Bausch Health (BHC) Barclays 30th Annual Leveraged Finance Conference 2026 summary

Financial performance and growth drivers

• Achieved 12 consecutive quarters of revenue and EBITDA growth, with strong cash flow focus.

• Salix segment posted 18% growth, driven by XIFAXAN's 21% increase, attributed to volume growth, price increases, and higher-quality Medicaid-exited sales.

• AI-powered consumer insights and targeted prescriber strategies have sustained XIFAXAN's growth for nine quarters.

• Solta business is a key long-term growth pillar, with double-digit growth potential and significant expansion in Asia, especially after the Shibo acquisition.

• International business remains profitable and diverse, with mid-single-digit growth expected, and strong performance in EMEA and new product launches.

Business development, diversification, and future planning

• Neuroscience portfolio faces volume declines due to patent expirations, but remains a core competency and target for business development.

• Business development opportunities are being pursued in neurology, GI, dermatology, and aesthetics, leveraging existing expertise and sales infrastructure.

• Larsucosterol in phase III trials exemplifies the type of near-term R&D and BD deals being considered.

• Diversified segment saw organic declines, but promoted portfolio in Canada grew 18% despite one-time headwinds.

• LATAM expected to return to growth with new product rollouts and government tender timing.

Capital structure, monetization, and risk management

• Over $1 billion in cash on hand, with sufficient liquidity to cover 2027 and 2028 maturities; B&L shares earmarked for 2029 and beyond.

• Monetization of B&L stake is planned for when performance targets are met, with flexibility on timing and method.

• Global refinancing is anticipated when B&L share price and leverage targets align, aiming for a normalized capital structure.

• Flexibility maintained to accelerate asset monetization if XIFAXAN LOE occurs earlier than expected.

• Tariffs and global events have been factored into guidance, with minimal impact on margins due to strong business fundamentals.