On August 6, 2019 Bausch Health Companies Inc. (NYSE/TSX: BHC) ("Bausch Health" or the "Company" or "we") reported its second-quarter 2019 financial results (Press release, Valeant, AUG 6, 2019, View Source [SID1234538199]).
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"Delivering a second consecutive quarter of reported and organic revenue growth, our second quarter 2019 results demonstrate that Bausch Health is clearly pivoting to growth," said Joseph C. Papa, chairman and CEO, Bausch Health. "Bausch + Lomb/International delivered its eleventh consecutive quarter of organic revenue growth, driven by sustained strength in Global Consumer and Global Vision Care; and Salix reported more than $500 million in total quarterly revenue for the first time."
Mr. Papa continued, "Looking to the second half of 2019, we expect a number of catalysts to drive growth across our core business segments as we continue to reduce debt, increase R&D and further grow our newly launched products. In addition, we have raised our full-year revenue and adjusted EBITDA guidance based on our first half performance and our outlook for the second half of the year."
Company Highlights
Executing on Core Businesses and Advancing Pipeline
The Bausch + Lomb/International segment comprised approximately 56% of the Company’s revenue in the second quarter of 2019
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1 Please see the tables at the end of this news release for a reconciliation of this and other non-GAAP measures to the nearest comparable GAAP measure.
2 Organic growth/change, a non-GAAP metric, is defined as a change on a period-over-period basis in revenues on a constant currency basis (if applicable) excluding the impact of recent acquisitions, divestitures and discontinuations.
Reported revenue in the Bausch + Lomb/International segment decreased nominally compared to the second quarter of 2018; revenue in this segment grew organically1,2 by 4% compared to the second quarter of 2018, due to an increase in volume across most of the business units, particularly in Global Consumer and Global Vision Care
Delivered eleventh consecutive quarter of organic revenue growth1,2
LOTEMAX SM (Loteprednol Etabonate Ophthalmic Gel) 0.38% for the treatment of postoperative inflammation and pain following ocular surgery was launched in the U.S. in April 2019
Bausch + Lomb ULTRA Multifocal for Astigmatism contact lenses, the first and only multifocal toric lens available as a standard offering in the eye care professional’s fit set, was launched in the U.S. in June 2019
The Salix segment comprised approximately 24% of the Company’s revenue in the second quarter of 2019
XIFAXAN revenue increased by 21% compared to the second quarter of 2018
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Entered into a license agreement with the University of California, Los Angeles to develop and commercialize a novel compound for the treatment of non-alcoholic fatty liver disease and non-alcoholic steatohepatitis
Entered into an exclusive license agreement with Mitsubishi Tanabe Pharma to develop and commercialize a late-stage investigational sphingosine 1-phosphate (S1P) modulator for the treatment of inflammatory bowel disease
The Ortho Dermatologics segment comprised approximately 6% of the Company’s revenue in the second quarter of 2019
Revenues in the Global Solta business increased by 41% compared to the second quarter of 2018, driven by continued strong demand of Thermage FLX in Asia Pacific following the launch in the region
DUOBRII Lotion for the topical treatment of plaque psoriasis in adults was launched in the U.S. in June 2019
Strategic Capital Allocation and Debt Management
Increased research and development by approximately 24%, or $23 million, compared to the second quarter of 2018
Refinanced $1.5 billion of 2023 Senior Unsecured Notes
Reduced debt by approximately $100 million in the second quarter of 2019
Second-Quarter 2019 Revenue Performance
Total reported revenues were $2.152 billion in the second quarter of 2019, as compared to $2.128 billion in the second quarter of 2018, an increase of $24 million. Excluding the unfavorable impact of foreign exchange of $38 million, the impact of a 2019 acquisition of $17 million and the impact of divestitures and discontinuations of $16 million, revenue grew organically1,2 by 3% compared to the second quarter of 2018, driven by organic growth1,2 in the Bausch + Lomb/International and Salix segments.