Q2 2024 Bausch Health Co Inc Earnings Call

August 1, 2024

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Operator: Greetings. Welcome to the Bausch Health Second Quarter 2024 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, Garen Sarafian, Investor Relations at Bausch. You may begin.

Speaker Change: Greetings welcome to the Bausch Health second quarter 2024 earnings call at.

Speaker Change: At this time all participants are in a listen only mode.

Speaker Change: 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 Garen Sarafian Investor Relations at Ash you may begin.

I would now like to turn the conference over to your host, Garen Sarafian, Investor Relations at Bausch. You may begin.

Operator: I would now like to turn the conference over to your host, Garen Sarafian, Investor Relations at Bausch. You may begin.

Speaker Change: Good morning, and welcome to <unk> second quarter 2024 earnings conference call participating.

Garen Sarafian: Good morning and welcome to Bausch Health's Second Quarter 2024 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 statement 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 statement. 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 operating performance. Non-GAAP financial measures may not be comparable to similarly-titled measures used by other companies and should be considered along with, but not an alternative to, measures calculated in accordance with GAAP.

Speaker Change: Participating in today's call are Thomas IPO, Chief Executive Officer of Bausch Health, and John <unk> interim Chief Financial Officer.

Before we begin I'd like to remind you that our presentation today contains forward looking information.

Garen Sarafian: 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 statement 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 statement. 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 operating performance. Non-GAAP financial measures may not be comparable to similarly-titled measures used by other companies and should be considered along with, but not an alternative to, measures calculated in accordance with GAAP. You will find reconciliation to our non-GAAP measures in the appendix of the slide that accompanies 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. We do not undertake any obligation to update guidance. Our discussion today, Thursday, August 1st, will focus on Bausch Health, excluding Bausch+Lomb. However, we will briefly comment on Bausch+Lomb's results announced yesterday. We will refer to year-over-year comparisons with the same period last year, unless otherwise noted. With that, it is my pleasure to turn the call over to our CEO, Thomas Appio. Tom? For the second quarter of 2024, revenues for Bausch Health, excluding B&L, were $1.19 billion, up 55 million, or 5% on a reported basis and 6% on an organic basis when compared to the second quarter of 2023.

We ask you to take a moment to read the forward looking statements disclaimer at the beginning of the slides that accompany this presentation.

Speaker Change: As it contains important information.

Speaker Change: 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.

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

Speaker Change: We use non-GAAP financial measures to help investors understand our operating performance.

Speaker Change: non-GAAP financial measures may not be comparable to similarly, titled measures used by other companies and should be considered along with but not an alternative to.

Speaker Change: Measures calculated in accordance with GAAP.

Speaker Change: You will find the reconciliation to our non-GAAP measures in the appendix of the slides that accompany this presentation.

Garen Sarafian: We use non-GAAP financial measures to help investors understand our operating performance. Non-GAAP financial measures may not be comparable to similarly-titled measures used by other companies and should be considered along with, but not an alternative to, measures calculated in accordance with GAAP. You will find reconciliation to our non-GAAP measures in the appendix of the slide that accompanies 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. We do not undertake any obligation to update guidance. Our discussion today, Thursday, August 1st, will focus on Bausch Health, excluding Bausch+Lomb. However, we will briefly comment on Bausch+Lomb's results announced yesterday. We will refer to year-over-year comparisons with the same period last year, unless otherwise noted.

Speaker Change: Which are available on <unk> Investor Relations website.

Speaker Change: Finally, the financial guidance in this presentation is effective as of today only.

Speaker Change: Do not undertake any obligation to update guidance.

Speaker Change: Our discussion today Thursday August one we will focus on Basel, excluding Boston loan. However, we will briefly comment on Barcelona results announced yesterday.

Speaker Change: We will refer to year over year comparisons with the same period last year unless otherwise noted.

Garen Sarafian: 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, Thursday, August 1st, will focus on Bausch Health, excluding Bausch+Lomb. However, we will briefly comment on Bausch+Lomb's results announced yesterday. We will refer to year-over-year comparisons with the same period last year, unless otherwise noted.

Operator: You will find reconciliation to our non-GAAP measures in the appendix of the slide that accompanies this presentation, which are available on Bausch Health's Investor Relations website, do not undertake any obligation to update guidance. With that, it is my pleasure to turn the call over to our CEO, Thomas Appio. For the second quarter of 2024, revenues for Bausch Health, excluding B&L, were $1.19 billion, up 55 million, or 5% on a reported basis and 6% on an organic basis when compared to the second quarter of 2023.

Thomas happier: That it is my pleasure to turn the call over to our CEO Thomas happier.

Speaker Change: Yeah.

Thank you and welcome to those of you joining the call. This morning.

Thomas happier: I am pleased with the continued positive momentum we saw in the second quarter following our strong start to the year.

Thomas happier: Listening us well to continue to drive growth and execute against our strategic priorities in the back half of the year, all while focused on patient centered outcomes.

Garen Sarafian: With that, it is my pleasure to turn the call over to our CEO, Thomas Appio. Tom?

Thomas happier: The second quarter marked our fifth consecutive quarter of year over year growth in both revenue and adjusted EBITA.

Thomas Appio: Thank you. And welcome to those of you joining the call this morning. I am pleased with the continued positive momentum we saw in the second quarter, following our strong start to the year, positioning us well to continue to drive growth and execute against our strategic priorities in the back half of the year--all while focused on patient-centered outcomes. The second quarter marked our fifth consecutive quarter of year-over-year growth in both revenue and adjusted EBITDA. For the second quarter of 2024, revenues for Bausch Health--excluding B+L--were $1.19 billion, up $55 million or 5% on a reported basis and 6% on an organic basis when compared to the second quarter of 2023. With organic growth in all of our segments, led by XIFAXAN, with 10% organic growth year-over-year and Solta, with 19% organic growth, led by Asia Pacific, where our business approximately doubled in South Korea, with China and Taiwan each posting high teens organic growth. John will provide additional commentary on the financial results later in the call. I want to touch on other key developments during the quarter. As we previewed during last quarter's earnings call, in May, we presented data related to our Phase II trial for amicillomide for mild to moderate ulcerative colitis at Digestive Disease Week's annual conference. Amy brings more than 20 years of experience in the pharmaceutical industry, most recently with Galderma, as well as AbbVie, and Allergan.

Thomas Appio: Thank you. And welcome to those of you joining the call this morning.

Thomas happier: For the second quarter of 2024 revenues for Bausch health, excluding D N L or 1.19 billion up 55 million or 5% on a reported basis and 6% on an organic basis when compared to the second quarter of 2023 with organic growth in all of.

Thomas Appio: I am pleased with the continued positive momentum we saw in the second quarter, following our strong start to the year, positioning us well to continue to drive growth and execute against our strategic priorities in the back half of the year--all while focused on patient-centered outcomes. The second quarter marked our fifth consecutive quarter of year-over-year growth in both revenue and adjusted EBITDA. For the second quarter of 2024, revenues for Bausch Health--excluding B+L--were $1.19 billion, up $55 million or 5% on a reported basis and 6% on an organic basis when compared to the second quarter of 2023. With organic growth in all of our segments, led by XIFAXAN, with 10% organic growth year-over-year and Solta, with 19% organic growth, led by Asia Pacific, where our business approximately doubled in South Korea, with China and Taiwan each posting high teens organic growth. John will provide additional commentary on the financial results later in the call. I want to touch on other key developments during the quarter. As we previewed during last quarter's earnings call, in May, we presented data related to our Phase II trial for amicillomide for mild to moderate ulcerative colitis at Digestive Disease Week's annual conference. Amy brings more than 20 years of experience in the pharmaceutical industry, most recently with Galderma, as well as AbbVie, and Allergan.

Thomas Appio: With organic growth in all of our segments, led by Zyfaxan, with 10% organic growth year over year, and Solta, with 19% organic growth, led by Asia Pacific, where our business approximately doubled in South Korea, with China and Taiwan each posting high teens organic growth. John will provide additional commentary on the financial results later in the call. I want to touch on other key developments during the quarter. As we previewed during last quarter's earnings call, in May, we presented data related to our Phase II trial for amicillomide for mild to moderate ulcerative colitis at Digestive Disease Week's annual conference. Amy brings more than 20 years of experience in the pharmaceutical industry, most recently with Galderma, as well as AbbVie, and Allergan.

Thomas happier: Our segment led by the facts, it with 10% organic growth year over year, and Salto with 19% organic growth led by Asia Pacific, where our business approximately doubled in South Korea, with China, and Taiwan, each posting high teens organic growth.

Thomas Appio: With organic growth in all of our segments, led by XIFAXAN, with 10% organic growth year-over-year and Solta, with 19% organic growth, led by Asia Pacific--where our business approximately doubled in South Korea; with China and Taiwan each posting high teens organic growth. Adjusted EBITDA for Bausch Health--excluding B+L--was $614 million, an increase of approximately 8% compared to the prior year. John will provide additional commentary on the financial results later in the call. I want to touch on other key developments during the quarter. As we previewed during last quarter's earnings call, in May, we presented data related to our Phase II trial for AMISELIMOD, for mild to moderate ulcerative colitis, at Digestive Disease Week's annual conference. I attended this conference and I had the opportunity to meet with a number of key opinion leaders and other industry participants in the gastroenterology space. I came away from these discussions with a clear sense that our efforts are reinforcing our strong positioning in this area with healthcare providers. At the European Association for the Study of the Liver Conference in June, we presented data comparing RIFAXIMIN monotherapy to LACTULOSE monotherapy in preventing overt hepatic encepalopathy recurrence in cirrhosis patients with a history of OHE. Which suggests RIFAXIMIN monotherapy has potential to be a viable treatment option for OHE re-occurent risk reduction in the appropriate patient population. Also, in June, I had the opportunity to meet with our Solta China team, including our newly appointed China Vice President and General Manager for this important and high growth market in our new offices in Shanghai. Amy brings more than 20 years of experience in the pharmaceutical industry, most recently with Galderma, as well as AbbVie, and Allergan.

Thomas Appio: I want to touch on other key developments during the quarter. As we previewed during last quarter's earnings call, in May, we presented data related to our Phase II trial for AMISELIMOD, for mild to moderate ulcerative colitis, at Digestive Disease Week's annual conference. I attended this conference and I had the opportunity to meet with a number of key opinion leaders and other industry participants in the gastroenterology space. I came away from these discussions with a clear sense that our efforts are reinforcing our strong positioning in this area with healthcare providers. At the European Association for the Study of the Liver Conference in June, we presented data comparing RIFAXIMIN monotherapy to LACTULOSE monotherapy in preventing overt hepatic encepalopathy recurrence in cirrhosis patients with a history of OHE. Which suggests RIFAXIMIN monotherapy has potential to be a viable treatment option for OHE re-occurent risk reduction in the appropriate patient population. Also, in June, I had the opportunity to meet with our Solta China team, including our newly appointed China Vice President and General Manager for this important and high growth market in our new offices in Shanghai. Amy brings more than 20 years of experience in the pharmaceutical industry, most recently with Galderma, as well as AbbVie, and Allergan.

Thomas happier: Adjusted EBITA for Bausch health, excluding B N L was $614 million, an increase of approximately 8% compared to the prior year.

Thomas Appio: At the European Association for the Study of the Liver Conference in June, we presented data comparing RIFAXIMIN monotherapy to LACTULOSE monotherapy in preventing overt hepatic encepalopathy recurrence in cirrhosis patients with a history of OHE. Which suggests RIFAXIMIN monotherapy has potential to be a viable treatment option for OHE re-occurent risk reduction in the appropriate patient population. Also in June, I had the opportunity to meet with our Solta China team, including our newly appointed China Vice President and General Manager for this important and high growth market, in our new offices in Shanghai. While there I had the opportunity to review the Thermage FLX launch. I left impressed by the commitment and enthusiasm of the team and with the excitement about the opportunities for Solta in the Asia Pacific markets. I also want to take a moment to highlight important changes to our executive leadership team. Aimee Lenar has joined the company as Executive Vice President, U.S. Pharma--with the responsibility for the leadership of the Salix, Neurology and Generics businesses as well as Market Access and Commercial Operations. Aimee brings more than 20 years of experience in the pharmaceutical industry, most recently with Galderma, as well as AbbVie and Allergan.

Thomas Appio: Also in June, I had the opportunity to meet with our Solta China team, including our newly appointed China Vice President and General Manager for this important and high growth market, in our new offices in Shanghai. While there I had the opportunity to review the Thermage FLX launch. I left impressed by the commitment and enthusiasm of the team and with the excitement about the opportunities for Solta in the Asia Pacific markets. I also want to take a moment to highlight important changes to our executive leadership team. Aimee Lenar has joined the company as Executive Vice President, U.S. Pharma--with the responsibility for the leadership of the Salix, Neurology and Generics businesses as well as Market Access and Commercial Operations. Aimee brings more than 20 years of experience in the pharmaceutical industry, most recently with Galderma, as well as AbbVie and Allergan.

Thomas Appio: While there I had the opportunity to review the Thermage FLX launch. I left impressed by the commitment and enthusiasm of the team and with the excitement about the opportunities for Solta in the Asia Pacific markets. I also want to take a moment to highlight important changes to our executive leadership team. Aimee Lenar has joined the company as Executive Vice President, U.S. Pharma--with the responsibility for the leadership of the Salix, Neurology and Generics businesses as well as Market Access and Commercial Operations. Aimee brings more than 20 years of experience in the pharmaceutical industry, most recently with Galderma, as well as AbbVie and Allergan.

Thomas happier: John will provide additional commentary on our financial results later in the call I want to touch on other key developments during the quarter.

Thomas Appio: I also want to take a moment to highlight important changes to our executive leadership team. Aimee Lenar has joined the company as Executive Vice President, U.S. Pharma--with the responsibility for the leadership of the Salix, Neurology and Generics businesses as well as Market Access and Commercial Operations. Aimee brings more than 20 years of experience in the pharmaceutical industry, most recently with Galderma, as well as AbbVie and Allergan. We also recently announced that our search for Chief Financial Officer has concluded and that JJ Charhon will join us in mid-August. JJ has extensive experience leading financial organizations in the healthcare, technology and service industries. I also want to thank John Barresi for all his hard work and dedication as interim CFO, in addition to his other responsibilities. He will resume his role as Senior Vice President and Chief Accounting Officer and remain a valued member of the financial leadership team. The additions of Amy and JJ will bring valuable perspective and expertise to the company and I'm looking forward to closely partnering with them and with our teams to drive our transformation into a globally-integrated and innovative healthcare company, trusted and valued by patients, healthcare providers, employees and investors.

Thomas Appio: We also recently announced that our search for Chief Financial Officer has concluded and that J.J. Charhon will join us in mid-August. J.J. has extensive experience leading financial organizations in the healthcare, technology, and service industries. I also want to thank John Barresi for all his hard work and dedication as interim CFO in addition to his other responsibilities. The additions of Amy and JJ will bring valuable perspective and expertise to the company, and I'm looking forward to closely partnering with them and with our teams to drive our transformation into a globally integrated and innovative healthcare company trusted and valued by patients, healthcare providers, employees, and investors.

Speaker Change: As we previewed during last quarters earnings call in May we presented data related to our phase II trial for M. A silver mod for mild to moderate ulcerative colitis.

Speaker Change: Digestive disease week annual conference I attended this conference and I had the opportunity to meet with a number of key opinion leaders and other industry participants in the gastroenterology space.

Speaker Change: I came away from these discussions with a clear sense that our efforts are reinforcing our strong positioning in this area with health care providers.

