BAUSCH HEALTH ANNOUNCES FIRST QUARTER 2026 RESULTS

• Bausch Health reported Q1 2026 consolidated revenues of $2.52 billion, up 12% on a reported basis and 7% organic versus prior year.
• GAAP net loss was $1.423 billion, primarily driven by a $1.426 billion goodwill impairment charge related to the Salix RED-C program failure.
• Adjusted Earnings per Diluted Share (non-GAAP) increased 32% year-over-year to $0.78.
• Consolidated Adjusted EBITDA reached $837 million, up 27% reported.
• Full-Year 2026 guidance was reaffirmed for revenue ($10.67 - $10.92 billion) and Adjusted EBITDA ($3.885 - $4.010 billion).
• Cash and cash equivalents stood at $1,299 million as of March 31, 2026.
• Segment performance showed Salix revenue up 18% (Xifaxan +21%) and Solta Medical up 51% reported (aided by Shibo acquisition).

• The Q1 results confirm the material negative development announced in January regarding the RED-C Phase 3 trial failure, resulting in a significant non-cash goodwill impairment.
• Operational performance remains robust with double-digit organic growth across key segments (Salix and Solta), offsetting the accounting hit from the pipeline write-down.
• Reaffirmation of full-year guidance indicates management confidence that core cash flows are sufficient to support operations despite the R&D setback.
• The impairment is expected given the January 23 clinical update; therefore, the market impact is likely muted compared to a surprise failure.
• Positive momentum in Solta Medical (China acquisition integration) and Salix (Xifaxan growth) provides fundamental support for earnings quality.

• Bausch Health is a global diversified pharmaceutical company with portfolios in gastroenterology, hepatology, neurology, dermatology, dentistry, aesthetics, international pharmaceuticals, and eye health (Bausch + Lomb).
• Flagship Project: Xifaxan (Salix) remains the primary revenue driver for the BHC ex-B+L segment.
• Pipeline: Larsucosterol (alcohol-associated hepatitis) is the key remaining hepatology asset following RED-C failure; Solta Medical aesthetics devices are a secondary growth engine.
• Bausch + Lomb: Separation strategy ongoing; management favors selling equity stake over spin, timing uncertain.