Bausch Health’s stock gains on improved outlook

Bausch Health Companies Inc. (NYSE: BHC) missed revenue expectations for the first quarter of 2019 and did not provide a number for adjusted EPS. The company raised its full-year 2019 guidance, allowing shares to gain 2.6% in premarket hours on Monday.

Total revenues of $2.01 billion were up 1% compared to the same period last year. Organic sales growth was 5%.

GAAP net loss was $52 million, or $0.15 per share, compared to $2.5 billion, or $7.36 per share, in the year-ago quarter. Adjusted net income increased 15% to $358 million.

Revenues in the Bausch + Lomb/International segment increased 1% year-over-year to $1.11 billion while revenues in the Salix segment grew 5% to $445 million.

In the Ortho Dermatologics segment, revenues fell 1% to $138 million, due to lower volumes primarily driven by the loss of exclusivity of ELIDEL, ZOVIRAX and SOLODYN. In Diversified Products, revenues dropped 5% to $315 million, mainly due to a loss of exclusivity for a basket of products.

Also see: Bausch Health Q1 2019 Earnings Conference Call Transcript

For the full year of 2019, the company now expects revenues to be $8.35 billion to $8.55 billion compared to the prior outlook of $8.30 billion to $8.50 billion.

Bausch completed the acquisition of certain assets of Synergy Pharmaceuticals Inc., including TRULANCE and dolcanatide for a cash purchase price, including restructuring, of approx. $190 million and the assumption of certain liabilities.

The FDA approved DUOBRII lotion for the topical treatment of plaque psoriasis in adults. DUOBRII is expected to be launched in June 2019.

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