During the recent first-quarter, Bausch posted a loss compared to a profit last year, due to a drop in the benefit from income taxes and goodwill impairment charges related to the Salix and Ortho Dermatologics businesses.
Revenue slipped 5.4% due to divestitures, discontinuations, and the loss of exclusivity for a basket of products. The results were also impacted by the declines in the Ortho Dermatologics business and lower volumes in the U.S. Diversified Products segment.
The company had lifted its guidance for the full year 2018. The company predicted revenue of $8.15 billion to $8.35 billion and adjusted EBITDA in the range of $3.15 billion to $3.30 billion.
The market analysts are expecting the company’s results to be impacted by the recent tentative approval of the generic version of anti-inflammatory drug Apriso. This could highlight its significant exposure to loss of exclusivities.
During mid-June, the company suffered a setback in the approval of Duobrii lotion for the treatment of plaque psoriasis. The Food and Drug Administration has failed to approve its Canadian company’s Duobrii lotion. Psoriasis is a condition that causes the body to make new skin cells in days rather than weeks.
Investors are awaiting any updates from the company on the new drug application for sub-micron Loteprednol etabonate ophthalmic gel. The application was accepted for review by the FDA with an expected decision on February 25, 2019. The gel is used for the treatment of postoperative inflammation and pain following ocular surgery.
Shares of Bausch Health opened higher on Monday but turned course to negative territory as traders are cautious ahead of the company’s results. The stock has been trading between $21.49 and $23.70 for the past 52 weeks.