Q4 2023 Bausch Health Companies Inc Earnings Call

Operator: Greetings, welcome to the Bausch Health fourth quarter and full year 2023. At this time, all participants are in a list. That question and answer session will follow the formal... Please note this conference is. I would now like to turn the conference over to your host, Maria Laikova. You may.

Greetings and welcome to the Bausch health fourth quarter and full year 2023 earnings call.

At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note. This conference is being recorded I would now like to turn the conference over to your host Maria like Harris you may begin.

Maria Laikova: Good morning, and welcome to Bausch Health's fourth quarter 2023 earnings conference call. Participating in today's call are Thomas Appio, Chief Executive Officer of Bausch Health, and John Barresi, Interim Chief Financial Officer. Before we begin, I'd like to remind you that our presentation today contains forward-looking information. We ask you to take a moment to read the forward-looking statements disclaimer at the beginning of the slides that accompany this presentation, as it contains important information. Our actual results may vary materially from those expressed or implied in our forward-looking statements, and you should not place undue reliance on any such forward-looking statements.

Maria Harris: Good morning, and welcome to Bausch Health's fourth quarter 2023 earnings conference call participating in today's call are Thomas <unk>, Chief Executive Officer of Bausch Health and John Breathy interim Chief Financial Officer before we begin I'd like to remind you that our presentation. Today contains forward looking information, we ask you to take a moment to read.

The forward looking statements disclaimer at the beginning of the slides that accompany this presentation as it contains important information our actual results may vary materially from those expressed or implied in our forward looking statements and you should not place undue reliance on any forward looking statements.

Maria Laikova: Please refer to our SEC filings and filings with the Canadian Securities Administrators for a list of some of the risk factors that could cause our actual results to differ materially from our expectations. We use non-GAAP financial measures to help investors understand our ongoing business performance. Non-GAAP financial measures may not be comparable to similarly titled measures used by other companies and should not be considered along with, but not as an alternative to, measures calculated in accordance with GAAP.

Maria Harris: Please refer to our SEC filings and filings with the Canadian Securities administrators for a list of some of the risk factors that could cause our actual results to differ materially from our expectations.

Maria Harris: We use non-GAAP financial measures to help investors understand our ongoing but this performance non-GAAP financial measures may not be comparable to similarly titled measures used by other companies and should not be considered along with but not as an alternative to measures calculated in accordance with GAAP you'll find.

Maria Laikova: You will find reconciliations to our non-GAAP measures in the appendix of the slides that accompany this presentation, which are available on Bausch Health's Investor Relations website. Finally, the financial guidance in this presentation is effective as of today only, and we do not undertake any obligation to update it.

Maria Harris: <unk> to our non-GAAP measures in the appendix of the slides that accompany this presentation, which are available on <unk> Investor Relations website.

Finally, the financial guidance in this presentation is effective as of today only we do not undertake any obligation to update guidance. Our discussion today will focus on Bausch health, excluding bausch and Lomb. However, we will briefly comment on Bausch and Lomb <unk> results announced yesterday, we will refer to year over year comparisons with the same peer.

Maria Laikova: Our discussion today will focus on Bausch Health, excluding Bausch & Lomb. However, we will briefly comment on Bausch & Lomb's results announced yesterday. For the benefit of those who may be listening to the replay or archived webcast, this call was held on February 22nd, 2024. With that, it is my pleasure to turn the call over to our CEO, Thomas Appiah. Tom?

Maria Harris: Last year, unless otherwise noted for the benefit of those who may be listening to the replay or archived webcast. This call was held on and recorded on February 22024 with that it is my pleasure to turn the call over to our CEO Thomas <unk> Tom.

Thomas Appio: Thank you and welcome to those of you joining the call this morning. I want to start today's call by highlighting the strategic priorities we set out to achieve this past year: growth, performance, focus, and unlocking value. These priorities help support our ambition of being a globally integrated healthcare company, trusted and valued by patients, healthcare providers, employees, and investors, as we relentlessly drive to deliver better health outcomes. We made significant progress on these priorities in 2023, reinforcing our strong global foundation, which consists of a large portfolio of products across a diverse set of therapeutic areas and geographies. Our significant presence in gastroenterology, hepatology, neurology, dermatology, medical aesthetic devices, and international pharmaceuticals across the branded, generic, and branded-generic markets gives us a solid platform for growth, as we are excited about the opportunities in each of these areas.

Thomas: And welcome to those of you joining the call. This morning.

Thomas: Want to start today's call by highlighting the strategic priorities, we set out to achieve this past year growth performance focus and unlocking value.

Thomas: These priorities helped support our ambition of being a globally integrated healthcare company trusted and valued by patients health care providers employees and investors as we relentlessly drive to deliver better health outcomes.

Thomas: We made significant progress on these priorities in 2023, reinforcing our strong global Foundation, which consists of a large portfolio of products across a diverse set of therapeutic areas and geographies are.

Thomas: Our significant presence in gastroenterology, herpetology, neurology dermatology medical aesthetic devices and international pharmaceuticals across the branded generic and branded generic market give us a solid platform for growth as we are excited about the opportunities in each of these areas.

Thomas: Yeah.

Thomas Appio: From a financial perspective, I am pleased to report we achieved or exceeded our February 2023 guidance. For Bausch Health, excluding B&L, full-year revenue was $4.61 billion, and organic revenue growth was 6%, both slightly above our February 2023 guidance range and in line with our guidance update in November. For Bausch Health, excluding B&L, full-year adjusted EBITDA was $2.36 billion, in line with our guidance, while funding incremental spend on R&D to support our REDD-C and Amicillimod programs. Importantly, we ended the year on a strong note.

Thomas: From a financial perspective, I am pleased to report, we achieved or exceeded our February 2023 guidance.

Thomas: We're bausch health, excluding <unk> full year revenue was 461 billion and organic revenue growth was 6% both slightly above our February 2023 guidance range and in line with our guidance update in November for Bausch health excluding.

<unk> full year adjusted EBITA was $2 $3 6 billion in line with our guidance, while funding incremental spend on R&D to support our Red Sea and <unk> programs Importantly, we ended the year on a strong note.

Thomas Appio: As the fourth quarter represented our third consecutive quarter of year-over-year growth in adjusted EBITDA, and we delivered adjusted operating cash flow of $708 million, above our guidance. For the fourth quarter, revenues for Bausch Health, excluding B&L, were $1.24 billion, up $38 million, or 3% on a reported basis and 2% on an organic basis. Adjusted EBITDA was $663 million, an increase of approximately 1% compared to the prior year.

Thomas: As the fourth quarter represented our third consecutive quarter of year over year growth in adjusted EBITDA.

Thomas: And we delivered adjusted operating cash flow of $708 million above our guidance.

Thomas: For the fourth quarter revenues for Bausch health, excluding <unk> were 124 billion up $38 million or 3% on a reported basis and 2% on an organic basis.

Thomas: Adjusted EBITDA was $663 million, an increase of approximately 1% compared to the prior year.

Thomas Appio: We made significant progress across our key R&D initiatives during the quarter. First, we received positive top-line data from our large global Phase II trial for amicillamide. Second, we completed enrollment in one of our two global Phase III trials for Red Sea, with the second trial expected to complete enrollment in the first half of this year. And third, in January, we received approval by the National Medical Products Administration, or NMPA, for Thermage FLX and the TR4 return pad in China. I will touch on these in more detail shortly.

Thomas: We made significant progress across our key R&D initiatives during the quarter first we received a positive topline data from our large global phase III trial for <unk>.

Thomas: We completed enrollment for one of our two global phase III trials for Red Sea with the second trial expected to complete enrollment in the first half of this year and third in January we received approval by the National Medical products administration or and P. A.

Thomas: <unk> and the T. R for return pad in China, I will touch on these in more detail shortly I am pleased with the continued momentum in our pipeline.

Thomas Appio: I am pleased with the continued momentum in our pipeline. Strengthening our balance sheet also remains a priority as we are focusing on managing our liquidity position. During 2023, we reduced debt, net of cash, for Bausch Health, excluding B&L, by $670 million.

Thomas: Strengthening our balance sheet also remains a priority as we are focusing on managing our liquidity position. During 2023, we've reduced debt net of cash for Bausch health, excluding P&L by $670 million and in January 2024, we retired an additional 200.

Thomas Appio: And in January 2024, we retired an additional $250 million in principal value of debt through an open market repurchase program. We continue to defend our intellectual property rights for Zyfaxan. As discussed on our third quarter 2023 earnings call, on October 6th, 2023, the D.C. District Court held a hearing in Norwich's lawsuit against the FDA, where Norwich was seeking immediate approval of their ANDA. On November 1st, the court denied Norwich's motion and granted summary judgment in favor of the FDA and Salix. In December, Norwich appealed the District Court's decision to the U.S. Court of Appeals for the D.C.

Thomas: $50 million in principal value of debt through an open market repurchase program.

Thomas: We continue to defend our intellectual property rights for <unk>.

Thomas: As discussed on our third quarter 2023 earnings call on October six 2023, the D. C District Court held a hearing in Norwich lawsuit against the FDA, where Norwich was seeking immediate approval of their <unk> on November one the court denied Norwich.

Thomas: <unk> motion and granted summary judgment in favor of the FDA and Salix in December Norwich appealed the district Court's decision to the U S Court of Appeals for the DC circuit. The DC Circuit has stayed the appeal onto the federal circuit renders a decision in our site fax and.

Thomas Appio: Circuit. The D.C. Circuit has stayed the appeal until the Federal Circuit renders its decision in our Facts and Litigation. The consolidated appeals from the Delaware District Court are pending at the U.S. Court of Appeals for the Federal Circuit. On January 8th, the Federal Circuit heard oral arguments.

Thomas: Asian.

Thomas: The consolidated appeals from the Delaware District Court are pending at the U S Court of Appeals for the Federal Circuit on January 8th the Federal Circuit heard oral arguments, we expect a decision to follow late in the first quarter or early in the second quarter, we are committed to vigorous.

