Bausch Health Announces Second Quarter 2025 Results

Executive Summary

• Bausch Health reported Second Quarter 2025 consolidated revenues of $2.53 billion, a 5% increase on a reported basis and 4% on an organic basis compared to the prior year period.
• The company announced an agreement to acquire DURECT Corporation, aiming to leverage its hepatology expertise to commercialize DURECT's treatment for alcohol-induced hepatitis.
• Management reaffirmed full-year 2025 financial guidance and announced the upcoming repayment of approximately $900 million in debt using cash on hand.

Key Details

• Q2 2025 Financial Performance:
  • Consolidated Revenues: $2.53 billion (up 5% reported, 4% organic).
  • GAAP Net Income Attributable to Bausch Health: $148 million (vs. $10 million in Q2 2024).
  • GAAP Net Income: $128 million.
  • Consolidated Adjusted EBITDA (non-GAAP): $842 million (up 6% reported, up 10% for Bausch Health excluding Bausch + Lomb).
  • Consolidated Operating Income: $444 million.
  • Cash from Operating Activities: $289 million.
• Segment Revenue Performance (Q2 2025 vs Q2 2024):
  • Bausch Health (excl. B+L): $1.25 billion (+5% reported, +5% organic).
  • Salix: $627 million (+12% reported, +12% organic), driven by 10% growth in Xifaxan.
  • International: $278 million (+1% reported, +1% organic).
  • Solta Medical: $128 million (+25% reported, +26% organic).
  • Diversified: $219 million (-13% reported, -13% organic).
  • Bausch + Lomb: $1.28 billion (+5% reported, +3% organic).
• M&A Activity:
  • Entered into an agreement to acquire DURECT Corporation in July.
  • Transaction aims to gain approvals and commercialize DURECT's main treatment for alcohol-induced hepatitis.
• Debt and Balance Sheet:
  • Announced repayment of ~$900 million in debt using cash on hand post-quarter.
  • Cash and cash equivalents: $1,727 million.
  • Total long-term debt and other: $21.7 billion (principal amount $21.15 billion).
  • Revolving credit facility availability: ~$475 million (BHC excl. B+L) and ~$760 million (B+L).
  • Accounts receivable credit facility: $600 million availability, $300 million drawn.
• R&D Updates:
  • CABTREO®: Submitted for approval with EMA (EU).
  • RED-C: Both global Phase 3 studies in treatment phase; top-line results anticipated early 2026.
  • Amiselimod: Internal review of opportunity ongoing.
  • Thermage® FLX: Medical device license clearance granted by Health Canada (April 2025).
  • Clear + Brilliant® Touch: Awaiting European regulatory response.
  • Fraxel FTX™: Launched in the U.S. in April 2025.
• 2025 Financial Guidance:
  • Consolidated Revenue: $10.000 - $10.250 billion.
  • Consolidated Adjusted EBITDA: $3.485 - $3.635 billion.
  • BHC (excl. B+L) Revenue: $4.950 - $5.100 billion.
  • BHC (excl. B+L) Adjusted EBITDA: $2.625 - $2.725 billion.
  • BHC (excl. B+L) Adjusted Cash Flow from Operations: $0.825 - $0.875 billion.
  • B+L Revenue: $5.050 - $5.150 billion.
  • B+L Adjusted EBITDA: $0.860 - $0.910 billion.

Notable Quotes

• "In the second quarter, we achieved our ninth consecutive quarter of year-over-year growth in Revenue and Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb. This consistent performance highlights our operational excellence and the strength of our diverse portfolio across therapeutic areas and geographies. As we look toward the second half of 2025, we remain focused on executing against our strategic priorities to drive continued growth and unlock long-term value for our shareholders," said Thomas J. Appio, Chief Executive Officer, Bausch Health.