Q2 2026 Bausch Health Companies Inc Earnings Call

July 29, 2026

Operator: All participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the conference over to Garen Sarafian, Vice President, Investor Relations. Thank you, Garen. You may begin.

Speaker #1: Participants, or any listen-only mode? A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad.

Speaker #1: As a reminder, this conference is being recorded. I'll now turn the conference over to Garen Sar- Sarafin. Vice President, Investor Relations. Thank you, Garen.

Speaker #1: You may begin.

Speaker #2: Good afternoon. And welcome to Bausch Health's second quarter 2026 earnings conference call. My name is Garen Sarafian, Vice President of Investor Relations. Participating in today's calls are Tom Appio, Chief Executive Officer; JJ Charhon, Chief Financial Officer; and Jonathan Sadeh, Chief Medical Officer and Head of Research and Development.

Garen Sarafian: Good afternoon. Welcome to Bausch Health's Q2 2026 Earnings Conference Call. My name is Garen Sarafian, Vice President, Investor Relations. Participating in today's calls are Thomas Appio, Chief Executive Officer, J.J. Sharon, Chief Financial Officer, and Jonathan Sadeh, Chief Medical Officer and Head of Research and Development. Before we begin, I would like to remind you that today's presentation contains forward-looking information. Please take a moment to review the forward-looking statements disclaimer at the beginning of the slides accompanying this presentation, as it contains important information. Actual results may differ materially from those expressed or implied in these forward-looking statements. You should not place undue reliance on them. Please also refer to our SEC filings and our filings with the Canadian Securities Administrators for a discussion of certain risk factors that could cause actual results to differ materially from expectations.

Garen Sarafian: Good afternoon. Welcome to Bausch Health's Q2 2026 Earnings Conference Call. My name is Garen Sarafian, Vice President, Investor Relations. Participating in today's calls are Tom Appio, Chief Executive Officer, J.J. Charhon, Chief Financial Officer, and Jonathan Sadeh, Chief Medical Officer and Head of Research and Development. Before we begin, I would like to remind you that today's presentation contains forward-looking information. Please take a moment to review the forward-looking statements disclaimer at the beginning of the slides accompanying this presentation, as it contains important information. Actual results may differ materially from those expressed or implied in these forward-looking statements. You should not place undue reliance on them. Please also refer to our SEC filings and our filings with the Canadian Securities Administrators for a discussion of certain risk factors that could cause actual results to differ materially from expectations.

Speaker #2: Before we begin, I would like to remind you that today's presentation contains forward-looking information. Please take a moment to review the forward-looking statements disclaimer at the beginning of the slides accompanying this presentation.

Speaker #1: Greetings and welcome to the Bausch Health second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

Speaker #2: As it contains important information. Actual results may differ materially from those expressed or implied in these forward-looking statements, and you should not place undue reliance on them.

Speaker #1: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

Speaker #2: Please also refer to our SEC filings and our filings with the Canadian Securities Administrators for a discussion of certain risk factors that could cause actual results to differ materially from expectations.

Speaker #1: I'll now turn the conference over to Garen Sarafian, Vice President, Investor Relations. Thank you, Garen. You may begin.

Speaker #2: We use non-GAAP financial measures to help investors better understand our operating performance. These non-GAAP measures may not be comparable to similarly titled measures used by other companies, and should be considered in addition to, and not as a substitute for, measures calculated in accordance with GAAP.

Garen Sarafian: We use non-GAAP financial measures to help investors better understand our operating performance. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should be considered in addition to, and not as a substitute for, measures calculated in accordance with GAAP. Reconciliations to our non-GAAP measures are included in the appendix of the slides accompanying this presentation, which are also 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, Wednesday, 29 July 2026, will focus on Bausch Health excluding Bausch + Lomb. We will briefly comment on Bausch + Lomb's results announced this morning. We will refer to year-over-year comparisons with the same period last year, unless otherwise noted.

Speaker #2: Good afternoon. And welcome to Bausch Health's second quarter 2026 earnings conference call. My name is Garen Sarafian, Vice President of Investor Relations. Participating in today's calls are Thomas Appio, Chief Executive Officer; JJ Charhon, Chief Financial Officer; and Johnson Seday, Chief Medical Officer and Head of Research and Development.

