Bausch Health (BHC) RBC Capital Markets Global Healthcare Conference 2026 summary

Commercial execution and business performance

• Achieved 12 consecutive quarters of top and bottom-line growth, driven by strong execution across key franchises, notably Salix and international operations.

• Salix franchise, led by XIFAXAN, continues to perform well, supported by a robust commercial team and AI-driven field force optimization.

• Solta business demonstrated exceptional growth, especially after acquiring the distributor in China, and received triple A trademark status for Thermage, enhancing brand trust.

• Legal team successfully settled all U.S. opt-out cases, removing significant legal overhang.

Capital structure and financial priorities

• Focused on maximizing cash flow through 2027, assuming XIFAXAN market exclusivity until year-end 2027.

• Preparing the portfolio for post-XIFAXAN success, emphasizing international and Solta segments, and exploring selective inorganic opportunities.

• Over-levered balance sheet requires further de-leveraging, with asset sales (notably BLCO) as a likely funding source.

• Recent $9.6 billion refinancing provides flexibility and time for BLCO to execute Vision 2027 before potential monetization.

Cash flow and revenue outlook

• 2024 operating cash flow guidance is $1.2–$1.275 billion; after CapEx and legal settlements, expected to be $1–$1.1 billion.

• Cash flow for 2027 anticipated to be similar to 2026, assuming continued XIFAXAN exclusivity and offsetting IRA headwinds with portfolio growth.

• XIFAXAN revenue now primarily from commercial and Medicare channels, with residual 340B/Medicaid revenue providing a temporary tailwind.