Thomas Appio: We expect a decision to follow late in the first quarter or early in the second quarter. We are committed to vigorously defending our intellectual property and providing health care providers and patients with safe and effective treatment. You will recall that in January of 2023, we reached a tentative settlement with the IRS to resolve the Granite Trust matter. We continue to expect this settlement to be finalized in the coming months, as we have previously said. The anticipated outcome of the settlement does not have a material impact on the company's results or cash flows. Turning now to the potential full separation of Bausch & Long, we continue to believe the separation of Bausch & Long makes strategic sense, and we continue to evaluate strategies regarding the potential full separation with the objective of ensuring that this transaction results in two appropriately capitalized companies. Any decision regarding whether and when a separation occurs or its structure will be based on and subject to an assessment of all relevant factors and circumstances.

Thomas: Defending our intellectual property and providing health care providers and patients with safe and effective treatments.

Thomas: You will recall that in January of 2023, we reached a tentative settlement with the IRS to resolve the granite Trust matter. We continue to expect this settlement to be finalized in the coming months as we have previously said.

Thomas: The anticipated outcome of the settlement does not have a material impact on the company's results or cash flows.

Thomas: Turning now to the potential full separation of Bausch and Lomb. We continue to believe the separation of Bausch along make strategic sense and we continue to evaluate strategies regarding the potential full separation with the objective of ensuring that this transaction result in to appropriately.

Thomas: Capitalized companies.

Thomas: Any decision regarding if and when the separation occurs or its structure will be based on and subject to an assessment of all relevant factors and circumstances any potential separation will also be subject to shareholder and other applicable approvals.

Thomas Appio: Any potential separation will also be subject to shareholder and other applicable approvals. In the meantime, we are focused on managing our balance sheet. We ended the quarter with more than $1.5 billion of liquidity. We repurchased a small amount of debt in the fourth quarter, and in January 2024, we repurchased approximately $250 million of principal value of our debt. Finally, we are introducing our 2024 guidance for Bausch Health, excluding BNL, which reflects our confidence that we can deliver top and bottom line growth again in 2024. John will speak in more detail about this later in the call.

Thomas: And in the meantime, we are focused on managing our balance sheet. We ended the quarter with more than one 5 billion of liquidity, we repurchased a small amount of debt in the fourth quarter and in January 2020 for repurchase approximately $250 million in principal value of our debt.

Thomas: Finally, we are introducing our 2024 guidance for Bausch health, excluding be enel, which reflects our confidence that we can deliver top and bottom line growth again in 2024, John will speak in more detail to this later in the call.

Thomas Appio: Turning now to an overview of our segment performance for the quarter, in Salix, we continued to see strong demand in Q4 for our key products, including Zyfaxan. For Zyfaxan, we saw approximately 3 percent TRX growth in Q4 over the prior year, with a strengthening trend in the back half of the quarter. This was led by strong growth for IBSD, with a return to growth for HE driven by the long-term care channel. Putting this all together, we believe we are starting to see the benefits of our investment in AI-enabled Salesforce tools and DTC advertising to spread awareness of the underlying medical conditions and the options that are available to treat them. For 2024, we anticipate maintaining our current level of investment in these areas to drive further growth in this important franchise. Finally, Trulance and Relastor continued to deliver double-digit TRX growth in the quarter.

John Breathy: Turning now to an overview of our segment performance for the quarter.

John Breathy: In Salix, we continued to see strong demand in Q4 for our key products, including XI facts first I facts, and we saw approximately 3% <unk> growth in Q4 over the prior year with a strengthening trend in the back half of the quarter. This was led by strong growth for Ibs D.

John Breathy: With a return to growth for AG, driven by long term care channel putting this all together. We believe we are starting to see the benefits our investments in AI enabled sales force tools and DTC advertising to spread awareness of the underlying medical conditions and the options that are available to treat them for <unk>.

John Breathy: 24, we anticipate maintaining our current level of investment in these areas to drive further growth in this important franchise.

Finally true lands in Relistor continued to deliver double digit T Rx growth in the quarter.

Thomas Appio: Turning to international, we saw strong year-over-year revenue growth on both a reported and an organic basis. In all regions during the fourth quarter, continued growth in our promoted brand portfolios in key markets, including Poland, Mexico, and Canada, more than offset the impact of the emirate recall earlier in 2023 and increased generic competition for certain products, particularly in Canada. Our focus in 2024 will be continuing to invest in our promoted product portfolio while looking for business development opportunities to drive long-term growth. In Fulton Medical, revenues increased by 4% on a reported basis and 5% on an organic basis, reflecting solid growth in China as well as growth in the broader Asia-Pacific region. Revenues in the U.S. declined slightly in the quarter.

John Breathy: Turning to international we saw strong year over year revenue growth on both a reported and organic basis.

John Breathy: In all regions during the fourth quarter continued growth in our promoted brand portfolios in key markets, including Poland, Mexico and Canada.

John Breathy: More than offset the impact of the emirate recall earlier in 2023 and increased generic competition for certain products, particularly in Canada. Our focus in 2024 will be continuing to invest in our promoted product portfolio, while looking for business development opportunities to.

John Breathy: <unk> long term growth.

John Breathy: And Solta medical revenues increased by 4% on a reported and 5% on an organic basis, reflecting solid growth in China as well as growth in the broader Asia Pacific region revenues in the U S declined slightly in the quarter, we remain highly focused on maintaining our momentum in Asia.

Thomas Appio: We remain highly focused on maintaining our momentum in Asia, including driving Thermage FLX performance in China, and in 2024, we will also be focused on growing our U.S. and EMEA markets, where we believe there is a meaningful opportunity to expand our presence. To support these efforts, we have added talented, key leadership to the Salta business to advance our leading portfolio of products and have invested in the expansion of the U.S. Field Force. We are also focusing our R&D organization on our pipeline of new market authorizations and next-generation products as we continue to build upon this world-class, durable aesthetics business. In Diversified, we saw another quarter of healthy performance, particularly in neurology, as we continue to capitalize on opportunities in the market created by competitor supply constraints.

John Breathy: Including driving their Mas <unk> performance in China and in 2024 will also be focused on growing our U S and EMEA markets, where we believe there is meaningful opportunity to expand our presence.

John Breathy: To support these efforts we have added talented key leadership to the Solta business to advance our leading portfolio of products and have invested in the expansion of the U S. Field Force. We are also focusing our R&D organization on our pipeline of new market authorizations and next generation products as we continue to build.

John Breathy: Upon this world class durable aesthetics business in.

John Breathy: In diversified we saw another quarter of healthy performance, particularly in neurology as we continued to capitalize on opportunities in the market created by competitor supply constraints. We remain focused on managing this mature portfolio of products for profitability and cash generation.

Thomas Appio: We remain focused on managing this mature portfolio of products for profitability and cash generation in a challenging competitive and pricing environment and continue to look for opportunities to make targeted investments where appropriate. Dentistry revenues were in line with a strong Q4 in the prior year, and in the coming year, we are looking to accelerate growth with a focus on the Salesforce platform and new marketing tools. In dermatology, CABTRIO is now launched and available for patients in the U.S. at the end of January 2024, and we are excited to be able to provide this new once-a-day triple combination topical acne treatment for patients.

John Breathy: <unk> competitive and pricing environment and continued to look for opportunities to make targeted investments where appropriate.

John Breathy: Dentistry revenues were in line with a strong Q4 in the prior year and in the coming year, we are looking to accelerate growth with a focus on the salesforce and new marketing tools.

John Breathy: In dermatology cab trio is now launched and available for patients in the U S. At the end of January 2024, and we are excited to be able to provide this new once a day triple combination topical acne treatment for patients. We continue to expect that <unk> will be launched in Canada.

Thomas Appio: We continue to expect that CABTRIO will be launched in Canada in the second half of 2024. Now, turning to the latest developments in our R&D pipeline, starting with our GR pipeline. In December, we announced positive top-line results from our Phase 2 study evaluating amicillomat, an S1P antagonist, in the treatment of ulcerative colitis, or UC. We are very pleased that the study met the primary and key secondary endpoints, including clinical remission and endoscopic improvement during the double-blind period of the study, with no unexpected adverse events.

John Breathy: In the second half of 2024.

John Breathy: Turning to the latest developments in our R&D pipeline, starting with our <unk> pipeline in December we announced positive topline results from our phase II study evaluating <unk> in S. <unk> antagonist in the treatment of ulcerative colitis or UC we are.

John Breathy: Pleased that the study met the primary and key secondary endpoints, including clinical remission and endoscopic improvement during the double blind period of the study with no unexpected adverse events. We are preparing for our next steps to progress this program, including presenting the detailed results at upcoming scientific.

Thomas Appio: We are preparing for our next steps to progress this program, including presenting the detailed results at upcoming scientific conferences and planning to meet with the FDA for an end-of-Phase 2 meeting. We plan to advance into phase three in moderate to severe UC patients and could possibly target all UC patients based on our results. We anticipate a step-up in R&D spend to support these phase three efforts, as well as exploring opportunities to expand into other therapeutic areas, primarily Crohn's disease, with a phase two program. We expect to initiate our global phase three program for UC in late 2024. Our REDD-C program for Rifaximin for reduction of early decompensation in cirrhosis continues to advance.

John Breathy: Terrific conferences and planning to meet with the FDA for an end of phase II meeting.

John Breathy: We are planning to advance into phase III in moderate to severe UC patient and could possibly target all UC patients based on our results. We anticipate a step up in R&D spend to support these phase III efforts as well as exploring opportunities to expand into other.

John Breathy: <unk> areas, primarily crohn's disease with a phase II program, we expect to initiate our global Phase III program for UC in late 2024.

John Breathy: Our Red Sea program for <unk> for reduction of early Decompensation in cirrhosis continues to advance the global program is focused on delivering a novel formulations and assessing the efficacy of Rifaximin SSD formulation versus placebo to delay the occurrence of H E relate.

