Why Did Bausch Health Companies’ [BHC] Stock Jump 50% In 2 Months?

by Trefis Team
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Bausch Health Companies (BHC), formerly Valeant Pharmaceuticals, has seen its share price rally more than 50% over the last two months. There were 2 main reasons for this:

  • The company’s share price sank 90% from its peak level in 2015 on account of legal scrutiny in price rigging triggered by a report first published by Citron Research that year. Citron Research published another report on BHC in October highlighting the successful turnaround in the company based on EBITDA growth over 2 consecutive quarters, manageable debt levels (with the next maturity in 2023), and full year profits expected for the first time this year after 4 years of losses.
  • Also, BHC’s dermatology drug Duobrii, which was launched 6 months ago, has become the most successful dermatology drug in the U.S. in the last 10 years.

We step back from the recent price swing to review BHC performance over the last few years as a context for what might come next. Our Interactive dashboard – How Did Bausch Health Companies [BHC] Fare in 2018 and What Can We Expect In 2019?, reviews the near-term reasons and the big picture.

The context for the last few years:

A closer look At BHC Total Revenues over the last few years and the outlook

Total Revenues for Bausch Health Companies slightly decreased from $8.72 Bil in 2017 to $8.38 Bil in 2018; a decrease of -3.94%.

This compares with Total Revenues growth of:

  • 3% in 2015
  • -7.40% in 2016
  • -9.82% in 2017

We expect Total Revenues growth to be 2.27% in 2019.


A closer look At BHC Total Expenses over the last few years and the outlook

Total Expense for Bausch Health Companies significantly increased from $10.5 Bil in 2017 to $12.5 Bil in 2018; an increase of 19.8%.

This compares with Total Expense growth of:

  • 2% in 2015
  • 2% in 2016
  • -13.6% in 2017

We expect Total Expense decline to be -48.47% in 2019.


How does BHC Revenue Growth compare with rivals?

For more information on how BHC’s revenue growth compares with Teva Pharmaceutical Industries, Mylan and Endo International, view our interactive dashboard analysis.


How has BHC’s EBT trended?

EBT for Bausch Health Companies fell sharply from -$1.74 Bil in 2017 to -$4.15 Bil in 2018.

We expect EBT to increase to $2.11 Bil in 2019.


How has BHC Net Income and EPS trended?

For more details about BHC’s Net Income and EPS, view our interactive dashboard analysis


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