Bausch Health Kicks Off 2026 with Strong First Quarter Performance
The first quarter of 2026 was a significant success for Bausch Health, according to the company's recent conference call transcript. The biopharmaceutical company reported a 14% increase in revenue on a reported basis compared to the same period last year, excluding its Bausch + Lomb subsidiary.
The strong performance was driven by Salix and Solta, two of Bausch Health's key business units. Within Salix, revenue growth was led by Xifaxan, which continues to perform well in both IBS-D and OHE. The company also benefited from residual volume in certain channels that it exited starting last quarter.
Adjusted EBITDA for Bausch Health, excluding Bausch + Lomb, increased by 17% on a reported basis, largely attributable to Salix and Solta performance. Salix benefited from improved margin dynamics following payer channel optimization, while Solta earnings growth was particularly notable given the one-time acquisition-related cost.
Cash flow generation in the first quarter was healthy and progressing well towards guidance expectation. This includes the remaining settlement of Bausch Health's U.S. opt-out litigation, which have now all concluded, as well as reducing its net debt by over $100 million.
The company's R&D efforts are also making progress, with meaningful developments in its larsucosterol phase III program for alcohol-associated hepatitis. This program has the potential to be a platform asset with applicability in multiple indications, according to Bausch Health.
Bausch Health's CEO, Tom Appio, stated that the company began 2026 with another strong performance, extending its track record to 12 consecutive quarters of year-over-year growth in both revenue and adjusted EBITDA for Bausch Health, excluding Bausch + Lomb. The company's priorities remain focused on execution within its core business, R&D innovation, business development, and optimizing its capital structure.
Bausch Health's financial guidance is effective as of today only, and the company does not undertake any obligation to update it. However, based on its strong first quarter performance, investors may be optimistic about the company's future prospects.
