BHC
Bausch Health Companies Inc
Healthcare
11/19/2019
Presented
| Date | 11/14/2019 |
| Price | $27.38 |
| Market Cap | $9.65B |
| Ent Value | $32.45B |
| P/E Ratio | N/A |
| Book Value | $7.04 |
| Div Yield | 0% |
| Shares O/S | 352.43M |
| Ave Daily Vol | 3,626,407 |
| Short Int | N/A |
Current
| Price | $8.39 |
| Market Cap | $3.08B |
| Bausch Health Cos., Inc. engages in the development, manufacture, and market of a range of branded, generic and branded generic pharmaceuticals, medical devices and over-the-counter products. It operates through the following segments: The Bausch + Lomb/International, Salix, Ortho Dermatologics and Diversified Products. The Bausch + Lomb/International segment consists of the sale of pharmaceutical products, over-the-counter products, and medical devices products. The Branded Rx segment comprises of pharmaceutical products related to the Salix product portfolio; dermatological product portfolio; branded pharmaceutical products, branded generic pharmaceutical products; over-the-counter products; medical device products; Bausch + Lomb products sold in Canada; and the oncology, dentistry, and health products for women. The Salix Segment consists of sales in the U.S. of GI Products, The Ortho Dermatologics segment consists of sales in the U.S. of Ortho Dermatologics (dermatological) products and global sales of Solta medical aesthetic devices. The Diversified Products segment consists of sales in the U.S. of pharmaceutical products in the areas of neurology and certain other therapeutic classes, in the U.S. of generic products, in the U.S. of dentistry products. The company was founded on March 29, 1994 and is headquartered in Laval, Canada. |
Publicly traded companies mentioned herein: Affiliated Managers Group Inc (AMG), Amgen Inc (AMGN), Bausch Health Cos Inc (BHC)
Highlights
The presenter is long shares of Bausch Health Cos Inc. (BHC) based on a turnaround of the company and a multi-layered special situation angle. After being one of the most hated stocks for the past decade BHC, formerly Valeant, has started to turn the ship under a new management team that took over in May 2016. They’ve since stabilized EBITDA, have generated FCF, and are starting to pay down debt. Their weak businesses now make up less than 20% of operating profit, while their two good businesses, Salix Pharmaceuticals and Bausch & Lomb, make up the remaining portion. There are two layers to the presenter’s special situation angle 1) the company now has the ability to buy back stock and 2) they could either spin or sell Salix and/or Bausch & Lomb. On a SOTP basis, using management’s numbers the presenter believes the stock should trade north of $70. Consensus estimates lean closer to $60, with Salix and Bausch & Lomb both adding $25 worth of value each. That leaves a $10 stub that consists of a small dermatology business and legacy Valeant assets. The stock currently trades at $28/share.
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