Thomas Appio: The global program is focused on delivering a novel formulation and assessing the efficacy of Rifaximin SSD formulation versus placebo to delay the occurrence of HE-related hospitalizations. We have completed enrollment in one of two large global phase three trials. As of the end of the year, with enrollment for the second trial expected to be completed during the first half of 2024. Together, these studies are expected to include approximately 1,000 patients across the major markets of North America, Europe, and Asia Pacific. Turning now to our aesthetics pipeline, we are very pleased to have received approval for Thermage SLX and TR4 return pad from the NMPA in China in January. We are excited about the opportunities in this market, and we see a runway for growth.

John Breathy: Hospitalizations, we completed enrollment for one of two large global phase III trials as of the end of the year with enrollment for the second trial expected to be completed during the first half of 2024 together. These studies are expected to include approximately 1000.

John Breathy: <unk> across the major markets of North America, Europe, and Asia Pacific.

John Breathy: Turning now to our aesthetics pipeline. We are very pleased to have received approval for <unk> <unk> and <unk> are for return pad from the NPA in China. In January we are excited about the opportunities in this market and we see a runway for growth we expect to start.

Thomas Appio: We expect to start realizing the benefits of this starting in the second quarter of this year. We plan an FDA submission for our next generation Fraxel, a fractionated laser device for skin resurfacing, in the second quarter of 2024. We expect approval to be received in the second half of this year. Finally, our program for clear and brilliant touch, a fractionated laser device for skin rejuvenation, continues to advance with regulatory submissions still on track for 2024 in Europe, Canada, and Asia-Pacific markets.

John Breathy: Realizing the benefits of this starting in the second quarter of this year.

John Breathy: We plan an FDA submission for our next generation Fraxel, a fractionated laser device for skin resurfacing in the second quarter of 2024, we expect approval could be received in the second half of this year.

John Breathy: Finally, our program for clearer and brilliant tubs are fractionated laser device for skin rejuvenation continues to advance with regulatory submission is still on track for 2024 in Europe, Canada and Asia Pacific markets.

Thomas Appio: As a leadership team, we remain committed to driving growth by leveraging our existing assets, making targeted investments, and executing with commercial excellence while continuing to progress our pipeline, all with a patient-centered mentality. With that, I will turn the call over to John Barresi, who will provide further details on our fourth quarter performance and financial outlook for 2024.

John Breathy: As a leadership team, we remain committed to driving growth by leveraging our existing assets, making targeted investments and executing with commercial excellence, while continuing to progress our pipeline all with a patient centered mentality with that I will turn the call over to John <unk>.

John Breathy: <unk>, who will provide further details on our fourth quarter performance and financial outlook for 2020 for John.

John Barresi: Thanks, Tom. Hello, everyone, and thanks for joining us. We closed the fourth quarter with consolidated revenues for Bausch Health of $2.41 billion, up 10% on a reported basis and 4% on an organic basis over the same quarter last year. On a consolidated basis, revenue increased 8% for the full year on a reported basis and 7% on an organic basis. Fourth quarter revenues for Bausch Health, excluding B&L, were $1.24 billion, up 3% on a reported basis and up 2% on an organic basis over the same quarter last year, with growth in our international, diversified, and SALTA segments, while Salix was in line with last year. Bausch Health, excluding B&L, ended the year with revenues of $4.61 billion, up $255 million, or 6% on both a reported and organic basis compared to 2022.

John Breathy: Thanks, Tom Hello, everyone and thanks for joining us we closed the fourth quarter with consolidated revenues for Bausch health, a two for $1 billion.

John Breathy: Up 10% on a reported basis and 4% on an organic basis over the same quarter last year on a consolidated basis revenue increased 8% for the full year on a reported basis and 7% on an organic basis.

John Breathy: Fourth quarter revenues for Bausch health, excluding P&L, where 124 billion up 3% on a reported basis and up 2% on an organic basis over the same quarter last year with growth in our international diversified and Solta segments, while Salix was in line with last year.

John Breathy: Bausch health, excluding <unk> ended the year with revenues of $4 $61 billion.

John Breathy: $255 million or 6% on both a reported and organic basis compared to 2022.

John Barresi: Let's dive into the revenue performance for each segment in more detail, starting on slide 13 with sailing. Fourth quarter Salix revenues increased $2 million on both an organic and reported basis to $583 million, driven by TRX growth in our key products, including Xifaxin, Relastor, and Truland. However, comparisons to the prior year's quarter were impacted by changes in the timing of wholesaler buying patterns.

John Breathy: Let's dive into the revenue performance for each segment in more detail starting on slide 13 with Salix.

John Breathy: Fourth quarter sales revenues increased $2 million on both organic and reported basis to $583 million driven by <unk> growth in our key products, including XI Faxon, Relistor and true lamps.

John Breathy: Comparisons to the prior year's quarter were impacted by changes in the timing of wholesaler buying patterns. As you will recall sales reported 13% growth in the third quarter of 2023 compared to the third quarter of 2022.

John Barresi: As you will recall, sales reported 13% growth in the third quarter of 2023 compared to the third quarter of 2022. As we noted then, we saw an increase in wholesale channel inventory in Q3, earlier than we had anticipated, and this quarter, we saw inventory in the wholesale channel decline compared to a build in Q4 of 2022. For the full year, sales reported revenues of $2.25 billion, an increase of approximately 8% over 2022 on a reported basis. We realized an approximately 3% increase in net price along with an approximately 5% increase in volume, with the volume increase split roughly equally between underlying demand and the impact of higher overall wholesale inventory levels year over year. While inventory in the channel declined relative to Q3, we did end the year higher than we ended 2022. Syfaxan continued to represent approximately 80% of Salix segment revenues this year and saw strong growth in underlying demand. Retail prescriptions grew 3.1% in Q4 compared to the prior quarter.

John Breathy: As we noted then we saw an increase in wholesale channel inventory in Q3 earlier than we had anticipated and this quarter. We saw inventory in the wholesale channel declined compared to a build in Q4 of 2022.

John Breathy: For the full year sales to reported revenues of $2 5 billion.

John Breathy: An increase of approximately 8% over 2022 on a reported basis, we realized an approximately 3% increase in net price along with an approximately 5% increase in volume with the volume increase split roughly equally between underlying demand and the impact of higher overall wholesale inventory levels year over year.

John Breathy: While inventory in the channel declined relative to Q3, we did end the year higher than we ended 2022.

John Breathy: <unk> and continued to represent approximately 80% of sale of segment revenues. This year and saw strong growth in underlying demand retail prescriptions grew three 1% in Q4 versus the prior quarter. We saw growth in <unk> for Ibs D. And importantly, we also saw solid growth of approximately 6% year over.

John Barresi: We saw growth in TRX for IBSD, and importantly, we also saw solid growth of approximately 6% year-over-year in Q4 in TRX for the long-term care channel, as well as strong growth in non-retail units attributable to outpatient clinics. For the quarter, Xifax and revenues were in line with the prior year, as the TRX growth was offset by the timing of wholesaler buying patterns discussed earlier. For the quarter, Relestore delivered 44% growth over the prior year due to both higher demand and improved net pricing, while Trulance revenues were flat as TRX growth was offset by lower net pricing and shifts in wholesale inventory. International revenues were $290 million during the quarter, an increase of 11% on a reported basis and 6% on an organic basis compared to the prior year period, with strong performances across the EMEA, Canada, and Latin America regions.

John Breathy: Over year in Q4 in Trs for the long term care channel as well as strong growth in non retail units attributable to outpatient clinics for.

John Breathy: For the quarter <unk> revenues were in line with the prior year as the <unk> growth was offset by the timing of wholesaler buying patterns discussed earlier.

John Breathy: For the quarter Relistor delivered 44% growth over the prior year due to both higher demand and improved net pricing, while <unk> revenues were flat as T. Rx growth was offset by lower net pricing and shifts in wholesale inventory.

John Breathy: International revenues were $290 million during the quarter, an increase of 11% on a reported basis and 6% on an organic basis compared to the prior year period with strong performances across the EMEA, Canada and Latin America regions.

John Barresi: For the full year, international revenues were $1.07 billion in 2023 compared to $988 million in 2022, an increase of $83 million or 8% on a reported basis and 6% on an organic basis. This year's international segment performance was driven mainly by an increase in net realized pricing as growth in our portfolio of promoted products was offset by the impact of increased generic competition and the effects of the MRAID recall in the second quarter. Sold to medical revenues were $103 million for the fourth quarter, an increase of 4% on a reported basis and 5% on an organic basis over the prior year period. Growth in the quarter was led by China and, to a lesser degree, the remainder of Asia-Pacific, while sales in the U.S. slightly declined compared to the prior year.

John Breathy: For the full year International revenues were $1.07 billion for 2023 compared to $988 million for 2022, an increase of $83 million or 8% on a reported basis and 6% on an organic basis. This.

John Breathy: <unk> International segment performance was driven mainly by an increase in net realized pricing as growth in our portfolio of promoted products was offset by the impact of increased generic competition and the effects of the emirate recall in the second quarter.

John Breathy: Solta medical revenues were $103 million for the fourth quarter, an increase of 4% on a reported basis and 5% on an organic basis over the prior year period.

John Breathy: In the quarter was led by China and to a lesser degree the remainder of Asia Pacific while sales in the U S slightly declined compared to the prior year.

John Barresi: Sulta Medical ended the year with revenues of $347 million, an increase of 16% on a reported basis and 18% on an organic basis compared to 2022. Revenue growth was driven by strong demand in China, including the effect of comparison to 2022 when China and, to a lesser degree, the rest of the Asia-Pacific region were affected by COVID-related lockdown. With approximately 80% of the revenue for this business coming from consumables, the recent Thermage FLX approval in China, and possible untapped potential in the U.S. and EMEA, we believe Sulta Medical is positioned for continued near and long-term growth globally. Diversified revenues were $259 million during the fourth quarter, an increase of 1% on a reported basis and 2% on an organic basis compared to the prior year Neurology delivered year-over-year growth as we continued to capitalize on opportunities in the market created by supply constraints among competing products in the fourth quarter. In dermatology, revenue declined by 12% for the quarter relative to the prior year, as volume increases for Jublia and Orazlo were offset by continued net pricing pressures and continued pressure on our non-promoted products.

