Overview

Bausch Health Companies Inc (BHC) reported 2Q24 operating results that met management expectations and provided for the fifth consecutive quarter of year-over-year (YoY) revenue and adjusted EBITDA growth. A July media report which stated that the company was considering a bankruptcy or insolvency proceeding was denied by the company and reiterated on its earnings call. But this is now a cloud over the company especially since USD 9bn of debt maturities come due before Xifaxan loses exclusivity and raises the question of how BHC will refinance this debt without knowing if there is a viable long-term plan for the company. Thus, bankruptcy or insolvency isn’t out of the question when one considers that the pipeline may not fill the lost revenue and cash flow when Xifaxan loses its exclusivity.