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Bausch Health Companies Reiterated Its Expense Guidance

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Expense guidance

In the first-quarter earnings investor presentation, Bausch Health Companies (BHC) reiterated its adjusted SG&A (selling, general, and administrative) expense guidance of $2.45 billion and R&D (research and development) expense guidance of $455 million for fiscal 2019. The company expects its fiscal 2019 R&D expenses to increase 10% YoY (year-over-year).

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Analysts’ projections

Analysts expect Bausch Health Companies’ SG&A expenses to change YoY by -1.11% to $2.45 billion in fiscal 2019, 2.39% to $2.50 billion in fiscal 2020, and 1.18% to $2.53 billion in fiscal 2021.

Analysts also expect Bausch Health Companies’ SG&A expenses to change YoY by -1.09% to $620.14 million in the second quarter, 2.76% to $615.56 million in the third quarter, and -0.04% to $625.73 million in the fourth quarter of fiscal 2019.

Analysts expect Bausch Health Companies’ R&D expenses to change YoY by 10.47% to $456.23 million in fiscal 2019, 1.33% to $462.28 million in fiscal 2020, and 0.12% to $462.83 million in fiscal 2021.

Analysts expect Bausch Health Companies’ R&D expenses to change YoY by 19.58% to $112.40 million in the second quarter, 5.64% to $113.04 million in the third quarter, and -3.01% to $116.38 million in the fourth quarter of fiscal 2019.

Long-term growth guidance

In the first-quarter earnings investor presentation, Bausch Health Companies has guided for CAGR (compound annual growth rate) of 4%–6% for its revenues from fiscal 2019 to fiscal 2022 from the midpoint of the fiscal 2019 revenue guidance range on a CC (constant currency) basis. The company has also guided for CAGR of 5%–8% for the adjusted EBITDA from fiscal 2019 to fiscal 2022 from the midpoint of the fiscal 2019 adjusted EBITDA guidance on a CC basis.

Bausch Health Companies expects its fiscal 2019 revenues to be at or above the midpoint of its revenue guidance. The company also expects Project CORE to contribute more than $75 million to its operating profit in fiscal 2019.

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