John Breathy: Solta medical ended the year with revenues of $347 million, an increase of 16% on a reported basis and 18% on an organic basis compared to 2022.

John Breathy: Revenue growth was driven by strong demand in China, including the effect of comparison to 2022 on China and to a lesser degree the rest of the Asia Pacific region were affected by Covid related Lockdowns.

John Breathy: With approximately 80% of the revenue for this business coming from consumables. The recent <unk> approval in China and possible untapped potential in the U S and EMEA. We believe Solta medical is positioned for continued near and long term growth globally.

John Breathy: Diversified revenues were $259 million during the fourth quarter, an increase of 1% on a reported basis and 2% on an organic basis compared to the prior year period.

John Breathy: Neurology delivered year over year growth as we continued to capitalize on opportunities in the market created by supply constraints among competing products in the fourth quarter.

John Breathy: In dermatology revenue declined by 12% for the quarter relative to the prior year as volume increases for Julia and <unk> were offset by continued net pricing pressures and continued pressure on our non promoted products.

John Barresi: And as Tom mentioned, CABTRIO will be launched and available for patients as of late January 2024. And in addition to the important benefits this product is expected to bring patients, we view this as an opportunity to return the dermatology business to growth. The generics business continues to be a profitable cash generative business. However, it also faces a highly competitive environment from both the pricing and volume standpoint. While it plays a role with our LOE products, with the timeline of many of those LOEs and the competitive environment we expect to face for the long term, we have revised our expectations for this business and recorded an impairment of goodwill of $91 million in the quarter. Dentistry revenue of $29 million was in line with a strong fourth quarter in 2022. We continue to invest in the dentistry business for the long term and are looking to accelerate growth in 2024. For the year, diversified segment revenues declined 4% on a reported basis and 3% on an organic basis relative to the prior year, with varying degrees of declines in neurology, dermatology, and generics reflecting the pressures we've discussed throughout the year.

John Breathy: And as Tom mentioned <unk> is launched and available for patients as of late January 2024, and in addition to the important benefits of this product is expected to bring patients. We view this as an opportunity to return the dermatology business to growth.

John Breathy: The generic business continues to be a profitable cash generative business. However, it also faces a highly competitive environment from both a pricing and volume standpoint, while.

John Breathy: While it plays a role with our LOE products with the timeline of many of those eloise and the competitive environment, we expect to face for the long term, we have revised our expectations for this business and recorded an impairment of goodwill of $91 million in the quarter.

John Breathy: Dentistry revenue of $29 million was in line with a strong fourth quarter in 2022, we continue to invest in the dentistry business for the long term and are looking to accelerate growth in 2024.

John Breathy: For the year diversified segment revenues declined 4% on a reported basis and 3% on an organic basis relative to the prior year with varying degrees of declines in neurology dermatology and generics, reflecting the pressures we've discussed throughout the year.

John Barresi: As shown on slide 18, Bausch and Lohm revenues were $1.17 billion during the fourth quarter, up 18% on a reported basis and 7% on an organic basis compared to the prior year, with growth across all Bausch and Lohm segments. Similarly, Bausch and Lohm revenues for the year increased by $378 million on a reported basis, or 10% and 8% on an organic basis compared to 2022. Turning to the fourth quarter P&L on slides 20 and 21, the fourth quarter consolidated adjusted gross margin was 71.6 percent, 130 basis points higher compared with the prior year.

John Breathy: As shown on slide 18.

<unk> loan revenues were $1 $7 billion during the fourth quarter up 18% on a reported basis and 7% on an organic basis compared to the prior year with growth across all <unk> loan segments.

John Breathy: Similarly, <unk> revenues for the year increased by $378 million on a reported basis or 10% and 8% on an organic basis compared to 2022.

John Breathy: Turning to the fourth quarter P&L on slide 2020 one.

John Breathy: Fourth quarter consolidated adjusted gross margin was 71, 6% 130 basis points higher compared with the prior year full.

John Barresi: Full year consolidated adjusted growth margin was 71%, 10 basis points higher than last year. For Bausch Health, excluding BNL, adjusted gross margin for the fourth quarter was 80.2 percent, approximately 30 basis points lower than last year's fourth quarter. For the full year, adjusted gross margin was 80.1%, a decline of 50 basis points, which included the impact of the Emirate aid recall earlier in the year.

John Breathy: Full year consolidated adjusted gross margin was 71% 10 basis points higher than last year.

John Breathy: For Bausch health, excluding P&L adjusted gross margin for the fourth quarter was 82% approximately 30 basis points lower than last year's fourth quarter for.

John Breathy: For the full year adjusted gross margin was 81% a decline of 50 basis points, which included the impact of the Emard eight recall earlier in the year.

John Barresi: At B&L, adjusted gross margin was 62.5% for Q4 of 23 compared to 57.9% for Q4 of 2022, driven primarily by product mix, including Zydra. Consolidated adjusted operating expenses for the fourth quarter were $891 million, an increase of $121 million. For Bausch Health, excluding B&L, adjusted operating expenses increased by approximately $16 million during the quarter as higher A&P was driven by investments in the Salix segment. R&D expenses also increased, primarily related to our Salix initiatives. Adjusted GNA for Bausch Health excluding BNL was slightly favorable to the prior year as we annualized stabilization of the post-IPO structure and focused on cost containment. B&L reported an increase of $105 million in adjusted operating expenses due primarily to increased selling in A&P driven by product launches. Consolidated adjusted R&D expense for the quarter was $151 million, an increase of 6% compared to the prior year and represented 6.3% of product sales compared with 6.5% for the prior year period. For Bausch Health, excluding B&L, R&D expenses of $72 million increased by approximately $8 million for the fourth quarter as compared to the same quarter last year.

John Breathy: <unk> adjusted gross margin was 62, 5% for Q4 of 2003 compared to 57, 9% for Q4 of 2022, driven primarily by product mix, including Zara.

John Breathy: Consolidated adjusted operating expenses for the fourth quarter were $891 million, an increase of $121 million.

John Breathy: For Bausch health, excluding <unk> adjusted operating expenses increased by approximately $16 million during the quarter as higher A&P was driven by investments in the sales segment.

John Breathy: R&D expenses also increased primarily related to our salix initiatives.

Adjusted G&A for Bausch health, excluding P&L was slightly favorable to the prior year as we annualized stabilization of the post IPO structure and focused on cost containment.

John Breathy: P&L reported an increase of $105 million and adjusted operating expenses due primarily to increased selling and A&P driven by product launches.

John Breathy: Solidago adjusted R&D expense for the quarter was $151 million, an increase of 6% compared to the prior year and represented six 3% of product sales compared with six 5% for the prior year period for.

John Breathy: For Bausch health, excluding P&L R&D expenses of $72 million increased by approximately $8 million for the fourth quarter as compared to the same quarter last year.

John Barresi: As Tom mentioned, we expect another meaningful step-up in R&D expenses throughout 2024 to support the next phase of development for amicillamide. We will also continue to progress our two global RED-C Phase III clinical trials. Fourth quarter consolidated adjusted EBITDA was $897 million, an increase of $56 million or 7% on a reported basis. Adjusted EBITDA for Bausch Health, excluding B&L, was $663 million for the quarter, a slight increase from $659 million in the fourth quarter of 2022.

John Breathy: As Tom mentioned, we expect another meaningful step up in R&D expense throughout 2024 to support the next phase of development for <unk>. We also will continue to progress our two global Red Sea phase III clinical trials.

John Breathy: Fourth quarter consolidated adjusted EBITDA was $897 million, an increase of $56 million or 7% on a reported basis.

John Breathy: Adjusted EBITDA for Bausch health, excluding P&L was $663 million for the quarter, a slight increase from $659 million in the fourth quarter of 2022.

John Barresi: For the full year, consolidated adjusted EBITDA was $3.11 billion, and Bausch Health, excluding B&L, was $2.36 billion, both slight increases from 2022. Turning to cash flow, On a consolidated basis, Bausch Health generated $390 million of operating cash flow and $305 million of adjusted operating cash flow in the fourth quarter. Full-year cash flow from operations on a consolidated basis was $1.03 billion, and adjusted cash flow from operations on a consolidated basis was $763 million.

John Breathy: For the full year consolidated adjusted EBITDA was $3 1 billion and for Bausch health, Excluding P&L was $2 $3 6 billion, both slight increases from 2022.

John Breathy: Turning to cash flow.

John Breathy: On a consolidated basis, Bausch health generated $390 million of operating cash flow.

John Breathy: $305 million of adjusted operating cash flow in the fourth quarter full.

John Breathy: Full year cash flow from operations on a consolidated basis was $1.03 billion.

John Breathy: And adjusted cash flow from operations on a consolidated basis was $763 million.

John Barresi: For Bausch Health, excluding B&L, adjusted operating cash flow was $278 million for the fourth quarter and $708 million for the full year compared to adjusted operating cash flow of $340 million for the fourth quarter of 22 and $637 million for the full year 2022, with the changes primarily reflecting the timing of working capital movements and, for Q4, the timing of interest payments. The full year 2023 also exceeded our guidance of $625 million, driven by our focus on expense management as well as by the timing of cash collections based on the wholesaler buying patterns I discussed earlier. As we've discussed in prior quarters, as a result of the accounting treatment for the senior notes issued as part of our 2022 debt exchange, a portion of our cash interest payments is classified as financing cash flows. Adjusted cash flow includes payments of the full contractual interest as well as adjustments for the payment of separation costs, business transformation costs, and litigation and other matters net of insurance proceeds.

