uploads///Ortho

A Look at the Performance of Bausch Health’s Ortho Dermatologics

By

Updated

Revenue trends

Bausch Health Companies’ (BHC) wholly-owned subsidiary Ortho Dermatologics generated revenue of $142.0 million in the second quarter compared to $162 million in the second quarter of 2017, reflecting a ~12% YoY (year-over-year) fall.

In the second quarter, Ortho Dermatologics witnessed an ~11% organic revenue rise compared to the same period last year.

Ortho Dermatologics’ Solta reported revenue of $32 million in the second quarter compared to $28 million in the second quarter of 2017.

In the first half of 2018, Bausch Health’s Ortho Dermatologics business reported revenue of $283 million compared to $689 million in the same period last year.

Article continues below advertisement

In the second quarter, Ortho Dermatologics’ Siliq generated revenue of $4.0 million. In the second quarter, Siliq’s TRx (total prescription) weekly prescriptions tripled compared to the first quarter. Marketing initiatives and Risk Evaluation and Mitigation Strategy certifications primarily pushed Siliq’s sales growth in the quarter.

Siliq’s plaque psoriasis drug peers Eli Lilly and Company’s (LLY) Taltz, Johnson & Johnson’s (JNJ) Remicade, and AbbVie’s (ABBV) Humira reported revenues of $220.1 million, $1.3 billion, and $5.2 billion, respectively, in the second quarter.

Operating expenses and margin

In the second quarter, Bausch Health’s Ortho Dermatologics business reported a gross profit and a gross margin of $123 million and 87%, respectively, compared to $135 million and 83%, respectively, in the same period last year.

Ortho Dermatologics reported SA&P (selling, advertisement, and promotional) expenses of $52.0 million in the second quarter compared to $44 million in the second quarter of 2017.

Ortho Dermatologics reported G&A (general and administrative) and R&D (research and development) expenses of $4 million and $8 million, respectively, compared to $13 million and $11 million, respectively, in the same period last year, reflecting rises of ~69% and ~27%, respectively.

In the second quarter, the Ortho Dermatologics business reported non-GAAP (generally accepted accounting principles) EBITA and a non-GAAP EBITA margin of $59 million and 42%, respectively, compared to $67 million and 41%, respectively, in the same period last year.

Advertisement

More From Market Realist