Speaker Change: At the European Association for the study of the liver conference in June we presented data comparing rifaximin monotherapy, <unk> mono therapy, and preventing overt hepatic encephalopathy recurrence in cirrhosis patients with a history of O H, eight which suggests rifaximin.

Speaker Change: <unk> has the potential to be a viable treatment option for OE Chi reoccurring risk reduction in the appropriate patient population.

Speaker Change: Also in June I had the opportunity to meet with our sulfur China team, including our newly appointed China, Vice President and General manager for this important and high growth market in our new offices in Shanghai.

Speaker Change: While there I had the opportunity to review this or Mas F. L X launch I left impressed by the commitment and enthusiasm of the team and with the excitement about the opportunities for Solta in the Asia Pacific markets.

Speaker Change: I also want to take a moment to highlight important changes to our executive leadership team Amy.

Speaker Change: Amy let our has joined the company as executive Vice President U S pharma with the responsibility for the leadership of the Salix neurology and generics businesses as well as market access and commercial operations.

Speaker Change: Amy brings more than 20 years of experience in the pharmaceutical industry. Most recently with Gal derma as well as Abbvie and Allergan.

Speaker Change: We also recently announced that our search for Chief Financial Officer has concluded and that J J Shar hone will join us in mid August J J has extensive experience leading financial organizations in the health care technology and service industries.

Thomas Appio: I also want to thank John Barresi for all his hard work and dedication as interim CFO, in addition to his other responsibilities. He will resume his role as Senior Vice President and Chief Accounting Officer and remain a valued member of the financial leadership team. The additions of Amy and JJ will bring valuable perspective and expertise to the company and I'm looking forward to closely partnering with them and with our teams to drive our transformation into a globally-integrated and innovative healthcare company, trusted and valued by patients, healthcare providers, employees and investors. In our dermatology business, we are pleased with the initial response to our U.S. launch of CABTREO, with further marketing efforts planned for this product in the second half of the year. We also anticipate that CABTREO will be approved in Canada in the second half of the year. Turning now to our Aesthetics Pipeline. As we have discussed, Thermage FLX and the TR4 return pad have been launched in China as a medical device.

Speaker Change: I also want to thank Jamba AC for all his hard work and dedication as interim CFO. In addition to his other responsibilities.

Speaker Change: He will resume his role as senior Vice President and Chief Accounting Officer and remain a valued member of the financial leadership team.

Speaker Change: The additions of Amy and J, J will bring valuable perspective, and expertise to the company and I'm looking forward to closely partnering with them and with our teams to drive our transformation into a globally integrated and innovative health care company trusted and valued by patients health care providers employees and <unk>.

Speaker Change: Investors.

Speaker Change: Speaking of innovation I will now turn to our R&D pipeline, we continue to make progress on our key R&D initiatives during the quarter and are tracking in line with our previously established timing goals.

Speaker Change: Starting with our Gi pipeline.

Speaker Change: <unk> in June we submitted our draft protocol for our planned phase III clinical trial for patients with moderate to severe UC to the FDA and plan to meet with authorities in EMEA in the second half of the year.

Speaker Change: We also continue to move forward with evaluating phase III program for Crohn's disease.

Thomas Appio: Speaking of innovation, I will now turn to our R&D pipeline. We continue to make progress on our key R&D initiatives during the quarter and are tracking in line with our previously established timing goals. Starting with our GI pipeline. For AMISELIMOD, in June, we submitted our draft protocol for our planned Phase III clinical trial for patients with moderate-to-severe UC to the FDA and planned to meet with authorities in EMEA in the second half of the year. We also continued to move forward with evaluating Phase II program for Crohn's disease. Our two global Phase III studies for our RED-C program with RIFAXIMIN for reduction of early decompensation in cirrhosis are in the treatment phase. These studies are focused on assessing the efficacy of our RIFAXIMIN SSD formulation versus placebo, to delay the occurrence of hepatic encephalopathy-related hospitalization. Topline results for these studies, which together include 1,000 patients across North America, Europe and Asia Pacific, are expected by early 2026. In our dermatology business, we are pleased with the initial response to our U.S. launch of CABTREO, with further marketing efforts planned for this product in the back half of the year. We also anticipate that CABTREO will be approved in Canada in the second half of the year. Turning now to our Aesthetics pipeline. As we have discussed, THERMAGE FLX and the TR-4 Return Pad have launched in China as a medical device.

Speaker Change: Our two global Phase III studies for our Red Sea program with Rifaximin for reduction of early decompensation in cirrhosis or in the treatment phase. These studies are focused on assessing the efficacy of our rifaximin SSD formulation versus placebo to delay the occurrence.

Speaker Change: The hepatic encephalopathy related hospitalization topline results for these studies, which together include over 1000 patients across North America, Europe, and Asia Pacific are expected by early 2026.

Thomas Appio: Our two global Phase III studies for our RED-C program with RIFAXIMIN for reduction of early decompensation in cirrhosis are in the treatment phase. These studies are focused on assessing the efficacy of our RIFAXIMIN SSD formulation versus placebo, to delay the occurrence of hepatic encephalopathy-related hospitalization. Topline results for these studies, which together include 1,000 patients across North America, Europe and Asia Pacific, are expected by early 2026. In our dermatology business, we are pleased with the initial response to our U.S. launch of CABTREO, with further marketing efforts planned for this product in the back half of the year. We also anticipate that CABTREO will be approved in Canada in the second half of the year. Turning now to our Aesthetics pipeline. As we have discussed, THERMAGE FLX and the TR-4 Return Pad have launched in China as a medical device.

Speaker Change: And our dermatology business. We are pleased with the initial response to our U S launch of Cub Trail with further marketing efforts plan for this product in the back half of the year. We also anticipate that kept trio will be approved in Canada in the second half of the year.

Thomas Appio: In our dermatology business, we are pleased with the initial response to our U.S. launch of CABTREO, with further marketing efforts planned for this product in the back half of the year. We also anticipate that CABTREO will be approved in Canada in the second half of the year. Turning now to our Aesthetics pipeline. As we have discussed, THERMAGE FLX and the TR-4 Return Pad have launched in China as a medical device. Early results are consistent with our expectation and the product has been well-received in the market. In Q2, we also filed an FDA submission for our next-generation FRAXEL, a fractionated laser device for skin resurfacing and continued to expect approval could be received in the second half of this year. Finally, our program for CLEAR + BRILLIANT TOUCH, a fractionated laser device for skin rejuvenation, continues to advance. We have received approvals in Australia, New Zealand and the Philippines this year, representing our first approvals outside of the United States and our plan for regulatory submission in 2024 for Europe, Asia Pacific and Canadian markets remained on track. Overall, we feel good about the initiatives the team is driving forward, related to new market authorizations and next-generation products as we continue to grow this global, durable portfolio of Aesthetics products. Moving to developments with respect to XIFAXAN litigation, regarding Norwich's first ANDA for XIFAXAN 550. As you will recall, on April 11, 2024, the U.S. Court of Appeals for the Federal Circuit affirmed the decision of the U.S. District Court for the District of Delaware. Subsequently, both we and Norwich, petitioned the court for a re-hearing or a hearing en banc and both petitions were denied by the court. This ANDA, remained barred from approval by the FDA until October 2029. During the second quarter, we initiated lawsuits in the U.S. District Court for the District of New Jersey regarding Norwich's amended ANDA and Amneal's ANDA directed to XIFAXAN 550 milligram for IBS-D.

Turning now to our aesthetics pipeline.

Speaker Change: As we have discussed their Mas F L X and the T. R for return pad have launched in China as a medical device early results are consistent with our expectation and the product has been well received in the market. In Q2. We also filed an FDA submission for our next generation Frac. So a frac.

Thomas Appio: Turning now to our Aesthetics pipeline. As we have discussed, THERMAGE FLX and the TR-4 Return Pad have launched in China as a medical device. Early results are consistent with our expectation and the product has been well-received in the market.

Thomas Appio: Early results are consistent with our expectations, and the product has been well received in the market. Overall, we feel good about the initiatives the team is driving forward related to new market authorizations and next-generation products as we continue to grow this global, durable portfolio of aesthetic products. During the second quarter, we initiated lawsuits in the U.S. District Court for the District of New Jersey regarding Norwich's amended ANDA and Amnil's ANDA directed to Zyfaxan 550 milligrams for IBSD.

Speaker Change: She needed laser device for skin resurfacing and continue to expect approval could be received in the second half of this year.

Thomas Appio: In Q2, we also filed an FDA submission for our next-generation FRAXEL, a fractionated laser device for skin resurfacing and continued to expect approval could be received in the second half of this year. Finally, our program for CLEAR + BRILLIANT TOUCH, a fractionated laser device for skin rejuvenation, continues to advance. We have received approvals in Australia, New Zealand and the Philippines this year, representing our first approvals outside of the United States and our plan for regulatory submission in 2024 for Europe, Asia Pacific and Canadian markets remained on track. Overall, we feel good about the initiatives the team is driving forward, related to new market authorizations and next-generation products as we continue to grow this global, durable portfolio of Aesthetics products. Moving to developments with respect to XIFAXAN litigation, regarding Norwich's first ANDA for XIFAXAN 550. As you will recall, on April 11, 2024, the U.S. Court of Appeals for the Federal Circuit affirmed the decision of the U.S. District Court for the District of Delaware. Subsequently, both we and Norwich, petitioned the court for a re-hearing or a hearing en banc and both petitions were denied by the court. This ANDA, remained barred from approval by the FDA until October 2029. During the second quarter, we initiated lawsuits in the U.S. District Court for the District of New Jersey regarding Norwich's amended ANDA and Amneal's ANDA directed to XIFAXAN 550 milligram for IBS-D.

Speaker Change: Finally, our program for a clearer and brilliant touch a fractionated laser device for skin rejuvenation continues to advance we have received approvals in Australia, New Zealand and the Philippines. This year, representing our first approvals outside of the United States and our plan for regulatory submission in 2024.

Speaker Change: Or for Europe, Asia Pacific and Canadian markets remained on track.

Speaker Change: Overall, we feel good about the initiatives. The team is driving forward related to new market authorizations in next generation products as we continue to grow this global durable portfolio of aesthetics products.

Thomas Appio: Overall, we feel good about the initiatives the team is driving forward, related to new market authorizations and next-generation products as we continue to grow this global, durable portfolio of Aesthetics products. Moving to developments with respect to XIFAXAN litigation, regarding Norwich's first ANDA for XIFAXAN 550. As you will recall, on April 11, 2024, the U.S. Court of Appeals for the Federal Circuit affirmed the decision of the U.S. District Court for the District of Delaware. Subsequently, both we and Norwich, petitioned the court for a re-hearing or a hearing en banc and both petitions were denied by the court. This ANDA, remained barred from approval by the FDA until October 2029. During the second quarter, we initiated lawsuits in the U.S. District Court for the District of New Jersey regarding Norwich's amended ANDA and Amneal's ANDA directed to XIFAXAN 550 milligram for IBS-D.

Speaker Change: Moving to developments with respect to <unk> facts and litigation rigs.

Speaker Change: Regarding Nord, which is first and therefore, the facts and 550 as you will recall on April 11th 2020 for the U S Court of Appeals for the Federal Circuit affirmed the decision of the U S District Court for the district of Delaware Subsequently, both Wei and Norwich.

Thomas Appio: Moving to developments with respect to XIFAXAN litigation, regarding Norwich's first ANDA for XIFAXAN 550. As you will recall, on April 11, 2024, the U.S. Court of Appeals for the Federal Circuit affirmed the decision of the U.S. District Court for the District of Delaware. Subsequently, both we and Norwich, petitioned the court for a re-hearing or a hearing en banc and both petitions were denied by the court. This ANDA, remained barred from approval by the FDA until October 2029. During the second quarter, we initiated lawsuits in the U.S. District Court for the District of New Jersey regarding Norwich's amended ANDA and Amneal's ANDA directed to XIFAXAN 550 milligram for IBS-D. As a leader in gastroenterology health, we continue to vigorously defend our intellectual property and are committed to advocating for the safety of patients who have benefited from continued access to Zyfaxan. We look forward to continuing to serve our patients, as every patient deserves better health outcomes and the chance to make the most of life. Turning now to the potential full separation of Bausch and Long. The full separation of Bausch and Long continues to be a strategic priority.

Speaker Change: Titian the court for a rehearing or a hearing on bank and both petitions were denied by the court. This onda remains barred from approval by the FDA until October 2029.

Speaker Change: During the second quarter, we initiated lawsuits in the U S District Court for the district of New Jersey regarding Norwich is amended and and they have Niels and directed to the facts and $5 50 milligram for Ibs D.

Speaker Change: As a leader in Gastroenterology health, we continue to vigorously defend our intellectual property and are committed to advocating for the safety of patients who have benefited from continued access Tuesday facts and we look forward to continuing to serve our patients as every patient deserves better health outcomes and the chance to make them.

Thomas Appio: As a leader in gastroenterology health, we continue to vigorously defend our intellectual property and are committed to advocating for the safety of patients who have benefited from continued access to XIFAXAN. We look forward to continuing to serve our patients, as every patient deserves better health outcomes and the chance to make the most of life. We also continue to prepare for the first trial in the remaining shareholder opt out cases, which is currently scheduled to commence on September 3rd. On the Granite Trust matter, we continue to expect the settlement with the IRS to be finalized in the coming months. As we have previously indicated, the currently anticipated outcome of this settlement does not have a material impact on the company's results or cash flows. We remain focused on our balance sheet and liquidity, ending the second quarter with approximately $1.5 billion of liquidity. In Q2, we repaid over $360 million of debt, including repurchasing approximately $305 million of bonds with 2025 maturities. Turning now to the potential full separation of Bausch + Lomb. The full separation of Bausch + Lomb continues to be a strategic priority.

Speaker Change: Cost of life.

Speaker Change: We also continue to prepare for the first trial and the remaining shareholder opt out cases, which is currently scheduled to commence on September three.

Speaker Change: On the granite Trust matter, we continue to expect the settlement with the IRS to be finalized in the coming months as we have previously indicated that.

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

Thomas Appio: On the Granite Trust matter, we continue to expect the settlement with the IRS to be finalized in the coming months. As we have previously indicated, the currently anticipated outcome of this settlement does not have a material impact on the company's results or cash flows. We remain focused on our balance sheet and liquidity, ending the second quarter with approximately $1.5 billion of liquidity. In Q2, we repaid over $360 million of debt, including repurchasing approximately $305 million of bonds with 2025 maturities. Turning now to the potential full separation of Bausch + Lomb. The full separation of Bausch + Lomb continues to be a strategic priority.

Speaker Change: We remain focused on our balance sheet and liquidity ending the second quarter with approximately one 5 billion of liquidity in Q2, we repaid over $316 million of debt, including repurchasing approximately $305 million of bonds with 2025 maturities.

Thomas Appio: We remain focused on our balance sheet and liquidity, ending the second quarter with approximately $1.5 billion of liquidity. In Q2, we repaid over $360 million of debt, including repurchasing approximately $305 million of bonds with 2025 maturities.

Thomas Appio: Turning now to the potential full separation of Bausch + Lomb. The full separation of Bausch + Lomb continues to be a strategic priority. We continue to evaluate strategies regarding the potential full separation, with the objective of ensuring that any transaction results in two appropriately capitalized companies. Any decision regarding if and when a separation occurs or its structure will be based on and subject to an assessment of all relevant factors and circumstance, Any potential separation will also be subject to shareholder and other applicable approvals. As a leadership team, we are 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 second quarter performance. John?

Thomas Appio: We continue to evaluate strategies regarding the potential full separation with the objective of ensuring that any transaction results in two appropriately capitalized companies. Any decision regarding if and when a separation occurs or its structure will be based on and, As a leadership team, we are 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 second quarter performance. John.

