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How Bausch Health’s Financials Look in November

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Revenue trends

Bausch Health (BHC) generated revenues of $2.1 billion in the third quarter of this year compared to $2 billion in the third quarter of 2017, a ~4% YoY decline. Bausch Health generated revenues of $6.26 billion over the first nine months of this year compared to $6.56 billion in the same period the prior year, reflecting a ~5% YoY decline.

Allergan (AGN), Mylan (MYL), and Teva Pharmaceutical (TEVA), Bausch Health’s peers in the biopharmaceuticals market, reported revenues of $3.9 billion, $2.9 billion, and $4.5 billion, respectively, reflecting ~3.05%, ~4.17%, and 19.27% YoY declines. The Invesco Dynamic Pharmaceuticals ETF (PJP) invests ~3.27% of its total portfolio holding in Bausch Health.

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Expense trends

Bausch Health reported cost of goods sold (excluding amortization and impairments of intangible assets) of $573.0 million in the third quarter compared to $650.0 million in the third quarter of 2017. Bausch Health’s cost of goods sold (excluding amortization and impairments of intangible assets) amounted to $1.7 billion over the first nine months of this year compared to $1.9 billion in the same period the prior year.

In the third quarter, Bausch Health reported SG&A (selling, general, and administrative) and R&D (research and development) expenses of $614.0 million and $107.0 million, respectively, compared to $623.0 million and $81.0 million in the third quarter of 2017.

During the first nine months, Bausch Health’s SG&A and R&D expenditure amounted to $1.8 billion and $293.0 million, respectively. The company’s SG&A and R&D expenditure over the first nine months of 2017 was $1.9 billion and $271.0 million, respectively.

Earnings trends

In the third quarter, Bausch Health reported net income and EPS of -$350.0 million and -$1.00, respectively, compared to net income and EPS of $1.3 billion and $3.71 in the third quarter of 2017.

Bausch Health’s net income and EPS over the first nine months of this year amounted to -$3.8 billion and -$10.83, respectively, compared to net income and EPS of $1.9 billion and $5.40 in the same period the prior year.

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