Bausch Health Companies Inc. (BHC)
Bausch Health Companies Inc. develops, manufactures, and markets a diverse portfolio of pharmaceutical, medical device, and over-the-counter products. The company operates through five segments, focusing on eye health, gastroenterology, and dermatology.
Company Overview
Bausch Health offers a compelling investment opportunity within the specialty and generic drug market, driven by its diverse product portfolio across eye health, gastroenterology, and dermatology, coupled with a low beta of 0.38 and a P/E ratio of 6.03, signaling potential value.
Investment Thesis
Investing in Bausch Health Companies Inc. presents a compelling opportunity due to its strategic focus on high-growth therapeutic areas and its established global presence. The company's diverse portfolio, spanning eye health, gastroenterology, and dermatology, provides resilience and multiple avenues for growth. With a low beta of 0.38, BHC offers relative stability in a volatile market. The company's attractive P/E ratio of 6.03 suggests undervaluation relative to its earnings potential. Key value drivers include successful product launches within the Bausch + Lomb and Salix segments, as well as continued expansion in international markets. Upcoming catalysts include potential regulatory approvals for new products and strategic partnerships to enhance market reach. The company's strong gross margin of 70.7% indicates efficient operations and pricing power.
Key Highlights
- Market capitalization of $2.18 billion, reflecting its current valuation in the market.
- P/E ratio of 6.03, suggesting a potentially undervalued stock compared to its earnings.
- Gross margin of 70.7%, indicating strong profitability from its products and services.
- Profit margin of 3.6%, showcasing its ability to convert revenue into profit.
- Beta of 0.38, indicating lower volatility compared to the overall market.
Competitors
Strengths
- Diverse product portfolio across multiple therapeutic areas.
- Global presence and distribution network.
- Strong brand recognition, particularly with Bausch + Lomb.
- High gross margin indicating efficient operations.
Weaknesses
- High debt levels.
- Past controversies and reputational challenges.
- Dependence on key products and segments.
- Exposure to generic competition and pricing pressures.
Catalysts
- Upcoming: Potential regulatory approvals for new pharmaceutical products and medical devices.
- Ongoing: Expansion of Bausch + Lomb product line in emerging markets.
- Ongoing: Strategic partnerships to enhance market reach and distribution capabilities.
- Ongoing: Continued focus on research and development to drive innovation.
Risks
- Potential: Increasing competition from generic drug manufacturers could erode market share.
- Potential: Regulatory changes and pricing pressures may impact profitability.
- Ongoing: High debt levels pose a financial risk.
- Potential: Product liability claims and litigation could result in significant costs.
- Ongoing: Dependence on key products and segments exposes the company to market fluctuations.
Growth Opportunities
- Growth opportunity 1: Expanding the Bausch + Lomb product line in emerging markets represents a significant growth opportunity. The increasing prevalence of vision impairment and eye diseases in developing countries creates a substantial unmet need for Bausch + Lomb's vision care, surgical, and ophthalmic pharmaceutical products. By leveraging its existing global infrastructure and establishing strategic partnerships, Bausch Health can penetrate these markets and capture a larger share of the growing demand for eye health solutions. This expansion could contribute significantly to revenue growth within the next 3-5 years.
- Growth opportunity 2: The Salix segment, focused on gastroenterology products in the United States, has the potential to expand its product offerings and market reach. With the rising incidence of gastrointestinal disorders, there is a growing demand for innovative and effective treatments. By investing in research and development to introduce new gastroenterology products and expanding its sales and marketing efforts, Salix can capture a larger share of the U.S. market. This expansion could lead to increased revenue and profitability within the next 2-3 years.
- Growth opportunity 3: The Ortho Dermatologics segment can capitalize on the growing demand for medical aesthetic devices and dermatological products. The increasing focus on skincare and appearance, coupled with technological advancements in aesthetic treatments, is driving growth in this market. By expanding its Solta medical aesthetic devices internationally and introducing new dermatological products in the United States, Ortho Dermatologics can attract a wider customer base and increase its market share. This expansion could contribute to revenue growth within the next 3-5 years.
- Growth opportunity 4: Strategic acquisitions of complementary businesses and product portfolios can accelerate Bausch Health's growth and diversification. By acquiring companies with innovative technologies, established market positions, or complementary product lines, Bausch Health can expand its offerings, strengthen its competitive advantage, and enter new therapeutic areas. These acquisitions can provide access to new markets, technologies, and expertise, driving long-term growth and value creation. The timeline for realizing the benefits of acquisitions can vary, but strategic deals can have a significant impact within 1-3 years.
- Growth opportunity 5: Investing in research and development to create innovative pharmaceutical products and medical devices is crucial for Bausch Health's long-term growth. By developing new treatments for unmet medical needs and improving existing products, the company can maintain its competitive edge and capture a larger share of the market. A strong pipeline of innovative products can drive revenue growth, enhance brand reputation, and create long-term value for shareholders. The timeline for bringing new products to market can be lengthy, but successful product launches can have a significant impact over the long term.