Speaker Change: Turning now to the potential full separation of Bausch along the full separation of Bausch and Lomb continues to be a strategic priority. We continue to evaluate strategies regarding the potential full separation with the objective of ensuring that any transaction result, and to appropriately capitalized company.

Speaker Change: 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 circumstance any potential separation will also be subject to shareholder and other applicable approvals.

Speaker Change: As a leadership team, we are 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 Baresi, who will provide.

Thomas Appio: With that, I will turn the call over to John Barresi, who will provide further details on our second quarter performance. John?

Speaker Change: <unk> further details on our second quarter performance John.

John Barresi: Thanks, Tom. Hello, everyone and thanks for joining us. Speaking of Salix, let's now turn to segment revenue performance, starting on slide 12. Relastor, Trulance, and the non-promoted portfolio within this segment experienced declines in the quarter.

John Barresi: Thanks, Tom. Hello, everyone and thanks for joining us. We ended

John Barresi: Thanks, Tom. Hello, everyone and thanks for joining us.

John Baresi: Thanks, Tom Hello, everyone and thanks for joining US we ended the second quarter with consolidated revenues for Bausch health, a $2 $4 billion.

Speaker Change: Up 11% on a reported basis and 8% on an organic basis over the same quarter last year.

Speaker Change: Second quarter revenues for Bausch health, excluding <unk> were $1, one $9 billion.

Speaker Change: Up 5% on a reported basis and 6% on an organic basis over the same quarter last year led by Solta and as Tom noted, so I've acts and performance within the Salix.

John Barresi: We ended the second quarter with consolidated revenues for Bausch Health of $2.4 billion, up 11% on a reported basis and 8% on an organic basis, over the same quarter last year. Second quarter revenues for Bausch Health, excluding B+L, were $1.19 billion, up 5% on a reported basis and 6% on an organic basis over the same quarter last year, led by Solta--and as Tom noted--XIFAXAN performance within Salix. Speaking of Salix, let's now turn to segment revenue performance, starting on slide 12. Second quarter sales revenues increased $1 million on a reported basis, to $558 million, driven by 10% growth year-over-year in XIFAXAN revenue. RELISTOR, TRULANCE and the non-promoted portfolio within this segment experienced declines in the quarter. Revenues grew $6 million, or 1% on an organic basis, which reflects the impact of divestitures and discontinuation of certain non-promoted products. XIFAXAN continued to represent the majority of Salix segment revenues during the quarter and saw strong growth and underlying demand. XIFAXAN revenues in Q2 increased 10% compared to the prior year period, while retail prescription growth was 1% in Q2 versus the prior year, extended units grew 4%, a continuation of the trend we have seen of strong growth in non-retail units, including hospitals and outpatient clincis.

John Barresi: Speaking of Salix, let's now turn to segment revenue performance, starting on slide 12. Relastor, Trulance, and the non-promoted portfolio within this segment experienced declines in the quarter.

John Baresi: Speaking of Salix, let's now turn to segment revenue performance starting on slide 12.

John Baresi: Second quarter sales revenues increased $1 million on a reported basis to $558 million driven by 10% growth year over year inside facts and revenue.

John Baresi: Relistor true Lance and the non promoted portfolio within this segment experienced declines in the quarter.

John Baresi: Revenues grew $6 million or 1% on an organic basis, which reflects the impact of divestitures and discontinuation of certain non promoted products.

John Barresi: Second quarter sales revenues increased $1 million on a reported basis, to $558 million, driven by 10% growth year-over-year in XIFAXAN revenue. RELISTOR, TRULANCE and the non-promoted portfolio within this segment experienced declines in the quarter. Revenues grew $6 million, or 1% on an organic basis, which reflects the impact of divestitures and discontinuation of certain non-promoted products. XIFAXAN continued to represent the majority of Salix segment revenues during the quarter and saw strong growth and underlying demand. XIFAXAN revenues in Q2 increased 10% compared to the prior year period, while retail prescription growth was 1% in Q2 versus the prior year. Extended units grew 4%, a continuation of the trend we have seen of strong growth in non-retail units, including hospitals and outpatient clinics.

John Baresi: So the facts and continued to represent the majority of Salix segment revenues during the quarter and saw strong growth in underlying demand.

Speaker Change: <unk> revenues in Q2 increased 10% compared to the prior year period, while retail prescription growth was 1% in Q2 versus the prior year extended units grew 4% a continuation of the trend we have seen a strong growth in non retail units, including hospitals and outpatient clinics.

John Barresi: XIFAXAN revenues in Q2 increased 10% compared to the prior year period, while retail prescription growth was 1% in Q2 versus the prior year. Extended units grew 4%, a continuation of the trend we have seen of strong growth in non-retail units, including hospitals and outpatient clinics. RELISTOR declined 9% over the prior year period due to lower net pricing relative to Q2 of the prior year and softer demand, with TRx declining by 3%. TRULANCE TRx growth was 5%, however, revenues declined approximately 50% year-over-year due in large part to net pricing pressure. It's important to note that Q2 this year for Trulance is also compared to a very strong second quarter in 2023, which saw revenues increase 73% on script growth of 14%. Thermage FLX launched in the second quarter. As Tom noted, early results are in line with our expectations, and we continue to be encouraged about the potential for this product line. However, we did see a softening of performance in the U.S. While revenue grew sequentially relative to Q1 of 2024, it declined by 4% year over year.

John Barresi: XIFAXAN revenues in Q2 increased 10% compared to the prior year period, while retail prescription growth was 1% in Q2 versus the prior year, extended units grew 4%, a continuation of the trend we have seen of strong growth in non-retail units, including hospitals and outpatient clinics. RELISTOR declined 9% over the prior year period due to lower net pricing relative to Q2 of the prior year and softer demand, with TRx declining by 3%. TRULANCE TRx growth was 5%, however, revenues declined approximately 50% year-over-year due in large part to net pricing pressure.

John Barresi: It's important to note that Q2 this year for Trulance is also compared to a very strong second quarter in 2023, which saw revenues increase 73% on script growth of 14%. Thermage FLX launched in the second quarter. As Tom noted, early results are in line with our expectations, and we continue to be encouraged about the potential for this product line. However, we did see a softening of performance in the U.S. While revenue grew sequentially relative to Q1 of 2024, it declined by 4% year over year.

John Barresi: It's important to note that Q2 this year for TRULANCE is also compared to a very strong second quarter in 2023, which saw revenues increase 73% on script growth of 14%. We also continued to experience meaningful pressure on both pricing and volumes in our non-promoted portfolio in this segment. International revenues were $276 million during the quarter, an increase of 7% on a reported basis and 6% on an organic basis, compared to the prior year period. All three regions posted both reported and organic growth, led by double-digit organic growth in Canada and mid-single-digit growth in Latin America. In Canada, growth was led by our promoted portfolio, including RYALTRIS, CONTRAVE and JUBLIA. Thermage FLX launched in the second quarter. As Tom noted, early results are in line with our expectations, and we continue to be encouraged about the potential for this product line. However, we did see a softening of performance in the U.S. While revenue grew sequentially relative to Q1 of 2024, it declined by 4% year over year.

John Barresi: It's important to note that Q2 this year for TRULANCE is also compared to a very strong second quarter in 2023, which saw revenues increase 73% on script growth of 14%. We also continued to experience meaningful pressure on both pricing and volumes in our non-promoted portfolio in this segment. International revenues were $276 million during the quarter, an increase of 7% on a reported basis and 6% on an organic basis, compared to the prior year period. All three regions posted both reported and organic growth, led by double-digit organic growth in Canada and mid-single-digit growth in Latin America. In Canada, growth was led by our promoted portfolio, including RYALTRIS, CONTRAVE and JUBLIA. Solta Medical revenues, we're $102 million during the second quarter, an increase of 16% on a reported basis and 19% on an organic basis over the prior year period. Solta's growth was led by APAC, most notably South Korea, followed by China.

Speaker Change: $102 million during the second quarter, an increase of 16% on a reported basis and 19% on an organic basis over the prior year period.

John Barresi: In Canada, growth was led by our promoted portfolio, including RYALTRIS, CONTRAVE and JUBLIA. Solta Medical revenues, we're $102 million during the second quarter, an increase of 16% on a reported basis and 19% on an organic basis over the prior year period. Solta's growth was led by APAC, most notably South Korea, followed by China. THERMAGE FLX launched in the second quarter. As Tom noted, early results are in line with our expectations and we continue to be encouraged about the potential for this product line. We did see a softening of performance in the U.S.--while revenue grew sequentially relative to Q1 of 2024, it declined by 4% year-over-year. We continue to build and transform the leadership team as well as invest in the sales team and tools to enable this market to deliver sustained growth going forward. Diversified revenues were $251 million during the second quarter, an increase of 10% on a reported basis and 12% on an organic basis compared to the prior year period, reflecting the impact of divestitures and discontinuations of certain non-promoted products. In dermatology, revenue grew by 21% on a reported basis and 25% on an organic basis in the quarter compared to the prior year period, as we continue to focus on returning this business to consistent growth.

John Barresi: In Canada, growth was led by our promoted portfolio, including RYALTRIS, CONTRAVE and JUBLIA. Solta Medical revenues were $102 million during the second quarter, an increase of 16% on a reported basis and 19% on an organic basis over the prior year period. Solta's growth was led by APAC, most notably South Korea, followed by China. THERMAGE FLX launched in the second quarter. As Tom noted, early results are in line with our expectations and we continue to be encouraged about the potential for this product line. We did see a softening of performance in the U.S.--while revenue grew sequentially relative to Q1 of 2024, it declined by 4% year-over-year.

Speaker Change: <unk> growth was led by APAC, most notably South Korea, followed by China <unk>.

Speaker Change: <unk> launched in the second quarter as Tom noted early results are in line with our expectations and we continue to be encouraged about the potential for this product line.

John Barresi: Thermage FLX launched in the second quarter. As Tom noted, early results are in line with our expectations, and we continue to be encouraged about the potential for this product line. However, we did see a softening of performance in the U.S. While revenue grew sequentially relative to Q1 of 2024, it declined by 4% year over year.

Speaker Change: We did see a softening of performance in the U S. While revenue grew sequentially relative to Q1 of 2024, it declined by 4% year over year.

Speaker Change: We continue to build and transform the leadership team as well as invest in the sales team and tools to enable this market to deliver sustained growth going forward.

Speaker Change: Diversified revenues were $251 million during the second quarter, an increase of 10% on a reported basis and 12% on an organic basis compared to the prior year period, reflecting the impact of divestitures and discontinuation of certain non promoted products and.

John Barresi: We continue to build and transform the leadership team as well as invest in the sales team and tools to enable this market to deliver sustained growth going forward. Diversified revenues were $251 million during the second quarter, an increase of 10% on a reported basis and 12% on an organic basis compared to the prior year period, reflecting the impact of divestitures and discontinuations of certain non-promoted products. In dermatology, revenue grew by 21% on a reported basis and 25% on an organic basis in the quarter compared to the prior year period, as we continue to focus on returning this business to consistent growth. We are continuing to invest in marketing for this key product in the second half of the year, which we expect will enable it to become a more meaningful driver of growth in our dermatology business as the year progresses. Neurology saw low double-digit revenue growth, posting an 11% increase year-over-year as we continued to benefit from competitor supply disruption.

Speaker Change: In dermatology revenue grew by 21% on a reported basis and 25% on an organic basis in the quarter compared to the prior year period as we continue to focus on returning this business to consistent growth.

John Barresi: We are continuing to invest in marketing for this key product in the second half of the year, which we expect will enable it to become a more meaningful driver of growth in our dermatology business as the year progresses. Neurology saw low double-digit revenue growth, posting an 11% increase year-over-year as we continued to benefit from competitor supply disruption.

John Barresi: Growth in the quarter benefited from favorable net pricing comparisons year-over-year, which we do not except will be sustained over the remainder of the year; while volumes for our non-promoted products continued to be pressured. CABTREO launched in January and has performed in line with our expectations. We are continuing to invest in marketing for this key product in the second half of the year, which we will expect will enable it to become a more meaningful driver of growth in our dermatology business as the year progresses. Neurology saw low double-digit revenue growth, posting an 11% increase year-over-year as we continued to benefit from competitor supply disruptions. Turning to the second quarter P&L on slides 17 and 18, second quarter consolidated adjusted gross margin was 70.9%, 80 basis points higher compared with the prior year. For Bausch Health, excluding B&L, adjusted gross margin for the second quarter was 79.9%, approximately 40 basis points higher than last year's second quarter. At B&L, adjusted gross margin was 62.1% in Q2 of 2024 compared to 59.7% in Q2'23, driven primarily by product mix, including the impact of Zydra. Consolidated adjusted operating expenses for the second quarter were $955 million, an increase of $123 million.

John Barresi: Growth in the quarter benefited from favorable net pricing comparisons year-over-year, which we do not except will be sustained over the remainder of the year; while volumes for our non-promoted products continued to be pressured. CABTREO launched in January and has performed in line with our expectations. We are continuing to invest in marketing for this key product in the second half of the year, which we will expect will enable it to become a more meaningful driver of growth in our dermatology business as the year progresses. Neurology saw low double-digit revenue growth, posting an 11% increase year-over-year as we continued to benefit from competitor supply disruptions. This segment also benefited from favorable net pricing comparisons year-over-year. WELLBUTRIN and APLENZIN revenues grew despite lower volumes as we continued to execute our strategy to manage scripts for overall profitability. Revenue for the Generics business declined 11% on a reported and 4% on an organic basis; this business continues to operate in a highly competitive space and while we have seen some areas of growth, including products such as UCERIS AG, the net pricing pressures in this business are meaningful and we continue to evaluate this portfolio to optimize our margins and profitability. The industry revenues were flat year-over year, however, we continue to expect this business to grow for the full year. As shown on slide 16, Bausch + Lomb revenues were $1.2 billion during the second quarter, up 17% on a reported basis and 10% on an organic basis compared to the prior year period, with growth across all Bausch + Lomb business, key product franchises and geographies.

John Barresi: CABTREO launched in January and has performed in line with our expectations. We are continuing to invest in marketing for this key product in the second half of the year, which we will expect will enable it to become a more meaningful driver of growth in our dermatology business as the year progresses.

John Barresi: Neurology saw low double-digit revenue growth, posting an 11% increase year-over-year as we continued to benefit from competitor supply disruptions. This segment also benefited from favorable net pricing comparisons year-over-year. WELLBUTRIN and APLENZIN revenues grew despite lower volumes as we continued to execute our strategy to manage scripts for overall profitability. Revenue for the Generics business declined 11% on a reported and 4% on an organic basis; this business continues to operate in a highly competitive space and while we have seen some areas of growth, including products such as UCERIS AG, the net pricing pressures in this business are meaningful and we continue to evaluate this portfolio to optimize our margins and profitability. The industry revenues were flat year-over year, however, we continue to expect this business to grow for the full year. As shown on slide 16, Bausch + Lomb revenues were $1.2 billion during the second quarter, up 17% on a reported basis and 10% on an organic basis compared to the prior year period, with growth across all Bausch + Lomb business, key product franchises and geographies.

John Barresi: Neurology saw low double-digit revenue growth, posting an 11% increase year-over-year as we continued to benefit from competitor supply disruptions.

