 | 44.1% | 18.5% | −0.2% | +25% / +25% |
| TEVATeva Pharmaceutical Industries Limited | 48.9 bn | 97.6 | 6.6% | 3.6% | +4.3% | +56% / +327% |
| ZTSZoetis Inc. | 34.3 bn | 13.7 | 64.4% | 27.5% | +2.3% | −35% / −53% |
| ROIVRoivant Sciences Ltd. | 26.0 bn | — | -6.2% | -3,535.0% | −71.6% | +73% / +277% |
| UTHRUnited Therapeutics Corporation | 25.8 bn | 21.5 | 19.3% | 41.6% | +10.6% | +24% / +151% |
| RPRXRoyalty Pharma plc | 25.8 bn | 37.6 | 8.5% | 32.1% | +5.1% | +66% / +145% |
| INSMInsmed Inc | 22.9 bn | — | -72.5% | -39.9% | +66.7% | −50% / +317% |
| VTRSViatris Inc. | 21.7 bn | — | -23.6% | -23.9% | −3.0% | +77% / +106% |
| ALNYAlnylam Pharmaceuticals, Inc. | 21.4 bn | 8.1 | 126.6% | 52.8% | +65.2% | −65% / −5% |
| TGTXTg Therapeutics, Inc. | 9.4 bn | 22.5 | 100.3% | 55.2% | +87.3% | +85% / +381% |
| BLRXBioLineRx Ltd | 4.9 bn | — | -12.8% | -171.7% | −95.9% | −46% / −97% |
| BHCBausch Health Companies Inc. | 3.1 bn | — | — | -7.6% | +6.7% | +24% / +10% |
| ANABAnaptysbio, Inc. | 1.4 bn | 11.5 | — | 82.4% | +157.0% | +71% / +404% |
| KURAKura Oncology, Inc. | 677.0 m | — | -167.7% | -384.3% | +25.2% | −37% / −21% |
| DMACDiaMedica Therapeutics Inc. | 580.8 m | — | -114.6% | — | unavailable | +25% / +341% |
| PHATPhathom Pharmaceuticals, Inc. | 461.7 m | — | — | -30.2% | +216.9% | −64% / −19% |
| ALTAltimmune, Inc. | 412.4 m | — | -28.9% | -223,804.9% | +105.0% | −60% / −33% |
1- and 3-year price returns: for BHC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (28 Oct 2026 · results).
In brief
Bausch Health is a specialty pharmaceutical and medical device company focused on gastroenterology, hepatology, neurology and dermatology, which also holds most of Bausch + Lomb, active in eye health. Consolidated revenue grew strongly in the second quarter of 2026 and the company raised its full-year guidance, which makes it relevant to assess how the planned Bausch + Lomb separation could change the group's structure. Fiscal 2025 revenue was 10.266 billion USD 1, and 2026 guidance sits between 10.790 and 11.040 billion USD 3.
SWOT
Strengths
- The company has a diversified portfolio with many products and a commercial presence in many countries, which reduces dependence on any single product 1.
- Revenue growth in the second quarter of 2026 and the reduction in net debt show management's execution capacity 3.
- The R&D pipeline, extended through the DURECT acquisition, offers long-term growth options 1.
Weaknesses
- Revenue concentration in a few products, especially Xifaxan, exposes the company to generic competition risk 1.
- A high debt level and refinancing costs remain a source of vulnerability, even though maturities were extended 1.
- Reliance on third parties for distribution, raw materials and some finished products can affect operational continuity 1.
Opportunities
- The Bausch + Lomb separation could unlock value if the final structure proves favorable to shareholders 1.
- Expanding Solta Medical distribution in Asia and other regions could support growth in the aesthetic segment 1.
- Development of Larsucosterol could open a new revenue line if clinical studies advance 1.
Risks
- Generic competitionhigh
High-revenue products may lose exclusivity if generic manufacturers obtain approvals, and the company has launched litigation to protect Xifaxan and Trulance 1.
- CMS price negotiationhigh
The selection of Xifaxan for price negotiation could reduce revenue from 2027, and the final impact depends on the outcome of the process 1.
- Bausch + Lomb separationmedium
The separation could be delayed, altered or abandoned, and the final outcome could be less favorable than management expects 1.
- Tariffs and trade conditionsmedium
Trade measures and tariffs could increase production costs and reduce revenue, and the company cannot assure that it will fully absorb these costs 1.
- Indebtednessmedium
Debt remains significant, and restrictions in financing agreements could limit operating flexibility 1.
Investment thesis
What would need to be true (bull case)
- Strong growth in Xifaxan and the Salix segment in the second quarter of 2026 shows that key products can continue to support revenue 3.
- Raising 2026 guidance suggests management sees positive momentum for revenue and cash flow 3.
- A reduction in net debt and extended maturities could give the company more flexibility for investment and acquisitions 3.
What would break the thesis
- Dependence on Xifaxan remains high, and generic pressure or price negotiation could quickly reduce revenue 1.
