Bausch loses half of market value amid patent dispute
Pharmaceutical giant Bausch Health Companies Inc. second-quarter results fell short of analyst expectations after the company reported a six per cent drop in revenue.
Revenue fell to US$1.967 billion compared to US$2.1 billion the year prior. The company’s net loss for the quarter was US$145 million compared to US$595 million the year prior. It also cut its full-year forecast.
The company is attributing the softness to a US$61-million impact from foreign exchange, as well as divestitures and discontinuations costing the company US$74 million.
"The second quarter was a transitional quarter for Bausch Health as we intensified our focus on the Bausch Pharma and Solta businesses," Thomas Appio, the chief executive officer of Bausch Health, said in a press release on Tuesday.
The pharmaceutical giant is focused on paying off its long-term debt through open market repurchases.
"In our first 90 days, our leadership team has taken immediate action to strengthen execution and accelerate change. We have advanced debt paydown through open market repurchases this quarter. We are focused on creating value through driving growth, profitability and improving our balance sheet," he said.
Bausch’s stock took a major hit in late July when the company announced that a U.S. judge had struck down its patent for the irritable bowel drug medication, Xifaxan. The ruling could open the door for generic versions of the drug to hit the market.
Bausch said it will appeal the ruling.