John Barresi: Revenue for the Generics business declined 11% on a reported and 4% on an organic basis; this business continues to operate in a highly competitive space and while we have seen some areas of growth, including products such as UCERIS AG, the net pricing pressures in this business are meaningful and we continue to evaluate this portfolio to optimize our margins and profitability. The industry revenues were flat year-over year, however, we continue to expect this business to grow for the full year. As shown on slide 16, Bausch + Lomb revenues were $1.2 billion during the second quarter, up 17% on a reported basis and 10% on an organic basis compared to the prior year period, with growth across all Bausch + Lomb business, key product franchises and geographies. Turning to the second quarter P&L on slides 17 and 18, second quarter consolidated adjusted gross margin was 70.9%, 80 basis points higher compared with the prior year. For Bausch Health, excluding B&L, adjusted gross margin for the second quarter was 79.9%, approximately 40 basis points higher than last year's second quarter. At B&L, adjusted gross margin was 62.1% in Q2 of 2024 compared to 59.7% in Q2'23, driven primarily by product mix, including the impact of Zydra. Consolidated adjusted operating expenses for the second quarter were $955 million, an increase of $123 million.

John Barresi: Turning to the second quarter P&L on slides 17 and 18, second quarter consolidated adjusted gross margin was 70.9%, 80 basis points higher compared with the prior year. For Bausch Health, excluding B&L, adjusted gross margin for the second quarter was 79.9%, approximately 40 basis points higher than last year's second quarter. At B&L, adjusted gross margin was 62.1% in Q2 of 2024 compared to 59.7% in Q2'23, driven primarily by product mix, including the impact of Zydra. Consolidated adjusted operating expenses for the second quarter were $955 million, an increase of $123 million.

Speaker Change: 2018 second quarter consolidated adjusted gross margin was 79% 80 basis points higher compared with the prior year.

Speaker Change: For Bausch health excluding <unk>.

Speaker Change: Adjusted gross margin for the second quarter was 79, 9% approximately 40 basis points higher than last year's second quarter.

Speaker Change: At P&L adjusted gross margin was 62, 1% of Q2 of 2024 compared to 59, 7% for Q2, 'twenty, three driven primarily by product mix, including the impact of <unk>.

John Barresi: As shown on slide 16, Bausch + Lomb revenues were $1.2 billion during the second quarter, up 17% on a reported basis and 10% on an organic basis compared to the prior year period, with growth across all Bausch + Lomb business, key product franchises and geographies.

Speaker Change: Consolidated adjusted operating expenses for the second quarter were $955 million, an increase of $123 million.

Speaker Change: For Bausch health, excluding P&L adjusted operating expenses increased by approximately $6 million compared to the second quarter of 2023 higher A&P driven by investments in Solta in dermatology for the launch of <unk> trio offset by lower G&A expenses as we continue to focus on cost management.

John Barresi: Turning to the second quarter P&L on slides 17 and 18. Second quarter consolidated adjusted gross margin was 70.9%, 80 basis points higher compared with the prior year. For Bausch Health--excluding B+L--adjusted gross margin for the second quarter was 79.9%, approximately 40 basis points higher than last year's second quarter. At B+L, adjusted gross margin was 62.1% in Q2 of 2024 compared to 59.7% for Q2 '23, driven primarily by product mix,--including the impact of XIIDRA. Consolidated adjusted operating expenses for the second quarter were $955 million, an increase of $123 million. For Bausch Health, excluding B+L, adjusted operating expenses increased by approximately $6 million compared to the second quarter of 2023. Higher A&P, driven by investments in Solta and Dermatology for the launch of CABTREO, offset by lower G&A expenses as we continue to focus on cost management. We expect A&P increases to continue to moderate over the course of the year as we continue to annualize our investments in selling and marketing for XIFAXAN. B+L reported an increase of $117 million in adjusted operating expenses due primarily to increased selling in A&P, driven by investment behind XIIDRA MIEBO. Consolidated adjusted R&D expense for the quarter was $156 million [inaudible] compared to the prior year and represented 6.6% of product sales compared with 7.3% for the prior year period. For Bausch Health, excluding B+L, R&D expenses of $72 million were largely in line with the same quarter last year as we begin to annualize the step-up in investment from 2023. Second quarter consolidated adjusted EBITDA attributable to Bausch Health was $798 million, an increase of $71 million or 10%, as compared to the same quarter last year. Adjusted EBITDA for Bausch Health--excluding B+L--was $614 million, an increase of 8% from $568 million in the second quarter of 2023.

Speaker Change: We expect A&P increases to continue to moderate over the course of the year as we continued to annualize our investments in selling and marketing for <unk>.

John Barresi: For Bausch Health, excluding B&L, R&D expenses of $72 million were largely in line with the same quarter last year as we begin to annualize the step-up in investment from 2023. Second quarter consolidated adjusted EBITDA attributable to Bausch Health was $798 million, an increase of $71 million or 10% as compared to the same quarter last year. Adjusted EBITDA for Bausch Health, excluding B&L, was $614 million, an increase of 8% from $568 million in the second quarter of 2023.

John Barresi: Consolidated adjusted operating expenses for the second quarter were $955 million, an increase of $123 million. For Bausch Health, excluding B+L, adjusted operating expenses increased by approximately $6 million compared to the second quarter of 2023. Higher A&P, driven by investments in Solta and Dermatology for the launch of CABTREO, offset by lower G&A expenses as we continue to focus on cost management. We expect A&P increases to continue to moderate over the course of the year as we continue to annualize our investments in selling and marketing for XIFAXAN. B+L reported an increase of $117 million in adjusted operating expenses due primarily to increased selling in A&P, driven by investment behind XIIDRA MIEBO. Consolidated adjusted R&D expense for the quarter was $156 million [inaudible] compared to the prior year and represented 6.6% of product sales compared with 7.3% for the prior year period. For Bausch Health, excluding B+L, R&D expenses of $72 million were largely in line with the same quarter last year as we begin to annualize the step-up in investment from 2023. Second quarter consolidated adjusted EBITDA attributable to Bausch Health was $798 million, an increase of $71 million or 10%, as compared to the same quarter last year. Adjusted EBITDA for Bausch Health--excluding B+L--was $614 million, an increase of 8% from $568 million in the second quarter of 2023.

John Barresi: Consolidated adjusted operating expenses for the second quarter were $955 million, an increase of $123 million.

John Barresi: For Bausch Health, excluding B+L, adjusted operating expenses increased by approximately $6 million compared to the second quarter of 2023. Higher A&P, driven by investments in Solta and Dermatology for the launch of CABTREO, offset by lower G&A expenses as we continue to focus on cost management. We expect A&P increases to continue to moderate over the course of the year as we continue to annualize our investments in selling and marketing for XIFAXAN. B+L reported an increase of $117 million in adjusted operating expenses due primarily to increased selling in A&P, driven by investment behind XIIDRA MIEBO. Consolidated adjusted R&D expense for the quarter was $156 million [inaudible] compared to the prior year and represented 6.6% of product sales compared with 7.3% for the prior year period. For Bausch Health, excluding B+L, R&D expenses of $72 million were largely in line with the same quarter last year as we begin to annualize the step-up in investment from 2023. Second quarter consolidated adjusted EBITDA attributable to Bausch Health was $798 million, an increase of $71 million or 10%, as compared to the same quarter last year. Adjusted EBITDA for Bausch Health--excluding B+L--was $614 million, an increase of 8% from $568 million in the second quarter of 2023.

John Barresi: Consolidated adjusted R&D expense for the quarter was $156 million [inaudible] compared to the prior year and represented 6.6% of product sales compared with 7.3% for the prior year period. For Bausch Health, excluding B+L, R&D expenses of $72 million were largely in line with the same quarter last year as we begin to annualize the step-up in investment from 2023. Second quarter consolidated adjusted EBITDA attributable to Bausch Health was $798 million, an increase of $71 million or 10%, as compared to the same quarter last year. Adjusted EBITDA for Bausch Health--excluding B+L--was $614 million, an increase of 8% from $568 million in the second quarter of 2023. Turning to cash flow. On a consolidated basis, Bausch Health generated $380 million of operating cash flow and $287 million of adjusted operating cash flow in the second quarter. For Bausch Health--excluding B+L--adjusted operating cash flow $264 million for the second quarter, compared to adjusted operating cash flow of $140 million for the second quarter of 2023. With the changes primarily reflecting improved business performance, timing of cash flow is related to income taxes and more favorable working capital movements in 2024, relative to 2023. As we've discussed in prior quarters, as a result of the accounting treatment for the senior notes issue that's part of 2022 debt exchange, a portion of our cash interest payments are classified as financing cash flows. Adjusted cash flow include 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. Now, let's turn to our balance sheet on slide 19. We continue to prioritize liquidity management and the de-levering of our balance sheet. In the second quarter, we reduced our debt for Bausch Health--excluding B+L--by approximately $360 million, while debt net of cash decreased by approximately $250 million. We continue to evaluate alternatives to reduce our overall leverage while also focusing on our maturity profile. In the second quarter, we repurchased an additional $305 million in principal value of our 9% unsecured bonds maturing in 2025, in addition to the $250 million in principal value of 2025 and 2026 maturities repurchased in Q1. Year-to-date, we've retired approximately $555 million in principal value of 2025 and 2026 maturities, capturing approximately $25 million of discount in the process. We also repaid $57 million of additional debt this quarter, consisting of mandatory term loan amortization and repaying a portion of the amount outstanding under our AR facility. At the end of the second quarter, Bausch Health--excluding B+L--had $300 million outstanding under our AR facility and had no outstanding borrowings and approximately $950 million of availability under our revolving credit facility.

Speaker Change: Bus business transformation costs and litigation and other matters net of insurance proceeds.

Speaker Change: Now, let's turn to our balance sheet on slide 19.

John Barresi: Adjusted EBITDA for Bausch Health--excluding B+L--was $614 million, an increase of 8% from $568 million in the second quarter of 2023. Turning to cash flow. On a consolidated basis, Bausch Health generated $380 million of operating cash flow and $287 million of adjusted operating cash flow in the second quarter. For Bausch Health--excluding B+L--adjusted operating cash flow $264 million for the second quarter, compared to adjusted operating cash flow of $140 million for the second quarter of 2023. With the changes primarily reflecting improved business performance, timing of cash flow is related to income taxes and more favorable working capital movements in 2024, relative to 2023. As we've discussed in prior quarters, as a result of the accounting treatment for the senior notes issue that's part of 2022 debt exchange, a portion of our cash interest payments are classified as financing cash flows. Adjusted cash flow include 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. Now, let's turn to our balance sheet on slide 19. We continue to prioritize liquidity management and the de-levering of our balance sheet. In the second quarter, we reduced our debt for Bausch Health--excluding B+L--by approximately $360 million, while debt net of cash decreased by approximately $250 million. We continue to evaluate alternatives to reduce our overall leverage while also focusing on our maturity profile. In the second quarter, we repurchased an additional $305 million in principal value of our 9% unsecured bonds maturing in 2025, in addition to the $250 million in principal value of 2025 and 2026 maturities repurchased in Q1. Year-to-date, we've retired approximately $555 million in principal value of 2025 and 2026 maturities, capturing approximately $25 million of discount in the process. We also repaid $57 million of additional debt this quarter, consisting of mandatory term loan amortization and repaying a portion of the amount outstanding under our AR facility. At the end of the second quarter, Bausch Health--excluding B+L--had $300 million outstanding under our AR facility and had no outstanding borrowings and approximately $950 million of availability under our revolving credit facility.

John Barresi: Adjusted EBITDA for Bausch Health--excluding B+L--was $614 million, an increase of 8% from $568 million in the second quarter of 2023.

Speaker Change: We continue to prioritize liquidity management and the Delevering of our balance sheet in the second quarter, we reduced our debt for Bausch health, excluding being <unk> by approximately $360 million, while debt net of cash decreased by approximately $250 million.

John Barresi: Turning to cash flow. On a consolidated basis, Bausch Health generated $380 million of operating cash flow and $287 million of adjusted operating cash flow in the second quarter. For Bausch Health--excluding B+L--adjusted operating cash flow $264 million for the second quarter, compared to adjusted operating cash flow of $140 million for the second quarter of 2023.

Speaker Change: We continue to evaluate alternatives to reduce our overall leverage while also focusing on our maturity profile.

John Barresi: With the changes primarily reflecting improved business performance, timing of cash flow is related to income taxes and more favorable working capital movements in 2024, relative to 2023. As we've discussed in prior quarters, as a result of the accounting treatment for the senior notes issue that's part of 2022 debt exchange, a portion of our cash interest payments are classified as financing cash flows. Adjusted cash flow include 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. Now, let's turn to our balance sheet on slide 19. We continue to prioritize liquidity management and the de-levering of our balance sheet. In the second quarter, we reduced our debt for Bausch Health--excluding B+L--by approximately $360 million, while debt net of cash decreased by approximately $250 million. We continue to evaluate alternatives to reduce our overall leverage while also focusing on our maturity profile. In the second quarter, we repurchased an additional $305 million in principal value of our 9% unsecured bonds maturing in 2025, in addition to the $250 million in principal value of 2025 and 2026 maturities repurchased in Q1. Year-to-date, we've retired approximately $555 million in principal value of 2025 and 2026 maturities, capturing approximately $25 million of discount in the process. We also repaid $57 million of additional debt this quarter, consisting of mandatory term loan amortization and repaying a portion of the amount outstanding under our AR facility. At the end of the second quarter, Bausch Health--excluding B+L--had $300 million outstanding under our AR facility and had no outstanding borrowings and approximately $950 million of availability under our revolving credit facility.

Speaker Change: In the second quarter, we repurchased an additional $305 million in principal value of our 9% unsecured bonds maturing in 2025.

Speaker Change: In addition to the $250 million in principal value of 2025, and 2026 maturities repurchased in Q1.

Speaker Change: Year to date, we have retired approximately $555 million in principal value of 2025, and 2026 maturities capturing approximately $25 million of discount in the process.

John Barresi: Now, let's turn to our balance sheet on slide 19. We continue to prioritize liquidity management and the de-levering of our balance sheet. In the second quarter, we reduced our debt for Bausch Health--excluding B+L--by approximately $360 million, while debt net of cash decreased by approximately $250 million. We continue to evaluate alternatives to reduce our overall leverage while also focusing on our maturity profile. In the second quarter, we repurchased an additional $305 million in principal value of our 9% unsecured bonds maturing in 2025, in addition to the $250 million in principal value of 2025 and 2026 maturities repurchased in Q1. Year-to-date, we've retired approximately $555 million in principal value of 2025 and 2026 maturities, capturing approximately $25 million of discount in the process. We also repaid $57 million of additional debt this quarter, consisting of mandatory term loan amortization and repaying a portion of the amount outstanding under our AR facility. At the end of the second quarter, Bausch Health--excluding B+L--had $300 million outstanding under our AR facility and had no outstanding borrowings and approximately $950 million of availability under our revolving credit facility.

John Barresi: Year-to-date, we've retired approximately $555 million in principal value of 2025 and 2026 maturities, capturing approximately $25 million of discount in the process. We also repaid $57 million of additional debt this quarter, consisting of mandatory term loan amortization and repaying a portion of the amount outstanding under our AR facility. At the end of the second quarter, Bausch Health--excluding B+L--had $300 million outstanding under our AR facility and had no outstanding borrowings and approximately $950 million of availability under our revolving credit facility. Excluding B&L debt, approximately 85% of our debt is fixed, and approximately 70% of the company's debt on a consolidated basis is fixed. I'll now hand the call back to Tom. I am proud of the progress we have made this quarter, driving consistent growth, maintaining disciplined capital allocation, continuing to advance our pipeline, and growing our footprint in our existing business areas, all while improving our operational effectiveness and remaining focused on cost management.

