Bausch Health Adds 2 Directors Chosen By Carl Icahn: What Investors Need To Know

Bausch Health Companies Inc BHC is expanding its board of directors to accommodate two designees from activist investor Carl Icahn’s Icahn Group, which owns 7.83% of the company’s outstanding common stock.

What Happened: The Quebec-based Bausch Health will add Brett Icahn and Steven Miller to its board in mid-March as independent directors, with each serving a term expiring at the company's 2021 annual meeting on April 27. The new directors, who are both portfolio managers at Icahn Capital LP, will serve on the board’s finance and transactions committee and on the committee that evaluates strategic business alternatives. They will be included on the slate of nominees for the board at the April meeting. 

With these appointments, the Bausch Health board now consists of 13 directors, with 12 being independent.

"Our discussions with Bausch Health have been productive," Carl Icahn said in a statement. "We continue to believe there are opportunities to drive further value for all shareholders, and we look forward to collaborating with the Board and management and contributing meaningfully to the company's ongoing strategic review."

What Else Happened: The appointment of the new directors coincides with the release Wednesday of the company’s fourth-quarter and full-year 2020 earnings reports.

Bausch Health reported fourth-quarter revenue of $2.213 billion, down from $2.224 billion in the fourth quarter of 2019, while its 2020 revenue of $8.027 billion was down from $8.601 billion in 2019. 

“Revenue was negatively impacted by approximately $740 million in 2020 due to the impact of the COVID-19 pandemic,” the company said in a statement. “Excluding the unfavorable impact of foreign exchange of $39 million, the impact of divestitures and discontinuations of $20 million and the impact of an acquisition of $13 million, revenue declined 6% organically compared to the full year of 2019.”

BHC Price Action: Bausch Health shares were up 0.79% at $31.82 at last check Wednesday.