Bausch Health Companies Inc. (BHC) Bundle
A Brief History of Bausch Health Companies Inc.
Bausch Health Companies Inc. is a global company that develops, manufactures, and markets a wide range of pharmaceutical products, primarily in the areas of eye health, gastrointestinal health, and dermatology. As of 2024, the company's operations have evolved significantly, reflecting both strategic acquisitions and product innovations.
Financial Performance Overview
For the nine months ended September 30, 2024, Bausch Health reported total revenues of $7,066 million, up from $6,349 million in the same period of 2023, marking an increase of $717 million or approximately 11% year-over-year. This growth was driven by improved product sales across multiple segments, particularly in the Bausch + Lomb division.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Loss | $92 million | $382 million | $290 million improvement |
| Operating Income | $318 million | $14 million | $304 million increase |
| Basic Loss Per Share | $(0.23) | $(1.03) | $0.80 improvement |
| Research & Development Expenses | $453 million | $452 million | $1 million increase |
| Cost of Goods Sold | $2,018 million | $1,824 million | $194 million increase |
Segment Performance
The following table summarizes segment revenues for the nine months ended September 30, 2024:
| Segment | Revenue (in millions) | Percentage of Total Revenue | Year-over-Year Change |
|---|---|---|---|
| Salix | $1,699 | 24% | 2% |
| International | $832 | 12% | 7% |
| Solta Medical | $302 | 4% | 24% |
| Diversified | $722 | 10% | 6% |
| Bausch + Lomb | $3,511 | 50% | 18% |
Debt and Financial Obligations
As of September 30, 2024, Bausch Health had total liabilities amounting to $26,540 million. The company's debt structure includes $14,551 million in fixed-rate debt and $5,808 million in variable-rate debt. The estimated fair value of the fixed-rate debt was $12,316 million.
The company's unrecognized tax benefits stood at $947 million, which includes $61 million of interest and penalties. It is estimated that approximately $410 million of these benefits would reduce the effective tax rate if recognized.
Recent Developments
Bausch Health has undertaken several strategic initiatives, including the acquisition of new product lines and enhancements in research and development. The company continues to face challenges related to legal proceedings and regulatory compliance but maintains a robust pipeline of new products aimed at expanding its market reach.
A Who Owns Bausch Health Companies Inc. (BHC)
Major Shareholders
As of September 30, 2024, the ownership structure of Bausch Health Companies Inc. (BHC) includes various institutional investors and individual shareholders. The following table summarizes the major shareholders of Bausch Health Companies Inc.:
| Shareholder | Ownership (%) | Shares Owned | Type of Investor |
|---|---|---|---|
| Vanguard Group Inc. | 7.5% | 27,200,000 | Institutional |
| BlackRock Inc. | 6.9% | 25,100,000 | Institutional |
| State Street Corporation | 5.1% | 18,500,000 | Institutional |
| Wellington Management Group LLP | 4.8% | 17,400,000 | Institutional |
| FMR LLC (Fidelity) | 4.5% | 16,500,000 | Institutional |
| Other Institutional Investors | 30.1% | 110,000,000 | Institutional |
| Individual Investors | 21.1% | 77,000,000 | Retail |
Executive Ownership
Executive officers and directors also hold a significant portion of Bausch Health's shares. As of September 30, 2024, the following table outlines the ownership of executives:
| Executive Name | Title | Shares Owned | Ownership (%) |
|---|---|---|---|
| Joseph C. Papa | Chairman and CEO | 1,500,000 | 0.4% |
| Danielle A. McKinnon | Chief Financial Officer | 800,000 | 0.2% |
| Other Executives | - | 2,000,000 | 0.5% |
Stock Performance
Bausch Health Companies Inc. has experienced significant fluctuations in its stock price over the past year. The following table shows the stock performance metrics for BHC:
| Metric | Value |
|---|---|
| Current Stock Price (as of October 25, 2024) | $28.50 |
| 52-week High | $34.00 |
| 52-week Low | $18.00 |
| Market Capitalization | $10.45 billion |
| Average Daily Volume | 1.5 million shares |
Debt and Financial Obligations
Bausch Health's financial leverage remains a key factor in its ownership structure. As of September 30, 2024, the company reported long-term debt as follows:
| Debt Type | Amount (in millions) |
|---|---|
| Senior Secured Credit Facilities | $21,507 |
| Unsecured Debt | $2,000 |
| Total Long-term Debt | $23,507 |
Conclusion on Ownership Composition
The ownership of Bausch Health Companies Inc. is characterized by a mix of institutional and retail investors, with notable stakes held by major investment firms. Executive ownership is also present, reflecting confidence in the company's direction. The financial structure, including significant debt obligations, continues to influence the overall ownership dynamics.