Thomas Appio: Excluding B&L debt, approximately 85% of our debt is fixed, and approximately 70% of the company's debt on a consolidated basis is fixed. I'll now hand the call back to Tom. I am proud of the progress we have made this quarter, driving consistent growth, maintaining disciplined capital allocation, continuing to advance our pipeline, and growing our footprint in our existing business areas, all while improving our operational effectiveness and remaining focused on cost management.

John Barresi: As shown on slides 20 and 21, total debt for Bausch Health--excluding Bausch + Lomb--at the end of the quarter was $15.7 billion, which consisted of approximately $14.4 billion of restricted debt, issued by Bausch Health--excluding B+L and approximately $1.3 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 $300 million drawn under our AR facility. Excluding B&L debt, approximately 85% of our debt is fixed and approximately 70% of the company's debt on a consolidated basis is fixed. We ended the quarter with approximately $1.5 billion of liquidity, which includes approximately $320 million of cash and $950 million of availability under our revolving credit facility as well as the undrawn availability under our AR facility. We are focused on strengthening our balance sheet including evaluating and utilizing, as appropriate, various tools and strategies along with our existing liquidity to manage both our maturity profile and our overall leverage. Turning to guidance. We are maintaining our guidance for Bausch Health, excluding B+L. For the full year 2024, we continue to expect revenue of $4.7 billion to $4.85 billion and adjusted EBITDA of $2.36 billion to $2.46 billion, as well as adjusted operating cash flow in a range of approximately $775 million to $800 million. I'll now hand the call back to Tom. I am proud of the progress we have made this quarter, driving consistent growth, maintaining disciplined capital allocation, continuing to advance our pipeline, and growing our footprint in our existing business areas, all while improving our operational effectiveness and remaining focused on cost management.

John Barresi: We ended the quarter with approximately $1.5 billion of liquidity, which includes approximately $320 million of cash and $950 million of availability under our revolving credit facility as well as the undrawn availability under our AR facility. We are focused on strengthening our balance sheet including evaluating and utilizing, as appropriate, various tools and strategies along with our existing liquidity to manage both our maturity profile and our overall leverage. Turning to guidance. We are maintaining our guidance for Bausch Health, excluding B+L. For the full year 2024, we continue to expect revenue of $4.7 billion to $4.85 billion and adjusted EBITDA of $2.36 billion to $2.46 billion, as well as adjusted operating cash flow in a range of approximately $775 million to $800 million.

John Barresi: Turning to guidance. We are maintaining our guidance for Bausch Health, excluding B+L. For the full year 2024, we continue to expect revenue of $4.7 billion to $4.85 billion and adjusted EBITDA of $2.36 billion to $2.46 billion, as well as adjusted operating cash flow in a range of approximately $775 million to $825 million.

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

Thomas Appio: Thank you, John. I am proud of the progress we have made this quarter; driving consistent growth, maintaining disciplined capital allocation, continuing to progress our pipeline and growing our footprint in our existing business areas--all while improving our operational effectiveness and remaining focused on cost management. Our performance thus far in 2024 provides us with momentum for the second half of the year as we continue to focus on delivering against our 2024 priorities: driving a results-oriented culture of accountability; delivering on our revenue, adjusted EBITDA and adjusted operating cash flow commitments; executing with operational excellence and a cost-focused mindset across the enterprise; intensifying our focus and operating rigor behind R&D and business development and continuing to evaluate strategic alternatives. As we have said, achieving the full separation of B+L remains a priority. 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. I want to thank the entire global Bausch Health team, with their hard work and dedication to growing our company and delivering on our commitments, ultimately driving better health outcomes for patients globally. I look forward to working with the entire team, including our new executive leadership team members, to drive our transformation into a globally-integrated and innovative healthcare company. 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. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Speaker Change: And I'll effectiveness and remaining focused on cost management.

Thomas Appio: Our performance thus far in 2024 provides us with momentum for the second half of the year as we continue to focus on delivering against our 2024 priorities, executing with operational excellence and a cost-focused mindset across the enterprise, and intensifying our focus and operating rigor behind R&D and business development.

Speaker Change: Our performance thus far in 2024 provides us with momentum for the second half of the year as we continue to focus on delivering against our 2024 priorities.

Thomas Appio: Our performance thus far in 2024 provides us with momentum for the second half of the year as we continue to focus on delivering against our 2024 priorities: driving a results-oriented culture of accountability; delivering on our revenue, adjusted EBITDA and adjusted operating cash flow commitments; executing with operational excellence and a cost-focused mindset across the enterprise; intensifying our focus and operating rigor behind R&D and business development and continuing to evaluate strategic alternatives. As we have said, achieving the full separation of B+L remains a priority. 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. I want to thank the entire global Bausch Health team, with their hard work and dedication to growing our company and delivering on our commitments, ultimately driving better health outcomes for patients globally. I look forward to working with the entire team, including our new executive leadership team members, to drive our transformation into a globally-integrated and innovative healthcare company. Thank you for your interest in and support of our company. With that, we will now take questions.

Speaker Change: <unk> a results oriented culture of accountability delivering on our revenue adjusted EBITDA and adjusted operating cash flow commitments.

Speaker Change: Executing with operational excellence and our cost focused mindset across the enterprise.

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

Speaker Change: And continuing to evaluate strategic alternatives as we have said achieving the full separation of <unk> remains a priority.

Operator: Continuing to evaluate strategic alternatives, as we have said, achieving the full separation of BNL remains a priority. Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Thomas Appio: As we have said, achieving the full separation of B+L remains a priority. 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. I want to thank the entire global Bausch Health team, with their hard work and dedication to growing our company and delivering on our commitments ultimately driving better health outcomes for patients globally. I look forward to working with the entire team, including our new executive leadership team members, to drive our transformation into a globally-integrated and innovative healthcare company. Thank you for your interest in and support of our company. With that, we will now take questions.

Speaker Change: 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 Appio: With that, we will now take questions. Operator, please open the line for Q&A.

Thomas Appio: Operator, please open the line for Q&A. Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Thomas Appio: Operator, please open the line for Q&A.

Thomas Appio: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star-1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star-2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. And the first question today is coming from Glen Santangelo from Jefferies. Glen, your line is open. Yeah, good morning.

Operator: You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. And the first question today is coming from Glen Santangelo from Jefferies. Glen, your line is open. Yeah, good morning.

Operator: And the first question today is coming from Glen Santangelo from Jefferies. Glen, your line is open. Yeah, good morning.

Operator: And the first question today is coming from Glen Santangelo from Jefferies. Glen, your line is open.

Glen Santangelo: Yeah, good morning. Thanks for taking my question. Hey, Tom, obviously, a lot of focus on the balance sheet and leverage here and as you're obviously aware, about a week ago, there was a media report suggesting that the company was having some negotiations with the co-op and the company, obviously, subsequently put out a press release suggesting that some of those media reports were not true. Can you comment on whether you're having any dialogue with the co-op at this point? Because it's not exactly clear to us what rights they have and what would force a negotiation at this point. And then, I just had a follow up.

Glen Santangelo: Thanks for taking my question. Hey, Tom, obviously, a lot of focus on the balance sheet and leverage here, and as you're obviously aware, about a week ago, there was a media report suggesting that the company was having some negotiations with the co-op, and the company obviously subsequently put out a press release suggesting that some of those media reports were not true. Can you comment on whether you're having any dialogue with the co-op at this point? Because it's not exactly clear to us what rights they have and what would force a negotiation at this point.

Thomas Appio: Thanks, Glen. Thanks for the question, appreciate it. So, let's just take it as two answers to your question. So firstly, it's our general policy not to comment on discussions with particular stakeholders. However, given the circumstances last week, I think it's important. Again, I can't control what rumors are out there in the marketplace but I want to reiterate that in our press release last week that we issued, that said Bausch Health is not considering bankruptcy or insolvency proceedings of any kind. So, we are not. And that's a full stop there. So, unfortunately, these things get published but, again, it's rumor and as I've said many times, we just continue to work to grow this company and to generate results. And as you saw in the quarter, we had really great performance--with XIFAXAN growing by 10%, Solta growing by 19%, international growing by 6% and diversified growing by 12%. So, it was a really great quarter for us on performance and really, that's where the team's focused. Yeah, so, yeah, Glen, clearly, as you, you know, you see in our strategic priorities, the separation continues to be a strategic priority, and we're diligently working towards that. You know, clearly, as we look at it, you look at the performance of our company, of Bausch & Lomb. Again, the team, both companies are performing well, and it makes strategic sense to make this separation.

Thomas Appio: So let's just take it as two answers to your question. First of all, it's our general policy not to comment on discussions with particular stakeholders. However, given the circumstances last week, I think it's important. Again, I can't control what rumors are out there in the marketplace, but I want to reiterate that in our press release last week that we issued that said, you know, Bausch Health is not considering bankruptcy or insolvency proceedings of any kind.

Thomas Appio: So we are not. And that's a full stop there. But unfortunately, these things get published.

Thomas Appio: But, you know, again, it's a rumor. And, you know, as I've said many times, we just continue to work to grow this company and to generate results. And as you saw in the quarter, we had really great performance, with Faxon growing by 10, Solta growing by 19, International growing by six, and Diversified growing by 12. So it was a really great quarter for us in terms of performance.

Thomas Appio: So, unfortunately, these things get published but, again, it's rumor and as I've said many times, we just continue to work to grow this company and to generate results. And as you saw in the quarter, we had really great performance--with XIFAXAN growing by 10%, Solta growing by 19%, international growing by 6% and diversified growing by 12%. So, it was a really great quarter for us on performance and really, that's where the team's focused.

Speaker Change: Slide growing by 12, so it was a it was a really great quarter for us on performance.

Speaker Change: And really that's where the teams focused.

Awesome, maybe if I could just ask one quick follow up I mean, you also commented full separation of Bausch and Lomb remains a strategic priority and I think in your prepared remarks, you said the focus is on having to appropriately capitalized companies and that's kind of.

Speaker Change: Generalized term and so I think what people are really trying to understand is what do you think is an appropriate amount of leverage for bausch health or remain co and and you said that you know.

Thomas Appio: Awesome. Yeah, so, yeah, Glen, clearly, as you, you know, you see in our strategic priorities, the separation continues to be a strategic priority, and we're diligently working towards that. You know, clearly, as we look at it, you look at the performance of our company, of Bausch & Lomb. Again, the team, both companies are performing well, and it makes strategic sense to make this separation.

Glen Santangelo: Awesome. Maybe if I can just ask one quick follow up. I mean, you also commented a full separation of Bausch + Lomb remains a strategic priority and I think in your prepared remarks, you said the focus is on having two appropriately capitalized companies and that's kind of a generalized term. And so, I think what people are really trying to understand is, what do you think is an appropriate amount of leverage for Bausch Health to remain [inaudible]? And you said that any separation would require shareholder and other applicable approvals. What exactly are those other applicable approvals? Thanks and I'll stop there.

Thomas Appio: Yeah. So Glen, clearly, as you see in our strategic priorities, the separation continues to be a strategic priority and we're diligently working towards that. Clearly, as we look at it, you look at the performance of our company, of Bausch & Lomb--again, the team--both companies are performing well and it makes strategic sense on this separation. What I would say is, a broad framework overall on the separation, there's a lot--it's multi-factorial of what we need to work on. We need strong operational excellence and we need effective debt management. And working through some of those and looking forward to updating you and others as we move forward on it. And Glen, it's John. Maybe I'll just address your question on appropriately capitalized. And we--this is consistent with what we said, I think for the past few quarters. There's not a bright line that we're going to put out at this point. I think it really is a blend of leverage and maturity profile and we continue to think about how those two balance but there's no bright line on that. Thank you for the questions. I have two.

Speaker Change: Any separation would require shareholder and other applicable approvals what exactly are those other applicable approvals.

Speaker Change: And I'll stop there.

Thomas Appio: And really, that's where the team's focused. Yeah, so, yeah, Glen, clearly, as you, you know, you see in our strategic priorities, the separation continues to be a strategic priority, and we're diligently working towards that. You know, clearly, as we look at it, you look at the performance of our company, of Bausch & Lomb. Again, the team, both companies are performing well, and it makes strategic sense to make this separation.

Glenn: Yeah, So yeah Glenn.

Speaker Change: Clearly as you see in our strategic priorities.

The separation continues to be a strategic priority and we are diligently working towards that.

Speaker Change: Clearly.

Speaker Change: As we look at it you look at the performance of our company of Bausch and Lomb again, the teams of both companies are performing well and it makes strategic sense on the separation what I would say is as you know a broad framework.

Thomas Appio: What I would say is, you know, a broad framework, you know, overall on the separation, there's a lot of things we need to work on. We need strong operational excellence, and we need, you know, effective debt management. And, you know, working through some of those, and looking forward to updating you and others as we move forward on it. Thank you for the questions. I have two.

Thomas Appio: And Glen, it's John. Maybe I'll just address your question on appropriately capitalized. And we--this is consistent with what we said, I think for the past few quarters. There's not a bright line that we're going to put out at this point. I think it really is a blend of leverage and maturity profile and we continue to think about how those two balance but there's no bright line on that. Thank you for the questions. I have two.

John Barresi: And Glen, it's John. Maybe I'll just address your question on appropriately capitalized. And we--this is consistent with what we said, I think for the past few quarters. There's not a bright line that we're going to put out at this point. I think it really is a blend of leverage and maturity profile and we continue to think about how those two balance but there's no bright lines on that.

Thomas Appio: Okay. Thanks for the comments. Thank you for the questions. I have two.

Glen Santangelo: Okay. Thanks for the comments.

Thomas Appio: Thank you. The next question is coming from Mike Nedelcovych from TD Cowen, Mike, your line is live. Thank you for the questions. I have two.

Operator: Thank you. The next question is coming from Mike Nedelcovych from TD Cowen, Mike, your line is live.

Michael Nedelcovych: Thank you for the questions. I have two. My first relates to the separation from Bausch + Lomb. Please tell me if this is a bad assumption but it seems that every day that passes, full separation becomes less and less likely. So, my question is, what is plan B? Can you articulate an alternative vision for the consolidated company, should you arrive at the decision that separation is not feasible? And my second question relates to AMISELIMOD. It seems as though you're pursuing a Phase III IBD program that, of course, would be expensive and AMISELIMOD would be third to market in its class. So, at a high level, can you tell us what commercial assumptions you're making to justify the cost of the Phase III program? Thank you. The next question is coming from Jason Gerberry from Bank of America. Jason, your line is live.

Unnamed Questioner: My first relates to the separation from voucher loan. Please tell me if this is a bad assumption, but it seems that every day that passes, full separation becomes less and less likely. So my question is, what is plan B?

Unnamed Questioner: Can you articulate an alternative vision for the consolidated company should you arrive at the decision that separation is not feasible? And my second question relates to InnoCellimod. It seems as though you're pursuing a Phase III IBD program.

Unnamed Questioner: That, of course, would be expensive, and InnoCellimod would be third to market in its class. So, at a high level, can you tell us what commercial assumptions you're making to justify the cost of the Phase III program? Thank you. The next question is coming from Jason Gerberry from Bank of America. Jason, your line is live.

Michael Nedelcovych: And my second question relates to AMISELIMOD. It seems as though you're pursuing a Phase III IBD program that, of course, would be expensive and AMISELIMOD would be third to market in its class. So, at a high level, can you tell us what commercial assumptions you're making to justify the cost of the Phase III program?

Michael Nedelcovych: Thanks, Mike. Thank you. The next question is coming from Jason Gerberry from Bank of America. Jason, your line is live.

