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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