RBC Capital: What To Expect When Bausch Health Companies Reports Q1 Tomorrow

RBC Capital: What To Expect When Bausch Health Companies Reports Q1 Tomorrow
  • RBC Capital Markets expects Bausch Health Companies Inc BHC Q1 FY22 revenue of $2.02 billion (previous $2.04 billion; consensus $2.05 billion) and adjusted EBITDA of $799 million (previous $816 million; consensus $819 million). 
  • The forecasts suggest a 0.4% y/y decline on account of the Russia-Ukraine conflict and the China lockdowns. 
  • Sequential US script volumes for Relistor, Trulance, and Xifaxan declined by 3.6%, 6.1%, and 6.1%, respectively, on normal seasonality. 
  • The latest amended S1 provided a Bausch + Lomb Corp BLCO revenue of $880-890 million for Q1, versus the RBC estimates of $886 million.
  • Related: Closely Watched Bausch + Lomb IPO Priced Below Expectations.
  • The analysts say that the deteriorating risk profile associated with gXifaxan patent litigation is one of the key factors contributing to the recent weakness in BHC shares.
  • RBC estimates BHC exposure at between $2.02 and $6.72/share with added risks.
  • The analysts lowered the price target from $32 to $21 with Outperform rating, reflecting weak BLCO IPO pricing, weaker comps, and other recent news. 
  • Price Action: BHC shares are down 19.30% at $12.95 during the market session on the last check Monday.
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