Thomas Appio: Thanks, Mike. And appreciate the question. As I've said before, the separation continues to be a strategic priority and we're diligently working towards that goal. That's all I'm going to say at this time. We continue to work on things that will get us to a full separation of B+L. Regarding your question on AMISELIMOD, we plan to accelerate the AMISELIMOD program into Phase III in UC. If you take a look at the data, we were at mild-to-moderate; now, we're going to look at the study that we're going to propose in moderate-to-severe so that would think about the data, probably it's even going to be better than we had from mild-to-moderate. We think there is a real unmet need here, it's a large competitive market with--however, the response to treatment today is variable. So, we're going to continue to pursue this. We like our data and we think that we have a real path forward here to help patients.

Thomas Appio: Regarding your question on AMISELIMOD, we plan to accelerate the AMISELIMOD program into Phase III in UC. If you take a look at the data, we were at mild-to-moderate; now, we're going to look at the study that we're going to propose in moderate-to-severe so that would think about the data, probably it's even going to be better than we had from mild-to-moderate. We think there is a real unmet need here, it's a large competitive market with--however, the response to treatment today is variable. So, we're going to continue to pursue this. We like our data and we think that we have a real path forward here to help patients. Next question.

Thomas Appio: If you take a look at the data, we were at mild-to-moderate; now, we're going to look at the study that we're going to propose in moderate-to-severe so that would think about the data, probably it's even going to be better than we had from mild-to-moderate. We think there is a real unmet need here, it's a large competitive market with--however, the response to treatment today is variable. So, we're going to continue to pursue this. We like our data and we think that we have a real path forward here to help patients. Next question.

Thomas Appio: Next question.

Operator: Thank you. The next question is coming from Jason Gerberry from Bank of America. Jason, your line is live.

Jason Matthew Gerberry: Oh, hey, guys. Sorry to beat a dead horse but I just wanted to come back to the topic on the capitalization target. Is it a fair high level, like, synopsis to say--given negotiations with the co-op--that leverage left for [inaudible] is a moving target and sort of critical is pushing out the 2027, 2028 maturities if something's going to get done there. And then, secondly, just--XIFAXAN scripts this quarter, flat on the year-on-year basis. Wondering how you think about whether it's the appropriate stage of the life cycle to optimize this business for cash flow versus step up investment to drive growth. Thanks. Yeah, Jason. How would you explain the different moving pieces of this business and the TRX? Yeah, I think that when you look at it, if you look at the MBRX, eventually, down the road, they will turn into TRXs.

Jason Gerberry: Oh, hey, guys. Sorry to beat a dead horse but I just wanted to come back to the topic on the capitalization target. Is it a fair high level, like, synopsis to say--given negotiations with the co-op--that leverage left for RemainCo is a moving target and sort of critical is pushing out the 2027, 2028 maturities if something's going to get done there. And then, secondly, just--XIFAXAN scripts this quarter are flat on the year-on-year basis. Wondering how you think about whether it's the appropriate stage of the life cycle to optimize this business for cash flow versus step-up investment to drive growth? Thanks.

Speaker Change: <unk> of the things that we've done last year since I became CEO was number one to launch our AI engine and that engine.

Speaker Change: It has been launched now for 12 months and it consistently continually refines the panel of where we're going to making sure that the hcp's, who we're going to we're going to the right Hcp's and also delivering the right message. So you know.

Speaker Change: There's a there's a lot of opportunity here to continue to grow it. If you take a look also one of the things that we've put in place as our DTC campaign historically in the past, we havent done DTC.

Speaker Change: In the AG segment, and you know now we have Bellamy young who's.

Speaker Change: As our spokesperson on OE Chi.

Yeah, Jason. How would you explain the different moving pieces of this business and the TRX? Yeah, I think that when you look at it, if you look at the MBRX, eventually, down the road, they will turn into TRXs.

Yeah, Jason. Thanks for the question. I'll take the second part of your question first on XIFAXAN. Take a look at where we are with XIFAXAN--you've mentioned the script growth. One of the things that I'm focusing on here is the NBRx growth. And if I take a look at the NBRx growth, it looks really good in terms--over the last four, five quarters now. The new starts on the drug that is in it's later life cycle, it looks very promising--and the data there. When you really look at it, there is a lot of untreated patients out there today. If we just take a look from the data that we see, we see that we're treating probably half the patient population in OHE at the present time. So, I think there's a lot of runway here to continue to grow XIFAXAN. So, couple of things that we've done last year since I became CEO was number one, to launch our AI engine. And that engine has been launched now for 12 months and it consistently, continually refines the panel of where we're going to; making sure that the HCPs who we're going to--we're going to the right HCPs and also delivering the right message. So, there's a lot of opportunity here to continue to grow it. If you take a look also, one of the things that we've put in place is our DTC campaign. Historically, in the past, we haven't done DTC in the AG segment and now we have Bellamy Young who's our spokesperson on OHE and clearly, we're seeing traction there. And then, lastly, is really looking at the treatment and really, the disease state of IBS-D and OHE and in this case, we have put a medical affairs team in place that is actively going out there, educating physicians on IBS-D and OHE on the disease. And as I said at the beginning, we see that only treating probably half the patient population in OHE today and still, there's a lot that we can still treat in IBS-D. So, we think the investment behind XIFAXAN today and where we can take this brand--we have a lot we can still do. When going back to your the first part of your question regarding the debt and the leverage, I'll just hand that over to John. He can maybe give you some more specifics. Yeah. Jason.

Thomas Appio: Yeah, Jason. Thanks for the question. I'll take the second part of your question first on XIFAXAN. Take a look at where we are with XIFAXAN--you've mentioned the script growth. One of the things that I'm focusing on here is the NBRx growth. And if I take a look at the NBRx growth, it looks really good in terms--over the last four, five quarters now. The new starts on the drug that is in it's later life cycle, it looks very promising--and the data there. When you really look at it, there is a lot of untreated patients out there today. If we just take a look from the data that we see, we see that we're treating probably half the patient population in OHE at the present time. So, I think there's a lot of runway here to continue to grow XIFAXAN. So, couple of things that we've done last year since I became CEO was number one, to launch our AI engine. And that engine has been launched now for 12 months and it consistently, continually refines the panel of where we're going to; making sure that the HCPs who we're going to--we're going to the right HCPs and also delivering the right message. So, there's a lot of opportunity here to continue to grow it. If you take a look also, one of the things that we've put in place is our DTC campaign. Historically, in the past, we haven't done DTC in the AG segment and now we have Bellamy Young who's our spokesperson on OHE and clearly, we're seeing traction there. And then, lastly, is really looking at the treatment and really, the disease state of IBS-D and OHE and in this case, we have put a medical affairs team in place that is actively going out there, educating physicians on IBS-D and OHE on the disease. And as I said at the beginning, we see that only treating probably half the patient population in OHE today and still, there's a lot that we can still treat in IBS-D. So, we think the investment behind XIFAXAN today and where we can take this brand--we have a lot we can still do. When going back to your the first part of your question regarding the debt and the leverage, I'll just hand that over to John. He can maybe give you some more specifics.

Thomas Appio: If we just take a look from the data that we see, we see that we're treating probably half the patient population in OHE at the present time. So, I think there's a lot of runway here to continue to grow XIFAXAN. So, couple of things that we've done last year since I became CEO was number one, to launch our AI engine. And that engine has been launched now for 12 months and it consistently, continually refines the panel of where we're going to; making sure that the HCPs who we're going to--we're going to the right HCPs and also delivering the right message. So, there's a lot of opportunity here to continue to grow it. If you take a look also, one of the things that we've put in place is our DTC campaign. Historically, in the past, we haven't done DTC in the AG segment and now we have Bellamy Young who's our spokesperson on OHE and clearly, we're seeing traction there. And then, lastly, is really looking at the treatment and really, the disease state of IBS-D and OHE and in this case, we have put a medical affairs team in place that is actively going out there, educating physicians on IBS-D and OHE on the disease. And as I said at the beginning, we see that only treating probably half the patient population in OHE today and still, there's a lot that we can still treat in IBS-D. So, we think the investment behind XIFAXAN today and where we can take this brand--we have a lot we can still do. When going back to your the first part of your question regarding the debt and the leverage, I'll just hand that over to John. He can maybe give you some more specifics.

Thomas Appio: If you take a look also, one of the things that we've put in place is our DTC campaign. Historically, in the past, we haven't done DTC in the AG segment and now we have Bellamy Young who's our spokesperson on OHE and clearly, we're seeing traction there. And then, lastly, is really looking at the treatment and really, the disease state of IBS-D and OHE and in this case, we have put a medical affairs team in place that is actively going out there, educating physicians on IBS-D and OHE on the disease. And as I said at the beginning, we see that only treating probably half the patient population in OHE today and still, there's a lot that we can still treat in IBS-D. So, we think the investment behind XIFAXAN today and where we can take this brand--we have a lot we can still do. When going back to your the first part of your question regarding the debt and the leverage, I'll just hand that over to John. He can maybe give you some more specifics.

Thomas Appio: And as I said at the beginning, we see that only treating probably half the patient population in OHE today and still, there's a lot that we can still treat in IBS-D. So, we think the investment behind XIFAXAN today and where we can take this brand--we have a lot we can still do. When--going back to your the first part of your question regarding the debt and the leverage, I'll just hand that over to John. He can maybe give you some more specifics. Yeah. Jason and just to the first part of your question, I think Tom said it a few minutes ago but we don't comment on any discussions and haven't said that we are negotiating with anyone at this point in time. So, I just want to reiterate that point from Tom's earlier comment. But to your question of leverage for RemainCo, as we've talked about consistently, right, we are looking to balance leverage and maturity profile. If you look at slide 21 in the earnings deck that we published this morning, you'll see we do have a meaning amount of '27 and '28 maturities. And so, yes, that is part of what we look at when we think about how to manage the balance sheet.

John Barresi: Yeah. Jason and just to the first part of your question, I think Tom said it a few minutes ago but we don't comment on any discussions and haven't said that we are negotiating with anyone at this point in time. So, I just want to reiterate that point from Tom's earlier comment. But to your question of leverage for RemainCo, as we've talked about consistently, right, we are looking to balance leverage and maturity profile. If you look at slide 21 in the earnings deck that we published this morning, you'll see we do have a meaning amount of '27 and '28 maturities. And so, yes, that is part of what we look at when we think about how to manage the balance sheet.

Jason Gerberry: And Tom, can I ask a quick follow up? Sure. Just on the XIFAXAN dynamics, right--good NBRx but flat TRx. How do you reconcile that? Is that--we look at like half the business, historically it's been IBS. That's maybe more of an acute use indication. Is there just a replacement dynamic with these NBRx's that are having a hard time keeping up to drive over TRx growth? Like, how would you kind of explain the different moving pieces of this business and the TRx dynamic? Yeah, I think that when you look at it, if you look at the MBRX, eventually, down the road, they will turn into TRXs.

Jason Gerberry: And Tom, can I ask a quick follow up? Sure.

Jason Gerberry: And Tom, can I ask a quick follow up?

Thomas Appio: Sure. Just on the XIFAXAN dynamics, right--good NBRx but flat TRx. How do you reconcile that? Is that--we look at like half the business, historically it's been IBS. That's maybe more of an acute use indication. Is there just a replacement dynamic with these NBRx's that are having a hard time keeping up to drive over TRx growth? Like, how would you kind of explain the different moving pieces of this business and the TRx dynamic?

Thomas Appio: Sure.

Jason Gerberry: Just on the XIFAXAN dynamics, right--good NBRx but flat TRx. How do you reconcile that? Is that--we look at like half the business, historically it's been IBS. That's maybe more of an acute use indication. Is there just a replacement dynamic with these NBRx's that are having a hard time keeping up to drive over TRx growth? Like, how would you kind of explain the different moving pieces of this business and the TRx dynamic?

Jason Gerberry: Sure. Just on the XIFAXAN dynamics, right--good NBRx but flat TRx. How do you reconcile that? Is that--we look at like half the business, historically it's been IBS. That's maybe more of an acute use indication. Is there just a replacement dynamic with these NBRx's that are having a hard time keeping up to drive over TRx growth? Like, how would you kind of explain the different moving pieces of this business and the TRx dynamic?

Thomas Appio: Sure.

Thomas Appio: Yeah. I think that when you look at it--if you look at the NBRx, eventually down the road, they will turn into TRx's. What we are seeing, the dynamic in the market, is this shift to non-retail. And then, also, so where those scripts are going from an NBRx perspective, we're trying to see where they are but they will eventually become a TRx. But if you look at non-retail, it's really up. And then, if you look at the extended units that--when we look at this business, it's up 4%. So, when you look at just TRx's, it's sometimes difficult to see where they're going. But based on the data that we have and how we're tracking it, we are confident that we're going to get growth. And clearly, the NBRx is the first stage. Thanks.

John Barresi: What we are seeing, the dynamic in the market, is this shift to non-retail. And then also, where those scripts are going from an MBRX perspective, we're trying to see where they are, but they will eventually become a TRX. But if you look at non-retail, it's really up.

John Barresi: And then if you look at the extended units, when we look at this business, it's up 4%. So when you look at just TRXs, it's sometimes difficult to see where they're going. But based on the data that we have and how we're tracking it, we are confident that we're going to see growth. And clearly, MBRX is the first stage. Thank you. Operator, next question. The next question will come from Umer Raffat from Evercore ISI. Umer, your line is live. Hi guys.

And then if you look at the extended units, when we look at this business, it's up 4%. So when you look at just TRXs, it's sometimes difficult to see where they're going. But based on the data that we have and how we're tracking it, we are confident that we're going to see growth. And clearly, MBRX is the first stage. Thank you.

Jason Gerberry: Thanks.

Operator, next question. The next question will come from Umer Raffat from Evercore ISI. Umer, your line is live. Hi guys.

Thomas Appio: Operator, next question.

Thank you. The next question will come from Umer Raffat from Evercore ISI. Umer, your line is live. Hi guys.

Operator: Thanks. Thank you. The next question will come from Umer Raffat from Evercore ISI. Umer, your line is live.

Jason Gerberry: Thanks. Operator, next question.

Jason Gerberry: Thanks.

Thomas Appio: Operator, next question.

Operator: Thank you. The next question will come from Umer Raffat from Evercore ISI. Umer, your line is live.

Hi guys. Thanks for taking my question. I'll focus on two as well. First, in your RED-C trial for the new formulation, my understanding is it's to prevent a first encephalopathy episode rather than recurrence. Isn't that an indication that would be used off-label with a generic Zafaxin anyway? Can you speak to that? And secondly, and perhaps more importantly, I've been listening in on the call, and I guess I'm just as confused as I was when the call started. So, let me just lay it out here.

Umer Raffat: Hi, guys. Thanks for taking my question. I'll focus on two as well. First, on your RED-C trials for the new formulation, my understanding is it's to prevent a first encephalopathy episode rather than recurrent. Isn't that an indication that would be used off-label with a generic XIFAXAN anyway? Can you speak to that? And secondly, and perhaps more importantly, I've been listening in on the call and I guess I'm just as confused as I was when the call started. So, let me just lay it out here. Cash flows guidance for the company is $800 million midpoint for the year; Salix segment will do operating profit of about $1.5 billion--based on your disclosures--of which XIFAXAN is by far the most important. So, said differently, XIFAXAN exceeds the total cash flows of the company. In that backdrop and considering XIFAXAN generic is definitely happening, either in a year or in three years, what aggressive action are you considering? I know you mentioned separation is a priority and I guess I'm just trying to understand, what is the priority? Is a BLCO equity raise? Could that help somewhat? We're just trying to understand what the path could be and I feel like for public investors, there's no clear understanding of what direction we're going in spite of a very leveraged situation and we're now kind of like four or five years into talking about the separation at this point.

