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How Bausch Health’s Diversified Products Segment Has Performed

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Revenue trends

Bausch Health’s (BHC) Diversified segment consists of neurology, generics, dentistry, and other drugs. Bausch Health’s Diversified segment generated revenues of $352.0 million in the third quarter compared to $356.0 million in the third quarter of 2017, reflecting a ~1% YoY decline. The Diversified segment witnessed ~4% YoY organic revenue growth.

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Segment revenue trends

In Bausch Health’s Diversified segment, Neurology generated revenues of $211.0 million in the third quarter compared to $227.0 million in the same period the prior year, reflecting ~7% YoY decline.

In the Diversified Products segment, generics generated revenues of $117.0 million in the third quarter compared to $82.0 million in the third quarter of 2017, reflecting ~43% YoY growth. In Bausch Health’s Diversified Products segment, the dentistry business generated revenues of $24.0 million compared to $32.0 million in the same period the prior year, reflecting ~25% YoY growth.

Gross margin and expenditure trends

In the third quarter, Bausch Health’s Diversified segment reported a gross profit and gross margin of $302.0 million and ~86%, respectively, compared to $294.0 million and ~83% in the third quarter of 2017.

The Diversified Products segment reported SA&P (selling, advertisement, and promotional) expenses of $24.0 million, $6.0 million, and $6.0 million, respectively, in the third quarter. In the third quarter of 2017, Bausch Health’s Diversified Products segment had SA&P and G&A expenses of $34.0 million and $10.0 million, respectively.

The Diversified Products segment reported non-GAAP EBITA (earnings before interests, taxes, and amortization) of $266.0 million in the third quarter compared to $250.0 million in the third quarter of 2017.

The diversified segment reported a non-GAAP EBITA margin of 76% in the third quarter compared to ~70% in the third quarter of 2017.

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