LAVAL, QC - Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC), a pharmaceutical company with a market capitalization of $2.81 billion and impressive revenue growth of 10.91% over the last twelve months, and its division Salix Pharmaceuticals announced today that the Centers for Medicare and Medicaid Services (CMS) has chosen its medication, XIFAXAN® (rifaximin) 550 mg tablets, for the upcoming round of drug price negotiations. According to InvestingPro analysis, the company currently trades below its Fair Value, suggesting potential upside opportunity. This inclusion falls under the Inflation Reduction Act’s Drug Price Negotiation program, with initial pricing discussions set for 2027.
XIFAXAN® is approved for the reduction of overt hepatic encephalopathy recurrence in adults and for the treatment of irritable bowel syndrome with diarrhea in adults. With a robust gross profit margin of 70.87% and EBITDA of $3.07 billion, the company plans to discuss the drug’s value to the healthcare system with CMS, highlighting endorsements by The American Association for the Study of Liver Diseases and the European Association for the Study of Liver. For deeper insights into Bausch Health’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
The medication, however, is not without its warnings. It is contraindicated in patients with hypersensitivity to rifaximin, other rifamycin antimicrobial agents, or any of its components. Adverse reactions such as Clostridium difficile-associated diarrhea have been reported, with severity ranging from mild diarrhea to fatal colitis. XIFAXAN has also been associated with increased systemic exposure in patients with severe hepatic impairment, and interactions with P-glycoprotein and OATPs inhibitors, which may require caution.
The most common adverse reactions in clinical studies of XIFAXAN for hepatic encephalopathy included peripheral edema, constipation, and nausea, while for irritable bowel syndrome with diarrhea, nausea and increased ALT levels were observed. The company advises monitoring in patients receiving concurrent treatment with warfarin, as INR and prothrombin time changes have been reported.
Bausch Health, a global pharmaceutical company with a focus on a diverse range of medical areas including gastroenterology and eye health, expressed its commitment to patient access to medications and to further innovation in healthcare. The company’s statements about the value of its products and its future plans are forward-looking and subject to various risks and uncertainties.
This news is based on a press release statement from Bausch Health Companies Inc. and does not constitute an endorsement of the company’s claims. While analysts maintain a mixed outlook with price targets ranging from $6 to $12, InvestingPro data reveals several promising indicators, including expected net income growth and strong free cash flow yield. Subscribers can access additional ProTips and detailed financial metrics to make more informed investment decisions.
In other recent news, Bausch + Lomb is reportedly exploring a potential sale of the company, following an inquiry from the Canadian Investment Regulatory Organization. This development comes as Jefferies, a global financial services company, has identified Bausch + Lomb as an undervalued asset with a potential takeout price of $25 per share. The valuation is based on an updated leveraged buyout model, suggesting a potential internal rate of return of approximately 21% over a five-year period.
Furthermore, Bausch Health Companies Inc. has secured a $400 million loan amendment for its subsidiary, Bausch + Lomb, to repay existing revolving loans and for general corporate purposes. This financial move is aimed at strengthening the company’s financial flexibility.
In addition, Bausch Health Companies has reported a significant rise in its third-quarter revenues, marking a 12% year-over-year increase, and a 9% organic growth. RBC Capital Markets has responded to these positive developments by raising its price target for Bausch Health from $10 to $11.
Finally, Bausch Health has raised its full-year 2024 revenue guidance to between $4.775 billion and $4.85 billion, with adjusted EBITDA expectations also increased to a range of $2.425 billion to $2.475 billion. These are the latest developments in a series of strategic moves and financial results from Bausch + Lomb and Bausch Health Companies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.