Speaker #2: Reconciliations to our non-GAAP measures are included in the appendix of the slides accompanying this presentation, which are also available on bauschhealth-investor-relations website. Finally, the financial guidance in this presentation is effective as of today only.

Speaker #2: Before we begin, I would like to remind you that today’s presentation contains forward-looking information. Please take a moment to review the forward-looking statements disclaimer at the beginning of the slides accompanying this presentation.

Speaker #2: We do not undertake any obligation to update guidance. Our discussion today—Wednesday, July 29—will focus on Bausch Health excluding Bausch & Lomb. However, we will briefly comment on Bausch & Lomb's results announced this morning.

Speaker #2: As it contains important information, actual results may differ materially from those expressed or implied in these forward-looking statements, and you should not place undue reliance on them.

Speaker #2: We will refer to year-over-year comparisons with the same period last year, unless otherwise noted. With that, I will turn the call over to our CEO, Tom Appio.

Speaker #2: Please also refer to our SEC filings and our filings with the Canadian Securities Administrators for discussion of certain risk factors that could cause actual results to differ materially from expectations.

Garen Sarafian: With that, I will turn the call over to our CEO, Thomas Appio. Tom?

Garen Sarafian: With that, I will turn the call over to our CEO, Tom Appio. Tom?

Speaker #2: Tom?

Speaker #3: Thank you, Garen. And thank you to everyone joining us today. Bausch Health had an exceptional quarter in Q2, marking the 13th consecutive quarter of top-line and bottom-line growth, with all our segments contributing to segment profit growth.

Thomas Appio: Thank you, Garen, and thank you to everyone joining us today. Bausch Health had an exceptional quarter in Q2, marking the 13th consecutive quarter of top-line and bottom-line growth, with all our segments contributing to segment profit growth. Performance was outstanding from revenue to adjusted EBITDA to cash flow generation. More importantly, we achieved several milestones in Q2. First, we grew revenue 16% and adjusted EBITDA 28%, our highest growth for both metrics in the last 3 years. Second, we generated a historical high of 59% adjusted EBITDA margin, up 530 basis points year-over-year. Third, we generated our strongest quarter of adjusted cash flow from operations since Q4 of 2024, allowing us to lower our net debt to $13.7 billion, one of the largest quarter-over-quarter reductions since our debt refinancing in 2022.

Tom Appio: Thank you, Garen, and thank you to everyone joining us today. Bausch Health had an exceptional quarter in Q2, marking the 13th consecutive quarter of top-line and bottom-line growth, with all our segments contributing to segment profit growth. Performance was outstanding from revenue to adjusted EBITDA to cash flow generation. More importantly, we achieved several milestones in Q2. First, we grew revenue 16% and adjusted EBITDA 28%, our highest growth for both metrics in the last 3 years. Second, we generated a historical high of 59% adjusted EBITDA margin, up 530 basis points year-over-year. Third, we generated our strongest quarter of adjusted cash flow from operations since Q4 of 2024, allowing us to lower our net debt to $13.7 billion, one of the largest quarter-over-quarter reductions since our debt refinancing in 2022.

Speaker #2: We use non-GAAP financial measures to help investors better understand our operating performance. These non-GAAP measures may not be comparable to similarly titled measures used by other companies, and should be considered in addition to and not as a substitute for measures calculated in accordance with GAAP.

Speaker #3: Performance was outstanding from revenue to adjusted EBITDA to cash flow generation. More importantly, we achieved several milestones in Q2, first, we grew revenue 16% and adjusted EBITDA 28%, our highest growth for both metrics in the last 3 years.

Speaker #2: Reconciliations to our non-GAAP measures are included in the appendix of the slides accompanying this presentation, which are also available on bauschhealthinvestorrelations website. Finally, the financial guidance in this presentation is effective as of today only.

Speaker #2: We do not undertake any obligation to update guidance. Our discussion today—Wednesday, July 29—will focus on Bausch Health, excluding Bausch & Lomb. However, we will briefly comment on Bausch & Lomb's results, announced this morning.

