Bausch Health Companies Inc. (NYSE:BHC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 04, 2019 • 08:00 am ET


Bausch Health Companies Inc. (NYSE:BHC) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Bausch Health Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Art Shannon, Senior Vice President, Head of Investor Relations and Corporate Communications. Please go ahead.

Arthur Shannon

Thank you, Andrew. Good morning, everyone and welcome to our third quarter 2019 financial results conference call. Participating on today's call are Chairman and Chief Executive Officer, Joe Papa; and Chief Financial Officer, Paul Herendeen. In addition to this live webcast, a copy of today's slide presentation and a replay of this conference call will be available on our website under the Investor Relations section.

Before we begin, we'd like to remind you that our presentation today contains forward-looking information. We would ask that you take a moment to read the forward-looking statement legend at the beginning of our presentation as it contains important information. This presentation contains non-GAAP financial measures. For more information about these measures, please refer to Slide 2 of the presentation. Non-GAAP reconciliations can be found in the appendix to the presentation posted on our website.

Finally, the financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter and not to update or affirm guidance other than through broadly disseminated public disclosure.

With that, it is my pleasure to turn the call over to Joe.

Joseph C. Papa

Thank you, Art, and thank you, everyone, for joining us today. I'll begin with the third quarter highlights before turning the call over to Paul Herendeen, our CFO to review the financial results in detail and update our 2019 guidance. We'll then review the segment highlights and open the line for questions.

Beginning with Slide 4. We had another strong quarter, a sustained performance that demonstrates that our team is continuing to gain traction with our plan to pivot to office. Total Company organic revenue grew by 4% compared to the third quarter of 2018 and represented the seventh consecutive quarter of total Company organic revenue growth. B&L is leading our turnaround with a 12th consecutive quarter of organic revenue growth. Key drivers were a strong LUMIFY launch, strong international prescription results and the performance of our Global Vision Care business. Salix reported more than $500 million in total quarterly revenue driven by XIFAXAN's 24% growth.

Additionally, we generated $515 million of cash from operations and increased R&D investment by 15% during the third quarter. As of September 30, we have utilized approximately $900 million to repay approximately $700 million of debt and approximately $200 million to complete the acquisition of TRULANCE, and entered into a license agreement for amiselimod. And in October, we acquired rights to [Indecipherable] I'll talk more about that later.

Moving over to the right of Slide 4, our new products are also producing results. The Thermage brand is now a top 10 Bausch Health franchise following the successful launch of Thermage FLX in the Asia Pacific region. LUMIFY generated $21 million in