Opportunities
- Expanding into emerging markets with unmet medical needs.
- Developing and launching innovative products in key therapeutic areas.
- Acquiring complementary businesses and technologies.
- Strengthening partnerships with healthcare providers and distributors.
Threats
- Increasing competition from generic drug manufacturers.
- Regulatory changes and pricing pressures.
- Product liability claims and litigation.
- Economic downturns and healthcare spending cuts.
Competitive Advantages
- Established brands and reputation in key therapeutic areas, particularly eye health with Bausch + Lomb.
- Diverse product portfolio spanning pharmaceuticals, medical devices, and OTC products.
- Global presence and distribution network, providing access to a wide range of markets.
- Strong gross margin of 70.7%, indicating pricing power and efficient operations.
About
Bausch Health Companies Inc., originally known as Valeant Pharmaceuticals International, Inc., underwent a significant transformation and rebranding in July 2018. Founded with the mission of improving people's lives through innovative healthcare solutions, Bausch Health has evolved into a global leader in the development, manufacturing, and marketing of a wide array of pharmaceutical, medical device, and over-the-counter (OTC) products. The company's operations are strategically organized into five key segments: Bausch + Lomb, Salix, International Rx, Ortho Dermatologics, and Diversified Products. Bausch + Lomb focuses on vision care, surgical, and ophthalmic pharmaceuticals. Salix specializes in gastroenterology products within the United States. The International Rx segment extends the company's reach globally, offering Solta products, branded and generic pharmaceuticals, OTC products, medical devices, and Bausch + Lomb products across Canada, Europe, Asia, Australia, Latin America, Africa, and the Middle East. Ortho Dermatologics provides dermatological solutions in the United States and Solta medical aesthetic devices internationally. Lastly, the Diversified Products segment encompasses pharmaceutical products in neurology and other therapeutic areas, as well as generic and dentistry products in the United States. With a workforce of 20,700 employees and headquarters in Laval, Canada, Bausch Health is committed to delivering high-quality healthcare products to meet the diverse needs of patients worldwide.
What They Do
- Develops and manufactures pharmaceutical products.
- Creates medical devices for various therapeutic areas.
- Markets over-the-counter (OTC) products.
- Focuses on eye health solutions through the Bausch + Lomb segment.
- Provides gastroenterology products in the United States via the Salix segment.
- Offers dermatological products and medical aesthetic devices through the Ortho Dermatologics segment.
- Provides pharmaceutical products in neurology and other therapeutic areas through the Diversified Products segment.
- Operates internationally, serving markets in Canada, Europe, Asia, Australia, Latin America, Africa, and the Middle East.
Business Model
- Develops and manufactures a range of pharmaceutical, medical device, and OTC products.
- Markets and sells these products through various channels, including direct sales, distributors, and partnerships.
- Generates revenue from product sales across its five segments: Bausch + Lomb, Salix, International Rx, Ortho Dermatologics, and Diversified Products.
Industry Context
Bausch Health operates in the dynamic and competitive pharmaceutical industry, specifically within the specialty and generic drug segments. The global pharmaceutical market is experiencing growth driven by an aging population, increasing prevalence of chronic diseases, and advancements in medical technology. Bausch Health competes with other major pharmaceutical companies, including ALVO, ANIP, BEAM, CON and CPRX, each vying for market share in key therapeutic areas. The company's focus on eye health, gastroenterology, and dermatology positions it to capitalize on specific market trends and patient needs within these segments.
Key Customers
- Patients requiring eye health solutions, gastroenterology treatments, and dermatological care.
- Healthcare professionals, including ophthalmologists, gastroenterologists, and dermatologists.
- Hospitals and clinics that use Bausch Health's medical devices and pharmaceutical products.
- Retail pharmacies and over-the-counter consumers.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $2.51B | -$85M | $-0.23 |
| Q4 2024 | $2.56B | $93M | $0.25 |
| Q1 2025 | $2.26B | -$58M | $-0.16 |
| Q2 2025 | $2.53B | $148M | $0.40 |
Source: Company filings
Chart & Info
Price Chart
Bausch Health Companies Inc. (BHC) stock price: $7.40 (+0.19, +2.64%)
Why Bull
- •BHC's recent restructuring efforts seem to be gaining traction, potentially streamlining operations and focusing on core growth areas.
- •Insider buying activity suggests that those with inside knowledge see value at current levels, a positive signal for long-term prospects.
- •The market appears to be slowly recognizing the potential of BHC's diversified portfolio, moving beyond past controversies.
- •Community sentiment is cautiously optimistic, with many believing the company is undervalued and poised for a turnaround.