Speaker #3: Second, we generated historical high of $59% adjusted EBITDA margin, up 530 basis points year over year. Third, we generated our strongest quarter of adjusted cash flow from operations since the fourth quarter of 2024, allowing us to lower our net debt to $13.7 billion, one of the largest quarter-over-quarter reductions since our debt refinancing in 2022.

Speaker #2: We will refer to year-over-year comparisons with the same period last year, unless otherwise noted. With that, I will turn the call over to our CEO, Tom Appio.

Speaker #2: Tom?

Speaker #3: While there were many business accomplishments in the quarter, let me highlight a few areas that stand out the most. Our seg- segment grew 21% in the quarter, fueled by net realized pricing and continued Xifaxen demand in the channels we serve today.

Thomas Appio: While there were many business accomplishments in the quarter, let me highlight a few areas that stand out the most. Our Salix segment grew 21% in the quarter, fueled by net realized pricing and continued Xifaxan demand in the channels we serve today. Within international, EMEA continued its streak of organic revenue growth, now achieving 14 consecutive quarters. In LATAM, also delivered strong underlying performance, supported by continued expansion of our cardiometabolic franchise. Finally, Solta had another outstanding quarter, with revenue up 38% and segment profit up 69%, illustrating for the first time the expected margin accretion associated with the integration of our full-service distributor in China. These outstanding results underscore the strength of the global organization. I want to personally thank and congratulate our teams worldwide for their dedication, collaboration, and exceptional execution throughout Q2.

Tom Appio: While there were many business accomplishments in the quarter, let me highlight a few areas that stand out the most. Our Salix segment grew 21% in the quarter, fueled by net realized pricing and continued Xifaxan demand in the channels we serve today. Within international, EMEA continued its streak of organic revenue growth, now achieving 14 consecutive quarters. In LATAM, also delivered strong underlying performance, supported by continued expansion of our cardiometabolic franchise. Finally, Solta had another outstanding quarter, with revenue up 38% and segment profit up 69%, illustrating for the first time the expected margin accretion associated with the integration of our full-service distributor in China. These outstanding results underscore the strength of the global organization. I want to personally thank and congratulate our teams worldwide for their dedication, collaboration, and exceptional execution throughout Q2.

Speaker #3: Performance was outstanding, from revenue to adjusted EBITDA to cash flow generation. More importantly, we achieved several milestones in Q2. First, we grew revenue 16% and adjusted EBITDA 28%—our highest growth for both metrics in the last three years.

Speaker #3: Within international, EMEA continued its streak of organic revenue growth, now achieving 14 consecutive quarters, and in LatAm, also delivered strong underlying performance supported by continued expansion of our cardiometabolic franchise.

Speaker #3: Finally, SOLTA had another outstanding quarter with revenue up 38% and segment profit up 69%, illustrating for the first time the expected margin accretion associated with the integration of our full-service distributor in China.

Speaker #3: These outstanding results underscore the strength of the global organization, I want to personally thank and congratulate our teams worldwide for their dedication, collaboration, and exceptional execution throughout the second quarter.

Speaker #3: While there were many business accomplishments in the quarter, let me highlight a few areas that stand out the most. Our Salix segment grew 21% in the quarter, fueled by net realized pricing and continued Xifaxin demand in the channels we serve today.

Speaker #3: The achievement that stands out the most is the consistency of our performance over the past 3 years. 13 consecutive quarters of revenue and adjusted EBITDA growth reflect the strength of our strategy, disciplined execution, and the consistent application of management principles that have become embedded throughout our organization.

Thomas Appio: The achievement that stands out the most is the consistency of our performance over the past 3 years. 13 consecutive quarters of revenue and adjusted EBITDA growth reflect the strength of our strategy, disciplined execution, and the consistent application of management principles that have become embedded throughout our organization. It starts with revenue and the intention of capitalizing on every single operating lever to drive profitable growth. Whether it's maximizing Salix performance through our customer insights engine, improving sales force effectiveness in Solta, launching new products in Mexico or Poland, or driving performance organically. It is all grounded in the belief that we have market-leading commercial capabilities across our segments. Without sustainable, profitable growth, there is no lasting value creation.

