2023-11-02 12:51:00 ET
Canadian specialty pharmaceutical firm Bausch Health ( NYSE: BHC ) on Thursday said it swung to a quarterly loss from a profit a year ago, primarily due to an increase in goodwill impairments and higher expenses.
U.S.-listed shares of the company opened lower, after which they began to recover steadily. They were last up 4% to $7.36 in mid-day trade, amid a broader market that was rallying .
BHC posted a Q3 loss per share of $1.03. Its revenue rose more than 9% Y/Y to $2.24B.
Laval, Canada-based Bausch Health ( BHC ) provides gastrointestinal treatments through Salix Pharmaceuticals, aesthetic medical devices through Solta Medical, generic medicines, and vision-related products through Bausch + Lomb.
Bausch + Lomb reported its Q3 results on Wednesday.
BHC's Q3 revenue was helped by Y\Y gains in each of its segments, led by 15% growth at Solta and 13% growth at Salix.
However, Bausch Health's ( BHC ) Q3 consolidated operating income came in at $14M versus $230M a year ago. Net loss attributable to the company was $378M, compared to a net income of $399M a year ago.
BHC in a statement said the decrease in operating income was mainly because of a rise in goodwill impairments, higher selling, general and administrative expenses, and investments in research and development. BHC also noted that it had seen a $570M gain on extinguishment of debt in Q3 last year.
Turning to Bausch Health's ( BHC ) guidance, the company raised its revenue forecast to a range of $8.585B-$8.710B from a prior outlook of $8.45B-$8.65B. The consensus revenue estimate is .
Full year adjusted EBITDA guidance was narrowed to a range of $3.01B-$3.11B from a previous forecast of $3.00B-$3.15B.
Bausch's ( BHC ) results come just a day after the company said a U.S. district court had dismissed a lawsuit by Norwich Pharma over a generic version of Salix's drug Xifaxan.
The consolidated appeals of the Delaware Court's ruling are ongoing at the Court of Appeals for the Federal District Circuit. Briefing is now complete and we are awaiting a date for oral argument. We expect a decision by the end of Q1 2024 and remain confident in our position," BHC top boss Thomas Appio said on the earnings conference call .
Appio also added that the company was continuing to evaluate strategies regarding the potential full separation of Bausch + Lomb.
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Bausch Health swings to quarterly loss on goodwill impairments, higher expenses