John Breathy: For Bausch health, excluding BNS adjusted operating cash flow was $278 million for the fourth quarter and $708 million for the full year compared to adjusted operating cash flow of $340 million for the fourth quarter of 2002 and $637 million for the full year 2022 with the changes <unk>.

John Breathy: Merrily, reflecting the timing of working capital movements and for Q4, the timing of interest payments.

John Breathy: Full year 2023 also exceeded our guidance of $625 million.

John Breathy: Driven by our focus on expense management as well as by the timing of cash collections based on the wholesaler buying patterns I discussed earlier.

John Breathy: As we've discussed in prior quarters as a result of the accounting treatment for the senior notes issued as part of our 2022 debt exchange a portion of our cash interest payments are classified as financing cash flows.

John Breathy: Adjusted cash flow includes payments of the full contractual interest as well as adjustments for the payment of separation costs business transformation costs and litigation and other matters net of insurance proceeds.

John Barresi: Now, let's turn to our balance sheet on slide 22. We continue to prioritize liquidity management and the delevering of our balance sheet. In the fourth quarter of 2023, we reduced our net of cash for Bausch Health, excluding B&L, by approximately $250 million.

Now, let's turn to our balance sheet on slide 22.

John Breathy: We continue to prioritize liquidity management and the Delevering of our balance sheet.

John Breathy: In the fourth quarter of 2023, we reduced our debt net of cash for Bausch health, excluding P&L by approximately $250 million.

John Barresi: We continue to evaluate alternatives to reduce our overall leverage while also focusing on our maturity profile. Despite only retiring a small amount of debt in Q4, in January 2024, we retired $250 million in principal value of 2025 and 2026 maturities through open market repurchases, capturing approximately $12 million of discount in the process. At the end of the fourth quarter, Bausch Health, excluding B&L, had $350 million outstanding under our accounts receivable facility and had no outstanding borrowings and approximately $950 million of availability under our revolving credit facility.

John Breathy: We continue to evaluate alternatives to reduce our overall leverage while also focusing on our maturity profile. Despite.

John Breathy: Despite only retiring a small amount of debt in Q4 in January 2024, we retired $250 million in principal value of 2025, and 2026 maturities through open market repurchases, capturing approximately $12 million of discount in the process.

John Breathy: At the end of the fourth quarter Bausch health, excluding P&L had $350 million outstanding under our accounts receivable facility and had no outstanding borrowings and approximately $950 million of availability under our revolving credit facility.

John Breathy: As shown on slides 23, and 24 total debt for Bausch health, excluding Boston loan at the end of the quarter was $16 4 billion, which consisted.

John Barresi: As shown on slides 23 and 24, total debt for Bausch Health, excluding Bausch and Lohm, at the end of the quarter was $16.4 billion, which consisted of approximately $15 billion of restricted debt issued by Bausch Health, excluding B&L, and approximately $1.4 billion of unrestricted debt, which includes the $1 billion of senior secured notes issued by the unrestricted subsidiary created in the third quarter of 2022 and the $350 million Approximately 85% of our debt is fixed. And approximately 70% of the company's debt on a consolidated basis is fixed. Debt, net of cash for Bausch Health, excluding B&L, is down approximately $670 million since the beginning of 2023.

John Breathy: <unk> of approximately $15 billion of restricted debt issued by Bausch health, excluding <unk> and approximately $1 4 billion of unrestricted debt, which includes the $1 billion of senior secured notes issued by the unrestricted subsidiary created in the third quarter of 2022, and the $350 million drawn under our account.

John Breathy: Receivable facility.

John Breathy: Excluding BNS debt approximately 85% of our debt is fixed.

John Breathy: And approximately 70% of the company's debt on a consolidated basis is fixed.

John Breathy: Debt net of cash for Bausch health, excluding <unk> is down approximately $670 million since the beginning of 2023.

John Breathy: We ended the year with over $1 5 billion of liquidity, including approximately $616 million of cash and $950 million of availability under our revolving credit facility we.

John Breathy: We will continue to evaluate the best uses of that liquidity, including focus on our maturity profile and our overall leverage.

John Barresi: We ended the year with over $1.5 billion of liquidity, including approximately $616 million of cash and $950 million of availability under our revolving credit facility. We will continue to evaluate the best uses of that liquidity, including focusing on our maturity profile and our overall leverage. Overall, we are pleased that revenue adjusted EBITDA and adjusted operating cash flow for 2023 for Bausch Health excluding B&L met or exceeded expectations. With that as the backdrop, I'll now discuss our guidance for 2024, which you can find on slide 26. In 2024, we expect revenues of $4.7 billion to $4.85 billion with growth of 2% to 5% on an organic basis. For 2024, we expect the foreign exchange impact to be a slight tailwind. Full year adjusted EBITDA for Bausch Health, excluding B&L, is expected to be $2.36 billion to $2.46 billion.

John Breathy: Overall, we are pleased that revenues adjusted EBITDA and adjusted operating cash flow for 2023 for Bausch health, excluding P&L met or exceeded expectations with that as the backdrop I will now discuss our guidance for 2024, which you can find on slide 26.

John Breathy: In 2024, we expect revenues of $4 7 billion to $4 85 billion with growth of 2% to 5% on an organic basis for.

John Breathy: For 2024, we expect foreign exchange impact to be a slight tailwind.

John Breathy: Full year adjusted EBITDA for Bausch health, excluding <unk> is expected to be $2 36 billion to $2 $46 billion.

John Breathy: For Salix, we expect to see mid single digit revenue growth.

John Breathy: Just on the investments we've made we expect volume growth from a Trs and extended units perspective to expand relative to what we saw in 2023, although changes in wholesaler purchasing dynamics may temper, how that growth translates into revenue growth.

John Breathy: We also intend to maintain our investments in selling and A&P consistent with 2023 levels.

John Breathy: Lastly, as we've noted in the past, we typically see a seasonal step up in sales in the second half, particularly in <unk> <unk>, primarily due to wholesaler inventory dynamics as well as patient level patterns related to insurance deductible activity.

John Barresi: For Salix, we expect to see mid-single-digit revenue growth. Based on the investments we've made, we expect volume growth from a TRX and extended units perspective to expand relative to what we saw in 2023, although changes in wholesaler purchasing dynamics may temper how that growth translates into revenue growth.

John Breathy: For International we expect mid single digit organic revenue growth led by the EMEA and Latin America regions. We are excited by the potential for new product launches in these regions.

John Barresi: We also intend to maintain our investments in selling an A&P consistent with 2023 levels. Lastly, as we've noted in the past, we typically see a seasonal step-up in sales in the second half, particularly for Zyfaxan, primarily due to wholesaler inventory dynamics, as well as patient-level patterns related to insurance deductible activity. For international, we expect mid-single-digit organic revenue growth, led by the EMEA and Latin America regions.

John Breathy: In Canada, we plan to further grow the recently launched products <unk> and <unk> and continue to focus on obtaining approval of <unk> trio.

John Breathy: We're also making targeted investments in sales teams and promotion across the different regions.

John Breathy: For Solta, we anticipate strong double digit organic revenue growth across all major geographies, we have new leaders in key positions in this business and have invested in expansion of the U S sales team.

John Breathy: Therefore, we anticipate growth led by China, and Asia Pacific as well as double digit growth in the U S and EMEA regions.

John Barresi: We are excited by the potential for new product launches in these regions. In Canada, we plan to further grow the recently launched products Realtris and Euceris and continue to focus on obtaining approval for Cabtrio. We're also making targeted investments in sales teams and promotion across the different regions. For SOLTA, we anticipate strong double-digit organic revenue growth across all major geographies. We have new leaders in key positions in this business and have invested in the expansion of U.S. sales. Therefore, we anticipate growth led by China and Asia Pacific as well as double-digit growth in the U.S. and EMEA region. For Diversified, we expect an overall mid-single-digit decline in organic revenue.

John Breathy: For diversified we expect an overall mid single digit decline in organic revenue, we expect growth in term of <unk> led by the introduction of <unk> trio and in dentistry, driven by continued investment in the sales force and related tools with continued pressures in our neurology and generics businesses.

John Breathy: From a gross.

John Breathy: Margin perspective, we expect to continue to mitigate the impact of inflation on our cost of goods sold and we expect our gross margin to remain comparable to last year at approximately 80%.

John Breathy: On the expense side, we anticipate that selling in A&P will grow in line with sales growth as we maintain the base. We established in 2023 and make targeted investments to drive growth in businesses, including Solta in dentistry.

John Breathy: Additionally, as we've discussed previously there will be a meaningful increase in R&D spend throughout the year as we invest for the future and our Gi anesthetics pipeline programs.

John Barresi: We expect growth in dermatology, led by the introduction of Cabtrio, and in dentistry, driven by continued investment in the sales force and related tools, with continued pressures in our neurology and generics business. From a gross margin perspective, we expect to continue to mitigate the impact of inflation on our cost of goods sold, and we expect our gross margin to remain comparable to last year at approximately 80%. On the expense side, we anticipate that selling and A&P will grow in line with sales growth as we maintain the base we established in 2023 and make targeted investments to drive growth in businesses including Sulta and Denton. Additionally, as we've discussed previously, there will be a meaningful increase in R&D spending throughout the year as we invest for the future in our GI and aesthetics pipeline programs. We think it is critical to continue to allocate capital to this area for the long term as it will benefit patients and healthcare providers while positioning our business to deliver stakeholder value. Lastly, we expect adjusted operating cash flow for Bausch Health, excluding B&L, in a range of approximately $775 million to $825 million for 2024.

We think it is critical to continue to allocate capital to this area for the long term as it will benefit patients and health care providers, while positioning our business to deliver stakeholder value.

John Breathy: Lastly, we expect adjusted operating cash flow for Bausch health, excluding P&L in a range of approximately 775 million to $825 million for 2024.