Why Bear
- •The company still carries a significant debt load, creating financial risk and limiting flexibility for future investments.
- •Negative media coverage and lingering legal challenges continue to weigh on investor confidence, creating uncertainty.
- •Despite restructuring, competition in the pharmaceutical and healthcare sectors remains intense, potentially impacting BHC's market share.
- •Community sentiment reveals concerns about the effectiveness of the turnaround strategy, with some doubting management's ability to deliver.
Latest News
-
Ironwood vs. Bausch Health: Which GI Drug Stock is a Better Pick Now?
Yahoo! Finance: BHC News · Feb 20, 2026
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Ironwood vs. Bausch Health: Which GI Drug Stock is a Better Pick Now?
Zacks · Feb 20, 2026
-
Ironwood vs. Bausch Health: Which GI Drug Stock is a Better Pick Now?
zacks.com · Feb 20, 2026
-
BHC Stock Down on Q4 Earnings Miss, Salix Drives Revenue Growth
Yahoo! Finance: BHC News · Feb 19, 2026
Technical Analysis
Rationale
AI-generated technical analysis for BHC including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for BHC.
Make a Prediction
Set your price target for Bausch Health Companies Inc. (BHC), choose a timeframe, and track your prediction accuracy.
Current price: $7.40
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for BHC.
Price Targets
Median: $8.00 (+8.1% from current price)
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 8.5% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 10/100
Gross margin of 96.6% shows excellent pricing power and a strong competitive moat.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 8/100
Strong cash reserves of $1.3B provide a solid financial cushion for growth investments and market downturns.
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R&D Intensity 5/100
R&D spending at 6.0% of revenue is moderate, balancing current profitability with future development.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 10/100
Daily turnover of 0.77% indicates healthy liquidity with smooth entry/exit for investors.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates BHC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Ironwood vs. Bausch Health: Which GI Drug Stock is a Better Pick Now?
Ironwood vs. Bausch Health: Which GI Drug Stock is a Better Pick Now?
Ironwood vs. Bausch Health: Which GI Drug Stock is a Better Pick Now?
BHC Stock Down on Q4 Earnings Miss, Salix Drives Revenue Growth
Frequently Asked Questions
What does Bausch Health Companies Inc. do?
Bausch Health Companies Inc. is a global pharmaceutical and medical device company that develops, manufactures, and markets a wide range of products across various therapeutic areas. The company operates through five segments: Bausch + Lomb (eye health), Salix (gastroenterology), International Rx, Ortho Dermatologics, and Diversified Products. Its products include prescription and over-the-counter pharmaceuticals, medical devices, and aesthetic treatments. Bausch Health aims to improve people's lives by providing innovative and effective healthcare solutions to patients and healthcare professionals worldwide.
Is BHC stock a good buy?
BHC stock presents a mixed investment profile. The company's low P/E ratio of 6.03 and a beta of 0.38 may appeal to value investors seeking stability. The gross margin of 70.7% indicates strong profitability. However, high debt levels and past controversies remain concerns. Growth opportunities in emerging markets and new product launches could drive future value. Investors should carefully weigh these factors and conduct thorough due diligence before investing. The company's ability to manage its debt and successfully execute its growth strategy will be critical to its long-term performance.
What are the main risks for BHC?
Bausch Health faces several key risks. Intense competition from generic drug manufacturers could erode market share and pricing power. Regulatory changes and healthcare reforms may impact profitability. The company's high debt levels pose a significant financial risk, potentially limiting its ability to invest in growth initiatives. Product liability claims and litigation could result in substantial costs. Dependence on key products and segments exposes the company to market fluctuations and competitive pressures. Effective risk management and mitigation strategies are crucial for Bausch Health's long-term success.
Is BHC a good stock to buy?
Whether BHC is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the BHC MoonshotScore?
The MoonshotScore for BHC is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is BHC data updated?
BHC stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to BHC is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for BHC?
Growth catalysts for Bausch Health Companies Inc. (BHC) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Bausch Health Companies Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are BHC's main competitors?
Bausch Health Companies Inc. (BHC) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether BHC has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about BHC?
Wall Street analyst coverage for BHC includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is BHC's market cap?
Market capitalization (market cap) for BHC is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows BHC's current market cap alongside enterprise value and other valuation metrics.
How has BHC stock performed recently?
BHC's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing BHC's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in BHC?
Key risk categories for BHC include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures BHC's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling BHC?
Insider trading activity for BHC tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is BHC a good stock for beginners?
Bausch Health Companies Inc. (BHC) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is BHC for first-time investors?
Every stock carries risk, including Bausch Health Companies Inc. (BHC). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like BHC.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Information is based on publicly available sources and may be subject to change.
- Investment decisions should be based on individual risk tolerance and financial circumstances.