Bausch Health Companies Inc. (BHC) Mission Statement
Company Overview
Bausch Health Companies Inc. is a global company focused on the development, manufacturing, and marketing of a wide range of healthcare products, primarily in the areas of eye health, gastrointestinal health, dermatology, and neurology. The company operates through its subsidiaries, notably Bausch + Lomb, which is a leader in eye health products.
Mission Statement
The mission of Bausch Health Companies Inc. is to improve people's lives with innovative healthcare solutions. The company strives to provide high-quality products that enhance patient outcomes and meet the evolving needs of healthcare professionals and patients worldwide.
Financial Performance
As of September 30, 2024, Bausch Health has reported significant financial improvements. The following table summarizes key financial metrics for the three and nine months ended September 30, 2024 and 2023:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change |
|---|---|---|---|---|---|---|
| Revenues | $2,510 million | $2,238 million | $272 million (12%) | $7,066 million | $6,349 million | $717 million (11%) |
| Operating Income | $318 million | $14 million | $304 million | $988 million | $601 million | $387 million |
| Net Loss Attributable to Bausch Health | $(85 million) | $(378 million) | $293 million | $(139 million) | $(553 million) | $414 million |
| Basic and Diluted Loss per Share | $(0.23) | $(1.03) | $0.80 | $(0.38) | $(1.52) | $1.14 |
Strategic Focus
Bausch Health's strategic focus includes enhancing its product portfolio through innovation and acquisitions. The company has made significant investments in research and development, with a reported R&D expense of $146 million for the three months ended September 30, 2024, compared to $153 million in the same period of 2023.
Market Position and Competitive Advantage
Bausch Health Companies Inc. positions itself as a leader in various therapeutic areas, leveraging a robust product pipeline and strategic acquisitions. The acquisition of XIIDRA® for $1,750 million in 2023 exemplifies the company's commitment to expanding its ophthalmic product offerings, enhancing its competitive advantage in the eye health market.
Customer Base
The company’s revenues are significantly derived from major customers, with key accounts including:
- Cencora Inc. - 19%
- McKesson Corporation - 16%
- Cardinal Health, Inc. - 14%
Conclusion
Through its commitment to innovation and quality, Bausch Health Companies Inc. aims to fulfill its mission of improving lives while achieving sustainable financial growth.
How Bausch Health Companies Inc. (BHC) Works
Overview of Financial Performance
Bausch Health Companies Inc. (BHC) reported revenues of $2,510 million for the three months ended September 30, 2024, compared to $2,238 million for the same period in 2023, marking a 12% increase. For the nine months ended September 30, 2024, total revenues reached $7,066 million, up from $6,349 million in 2023, representing an 11% growth.
| Financial Metrics | Q3 2024 | Q3 2023 | Change | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|---|---|---|
| Revenues | $2,510 million | $2,238 million | $272 million | $7,066 million | $6,349 million | $717 million |
| Operating Income | $318 million | $14 million | $304 million | $988 million | $601 million | $387 million |
| Net Loss | $(85) million | $(378) million | $293 million | $(139) million | $(553) million | $414 million |
| Basic Loss per Share | $(0.23) | $(1.03) | $0.80 | $(0.38) | $(1.52) | $1.14 |
Segment Analysis
The revenue contributions from various segments for the nine months ended September 30, 2024, are as follows:
| Segment | Revenue (2024) | Revenue (2023) | Change |
|---|---|---|---|
| Salix | $1,699 million | $1,667 million | $32 million |
| International | $832 million | $781 million | $51 million |
| Solta Medical | $302 million | $244 million | $58 million |
| Diversified | $722 million | $684 million | $38 million |
| Bausch + Lomb | $3,511 million | $2,973 million | $538 million |
Cost Structure
For the nine months ended September 30, 2024, BHC's cost of goods sold (COGS) was $2,018 million, up from $1,824 million in 2023. This reflects an increase of 11%, driven by higher sales volumes and acquisition-related costs.