John Breathy: And as I said earlier adjusted cash flow includes adjustments for the payment of separation costs. The payment of the full contractual interest on our existing debt and also includes lower tax payments in 2024 relative to 2023 inclusive of the impact of the tentative granite Trust settlement.

John Breathy: I'll now hand, the call back to Tom.

Tom: Thank you John.

Tom: In summary, as you heard today, we made significant progress against our 2023 strategic priorities and we enter 2024 with strong momentum and a clear set of objectives. We are excited about the potential of our Salix business led by <unk> and we will continue to.

Tom: Advance our pipeline with Red Sea and <unk> we.

Tom: We believe Solta is poised for long term growth with their Mas <unk> in China, and untapped potential in the U S and EMEA.

John Barresi: And as I said earlier, adjusted cash flow includes adjustments for the payment of separation costs, the payment of the full contractual interest on our existing debt, and also includes lower tax payments in 2024 relative to 2023, inclusive of the impact of the tentative granite trust settlement. I'll now hand the call back to Tom. Thank you, John.

Tom: The broad portfolio of products and geographies in our international business will continue to provide balanced growth and and our diversified business. We believe dermatology with the launch of <unk> trio and dentistry will deliver growth with the remainder of the portfolio remaining profitable and cash generative.

Tom: And a challenging competitive and regulatory environment.

Tom: For the year ahead, we are focused on building on the foundation, we have set across our diverse global business by driving a results oriented culture of accountability.

Thomas Appio: In summary, as you heard today, we made significant progress against our 2023 strategic priorities, and we enter 2024 with strong momentum and a clear set of objectives. We are excited about the potential of our Salix business, led by Xifaxin, and we will continue to advance our pipeline with Red Sea and Amisilamide. We believe SOLTA is poised for long-term growth with Thermage, FLX in China, and untapped potential in the U.S. and EMEA. The broad portfolio of products and geographies in our international business will continue to provide balanced growth.

Delivering on our revenue adjusted EBITDA and adjusted operating cash flow commitments.

Tom: Executing with operational excellence and cost focused mindset across the enterprise.

Tom: Intensifying, our focus and operating rigor behind R&D and business development.

Tom: And continuing to evaluate strategic alternatives.

Tom: We will execute against these objectives with a focus on operational excellence with a patient centered mentality.

Thomas Appio: And, in our diversified business, we believe dermatology, with the launch of CABTRIO, and dentistry will deliver growth, with the remainder of the portfolio remaining profitable and cash-generative in a challenging competitive and regulatory environment. For the year ahead, we are focused on building on the foundation we have set across our diverse global business by driving a results-oriented culture of accountability. Delivering on our revenue-adjusted EBITDA and adjusted operating cash flow commitments, while executing with operational excellence and a cost-focused mindset across the enterprise.

Tom: I am thankful for and proud of our Bausch health team for their achievements. This year. They have worked tirelessly and our all in to position our business for the long term.

Tom: Life weight, neither can weigh every patient deserves better health and the chance to make the most of life. This drives us on with urgency and efficiency to deliver the products patients need both to enrich their lives on behalf of our entire Bausch health team.

Speaker Change: I. Thank you for your interest in and support of our company with that we will now take questions. Operator. Please open the line for Q&A.

Thomas Appio: Intensifying our focus and operating rigor behind R&D and business development and continuing to evaluate strategic alternatives. We will execute against these objectives with a focus on operational excellence with a patient-centered mentality. I am thankful for and proud of our Bausch Health team for their achievements this year. They have worked tirelessly and are all in to position our business for the long term. Life won't wait; neither can we.

Speaker Change: Thank you very much at this time, we will be conducting a question and answer session.

Speaker Change: If you would like to ask a question. Please press star one on your phone keypad.

Speaker Change: Time will indicate that your line is in the question. Keith You May Press Star two if you would like to remove your question from the queue.

Speaker Change: Participants using speaker equipment, it might be necessary to pick up your handset before pressing the keys. Please wait a moment, whilst we poll for questions.

Operator: Every patient deserves better health and the chance to make the most of life. This drives us on with urgency and efficiency to deliver the products patients need most to enrich their lives. On behalf of our entire Bausch Health team, I thank you for your interest in and support of our company. With that, we will now take questions. Operator, please open the line for Q&A. Thank you very much. At this time, we will be conducting our question and answer session. If you would like to ask a question, please press star 1 on your phone. A confirmation tone will indicate that your line is active. You may press star 2 if you would like to remove your... For any participants using speaker equipment, it might be necessary to pick up... Before you go, I'd like to invite you to take a moment to subscribe to our YouTube channel. And if you haven't already, please do so. Thank you for watching. Please wait a moment while...

Speaker Change: Thank you. Your first question is coming from Glen Santangelo of Jefferies. Glenn Your line is live.

Glen Santangelo: Yes, thanks for taking my questions.

Glen Santangelo: Hey, Tom I, just had two quick ones I appreciate all the details on the two pipeline programs, but as we think about doing some long term modeling I was wondering if you could maybe help us think about broad timelines for both these programs as we think about the path to approval and then maybe secondly in recent quarters.

Glen Santangelo: The company has talked about a number of different recapitalization opportunities and in your prepared remarks, you talked about how you retired $250 million of debt.

Glen Santangelo: In January I was just sort of wondering given where the debt is trading where BLC OS trading given that salt is doing much better without getting specific do you see any meaningful opportunities for further recapitalization efforts in 2024 and I'll stop there. Thanks.

Glenn Sant'Angelo: Thank you is coming from Glenn Sant'Angelo of, Oh, yeah. Thanks for taking my question. Hey, Tom, I just had two quick ones.

Thomas Appio: You know, I appreciate all the details on the two pipeline programs, but, you know, as we think about doing some long-term modeling, I was wondering if you could maybe help us think about broad timelines for both these programs as we think about the path to approval. And then, maybe secondly, you know, in recent quarters, the companies talked about a number of different recapitalization opportunities. In your prepared remarks, you talked about how you retired 250 million dollars of debt in January. And I was just sort of wondering, you know, given where the debt's trading, you know, where BLCO's trading, given that SALT is doing much better, without getting specific, do you see any meaningful opportunities for further recapitalization efforts in 2024? And I'll stop there.

Speaker Change: Hi, Glenn Thanks.

Glenn: I appreciate the question so.

Speaker Change: Overall, when we take a look at these two programs.

Glenn: Clearly if we take a look at Red Sea. We think this is a great opportunity clearly the the <unk>.

Speaker Change: Patient pool here is large much bigger than today's patient pool.

Speaker Change: We're looking at because this is a prevention trial so as we.

Speaker Change: One of the things that we did this year was really energized and put more money behind those.

Speaker Change: Those studies to make sure we got the recruitment as I said in my prepared remarks, we had the first the one study completely recruited and then the second study we are expecting that in the first half so.

Speaker Change: Trying to really accelerate that program. So we have a launch.

Thomas Appio: Thanks. Thank you. Hi Glenn.

Speaker Change: Probably in some time in 2027.

Thomas Appio: Thanks. I appreciate the question. So, you know, overall, when we take a look at these two programs, you know, clearly, if we take a look at RED-C, we think this is a great opportunity. Clearly, the patient pool here is large, much bigger than today's patient pool that we're looking at because this is a prevention trial. So as we, One of the things that we did this year was really energize and put more money behind those studies to make sure we got the recruitment.

Speaker Change: This is going to be again, a large pool. It is prevention so.

Speaker Change: Clearly there is a good really good opportunity for us on the <unk> side of course, we are really pleased with the data on the phase III program. These were this was a very large phase II program.

Speaker Change: We're working right now to see what the timing will be of the phase III program, we're expecting at the end of the decade to be able to launch the product.

Thomas Appio: As I said in my prepared remarks, we had the one study completely recruited, and then the second study, we're expecting that in the first half. So, trying to really accelerate that program so we have a launch probably some time in 2027. This is going to be, again, a large pool.

Speaker Change: In in UC as I said in my prepared remarks, there is an opportunity here to continue to expand.

Speaker Change: As if we looked at Crohn's and running a phase III program and then if the data is good clearly running a phase III program, which would you would push.

Thomas Appio: It is prevention, so clearly there's a really good opportunity for us. On the Amicillomide side, of course, we are really pleased with the data from the Phase II program. This was a very large program.

Speaker Change: <unk> something.

Speaker Change: Into.

Speaker Change: The first half of the next decade.

Speaker Change: I really think these two programs give us a really good.

Speaker Change: The momentum on our R&D programs as we look forward when I I'll turn off turn the call over to the question over to John to talk about the debt.

Thomas Appio: We're working right now to see what the timing will be of the Phase III program. We expect at the end of the decade to be able to launch the product in UC. As I said in my prepared remarks, there is an opportunity here to continue to expand as if we looked at Crohn's and ran a Phase II program, and then, if the data is good, clearly running a Phase III program, which would push approval into the first half of the next decade. So I really think these two programs give us really good momentum in our R&D programs as we look forward. I'll turn the question over to John to talk about the debt. Yeah, thanks, Glenn.

John Breathy: Yeah. Thanks, Glenn Yes, as we've said.

John Breathy: We're always looking at the options that we have to manage our balance sheet manage our debt.

John Breathy: We're not going to comment on any specific strategies or actions that we may undertake it at any point in the future, but what I will say is if you think about where we sit today, we have over $1 5 billion of liquidity.

John Breathy: Our cash and the revolver flexibility, we're guiding to $7 75 to 825 of adjusted operating cash flow and we typically use a fair amount of that to manage our debt. As you noted we do have the flexibility on the roughly 8% of <unk> that that we still own that we have the option to monetize at some.

John Barresi: Yeah, you know, as we've said, we're always looking at the options that we have to manage our balance sheet, manage our debt. We're not going to comment on any specific strategies or actions that, you know, we may undertake at any point in the future, but what I will say is that if you think about where we sit today, we have over $1.5 billion of liquidity between our cash and the revolver flexibility. We're guiding for $775 to $825 of adjusted operating cash flow, and we typically use a fair amount of that to manage our debt.

