BHC: Higher Revenue Guidance for Fiscal 2019



Revenue guidance

In the first-quarter earnings investor presentation, Bausch Health Companies (BHC) raised its fiscal 2019 revenue guidance from $8.30 billion–$8.50 billion to $8.35 billion–$8.55 billion. Compared to the previous revenue guidance announced in February, the company has assumed an incremental negative impact of $30 million associated with FX movements and zero impact due to loss of exclusivity in its new revenue guidance. Bausch Health Companies has factored in a positive revenue impact of $55 million associated with annual sales of Trulance in fiscal 2019. The company has also assumed an incremental revenue impact of $25 million associated with its base business in the new fiscal 2019 revenue guidance.

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Analysts expect Bausch Health Companies’ revenues to change YoY (year-over-year) by 1.29% to $8.49 billion in fiscal 2019, 3.00% to $8.74 billion in fiscal 2020, and 3.05% to $9.01 billion in fiscal 2021.

Analysts also expect Bausch Health Companies’ revenues to change YoY by 0.84% to $2.15 billion in the second quarter, -0.35% to $2.13 billion in the third quarter, and 2.89% to $2.18 billion in the fourth quarter of fiscal 2019.

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Bausch acquires Synergy Pharmaceuticals

In March, Bausch Health Companies issued a press release announcing the completion of the acquisition of certain assets of Synergy Pharmaceuticals to its Salix portfolio. According to the company’s first-quarter earnings conference call, the acquisition added assets like Trulance—a drug indicated for irritable bowel syndrome with constipation and chronic idiopathic constipation. The acquisition also added an investigational therapy, dolcanatide, which is being evaluated for gastrointestinal conditions like opioid-induced constipation and ulcerative colitis. In the first quarter, Trulance reported revenues of $6 million. Most of the revenues were associated with channel refilling required due to low pipeline inventories.


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