Yahoo Finance Bausch (BHC) Q1 Earnings and Revenues Miss, Shares Fall
Bausch Health Companies Inc. BHC reported lower-than-expected first-quarter results. The company’s adjusted earnings per share of 59 cents missed the Zacks Consensus Estimate of 75 cents. The reported figure, however, increased from 52 cents in the year-ago quarter due to higher revenues.
Total revenues of $2.15 billion were up 11% year over year. The top line, however, missed the Zacks Consensus Estimate of $2.18 billion.
Revenues increased 8% year over year on an organic basis (excluding the impact of foreign exchange rates, acquisitions, and divestitures).
BHC’s shares lost 7.54% on the disappointing quarterly results. The stock has risen 0.9% year to date compared with the industry’s growth of 5%.
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Quarter in Detail
The company reports revenues through five segments — Salix, International, Diversified Products, Solta Medical and Bausch + Lomb.
Salix revenues totaled $499 million, up 1% year over year. Within this segment, Xifaxan revenues were up 8%, led by strong growth of irritable bowel syndrome with diarrhea (IBS-D) indication. Relistor sales grew 10% in the quarter. However, Trulance revenues were down 7% due to pricing pressure.
Xifaxan 550 mg tablets are indicated for the reduction in the risk of overt hepatic encephalopathy (HE) recurrence and the treatment of IBS-D in adults.
Salix revenues missed the Zacks Consensus Estimate of $512 million but was above our model estimate of $482.2 million.
International revenues in the quarter totaled $265 million, up 7% year over year. The figure missed the Zacks Consensus Estimate of $267 million and our model estimate of $274.9 million. Revenues increased 2% organically.
Diversified Product revenues amounted to $202 million, up 3% from the year-ago quarter’s level due to an increase in neurology (+1%) and dermatology (+16%) sales. Sales from Dentistry and generics businesses were down 4% and 7%, respectively.
Diversified Product revenues missed the Zacks Consensus Estimate of $215 million and our model estimate of $221.7 million.
Solta Medical reported revenues of $88 million, up 21% year over year. The figure beat the Zacks Consensus Estimate of $87 million but missed our model estimate of $99.1 million. Revenues were up 23% organically, primarily driven by strong results in Asia Pacific, especially China.
Revenues from Bausch + Lomb totaled $1.1 billion, up 18% year over year. The figure missed the Zacks Consensus Estimate by 0.3% but beat our model estimate of $1.09 billion. Bausch + Lomb segment’s revenues increased 11% organically on a year-over-year basis.
Pipeline Development
Bausch received FDA approval for IDP-126, under the brand name Cabtreo, the first and only FDA-approved fixed-dose, triple-combination topical treatment for acne vulgaris.
The phase II study on amiselimod, a new oral S1P receptor modulator that targets the treatment of mild to moderate ulcerative colitis, completed enrollment in July. BHC reported positive data from the study in December 2023. The company met the FDA for the end of phase II meeting and discussed plans for phase III. BHC is also advancing plans for a phase II study on amiselimod for Crohn's disease.
Enrollment in the second global phase III study in the RED-C program on rifaximin for the prevention and delay of the first episode of hepatic encephalopathy was completed in April 2024.
The submission for next-generation Fraxel, a fractionated laser device for skin resurfacing, is planned for the second quarter of 2024 in the United States, with approval expected sometime in the second half of the year.
The company’s program for Clear and Brilliant Touch, a fractionated laser device for skin rejuvenation, is also advancing, with regulatory submissions planned for Europe, Canada and Asia Pacific markets in 2024.
Bausch Health Cos Inc. Price, Consensus and EPS Surprise
Bausch Health Cos Inc. price-consensus-eps-surprise-chart | Bausch Health Cos Inc. Quote
Other Updates
In April 2024, the U.S. Court of Appeals for the Federal Circuit affirmed the decision of the U.S. District Court for the District of Delaware in the Norwich matter. In its ruling, the Court denied Norwich Pharmaceuticals’ motion for modification of the court’s final order. As a result, the FDA cannot approve Norwich’s abbreviated new drug application for Xifaxan (rifaximin) 550 mg until October 2029.
2024 Guidance Reaffirmed
BHC reaffirms its top-line projection in the range of $9.3-$9.55 billion. Excluding Bausch + Lomb, revenues are anticipated to be in the band of $4.7-$4.850 billion.
Our Take
Bausch's first-quarter results were disappointing as most segments missed consensus estimates. Nevertheless, the Salix business maintains its momentum on the back of Xifaxan, which witnessed strong growth in underlying demand.
Meanwhile, BHC has also filed a lawsuit against Amneal Pharmaceuticals AMRX and its subsidiaries.
The lawsuit was filed on the heels of the Notice of Paragraph IV Certification, stating that Amneal submitted an abbreviated new drug application (ANDA) to the FDA seeking approval to market a generic version of Xifaxan 550 mg tablets.
Zacks Rank and Stocks to Consider
Bausch currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are ANI Pharmaceuticals, Inc. ANIP and Amarin AMRN. While ANIP sports a Zacks Rank #1 (Strong Buy) at present, AMRN carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPS have improved from $4.25 to $4.44. Shares of ANIP have jumped 21.7% year to date.
ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 109.06%.
In the past 90 days, the 2024 loss per share estimate for Amarin has narrowed by two cents. Shares of the company have risen 5.5% year to date.
AMRN’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 118.75%.
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