John Breathy: Point <unk>.

John Breathy: And we are focused on reducing debt. So we're always looking at all the tools and all the options, but we're not going to comment on anything specifically at this point.

Speaker Change: I appreciate all the detail thanks.

Speaker Change: Operator next question. Thank.

Speaker Change: Thank you very much. Your next question is coming from David <unk> of Piper Sandler David Your line is nice.

Speaker Change: Hi, This is skyler on for David.

Speaker Change: First what are your thoughts on how Amazon into the UC space in the context of existing approved that's one piece and its pretty competitive pipeline.

John Barresi: As you noted, we do have the flexibility on the roughly 8% of BLCO that we still own that we have the option to monetize at some point, and we are focused on reducing debt. So we're always looking at all the tools and all the options, but we're not going to comment on anything specifically. Appreciate all the details.

Skyler: And then separately could you also talk about the extent to which you will further invest in buybacks and how that moves through the later part of its commercial life.

Skyler: Yes.

Skyler: What I would say is on Amazon Walmart.

Glenn Sant'Angelo: Thanks. Thanks. Operator, next question.

Skyler: Clearly.

Operator: Thank you very much. Your next question is coming from David Amsellem of... David, your line is... Hi, this is Skylar on behalf of David. So first, what are your thoughts on how Amistel-Lamotte could fit into the UC space in the context of existing approved S1Ps and a pretty competitive pipeline? And then separately, could you also talk about the extent to which you will further invest in Bifaxian as it moves through the latter part of its commercial life? Thanks. What I would say is, on Amicillomide, clearly, among S1Ps, the positive top-line data suggests it could be a promising therapy in terms of efficacy and safety in the space. You know, there are a few others in the space.

Among the <unk> piece is a positive top line data suggests it could be a promising therapy.

Skyler: In terms of efficacy efficacy and safety in this space there are a few others in this space.

Skyler: We look at the data.

Skyler: We think we have a real competitive product here so.

Skyler: As we continue to.

Skyler: Really look at the data and build our phase III program, we will see where that sits but we think again on the positive topline data.

Skyler: Looks really good.

Speaker Change: What I would say is onsite faxon.

Speaker Change: We have multiple formulations on XI faxon, we're always looking from an R&D perspective of where we could use these new formulations as the Red Sea program.

Thomas Appio: When we look at the data, you know, we think we have a real competitive product here. So, you know, as we continue to really look at the data and build our Phase III program, we'll see where that fits. But we think, again, on the positive top-line data, it looks really good. What I would say is that on Zyfaxan, you know, we have multiple formulations of Zyfaxan. We're always looking from an R&D perspective at where we could use these new formulations as the RED-C program. Clearly, we're using one of our new formulations, but, you know, we're always looking for and studying the link between the gut and the brain. And then, clearly, that is a focus for the team.

Speaker Change: Clearly we are using one of our new formulations, but.

Speaker Change: Always.

Speaker Change: Looking for and looking at the link between the gut and the brain.

Speaker Change: And then clearly that is a focus for the team.

Speaker Change: Talk about investing in <unk> and on the commercial life side of it.

Speaker Change: I still think even those effects and as late in its lifecycle as you saw the results for the.

Speaker Change: For 2023.

Speaker Change: They are strong we believe we can continue to grow our franchise the investments we have put behind.

Thomas Appio: If you want to talk about investing in Zyfaxan on the commercial life side of it, I still think, you know, even though Zyfaxan is late in its life cycle, as you saw in the results for 2023, they are strong. We believe we can continue to grow our franchise. The investments we have put behind AI for the field force, and that has been rolled out to the entire, you know, field force on both the primary care and specialty care side. If you look at the data that we saw in the fourth quarter, as we exited the year, the data was strong.

Speaker Change: For the field force and that has been rolled out to the entire field force on both the primary care and specialty care side. If you look at the data that we saw in the fourth quarter as we exited the year the data was strong.

Speaker Change: So that those tools are really going to help us.

Speaker Change: Move forward.

Speaker Change: With the facts and the other thing also is when I take a look at the facts and.

Speaker Change: Clearly, there's a lot of unmet need still there and.

Thomas Appio: And so, those tools are really going to help us move forward with Zyfaxan. The other thing is, when I take a look at Zyfaxan, you know, clearly there's a lot of unmet need still there, and I think we can tap into that with the programs and the investments that we're making between AI and DTC, as I said in my prepared remarks. I really think the team has done a really great job this year with Zyfaxan and getting the growth on it, and then the unmet need that is still there in both the IBSD side of the business and the HE side of the business, there's still an unmet need that we can treat more patients. Operator, next question.

Speaker Change: I think we can tap that with the programs and the investments that we're making between AI.

Speaker Change: And.

Speaker Change: DTC as I said in my prepared remarks, so I really.

Speaker Change: The team has really done a really great job this year.

With <unk> and getting putting getting the growth on it and then the unmet need that is still there in both the Ibs D side of the business.

Speaker Change: And the AG side of the business. There is still an unmet need that we can treat more patients operator next question.

Speaker Change: Thank you very much. Your next question is coming from <unk>.

Operator: Thank you very much. Your next question is coming from Umer Raffat of Evercore ISI. Hi, this is Chen Xiang from Evercore.

Speaker Change: Nicole ISI your line is live.

Nicole: Oh, Hi, all these change on all of them are thanks for taking all my questions. Two questions. If I may so first in the scenario Norwich movies. The patent appeal, there where you conduct their API loss case appeal and if so what would be the NGO and secondly, I can't get more colors on the SG&A increase in the fourth quarter and your expectation that 2020.

Louise Chen: Thanks for taking our questions. Two questions, if I may. First, in the scenario that Norwich loses the patent appeal, will they reignite their APA loss case appeal? And if so, what will be the angle?

Thomas Appio: And secondly, can we get more color on the SGN increase in the fourth quarter and your expectations? Could you just, in the first part of your question, what specifically were you asking, or which, just, could you, we're trying to, I'm trying to understand what you're actually asking. Let me repeat, so if, in a scenario that Norwich loses a patent appeal case, will they reignite their APA against FDA? So what?

Speaker Change: Thank you.

Speaker Change: Could you just on the first part of your question, what specifically we were asking for which just could you were trying to I'm trying to understand what you're actually asking there.

Speaker Change: Let me repeat so.

Speaker Change: As a matter of that nobody loses the patent appeal case, a real day reignite their EPA against FDA case, if so what would be the angle.

Speaker Change: Yes, I can't comment on what they would do on their litigation.

Thomas Appio: I can't comment on what they would do in their litigation if they were to lose. So I mean, again, I can't comment on the call of what their steps would be. But again, we feel confident in our appeal and in our intellectual property. Next question. Thank you very much. Your next question is coming from Jason Gerberi of Bank of America. Jason, your line is open. Hi, this is Chi for Jason. Thanks for taking our questions. A couple from us.

Speaker Change: If they were to lose so I mean again I can't comment on the call of what steps.

Speaker Change: Steps would be.

Jason Gerberi: So, regarding the side effects and appeal decision that you expect later in the first quarter and early second quarter. Let's say if the appeal is favorable to Bausch, how does a favorable appeal ruling impact your thinking on the separation of Belco? Would you look to move quickly once that particular legal matter is resolved, or are there other settlements in legal matters contingent?

Thomas Appio: And my second question is on Emma Salamat. You ran phase two in mild to moderate, and it sounds like you are moving, thinking about moving phase three to the moderate to severe population. So, I'm curious what problems that change will cause and, you know, given there are multiple other S1Ps already approved for development in the moderate or moderate to severe population. Okay.

Speaker Change: <unk>.

Speaker Change: You ran a face to a mild to moderate and it sounds like you are moving thinking about moving phase three two in a moderate to severe population. So I'm curious what prom that change and you know give and there are multiple out of S Y PS alrighty approval in development and the.

Speaker Change: Moderate or motivates associate your population sex.

Thomas Appio: Your first part of the question regarding Zyfaxan, what I would say is, as you know, we had the appeal that was heard, and the oral arguments were heard in January. You know, we believe it went well. What I would say is, we believe that, even if we were to win, there are still factors that we need to consider.

Speaker Change: Okay [laughter] Ah your first part of the question regarding Xifaxan, what I would say is this is as you know we had the appeal that was heard you oral arguments were heard in January we believe.

Speaker Change: It went well what I would say is is we believe that you know.

Speaker Change: The if we were to win there are still factors that we need to consider we believe that the separation continues to make strategic sense and there are many factors that will go into the timing of any potential distribution and there's no committed timeline at this time, what I would say on <unk>.

Thomas Appio: We believe that the separation continues to make strategic sense, and there are many factors that will go into the timing of any potential distribution, and there's no committed timeline at this time. What I would say on Amicillamide, you know, when we look at the data and the positive data that we saw, as you know, we ran the trial mild to moderate. We think that Amicillamide has the potential to be very broad in what the data shows. So we did, when the trial was running, we did have mild to moderate, but as we look at it, we could move it more into moderate to severe on the phase, on a phase three program. And as I said in my prepared remarks, probably treat all, but that's still under discussion. Operator, next question.

Speaker Change: When we look at the data and the positive data that we saw as you know we ran the trial mild to moderate we think that <unk> has the potential to be very broad in in and what the data shows. So we did when we when the trial was running we we.

Speaker Change: Did have mild to moderate but as we look at it we could move it more into moderate to severe on the face on a phase III program and as I said my prepared remarks, probably treat all but that's still under discussion.

Speaker Change: <unk> next question.

Operator: Thank you very much. Your next question is coming from Douglas Miehm of RBC Capital Markets. Douglas, your line is open. Great, thank you. The question has to do with Q4 of Zyplexin and Truelance, where it looked like it was all flat, and forgive me if you spoke about this already.

Speaker Change: Very much. Your next question is coming from Douglas.