Umer Raffat: Thanks for taking my question. I'll focus on two as well. First, in your RED-C trial for the new formulation, my understanding is it's to prevent a first encephalopathy episode rather than recurrence. Isn't that an indication that would be used off-label with a generic Zafaxin anyway?

Umer Raffat: Can you speak to that? And secondly, and perhaps more importantly, I've been listening in on the call, and I guess I'm just as confused as I was when the call started. So, let me just lay it out here.

So, let me just lay it out here. Cash flows guidance for the company is $800 million midpoint for the year. The Salix segment will make operating profit of about $1.5 billion, based on your disclosures. Avoid Zafaxin is by far the most important.

Umer Raffat: Cash flows guidance for the company is $800 million midpoint for the year. The Salix segment will make operating profit of about $1.5 billion, based on your disclosures. Avoid Zafaxin is by far the most important.

Umer Raffat: So, let me just lay it out here. Cash flows guidance for the company is $800 million midpoint for the year; Salix segment will do operating profit of about $1.5 billion--based on your disclosures--of which XIFAXAN is by far the most important. So, said differently, XIFAXAN exceeds the total cash flows of the company. In that backdrop and considering XIFAXAN generic is definitely happening, either in a year or in three years, what aggressive action are you considering? I know you mentioned separation is a priority and I guess I'm just trying to understand, what is the priority? Is a BLCO equity raise? Could that help somewhat? We're just trying to understand what the path could be and I feel like for public investors, there's no clear understanding of what direction we're going in spite of a very leveraged situation and we're now kind of like four or five years into talking about the separation at this point.

Umer Raffat: So, let me just lay it out here.

Umer Raffat: let me just lay it out here. Cash flows guidance for the company is $800 million midpoint for the year; Salix segment will do operating profit of about $1.5 billion--based on your disclosures--of which XIFAXAN is by far the most important. So, said differently, XIFAXAN exceeds the total cash flows of the company. In that backdrop and considering XIFAXAN generic is definitely happening, either in a year or in three years, what aggressive action are you considering? I know you mentioned separation is a priority and I guess I'm just trying to understand, what is the priority? Is a BLCO equity raise? Could that help somewhat? We're just trying to understand what the path could be and I feel like for public investors, there's no clear understanding of what direction we're going in spite of a very leveraged situation and we're now kind of like four or five years into talking about the separation at this point.

Umer Raffat: Cash flows guidance for the company is $800 million midpoint for the year; Salix segment will do operating profit of about $1.5 billion--based on your disclosures--of which XIFAXAN is by far the most important. So, said differently, XIFAXAN exceeds the total cash flows of the company. In that backdrop and considering XIFAXAN generic is definitely happening, either in a year or in three years, what aggressive action are you considering? I know you mentioned separation is a priority and I guess I'm just trying to understand, what is the priority? Is a BLCO equity raise? Could that help somewhat? We're just trying to understand what the path could be and I feel like for public investors, there's no clear understanding of what direction we're going in spite of a very leveraged situation and we're now kind of like four or five years into talking about the separation at this point.

Umer Raffat: So said differently, Zafaxin exceeds the total cash flows of the company. So in that backdrop, and considering Zafaxin generic is definitely happening, either in a year or in three years, what aggressive action are you considering? I know you mentioned separation is a priority, and I guess I'm just trying to understand, what is the priority? Is a BLCO equity raise? Could that help somewhat?

Umer Raffat: I know you mentioned separation is a priority and I guess I'm just trying to understand, what is the priority? Is a BLCO equity raise? Could that help somewhat? We're just trying to understand what the path could be and I feel like for public investors, there's no clear understanding of what direction we're going in spite of a very leveraged situation and we're now kind of like four or five years into talking about the separation at this point.

Umer Raffat: We're just trying to understand what the path could be, and I feel like for public investors, there's no clear understanding of what direction we're going in, in spite of a very leveraged situation. And we're now kind of like four or five years into talking about the separation. Yeah, Umer, thanks for the question. I'll take the RED-C question first, and then I'll hand the – speaking about the debt to John. If when we take a look at RED-C, yes, you're correct, it is for OAT prevention.

We're just trying to understand what the path could be, and I feel like for public investors, there's no clear understanding of what direction we're going in, in spite of a very leveraged situation. And we're now kind of like four or five years into talking about the separation.

Yeah. Umer, thanks for the question. I'll take the RED-C question first and I'll hand the speaking about the debt to John. If--when we take a look at RED-C, yes, you're correct, it is for OHE prevention. So, if we take a look at what we--and you talked about generic RIFAXIMIN but, of course, this is a new formulation. This is RIFAXIMIN solid with 40 milligram tablets being studied in the delay of emphatic encephalopathy. So, when we look at it, clearly, this is two times--three times the size of the market that we have today with the current RIFAXIMIN. So, with our different formulation and what we've studied, we do not think that the generic is going to be used for prevention. We think there's a long runway here to really move into the prevention space rather than the treatment space. Next question is coming from David Amsellem of Piper Sandler. Sure. Thanks for the question. So, let me take the last part first. I mean, I highlight the R&D programs that are ongoing. And, you know, of course, we talk about RED-C.

Yeah. Umer, thanks for the question. I'll take the RED-C question first and I'll hand the speaking about the debt to John. If--when we take a look at RED-C, yes, you're correct, it is for OHE prevention. So, if we take a look at what we--and you talked about generic RIFAXIMIN but, of course, this is a new formulation. This is RIFAXIMIN solid with 40 milligram tablets being studied in the delay of emphatic encephalopathy. So, when we look at it, clearly, this is two times--three times the size of the market that we have today with the current RIFAXIMIN. So, with our different formulation and what we've studied, we do not think that the generic is going to be used for prevention. We think there's a long runway here to really move into the prevention space rather than the treatment space. What I would say is, also, when you look at this new formulation, it will have better water solubility so, that should be able to penetrate the small intestine lumen. So, that will really help us. And also, lastly, remember RED-C is a global program where our current 550 program is just a U.S. product. So we believe that, of course, when we get the data, that this could be a really great opportunity to transform our company and grow. What I'll do now is to turn it over to John to just highlight, to talk about some of the questions you had in the second part. Yes. Thanks for the question, Umer.

Thomas Appio: Yeah. Umer, thanks for the question. I'll take the RED-C question first and I'll hand the speaking about the debt to John. If--when we take a look at RED-C, yes, you're correct, it is for OHE prevention. So, if we take a look at what we--and you talked about generic RIFAXIMIN but, of course, this is a new formulation. This is RIFAXIMIN solid with 40 milligram tablets being studied in the delay of emphatic encephalopathy. So, when we look at it, clearly, this is two times--three times the size of the market that we have today with the current RIFAXIMIN. So, with our different formulation and what we've studied, we do not think that the generic is going to be used for prevention. We think there's a long runway here to really move into the prevention space rather than the treatment space. What I would say is, also, when you look at this new formulation, it will have better water solubility so, that should be able to penetrate the small intestine lumen. So, that will really help us. And also, lastly, remember RED-C is a global program where our current 550 program is just a U.S. product. So we believe that, of course, when we get the data, that this could be a really great opportunity to transform our company and grow. What I'll do now is to turn it over to John to just highlight, to talk about some of the questions you had in the second part.

Thomas Appio: So if we take a look at what we – and you talked about generic Rifaximin, but, of course, this is a new formulation. This is Rifaximin solid with 40-milligram tablets being studied in the delay of emphatic encephalopathy. So when we look at it, clearly, this is two times – three times the size of the market that we have today with the current Rifaximin. So with our different formulation and what we've studied, we do not think that the generic is going to be used for prevention.

Thomas Appio: So, with our different formulation and what we've studied, we do not think that the generic is going to be used for prevention. We think there's a long runway here to really move into the prevention space rather than the treatment space. What I would say is, also, when you look at this new formulation, it will have better water solubility so, that should be able to penetrate the small intestine lumen. So, that will really help us. And also, lastly, remember RED-C is a global program where our current 550 program is just a U.S. product. So we believe that, of course, when we get the data, that this could be a really great opportunity to transform our company and grow. What I'll do now is to turn it over to John to just highlight, to talk about some of the questions you had in the second part.

Speaker Change: And we're focused on growing those and we're focused on advancing the pipeline as we just talked about with Red Sea and so as we think about the longer term those three elements are critical too.

Speaker Change: How we move forward and.

Speaker Change: For the long term.

Speaker Change: Operator next question.

Speaker Change: Thank you the.

Zack: The next question will be from Zack <unk> from a truer securities Lezek Carolinas lives.

Zack: Good morning. Thank you for taking my questions first can you comment any on any timelines on the rulings we should be aware of ahead of the amended and lawsuit averse narrower Norwich and the latest and the filing from Emil second on the list or what's driving some of the weakness is there any pressure on the ultra rich script trends.

Zack: <unk> this product ultimately and then third.

John Barresi: Yes. Thanks for the question, Umer. Without getting into a full lock in the answer here, I'll call out a couple of things to your point. I think the cash flow metric this year, of course, is after interest so it's [inaudible] cash flow--operating cash flow and which is why it's important to continue to manage the balance sheet and continue to focus on reducing our debt, at the same time remain focused on growing the business. There is a meaningful part of our business that is not XIFAXAN, including business like Solta and we're focused on growing those and we're focused on advancing the pipeline, as we just talked about, with RED-C. And so, as we think about the longer term, those three elements are critical to how we move forward and--for the long term.

Operator, next question. Next question is coming from David Amsellem of Piper Sandler. Sure. Thanks for the question. So, let me take the last part first. I mean, I highlight the R&D programs that are ongoing. And, you know, of course, we talk about RED-C.

Thomas Appio: Operator, next question.

Next question is coming from David Amsellem of Piper Sandler. Sure. Thanks for the question. So, let me take the last part first. I mean, I highlight the R&D programs that are ongoing. And, you know, of course, we talk about RED-C.

Thank you. The next question Thank you. The next question is coming from David Amsellem of Piper Sandler.

Operator: Thank you. The next question will be from Leszek Sulewski from Truist Securities. Leszek, your line is live.

Thomas Appio: We think there's a long runway here to really move into the prevention space rather than the treatment space. Next question is coming from David Amsellem of Piper Sandler. Sure. Thanks for the question. So, let me take the last part first. I mean, I highlight the R&D programs that are ongoing. And, you know, of course, we talk about RED-C.

Good morning. Thank you. The next question is coming from David Amsellem of Piper Sandler.

Leszek Sulewski: Good morning. Thank you for taking my questions. First, can you comment on any timelines on the rulings we should be aware of, ahead of the amended ANDA lawsuit versus Norwich and the latest ANDA filing from Amneal? Second, RELISTOR--what's driving some of the weakness? Is there any pressure on the alternate script trends that impact this product ultimately? And then, third, does not like you've been in discussions with the co-op but can you comment if there has been any indications that some of the lenders would be putting the pressure on the separation to be put on hold? Thank you.

Okay. I can take those questions Thank you. The next question is coming from David Amsellem of Piper Sandler.

Thomas Appio: Okay. I can take those questions. So, thanks for the question. So really, regarding Norwich, as it currently stands now, the FDA cannot approve Norwich's ANDA until 2029. Our expectation date of a generic entry still remains at January 1, 2028 and the date reflected in settlements with the other filers. Since the original Norwich decision, I just would like to make sure we emphasize there's new IBS-D patents and so, when--as we move on and look between Norwich's and Amneal, there is different patents in dispute here. And also, I just would like to say, Teva--as we are aware, Teva continues to be and remain the first filer on the XIFAXAN 550 so, that's really what I'd say here. And again, we're continuing to vigorously defend our intellectual property here. So, still working--a lot of work still to be done but we're going to defend it. On the second part of your question, on driving the RELISTOR weakness and the TRx pressure--it really comes down to some of the payer--looking at what the payers were and what coverage we had. And the other thing in the pressure there along with some gross-to-net--we still believe we have an opportunity with this product but as we look at it, that's where that pressure came in the second quarter. Lastly, on the co-op, I just--as John already said, we're not--our general policy is not to comment on discussions with particular stakeholders at this time. Anything else, John, you want to add? No. I think that covers it. Okay. Operator, next question.

Thomas Appio: And also, I just would like to say, Teva--as we are aware, Teva continues to be and remain the first filer on the XIFAXAN 550 so, that's really what I'd say here. And again, we're continuing to vigorously defend our intellectual property here. So, still working--a lot of work still to be done but we're going to defend it. On the second part of your question, on driving the RELISTOR weakness and the TRx pressure--it really comes down to some of the payer--looking at what the payers were and what coverage we had. And the other thing in the pressure there along with some gross-to-net--we still believe we have an opportunity with this product but as we look at it, that's where that pressure came in the second quarter. Lastly, on the co-op, I just--as John already said, we're not--our general policy is not to comment on discussions with particular stakeholders at this time. Anything else, John, you want to add? No.

Thomas Appio: And the other thing in the pressure there along with some gross-to-net--we still believe we have an opportunity with this product but as we look at it, that's where that pressure came in the second quarter. Lastly, on the co-op, I just--as John already said, we're not--our general policy is not to comment on discussions with particular stakeholders at this time. Anything else, John, you want to add? No. I think that covers it.

John Barresi: No. I think that covers it. Okay. Operator, next question.

John Barresi: No. I think that covers it.

Thomas Appio: Okay. Operator, next question.

Thomas Appio: I think that covers it. Okay. Operator, next question.

John Barresi: I think that covers it.

Thomas Appio: Okay. Operator, next question.

Operator: Next question is coming from David Amsellem from Piper Sandler. David, your line is live. Thanks. So,

Operator: Next question is coming from David Amsellem from Piper Sandler. David, your line is live.

David Amsellem: Thanks. So, I'm just going to keep coming back to the question on solvency and what is the path forward as--or the priority is, as Umer put it. So, you have, I believe, $9 billion worth of maturities coming up around the same timeframe that XIFAXAN loses exclusivity. So, I guess, I'll just ask it straight up--given the importance of XIFAXAN, how do you stay solvent? That's number one. And then, related to that, you're talking about the R&D pipeline--I get that--regarding AMISELIMOD, RED-C, et cetera, et cetera. Is there anything else you can do in terms of bringing in assets, particularly in the context of your financial constraints? Maybe give us some sense of what you can do there to bolster the R&D. Thanks.

Thomas Appio: Sure. Thanks for the question. So, let me take the last part first. I mean, I highlight the R&D programs that are ongoing and, of course, we talk about RED-C. I think that this is our first opportunity, clearly, really wanting to make sure we get those studies completed and get the drug launched before we lose exclusivity on XIFAXAN on January 1 of 2028. As I said before, it's a global program. We have global opportunities so, that's one area where that can really drive performance and build us a bridge certainly to the future. The second thing is that there's many ongoing business discussions. As you know, we have a international business that is a branded generic business and that's an area of the company that we can do BD at relatively inexpensive prices. There is ongoing discussions; we're working on a project now in Latin America that will show us growth for the next years to come if we're able to close that. So, there's various things on the international side that we're doing to build up the portfolio. I want to mention Solta. Solta is a great business for us. As I mentioned in my prepared remarks, I was just in China. We just hired a new VP there to lead our transformation in China now that FLX is approved as a medical device. We see a long runway there to growth and to the strategies we're going to put in place. If you take a look then, what we need to do around the world. I mentioned that our business in Korea has doubled and so, we still see a real runway there to continuing to grow, invest behind that business. I did talk about some of the R&D capabilities there as well. We're excited about what we have. Plus, there's also some BD that's going on to see what other options out there to bring into the portfolio. So, I would think from an R&D perspective, a BD perspective, we're really trying to execute with--and really being laser-focused on what we invest in given our cash situation.