- The group structure is still under evaluation, and the Bausch + Lomb separation could be delayed or completed on less favorable terms 1.
- The macroeconomic and geopolitical environment, including tariffs, could affect costs and financial results 2.
What to watch
- Xifaxan revenue trend and any generic market entryQ3 2026
- Updates to 2026 guidance and the impact of tariffsQ3 2026
- Progress and final structure of the Bausch + Lomb separationnext 10-K
- Impact of the CMS price negotiation on Xifaxan2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (28 Oct 2026 · results).
The business
Bausch Health Companies Inc. is a specialty pharmaceutical and medical device company that develops, manufactures and markets branded, generic and OTC products, as well as aesthetic medical devices, mainly in gastroenterology, hepatology, neurology and dermatology. Through its approximately 88% ownership of Bausch + Lomb, the company also includes eye health businesses such as contact lenses, intraocular lenses and ophthalmic surgical equipment 1. Its products are marketed directly or indirectly in about 90 countries 1.
The reportable segments are Salix, International, Solta Medical, Diversified and Bausch + Lomb 1. The company says the planned separation of the eye health business would create two independent companies, and management believes each could focus better on its core businesses and manage its own capital needs 1. The portfolio rests on established positions in therapeutic areas such as gastroenterology and hepatology, supported by a large product range and an R&D pipeline 1.
In fiscal 2025, Xifaxan generated revenue of 2.212 billion USD, making it a major part of the Salix segment 1. In the second quarter of 2026, consolidated revenue was 2.85 billion USD, up 13% on a reported basis and 11% organically 3. Growth was mainly driven by the Salix segment, where Xifaxan rose 26% 3.
Segments
Salix
The Salix segment covers U.S. sales of gastrointestinal products, mainly Xifaxan, which accounts for about 85% of its revenues 1. In the second quarter of 2026 segment revenue was 758 million USD, up 21% 3.
Market context
The company operates in pharmaceutical and medical device markets in about 90 countries 1. Generic competition and drug pricing policy remain constant pressures, and the CMS price negotiation for Xifaxan could affect revenue from 2027 1. The eye health and aesthetic markets have their own dynamics, and Bausch + Lomb showed growth on both lines in the second quarter of 2026 3.
Guidance for 2026 includes revenue growth of 4% to 6% versus the prior year, with a revenue range between 10.790 and 11.040 billion USD 3. The guidance was raised, but the company notes that tariffs and their evolution could affect results 3.
Trends
- Xifaxan growthtailwind
Xifaxan continued to grow strongly in the second quarter of 2026, up 26%, supporting the Salix segment 3. If this momentum holds, it could support group revenue, but the product remains exposed to generic competition 1.
- CMS price negotiationheadwind
CMS selected Xifaxan for a second round of price negotiation with initial applicability in 2027, and the outcome could reduce revenue for the product 1. The company describes this process as a factor that could affect results, without giving a final impact yet 2.
- Tariffs and trade conditionsmixed
The company notes that tariffs and trade measures can affect costs and revenue, and its guidance includes only the estimated impact of applicable tariffs 3. The final effect depends on trade policy developments and any mitigation measures 2.
- Debt refinancingtailwind
The April 2025 refinancing transactions extended debt maturities, easing short-term cash pressure 1. The second quarter of 2026 showed a significant reduction in net debt, which could give the company additional flexibility 3.
Competitive position
The company faces competition from generic manufacturers, especially for high-revenue products such as Xifaxan, where Paragraph IV certification disputes have been litigated 1. In eye health and aesthetic devices, competition includes large global specialist companies, and the company notes it must keep developing competitive products to stay relevant 1.
Competitive pressure also appears in the Diversified segment, where sales were flat in the second quarter of 2026 while some lines performed more weakly 3. For Bausch + Lomb, the company points to competition from other lens and ophthalmic product suppliers 1.
- Generic manufacturers of Xifaxan
Generic companies that sent Paragraph IV notices for Xifaxan and Trulance pose a direct competitive risk to high-revenue products 1.
- Contact lens and ophthalmic device makers
Competitors in the Bausch + Lomb segment include global suppliers of lenses, ophthalmic surgical products and eye supplements 1.
- Aesthetic device companies
Solta Medical competes in the aesthetic device and skin treatment market, where several global players operate 1.
- Pharmaceutical companies in neurology and dermatology
The Diversified segment competes with drug makers in neurology, dermatology and dentistry, a fragmented market 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Bausch Health (BHC) Expands Probiotic Skincare Bet To Six New MarketsYahoo Finance — News · 16 Sept 2026 · EN
The latest news item in our archive is from 16 Sept 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report29 Oct 2026
- Current report28 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report30 Jul 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Current report01 Jul 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report19 May 2026Shareholder vote
- Quarterly report30 Apr 2026
- Current report29 Apr 2026Results of operations · Financial statements and exhibits
- Proxy statement08 Apr 2026
- Current report02 Mar 2026Departure or appointment of officers
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Bausch Health Companies Inc. · 19 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Bausch Health Companies Inc. · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Bausch Health Companies Inc. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.