Tom Appio: The achievement that stands out the most is the consistency of our performance over the past 3 years. 13 consecutive quarters of revenue and adjusted EBITDA growth reflect the strength of our strategy, disciplined execution, and the consistent application of management principles that have become embedded throughout our organization. It starts with revenue and the intention of capitalizing on every single operating lever to drive profitable growth. Whether it's maximizing Salix performance through our customer insights engine, improving sales force effectiveness in Solta, launching new products in Mexico or Poland, or driving performance organically. It is all grounded in the belief that we have market-leading commercial capabilities across our segments. Without sustainable, profitable growth, there is no lasting value creation.

Speaker #3: Within international, EMEA continued its streak of organic revenue growth, now achieving 14 consecutive quarters, and in LATAM, also delivered strong underlying performance supported by continued expansion of our cardiometabolic franchise.

Speaker #3: It starts with revenue and the intention of encap- capitalizing on every single operating lever to drive profitable growth. Whether it's maximizing salex performance through our customer insights engine improving Salesforce effectiveness in SOLTA, launching new products in Mexico or Poland, or driving performance organically, it is all grounded in the belief that we have market-leading commercial capabilities across our segments.

Speaker #3: These outstanding results underscore the strength of the global organization, and I want to personally thank and congratulate our teams worldwide for their dedication, collaboration, and exceptional execution throughout the second quarter.

Speaker #3: Without sustainable profitable growth, there is no lasting value creation. The best illustration of that consistent and relentless drive is the evolution of our last 12 months, or LTM, for revenue, which has grown every quarter since year-end 2023, leading to 20% revenue growth.

Thomas Appio: The best illustration of that consistent and relentless drive is the evolution of our last 12 months, or LTM, for revenue, which has grown every quarter since year-end 2023, leading to 20% revenue growth. Second, the focus on growth does not minimize the need to manage resources effectively and drive operating leverage. While there are, at times, purposeful strategic investments, there is a continuous effort to tighten our G&A infrastructure as much as possible through productivity initiatives. The result is an adjusted EBITDA margin that has steadily grown over 400 basis points when compared to 2023. Finally, these achievements have been realized without any major investments or acquisitions. This disciplined approach has enabled cash flow generation to grow disproportionately relative to the business while supporting a consistent reduction in net debt every quarter since Q4 of 2023.

Tom Appio: The best illustration of that consistent and relentless drive is the evolution of our last 12 months, or LTM, for revenue, which has grown every quarter since year-end 2023, leading to 20% revenue growth. Second, the focus on growth does not minimize the need to manage resources effectively and drive operating leverage. While there are, at times, purposeful strategic investments, there is a continuous effort to tighten our G&A infrastructure as much as possible through productivity initiatives. The result is an adjusted EBITDA margin that has steadily grown over 400 basis points when compared to 2023. Finally, these achievements have been realized without any major investments or acquisitions. This disciplined approach has enabled cash flow generation to grow disproportionately relative to the business while supporting a consistent reduction in net debt every quarter since Q4 of 2023.

Speaker #3: Second, the focus on growth does not minimize the need to manage resources effectively and drive operating leverage. While there are at times purposeful strategic investments there is a continuous effort to tighten our G&A infrastructure as much as possible through productivity initiatives.

Speaker #3: It starts with revenue and the intention of capitalizing on every single operating lever to drive profitable growth. Whether it's maximizing Salix performance through our customer insights engine, improving Salesforce effectiveness in Solta, launching new products in Mexico or Poland, or driving performance organically, it is all grounded in the belief that we have market-leading commercial capabilities across our segments.

Speaker #3: The result is an adjusted EBITDA margin that has steadily grown over 400 basis points when compared to 2023. Finally, these achievements have been realized without any major investments or acquisitions.

Speaker #3: This disciplined approach has enabled cash flow generation to grow disproportionately relative to the business, while supporting a consistent reduction in net debt every quarter since Q4 of 2023.

Speaker #3: The consistent application of these management principles across our business is fundamental to our success. Our Q2 performance is a strong testament to the sustainable value we have strived to generate for our stakeholders, patients, customers, and employees.

Thomas Appio: The consistent application of these management principles across our business is fundamental to our success. Our Q2 performance is a strong testament to the sustainable value we have strived to generate for our stakeholders, patients, customers, and employees. With that, I will turn the call over to JJ for further details on our financial results. JJ?

