Bausch Health Cos Inc (NYSE: BHC), formerly known as Valeant Pharmaceuticals, reported a wider-than-expected loss in the second quarter Tuesday despite beating Wall Street revenue estimates.
For the quarter ended June 2018, the well-diversified pharma company swung to a loss of US$873 mln, or US$2.49 a share, wider than the loss of US$38mln, or US$0.11 a share, posted in the year-earlier period. Revenue was approximately US$2.128bn. The consensus earnings estimate called for EPS of US$0.80 on revenue of US$2.063bn.
Investors gave the drug maker a pass after it explained that the loss was mostly due to an asset impairment linked to the loss of exclusivity on a product it didn’t name. A trio of drugs are hitting the market this year with the goal of replacing sales that are reliant on keystone drugs poised to face greater competition from generics.
As a result, shares of Bausch Health were buoyant, up over 6% to US$23.92.
All eyes were aptly focused on sales in the company’s biggest business, Bausch + Lomb which logged revenues of US$1.209bn for the second quarter, a decrease of US$14mln, or 1% compared to the same period last year.
"The company delivered overall organic growth, driven by solid results in our Salix and Bausch + Lomb/International segments, which together represented 78% of our business in the quarter," Bausch Health CEO Joseph C Papa said in a statement.
The Canada-based company said it realigned into four reporting segments in the quarter, namely Bausch and Lomb/International, its eye treatments; Salix, its gastroenterology business; Ortho Dermatologics; and diversified products.
Bausch Health said sales of its potential blockbuster gastrointestinal drug Xifaxan grew 26% and contributed the most to the Salix segment’s US$441mln kitty.
The company said it still expects full-year revenue of US$8.15bn to US$8.35bn.
Contact Uttara Choudhury at uttara@proactiveinvestors.com
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