Douglas: B C capital market.

Douglas: In your life.

Douglas: Great. Thank you Uhm question has to do with the Q4. Besides <unk> looked like original flagging forgive me if you spoke about this already.

Douglas Miehm: Just curious as to why that occurred, given, you know, the strong prescription strength during the quarter and also the pricing increase you took at the beginning of the year. And then, perhaps related to that, you could expand on the commentary that was made around prescription growth in the guidance for 2024 and how that could be impacted by, I think it was managed care that you talked about. Thank you.

Douglas: Uhm, just curious as to why that occurred given the strong prescription strength during the quarter and also the pricing increase you took at the beginning of the year and then perhaps related to that you can expand on the commentary that was made around prescription growth in the guidance 2024 and how.

Douglas: That could be impacted by I think it was managed care that you talked about thank you.

Thomas Appio: Yeah, so let me just, overall, you know, when I look at Xifax and TRX growth, you know, if you look at the product for the full year, we had an increase of 8%, three on price, five on volume, and we talked about some of the inventory channels, the inventory channel that we have. But overall, the TRX growth, we looked at it for the year, was strong, and when we looked at the fourth quarter on the IBSD side, we were exiting at, you know, much higher than what the full year looked like, and when we looked at HE in the long-term care space, that was over 6%. So, the product, as its performance, as we ramped up the investments, okay, and launched different activities during the year, you could see it benefited from the second half. I'll let John talk specifically about you.

Speaker Change: Yeah, So well let me just overall you know when I when we look at Xifaxan and the T. R X growth.

Douglas: If you're looking for the if you look at the product for the full year. We had you know increase of 8% three on on price five on volume and we talked about some of the inventory channels. The inventory channel that we had but overall the T. R X growth we looked at it for the year was strong and.

Douglas: And when we looked at the fourth quarter on the I B S. D side, we were exiting at <unk>.

Douglas: Much higher than with a full year looked like and we.

Douglas: Let me look at H G and a longterm care space that was over six per cent. So <unk> the product as the performance as as we ramped up the investments okay in and launched a different activities. During the year you can see it it benefited from the second half I'll <unk> I'll, let John talk specifically about.

John Breathy: <unk> <unk> yeah.

John Barresi: Yeah, on the revenue trends, if you remember, in the third quarter, Salix was plus 13, I believe, for the third quarter, and we saw, at the time we spoke about some pull forward of the demand increase that we'd normally see in Q4 into the later stages of Q3, and so that, I think, is the biggest driver of the difference between revenue growth and TRX growth for Q4, overall. So, that's, you know, on the Xifax and the Trulance side. And then, on the question of the Q4 guidance, I think what we had said was, you know, we expect, you know, expansion of the growth of TRX, however, we did end 2023 a little bit higher in the wholesale channel than we ended 2022, and so we had a little bit of a build there, and it's possible, right, the wholesalers have their own algorithms for how and when they buy, but it's possible that if we see that revert back a little, that it could temper some of the benefit from a revenue standpoint of the underlying demand growth.

John Breathy: Yeah, Yeah <unk>, yeah on the revenue trends if you remember in the third quarter Salix was plus 13 I believe for the for the third quarter and we saw at this time, we spoke about some pull forward of the demand increase that we'd normally see in queue for into the later stages of Q3.

John Breathy: And so that I think is the biggest driver of the the difference between revenue growth and T. R X growth for for Q4 on the on the Xifaxan an amateur left side and then on the the question of the queue for guns I think what we what we said was yeah. We expect you know expansion.

John Breathy: Of the growth of T. R. X. However, we did and 2023, it's a little bit higher than the wholesale channel. Then we ended 2022 and so we had a little bit of a bill there and it's possible right. The wholesalers have their own algorithms for how and when they buy but it's possible that if if we see that revert back a little.

John Breathy: That it could temper some of the the benefit from a revenue standpoint of the underlying demand growth.

John Breathy: Yeah and then.

John Barresi: Lastly, when we just take a look at it, we could frame it, when we look at IBSD, there are 2.2 million patients that are diagnosed, but only about 140,000 receive treatment. So again, with a second-line medication like Zyfaxan. So clearly, there is still a large unmet need, and some of the investments that we have made this year and last year, and we will continue to make in 2024 to capture that. On the HE side, if you look at the analytics that we look at, there are about 190,000 patients that potentially have HE, and only 50,000 are treated with Zyfaxan, which is the standard of care and the only approved medication for HE.

John Breathy: Lastly, when we just take a look at it we can frame. It and then we will look at I B S. D 2.2 million patients that are diagnose, but only about 140000 receive treatment. So again with a second line medication like Xifaxan. So you know clearly still.

John Breathy: <unk>, a large unmet need and some of the investments that we have made this year and last year and we will continue to make in 2024 to capture that on the side. You know if you look at the the the analytics that we look at there's 100 about 190000 patients that.

John Breathy: Really have H, a and only 50000 approximately are treated with Xifaxan, which is the standard of care and you know the only approved medication four H G. So again large unmet need that we're going to continue to invest behind.

Thomas Appio: So again, a large unmet need that we're going to continue to invest behind. Operator, next question. Thank you very much. And your next question is coming from Michael Nedeljkovic of... Michael, your line. Thank you for the questions. I have two.

Speaker Change: Operator next <unk>.

Speaker Change: Very much and your next question is coming from Michael metal Pavage off T D.

John Breathy: <unk>.

Michael Pavage: Thank you for the questions I have to for the first is you could transport US too late may let's assume that you had a wildly favorable ruling in the case against Norwich such that Xifaxan exclusivity out to 2028 is all but certainly I know that as it relates to the.

Operator: For the first, if you could transport us to late May, let's assume that you had a wildly favorable ruling in the case against Norwich, such that Zyfaxan's exclusivity out to 2028 is all but certain. I know that as it relates to the Bausch and Lomb false separation, there are multiple additional factors to consider, but what is item number two on your checklist? So, the Zyfaxan ruling is done, and its outlook is certain. What's item number two when you move toward full separation? And then my second question relates to Amethylamide. As has already been noted, there are two other S1P receptor modulators approved for UC, but their market reception so far has been lukewarm. Do you think that Amethylamide has better commercial prospects than the agents already approved? And if so, why?

Michael Pavage: <unk> full separation there are multiple additional factors to consider but what is item number two on your check list. So the dice vaccines ruling is done in its outlook at certain what's item number two when you move towards full separation and then my second question relates to <unk> <unk>.

Michael Pavage: Has already been noted there are two other S. One P receptor modulators approved for you see what their market reception. So far has been lukewarm do you think that <unk> has better commercial prospects than the agents already approved and if so why is that.

Speaker Change: Yeah, So let's take the first part of the question.

Thomas Appio: Let's take the first part of the question. I can't speculate on what number two would be. As I said, there are still many factors that go into the timing of the potential distribution.

Speaker Change: I can't speculate on what number two would be there as I said there are still many factors that go into the timing of the potential distribution and you know clearly again, we believe in Orangeville actual property and hoping for a favorable outcome, but there are a multitude of step.

Thomas Appio: Clearly, again, we believe in our intellectual property and hope for a favorable outcome. But there are a multitude of steps. So I can't speculate on what number two would be, but clearly looking forward to a favorable outcome in the Xifaxin case. When it comes to amicillomide, we've had a lot of discussions internally about this. Yes, the two that are out there are, as you say, luke

Speaker Change: So I can't speculate on what number two would be but clearly looking to a favorable outcome.

Speaker Change: On the the Xifaxan case when it comes to <unk>, we've had a lot of discussions on this internally you know.

Speaker Change: Yes, the the two that are out there.

Speaker Change: R. As you use Luke warm we believe based on our data that we have a competitive product or once a day treatment and oral so clearly we as we continue to look at it and build a phase three program you know I can <unk> you know give you more info.

Thomas Appio: We believe, based on our data, that we have a competitive product, a once-a-day treatment, and oral. So clearly, as we continue to look at it and build a phase three program, I can give you more information as we move forward on the program and see what we think going forward. But if we look at our data, again, we think it's positive, and we think we have a really interesting product here. Operator, next question.

Speaker Change: A nation as we move forward in in on the program and see what we think going forward, but we <unk>. If we look at our data again, we think it is positive and we think we have a really interesting product here operator next question.

Operator: Thank you very much. Well, that appears to be the last of our questions. I will now hand back over to Tom for any closing remarks... Okay, well, you know, since there are no further comments, I want to say thank you to all who joined the call today. As we discussed on this call, you know, we had a solid Q4 and 2023. We grew our company and delivered or exceeded our guidance. I would like to thank my over 7,000 colleagues around the world for their relentless drive to deliver better health outcomes and continue to build a company that is trusted and valued by patients, healthcare professionals, and investors. We entered 2024 with strong momentum and look forward to executing on our strategic objectives, delivering on our commitments as we continue transforming Bausch Health, positioning our company for the long term. Thank you for your interest in and support of Bausch Health. Thank you very much, everyone. This does conclude today's conference. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your... Yeah, well.

Speaker Change: Thank you very much for all that he has to be the last of our questions.

Operator: Tom for any closing comments.

Tom: Okay, well since there's no further comments I want to say, thank you to all who joined the call today.

Tom: As we discussed on this call we had a solid two four and 2000 twenty-three we grew our company and delivered or exceeded our guidance I would like to thank my over 7000 colleagues around the world for the relentless drive to deliver better health outcomes and continue to build accompany the.

Tom: It is trusted in value by patients health care professionals and investors. We entered 2024 was strong momentum and look forward to executing on our strategic objective delivering on our commitments as we continue transforming bow shelf positioning our company for the long term. Thank you for your interest in.

Tom: And the support about shelf.

Speaker Change: Thank you very much.

Speaker Change: Does conclude today's conference. He may disconnect you'll sign lines at this time and have a wonderful day.

Speaker Change: Participation.

Speaker Change: Yeah.

Speaker Change: Finally, well.