Tom Appio: The consistent application of these management principles across our business is fundamental to our success. Our Q2 performance is a strong testament to the sustainable value we have strived to generate for our stakeholders, patients, customers, and employees. With that, I will turn the call over to JJ for further details on our financial results. JJ?

Speaker #3: With that, I will turn the call over to JJ for further details on our financial results. JJ?

Speaker #2: Thank you, Tom. Let's start with our consolidated non-gap financial results for the second quarter. Which you will find starting on page 12. Revenue was $2.852 million a 13% increase on the reported basis and 11% on an organic basis compared to the same period a year ago.

JJ Sharon: Thank you, Tom. Let's start with our consolidated non-GAAP financial results for Q2, which you will find starting on page 12. Revenue was $2 billion and $852 million, a 13% increase on a reported basis and 11% on an organic basis compared to the same period a year ago. Adjusted gross margin was 72.9%, which was 230 basis points higher year over year. Adjusted EBITDA was $1 billion $75 million, an increase of $233 million, which was a 28% increase year over year. Finally, adjusted cash flow from operations was $637 million, an increase of $195 million, or a 44% increase year over year. Moving to the performance of Bausch Health, excluding Bausch + Lomb, for Q2 starting on page 14. As Tom indicated earlier, we had an outstanding Q2 with several milestone achievements across the board.

JJ Charhon: Thank you, Tom. Let's start with our consolidated non-GAAP financial results for Q2, which you will find starting on page 12. Revenue was $2 billion and $852 million, a 13% increase on a reported basis and 11% on an organic basis compared to the same period a year ago. Adjusted gross margin was 72.9%, which was 230 basis points higher year over year. Adjusted EBITDA was $1 billion $75 million, an increase of $233 million, which was a 28% increase year over year. Finally, adjusted cash flow from operations was $637 million, an increase of $195 million, or a 44% increase year over year. Moving to the performance of Bausch Health, excluding Bausch + Lomb, for Q2 starting on page 14. As Tom indicated earlier, we had an outstanding Q2 with several milestone achievements across the board.

Speaker #3: The result is an adjusted EBITDA margin that has steadily grown over 400 basis points compared to 2023. Finally, these achievements have been realized without any major investments or acquisitions.

Speaker #2: Adjusted gross margin was $72.9%, which was $230 basis points higher year over year. Adjusted EBITDA was $1.075 million an increase of $233 million which was a 28% increase year over year.

Speaker #2: Finally, adjusted cash flow from operations was $637 million an increase of $195 million or a 44% increase year over year. Moving to the performance of Bausch Health excluding Bausch and Lomb for the second quarter starting on page 14.

Speaker #3: With that, I will turn the call over to JJ for further details on our financial results. JJ?

Speaker #4: Thank you, Tom. Let's start with our consolidated non-gap financial results for the second quarter. Which you will find starting on page 12. Revenue was $2,852,000,000, a 13% increase on the reported basis, and 11% on an organic basis compared to the same period a year ago.

Speaker #2: As Tom indicated earlier, we had an outstanding second quarter with several milestone achievements across the board. The highlights for the quarter were as follows: revenue was $1.458 million a 16% increase when compared to the second quarter of 2025.

JJ Sharon: The highlights for the quarter were as follows: Revenue was $1 billion $458 million, a 16% increase when compared to Q2 2025. Adjusted EBITDA was $865 million, up 28% year over year, reflecting the full impact of all the growth and productivity initiatives we have executed since the beginning of the year. Finally, adjusted cash flow from operations was $471 million, an increase of $116 million year over year, reflecting strong business performance across the portfolio together with favorable working capital change. The largest driver of growth remains Salix, which we'll review shortly. It is important to note that our portfolio, excluding the Salix segment, grew revenue and segment profit respectively 12% and 19% year over year. We continue to advocate for the strength of our portfolio outside of Xifaxan, and our Q2 results were a good illustration of that.