Thomas Appio: The second thing is that there's many ongoing business discussions. As you know, we have a international business that is a branded generic business and that's an area of the company that we can do BD at relatively inexpensive prices. There is ongoing discussions; we're working on a project now in Latin America that will show us growth for the next years to come if we're able to close that. So, there's various things on the international side that we're doing to build up the portfolio. I want to mention Solta. Solta is a great business for us. As I mentioned in my prepared remarks, I was just in China. We just hired a new VP there to lead our transformation in China now that FLX is approved as a medical device. We see a long runway there to growth and to the strategies we're going to put in place. If you take a look then, what we need to do around the world. I mentioned that our business in Korea has doubled and so, we still see a real runway there to continuing to grow, invest behind that business. I did talk about some of the R&D capabilities there as well. We're excited about what we have. Plus, there's also some BD that's going on to see what other options out there to bring into the portfolio. So, I would think from an R&D perspective, a BD perspective, we're really trying to execute with--and really being laser-focused on what we invest in given our cash situation.

Thomas Appio: I think that this is our first opportunity, clearly really wanting to make sure we get those studies completed and get the drug launched before we lose exclusivity on Zyfaxan on January 1 of 2028. As I said before, it's a global program. We have global opportunities. So that's one area where it can really drive performance and build us a bridge, you know, certainly to the future. The second thing is that there are many ongoing business discussions. As you know, we have an international business that is a branded generic business, and that's an area of the company that we can do business development at relatively inexpensive prices. There are ongoing discussions.

Thomas Appio: We're, you know, working on a project now in Latin America that will show us growth for the next years to come if we're able to close that. So there are various things on the international side that we're doing to build up the portfolio. I want to mention Solta.

Thomas Appio: Solta is a great business for us. As I mentioned in my prepared remarks, I was just in China. We just hired a new VP there to lead our transformation in China now that FLX is approved as a medical device. We see a long runway there to growth and to the strategies we're going to put in place. If you take a look then, what we need to do around the world. I mentioned that our business in Korea has doubled and so, we still see a real runway there to continuing to grow, invest behind that business. I did talk about some of the R&D capabilities there as well. We're excited about what we have. Plus, there's also some BD that's going on to see what other options out there to bring into the portfolio. So, I would think from an R&D perspective, a BD perspective, we're really trying to execute with--and really being laser-focused on what we invest in given our cash situation.

Speaker Change: Our transformation in China now that F. L X is approved as a medical device, we see a long runway there to growth and to the strategies, we're going to put in place. If you take a look then what you know what we need to do around the world I mentioned that our business in Korea has doubled.

Thomas Appio: I mentioned that our business in Korea has doubled, and so we still see a real runway there to continue to grow and invest in that business. I did talk about some of the R&D capabilities there as well. We're excited about what we have, plus there's also some business development that's going on to see, you know, what other options are out there to bring into the portfolio. So I would think from an R&D perspective, a business development perspective, we're really trying to execute with, you know, and really being laser focused on what we invest in given our cash situation.

Thomas Appio: I did talk about some of the R&D capabilities there as well. We're excited about what we have. Plus, there's also some BD that's going on to see what other options out there to bring into the portfolio. So, I would think from an R&D perspective, a BD perspective, we're really trying to execute with--and really being laser-focused on what we invest in given our cash situation.

Thomas Appio: I did talk about some of the R&D capabilities there as well. We're excited about what we have.

Zack: And so we still see a real runway there to continuing to grow invest behind that business I did talk about some of the R&D.

Thomas Appio: Plus, there's also some BD that's going on to see what other options out there to bring into the portfolio. So, I would think from an R&D perspective, a BD perspective, we're really trying to execute with--and really being laser-focused on what we invest in given our cash situation. When we take a look at the--going back to your questions on solvency, I just would like to just--before I hand it over to John, to take you through specifically the performance of this company over the last five quarters; growing revenue, growing EBITDA. If you take a look at XIFAXAN, 10%; Solta, 19%; international, 6%; diversified, 12%. You know, the team is working hard to grow this business and position this company for the future. And then, I'll just hand it over to John to talk specifically about some of the points you raised on solvency and the debt maturities. Yeah. Thanks, David. Operator, next question.

Zack: Capabilities, there as well we're excited about what we have plus there's also some BD that's going on to see what other options out there to bring into the portfolio. So I would think from an R&D perspective of BV perspective, we're really trying to execute with them.

Zack: And really being a.

Thomas Appio: You know, when we take a look at the, going back to your questions on solvency, I just would like, before I hand it over to John, to take you through specifically the performance of this company over the last five quarters, growing revenue, growing EBITDA. You know, if you take a look at Xifaxin, 10%, Solta, 19%, International, 6%, Diversified, 12%. You know, the team is working hard to grow this business and position this company for the future. And then I'll just hand it over to John to talk specifically about some of the points you raised on solvency and debt maturity. Operator, next question.

Zack: Tristan retire debt, which then.

Zack: It allows us to save on interest et cetera, and becomes a bit of a nice circle there.

Zack: Look at asset sales and other types of transactions, we've been able to do it in the past we look at all of those tools. When we think about the leverage profile beyond the near term debt.

Speaker Change: Operator next question.

Zack: The next question will be from Michael Freeman from Raymond James Michael Your line is life.

Hey, good morning, Tom John and Darren.

Speaker Change: Maybe hopping onto the last question on relating to Solta.

Michael Freeman: Wonder if you could.

Michael Freeman: Maybe get a bit more granular on the on the reception of their mileage that collection in China since it's generated approval and given the growth we're seeing in solta and like solid prospects globally.

Speaker Change: How are you thinking about them.

Speaker Change: A reconsideration potentially of an IPO since.

Thomas Appio: Yeah. Thanks, David. Operator, next question.

John Barresi: Yeah. Thanks, David for the question. I think, I'll keep coming back to a few thing here, right? If we think in the near-term, we've consistently discussed our ability to generate cash, the liquidity we have right here. As we sit here at the end of the quarter, $1.5 billion. We do have flexibility to monetize a portion of the BLCO stake that we still own and maintain the tax-efficient status of any separation, about 8%-ish of BLCO. And if you look beyond those near-term tools, we have--as Tom said--a diverse product and a diverse geographic footprint. We have the active R&D pipeline, we've demonstrated a track record of growth over the past five quarters and those are all tools that we can use to do things like continue to repurchase and retire debt, which can--allows us to save on interest, et cetera and becomes a bit of a nice circle there; look at asset sales and other types of transactions we've been able to do in the past. We look at all those tools when we think about the leverage profile beyond the near-term debt.

John Barresi: And if you look beyond those near-term tools, we have--as Tom said--a diverse product and a diverse geographic footprint. We have the active R&D pipeline, we've demonstrated a track record of growth over the past five quarters and those are all tools that we can use to do things like continue to repurchase and retire debt, which can--allows us to save on interest, et cetera and becomes a bit of a nice circle there; look at asset sales and other types of transactions we've been able to do in the past. We look at all those tools when we think about the leverage profile beyond the near-term debt.

Thomas Appio: Operator, next question. Thank you. The next question will be from Michael Frayman from Raymond James. Michael, your line is live. Hey. Good morning Tom, John.

Thomas Appio: Operator, next question. Thank you.

Thomas Appio: Operator, next question.

Thomas Appio: Thank you. The next question will be from Michael Frayman from Raymond James. Michael, your line is live. Hey. Good morning Tom, John.

Operator: Thank you. The next question will be from Michael Frayman from Raymond James. Michael, your line is live.

Thomas Appio: The next question will be from Michael Frayman from Raymond James. Michael, your line is live. Hey. Good morning Tom, John.

Thomas Appio: Michael, your line is live. Hey. Good morning Tom, John.

Thomas Appio: Michael, your line is live. Hey.

Thomas Appio: Michael, your line is live.

Michael Frayman: Hey. Good morning Tom, John, Garen. Maybe hopping on to the last question on--relating to Solta. I wonder if you could maybe get a bit more granular on there, the reception of THERMAGE FLX in China since its generated approval. And given the growth we're seeing in Solta and like, solid prospects globally, how are you thinking about reconsiderations potentially of an IPO since--as we've let time pass over the last couple of years?

Thomas Appio: Good morning Tom, John.

Thomas Appio: Yeah. Thanks, Michael, for the question. Clearly, as I've said on many calls, I love this business. It is a durable business. And really, the focus since I've become CEO is to really make sure we are growing this business in all geographies. If you look at it today, China is still a very large opportunity for us, as we got FLX approved in China along with the return pad. That's why we hired a new vice president to run this business. She has extensive experience in the beauty space and we are really excited about what we can do in China. I was there a couple of weeks ago and some of the things--the team that we're going to build, we're continuing to add resources, we just opened our flagship office in China. The team is highly motivated to really grow this business. What I would say is, if you look, the opportunities in China are great. I have a lot of experience, of course, having lived in China for 13 years so, I'm excited about what we can accomplish there and power the growth. When I look at the rest of the world, if you look at Asia Pacific, our Korea business will double this year. The growth in the quarter was 111%. If you look at what the teams in Taiwan are doing, growing at 18%, We are focusing also on executing with excellence in Europe. Some of the European countries are really starting to grow and some of the work that's been done there over the last year to get those on track--Solta was underinvested in Europe. I see that as an opportunity. [inaudible] grew 17% in the quarter. France grew 9%, Italy grew 12%.

Thomas Appio: I was there a couple of weeks ago and some of the things--the team that we're going to build, we're continuing to add resources, we just opened our flagship office in China. The team is highly motivated to really grow this business. What I would say is, if you look, the opportunities in China are great. I have a lot of experience, of course, having lived in China for 13 years so, I'm excited about what we can accomplish there and power the growth. When I look at the rest of the world, if you look at Asia Pacific, our Korea business will double this year. The growth in the quarter was 111%. If you look at what the teams in Taiwan are doing, growing at 18%, We are focusing also on executing with excellence in Europe. Some of the European countries are really starting to grow and some of the work that's been done there over the last year to get those on track--Solta was underinvested in Europe. I see that as an opportunity. [inaudible] grew 17% in the quarter. France grew 9%, Italy grew 12%.

Thomas Appio: And some of the things, you know, the team that we're going to build. We're continuing to add resources. We just opened our flagship office in China. The team is highly motivated to really grow this business. What I would say is, you know, if you look, the opportunities in China are great. I have a lot of experience, of course, having lived in China for 13 years.

Thomas Appio: So I'm excited about what we can accomplish there and power growth. When I look at the rest of the world, if you look at Asia Pacific, our career business will double this year. The growth in the quarter was 111%.

Thomas Appio: If you look at what the teams in Taiwan are doing, growing at 18%, we are also focusing on executing with excellence in Europe. Some of the European countries are really starting to grow. And some of the work that's been done there over the last year to get them on track. You know, Solta was underinvested in Europe. I see that as an opportunity. Dock grew 17% in the quarter. France grew nine and Italy grew 12.

Thomas Appio: We are focusing also on executing with excellence in Europe. Some of the European countries are really starting to grow and some of the work that's been done there over the last year to get those on track--Solta was underinvested in Europe. I see that as an opportunity. [inaudible] grew 17% in the quarter. France grew 9%, Italy grew 12%. Let's pivot to the U.S. There is a lot of work still to be done there, but we believe that what we've done there, we've brought in a new leader for our U.S. business. I'm seeing some really good things that he's putting in place and the team that we're building. Clearly, the investments behind expanding our sales team and really making sure that we're growing both our capital and our consumable business. Overall, when I look at this business, it's durable, and, you know, it really is outside the payer landscape. This is why I love it. If you take a look, our organic growth of THERMAGE in the quarter was 24%, FRAXEL was 3%, CLEAR + BRILLIANT was 7%. And if you then take a look between capital and consumables, it's about 75/25 on consumables versus capital. So again, durable. And to your last question, the last part of your question, I think this is a valuable asset to Bausch Health. And my plan is to continue to invest and grow this business globally. Operator, next question.

Michael Freeman: The European countries.

Michael Freeman: Are really starting to grow and some of the work that's been done there over the last year to get those on track.

Speaker Change: Solta was underinvested in Europe, I see that as an opportunity Doc grew 17% in the quarter, France grew nine Italy grew 12, let's pivot to the U S. A lot of work still to be done there. We believe that the what we've done there we've brought in a new leader of our U S business I'm.

Thomas Appio: Let's pivot to the U.S. There is a lot of work still to be done there, but we believe that what we've done there, we've brought in a new leader for our U.S. business. I'm seeing some really good things that he's putting in place and the team that we're building. Clearly, the investments behind expanding our sales team and really making sure that we're growing both our capital and our consumable business. Overall, when I look at this business, it's durable, and, you know, it really is outside the payer landscape. This is why I love it. If you take a look, our organic growth of THERMAGE in the quarter was 24%, FRAXEL was 3%, CLEAR + BRILLIANT was 7%. And if you then take a look between capital and consumables, it's about 75/25 on consumables versus capital. So again, durable. And to your last question, the last part of your question, I think this is a valuable asset to Bausch Health. And my plan is to continue to invest and grow this business globally.

Seeing some really good things that he's putting in place and the team that we're building are clearly the investments behind expanding our sales team and really making sure that we're growing both our capital and our consumable business overall when I look at this business is durable and.

Thomas Appio: If you take a look, you know, our organic growth of Thermage in the quarter was 24%, Fraxel was three, Clear and Brilliant was seven. And if you then take a look between capital and consumables, it's about 75-25 on consumables versus capital. So again, durable. And to your last question, the last part of your question, I think this is a valuable asset to Bausch Health. And, you know, my plan is to continue to invest in and grow this business globally. Operator, next question.

Thomas Appio: This is why I love it. If you take a look, our organic growth of THERMAGE in the quarter was 24%, FRAXEL was 3%, CLEAR + BRILLIANT was 7%. And if you then take a look between capital and consumables, it's about 75/25 on consumables versus capital. So again, durable. And to your last question, the last part of your question, I think this is a valuable asset to Bausch Health. And my plan is to continue to invest and grow this business globally.

Thomas Appio: Operator, next question.

Thomas Appio: That's great. Thank you. What I'd say is really appreciate everyone joining the call today and for your questions. We tried to, you know, in the prepared remarks really cover what we've accomplished in this quarter and what we're working on. Clearly, the business, the growth in the quarter is really good, and, you know, fifth consecutive quarter of growth in both revenue and EBITDA.

Michael Frayman: That's great.

Thank you. There are no other questions in queue at this time. I would now like to hand the call back to Tom Appio for closing remarks. Thank you. What I'd say is really appreciate everyone joining the call today and for your questions. We tried to, you know, in the prepared remarks really cover what we've accomplished in this quarter and what we're working on. Clearly, the business, the growth in the quarter is really good, and, you know, fifth consecutive quarter of growth in both revenue and EBITDA.

Operator: Thank you. There are no other questions in queue at this time. I would now like to hand the call back to Tom Appio for closing remarks.

Thomas Appio: Thank you. What I'd say is, really appreciate everyone joining the call today and for your questions. We tried to, you know, in the prepared remarks really cover what we've accomplished in this quarter and what we're working on. Clearly, the business, the growth in the quarter is really good and fifth consecutive quarter of growth in both revenue and EBITDA. What I would say is, really want to thank the global Bausch Health team for their hard work and dedication driving this company forward and delivering results. What I would say is, look forward to keeping everyone updated and thank you for your interest in and support of our company. Have a good day. Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Operator: What I would really like to say is that I really want to thank the global Bausch Health team for their hard work and dedication driving this company forward and delivering results. What I would say is that I look forward to keeping everyone updated, and thank you for your interest in and support of our company. Have a good day. Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Operator: Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

Yeah.

Okay.

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