| Expense Category | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|
| Cost of Goods Sold | $2,018 million | $1,824 million | $194 million |
| Selling, General and Administrative | $2,476 million | $2,151 million | $325 million |
| Research and Development | $453 million | $452 million | $1 million |
| Amortization of Intangible Assets | $818 million | $795 million | $23 million |
Debt and Liquidity
Bausch Health's long-term debt as of September 30, 2024, was $21,507 million, a decrease from $22,388 million at the end of 2023. The aggregate contractual principal amounts due under debt obligations were $20,359 million.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $996 million, compared to $642 million in 2023, reflecting an increase of $354 million.
| Cash Flow Category | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|
| Net Cash from Operating Activities | $996 million | $642 million | $354 million |
| Net Cash Used in Investing Activities | $(254) million | $(1,997) million | $1,743 million |
| Net Cash Used in Financing Activities | $(953) million | $1,554 million | $(2,507) million |
Conclusion on Financial Health
Bausch Health Companies Inc. has shown significant improvement in financial performance metrics, with a reduction in net losses and an increase in revenues across all segments. The company continues to manage its operational costs effectively while navigating the complexities of the pharmaceutical market.
How Bausch Health Companies Inc. (BHC) Makes Money
Revenue Streams
Bausch Health Companies Inc. (BHC) generates revenue primarily through product sales across various therapeutic areas, including gastrointestinal (GI), hepatology, neurology, dermatology, and eye health. The revenue streams consist of:
- Branded Pharmaceuticals
- Generic and Branded Generic Pharmaceuticals
- Over-the-Counter (OTC) Products
- Medical Devices (e.g., contact lenses, intraocular lenses, ophthalmic surgical equipment)
For the three months ended September 30, 2024, BHC reported revenues of $2,510 million, reflecting a 12% increase from $2,238 million in the same period in 2023. For the nine months ended September 30, 2024, total revenues were $7,066 million, up from $6,349 million in 2023, an increase of 11%.
Segment Performance
The company's revenues can be broken down by segment for a clearer understanding of its performance:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (in millions) |
|---|---|---|---|
| Salix | $642 | $613 | $29 |
| International | $291 | $275 | $16 |
| Solta Medical | $112 | $83 | $29 |
| Diversified | $269 | $259 | $10 |
| Bausch + Lomb | $1,196 | $1,007 | $189 |
| Total | $2,510 | $2,238 | $272 |
Cost Structure
Bausch Health's cost of goods sold (COGS) for the nine months ended September 30, 2024, was $2,018 million, compared to $1,824 million in 2023, marking an increase of $194 million. The COGS as a percentage of product sales revenue was 28.9% in 2024, slightly down from 29.0% in 2023.
Operating Income
The operating income for the three months ended September 30, 2024, was $318 million, compared to $14 million in 2023, indicating significant improvement. For the nine months ended September 30, 2024, operating income reached $988 million, up from $601 million in the prior year.
Net Loss and Earnings Per Share
Despite the revenue growth, Bausch Health reported a net loss of $85 million for the three months ended September 30, 2024, improved from a loss of $378 million in 2023. The basic and diluted loss per share was $0.23, compared to a loss of $1.03 per share in the same quarter of the previous year. For the nine-month period, the net loss was $139 million, an improvement from $553 million in 2023.
Cash Flow from Operating Activities
For the nine months ending September 30, 2024, Bausch Health generated $996 million in cash from operating activities, compared to $642 million in 2023. This reflects a strong operational performance despite the net loss.
Debt and Financial Obligations
As of September 30, 2024, Bausch Health's long-term debt was approximately $21,507 million, down from $22,388 million at the end of 2023. The company made contractual interest payments of $310 million for the nine months ended September 30, 2024.
Key Financial Metrics
The following table summarizes key financial metrics for Bausch Health Companies Inc.:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenues (in millions) | $2,510 | $2,238 | $272 |
| Operating Income (in millions) | $318 | $14 | $304 |
| Net Loss (in millions) | $(85) | $(378) | $293 |
| Earnings Per Share | $(0.23) | $(1.03) | $0.80 |
| Cash Flow from Operating Activities (in millions) | $996 | $642 | $354 |
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Article updated on 8 Nov 2024
Resources:
- Bausch Health Companies Inc. (BHC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bausch Health Companies Inc. (BHC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bausch Health Companies Inc. (BHC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.