JJ Charhon: The highlights for the quarter were as follows: Revenue was $1 billion $458 million, a 16% increase when compared to Q2 2025. Adjusted EBITDA was $865 million, up 28% year over year, reflecting the full impact of all the growth and productivity initiatives we have executed since the beginning of the year. Finally, adjusted cash flow from operations was $471 million, an increase of $116 million year over year, reflecting strong business performance across the portfolio together with favorable working capital change. The largest driver of growth remains Salix, which we'll review shortly. It is important to note that our portfolio, excluding the Salix segment, grew revenue and segment profit respectively 12% and 19% year over year. We continue to advocate for the strength of our portfolio outside of Xifaxan, and our Q2 results were a good illustration of that.

Speaker #4: Adjusted gross margin was 72.9%, which was 230 basis points higher year over year. Adjusted EBITDA was $1.075 billion, an increase of $233 million, which was a 28% increase year over year.

Speaker #2: Adjusted EBITDA was $865 million up 28% year over year reflecting the full impact of all the growth and productivity initiatives we have executed since the beginning of the year.

Speaker #2: Finally, adjusted cash flow from operations was $471 million an increase of $116 million year over year reflecting strong business performance across the portfolio together with favorable working capital change.

Speaker #4: Finally, adjusted cash flow from operations was $637,000,000, an increase of 195 million dollars, or a 44% increase year over year. Moving to the performance of Bausch Health, excluding Bausch & Lomb, for the second quarter starting on page 14.

Speaker #2: The largest driver of growth remains salex. Which we'll review shortly, but it is important to note that our portfolio excluding the salex segment grew revenue and segment profit respectively 12% and 19% year over year.

Speaker #4: As Tom indicated earlier, we had an outstanding second quarter with several milestone achievements across the board. The highlights for the quarter were as follows: revenue was $1,458,000,000, a 16% increase when compared to the second quarter of 2025.

Speaker #2: We continue to advocate for the strength of our portfolio outside of Xifaxen and our Q2 results were a good illustration of that. Moving now to our second quarter performance by segment starting with salex on page 15.

JJ Sharon: Moving now to our Q2 performance by segment, starting with Salix on page 15. Salix had another Q2 of double-digit revenue and segment profit growth in 2026. Revenues were $758 million, an increase of $131 million, or 21% up when compared to the same period last year. Xifaxan remained a key driver of Salix performance in Q2, with revenue increasing 26% year over year. Xifaxan volume continues to be strong in the distribution channels we serve. Total retail scripts, excluding Medicaid, were up 4%, while extended units, excluding Medicaid, were down 2% year over year, reflecting the reduction of volume associated with 340B institutions. Separately, we benefit from favorable net pricing as we continue to optimize the volume price trade-off following our exit of Medicaid and the 340B program. Now moving to the international segments.

JJ Charhon: Moving now to our Q2 performance by segment, starting with Salix on page 15. Salix had another Q2 of double-digit revenue and segment profit growth in 2026. Revenues were $758 million, an increase of $131 million, or 21% up when compared to the same period last year. Xifaxan remained a key driver of Salix performance in Q2, with revenue increasing 26% year over year. Xifaxan volume continues to be strong in the distribution channels we serve. Total retail scripts, excluding Medicaid, were up 4%, while extended units, excluding Medicaid, were down 2% year over year, reflecting the reduction of volume associated with 340B institutions. Separately, we benefit from favorable net pricing as we continue to optimize the volume price trade-off following our exit of Medicaid and the 340B program. Now moving to the international segments.

Speaker #4: Adjusted EBITDA was $865 million, up 28% year over year, reflecting the full impact of all the growth and productivity initiatives we have executed since the beginning of the year.

Speaker #2: Salex had another quarter of double-digit revenue and segment profit growth in 2026. Revenues were $758 million an increase of $131 million or 21% up when compared to the same period last year.

Speaker #4: Finally, adjusted cash flow from operations was $471 million, an increase of $116 million year over year, reflecting strong business performance across the portfolio, together with favorable working capital change.

Speaker #2: Xifaxen remained a key drivers of salex performance in the quarter with revenue increasing 26% year over year. Xifaxen volume continues to be strong in the distribution channels we serve.

Speaker #4: The largest driver of growth remains Salix. Which we'll review shortly, but it is important to note that our portfolio excluding the Salix segment grew revenue and segment profit respectively 12% and 19% year over year.

Speaker #2: Total retail scripts excluding Medicaid were up 4% while extended units excluding Medicaid were down 2% year over year reflecting the reduction of volume associated with 340B institutions.

