BHC Filings — Bausch Health Companies Inc. - FilingSpy
BHC
Bausch Health Companies Inc.
A Canadian healthcare company behind some of the world's best-known eye and skin products, Bausch Health makes contact lenses, dry-eye treatments, and the Thermage skin-tightening device, while its Salix arm sells the gut medicine Xifaxan. Its roots trace to an 1853 Rochester optical shop founded by John Jacob Bausch, who borrowed money from friend Henry Lomb to get the business going. The company began as ICN Pharmaceuticals in 1959 and later renamed itself after the famous lens maker it acquired — the firm that brought America its first mass-produced soft contact lenses in 1971.
Bausch Health swings to a $740M operating profit in Q2 2026, recovering from a $1.4B impairment loss in the prior quarter.
Bausch Health returned to operating profitability after a one-time charge wiped out Q1 results. rose 13% to $2.85 billion and reached $740 million, driven by a $205 million net pricing gain in the . The underlying business is growing, but the franchise faces a defined countdown to Medicare price controls in 2027.
Key takeaways
swung to $740 million from a $950 million loss in Q1 2026, as the prior quarter's $1.4 billion non-cash in the did not repeat.
rose 13% to $2,852 million, with $326 million of the increase coming from higher net realized pricing, led by the and segments.
grew 21% to $758 million on a $205 million net pricing improvement for , even as volumes fell $73 million due to the company's exit from certain high-rebate channels.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 13% to $2.85B driven by net pricing gains and acquisitions, while operating income increased to $740M.
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Total revenues increased $322M (13%) to $2,852M, primarily from higher ($326M), acquisitions ($35M), and favorable FX ($25M), partly offset by lower volumes ($57M).
rose 9% to $1,394 million, with growth across Vision Care, Surgical, and Pharmaceuticals, driven by $59 million in net pricing and $47 million in higher volumes.
for the first half of 2026 was $900 million, up $400 million , and for the quarter reached $593 million, more than triple the $190 million reported a year ago.
The company held $1.8 billion in cash and had no debt maturities until 2027, with $469 million available under its .
What changed
The $1.4 billion flagged in the FY 2025 10-K materialized in Q1 2026 and did not recur in Q2, confirming it as a one-time non-cash event; the underlying run-rate of $740 million validates the $476 million ex- figure from Q1.
profit margin improved, with Q1 2026 advertising cost reductions carrying through and contributing to a 9% increase, after multiple quarters of from MIEBO promotional spending.
rebounded to $593 million in Q2 2026 from $190 million a year ago, resolving the concern from Q2 2025 about whether higher legal settlement payments and represented a permanent drag.
The company now expects generic competition in 2028, a year earlier than the 2029 date previously disclosed under the Norwich settlement, accelerating the timeline flagged in prior filings.
What to watch
trajectory in Q3 2026 as the 2027 Medicare maximum fair price under the Inflation Reduction Act approaches, given the drug represents approximately 80% of sales and the company now expects generic competition in 2028.
profit margin in Q3 2026 to see if the advertising cost discipline and volume growth are sustained for a third consecutive quarter.
Any update on the separation, as the company continues to evaluate the transaction but has provided no new timeline or resolution of the voidable transfer legal challenge.
in Q3 2026, given $6.7 billion in variable-rate debt and the 8.57% weighted average stated rate, to assess earnings sensitivity to the rate environment.
grew 21% to $758M on a $205M net pricing improvement, despite a $73M volume decline, largely due to exiting certain high-rebate channels.
rose 9% to $1,394M, with growth across Vision Care, Surgical, and Pharmaceuticals, driven by $59M in net pricing and $47M in volume.
increased $296M to $740M, reflecting a $316M rise in (product sales less COGS ex ) and lower amortization, partly offset by higher SG&A and other expenses.
Six-month operating loss of $210M included a $1,426M in the after Phase 3 trial failures for rifaximin SSD in early-stage liver cirrhosis.
was $900M for H1 2026, up $400M ; liquidity remains supported by $1,838M in cash and $469M available under the 2030 .
Quantitative and Qualitative Disclosures About Market Risk
Other than as indicated below under “— Interest Rate Risk” and “— Inflation Risk”, there have been no material changes to our exposures to market risks as disclosed in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Quantitative a…
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Other than as indicated below under “— Interest Rate Risk” and “— Inflation Risk”, there have been no material changes to our exposures to market risks as disclosed in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Quantitative and Qualitative Disclosures About Market Risks” included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Interest Rate Risk
As of June 30, 2026, we had $13,553 million and $6,686 million in outstanding aggregate principal amount of fixed rate debt and variable rate debt, respectively. The estimated fair value of our issued fixed rate debt as of June 30, 2026 was $12,657 million. If interest rates were to increase by 100 basis-points, the fair value of our issued fixed rate debt would decrease by approximately $338 million. If interest rates were to decrease by 100 basis-points, the fair value of our issued fixed rate debt would increase by approximately $300 million. We are subject to interest rate risk on our variable rate debt as changes in interest rates could adversely affect earnings and cash flows. A 100 basis-point increase in interest rates would have an annualized pre-tax effect of approximately $67 million in our Condensed Consolidated Statements of Operations and Cash Flows, based on current outstanding borrowings and effective interest rates on our variable rate debt. While our variable-rate debt may impact earnings and cash flows as interest rates change, it is not subject to changes in fair value.
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Inflation Risk
We are subject to price control restrictions on our pharmaceutical products in a number of countries in which we operate. As a result, our ability to raise prices in a timely fashion in anticipation of inflation may be limited in some markets.
For information concerning legal proceedings, reference is made to Note 17, “LEGAL PROCEEDINGS” to the unaudited interim Condensed Consolidated Financial Statements included elsewhere in this Form 10-Q.
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For information concerning legal proceedings, reference is made to Note 17, “LEGAL PROCEEDINGS” to the unaudited interim Condensed Consolidated Financial Statements included elsewhere in this Form 10-Q.
As of the date of this Form 10-Q, there are no material changes to the risk factors as disclosed in Item 1A. “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2025.
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As of the date of this Form 10-Q, there are no material changes to the risk factors as disclosed in Item 1A. “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2025.