Bausch Health Q1 Revenue Up 12% to $2.524B While Net Debt Drops $100M
Bausch Health’s Q1 revenue rose 12% to $2.524 billion, driven by 14% growth ex-Bausch + Lomb and a 6% organic increase at Bausch + Lomb. Net debt fell by over $100 million even as the diversified segment revenue slid 10% and litigation settlements outflows hit $160 million.
1. Consolidated and Segment Revenue Performance
Bausch Health reported consolidated Q1 revenue of $2.524 billion, up 12% on a reported basis and 7% organically year-over-year. The Bausch + Lomb unit generated $1.244 billion in revenue, a 9% reported and 6% organic increase, while revenue excluding Bausch + Lomb reached $1.28 billion, up 14% reported and 9% organic.
2. Net Debt Reduction and Capital Optimization
The company reduced its net debt by more than $100 million during the quarter, reflecting stronger cash generation and progress in optimizing its capital structure. This deleveraging effort supports greater financial flexibility for future investments and debt refinancing.
3. Diversified Segment Decline and International Challenges
Revenue in the diversified pharmaceuticals segment fell 10% due to lower neuroscience product volumes. The Canadian market contracted by 7%, driven by volume declines in the branded generic portfolio, weighing on overall international performance.
4. Litigation Costs and Exclusivity Uncertainties
Legacy litigation settlements resulted in a $160 million cash outflow in Q1. Management is preparing for potential generic entry of Xifaxan by January 2028, noting that any loss of exclusivity could require earlier asset monetization and impact future free cash flow.