Speaker #4: We continue to advocate for the strength of our portfolio outside of Xifaxen and our Q2 results were a good illustration of that. Moving now to our second quarter performance by segment, starting with Salix on page 15.

Speaker #2: Separately, we benefit from favorable net pricing as we continue to optimize the volume price trade-off following our exit of Medicaid and the 340B program.

Speaker #2: Now moving to the international segments. Revenues in the second quarter were $305 million which was up 10% on a reported basis and up 5% on an organic basis compared to the second quarter of last year.

JJ Sharon: Revenues in Q2 were $305 million, which was up 10% on a reported basis and up 5% on an organic basis compared to Q2 of last year. Performance by region was mixed. On an organic basis, LATAM was up 16% and EMEA was up 9%, while Canada declined 9%, reflecting the absence of prior year one-time net pricing benefits. More specifically, here are the highlights of each geography. EMEA delivered a remarkable 14th consecutive quarter of organic revenue growth. In LATAM, revenue growth was supported by both volume expansion and favorable net pricing across our portfolio, led by Bettex and our newly launched cardiometabolic franchise. In Canada, excluding the $6 million one-time pricing benefit recorded in Q2 of last year, our promoted brand portfolio grew 14%, led by RYALTRIS, which was up 64% year over year.

JJ Charhon: Revenues in Q2 were $305 million, which was up 10% on a reported basis and up 5% on an organic basis compared to Q2 of last year. Performance by region was mixed. On an organic basis, LATAM was up 16% and EMEA was up 9%, while Canada declined 9%, reflecting the absence of prior year one-time net pricing benefits. More specifically, here are the highlights of each geography. EMEA delivered a remarkable 14th consecutive quarter of organic revenue growth. In LATAM, revenue growth was supported by both volume expansion and favorable net pricing across our portfolio, led by Bettex and our newly launched cardiometabolic franchise. In Canada, excluding the $6 million one-time pricing benefit recorded in Q2 of last year, our promoted brand portfolio grew 14%, led by RYALTRIS, which was up 64% year over year.

Speaker #4: Salix had another quarter of double-digit revenue and segment profit growth in 2026. Revenues were $758 million, an increase of $131 million, or up 21% compared to the same period last year.

Speaker #2: Performance by region was mixed. On an organic basis, LatAm was up 16% and EMEA was up 9% while Canada declined 9% reflecting the absence of prior year one-time net pricing benefits.

Speaker #4: Xifaxen remained a key driver of Salix's performance in the quarter, with revenue increasing 26% year over year. Xifaxen volume continues to be strong in the distribution channels we serve.

Speaker #2: More specifically, here are the highlights of each geography. EMEA delivered a remarkable 14 consecutive quarter of organic revenue growth. In LatAm, revenue growth was supported by both volume expansion and favorable net pricing across our portfolio led by Better Yekta and our newly launched Cardio Metabolic franchise.

Speaker #4: Total retail scripts, excluding Medicaid, were up 4%, while extended units, excluding Medicaid, were down 2% year over year, reflecting the reduction of volume associated with 340B institutions.

Speaker #4: Separately, we benefit from favorable net pricing as we continue to optimize the volume-price trade-off following our exit from Medicaid and the 340B program.

Speaker #2: In Canada, excluding the $6 million one-time pricing benefit recorded in Q2 of last year our promoted brand portfolio grew 14% led by Realtris which was up 64% year over year.

Speaker #4: Now moving to the international segments. Revenues in the second quarter were $305,000,000, which was up 10% on a reported basis, and up 5% on an organic basis compared to the second quarter of last year.

Speaker #2: Now moving to page 17 for our review of our Sultan Medical segment. Revenues were $176 million an increase year over year of 38% on a reported basis and 12% on an organic basis.

JJ Sharon: Moving to page 17 for a review of our Solta Medical segment. Revenues were $176 million, an increase year over year of 38% on a reported basis and 12% on an organic basis. Separately, segment profit grew 69% on a reported basis. Solta delivered once again strong revenue growth in the quarter, led by performance in China, where revenue increased 136% year over year. Growth was further supported by double-digit organic growth, reflecting the successful integration of our full service distributor, Shibo, in China, and continued momentum across other key APAC markets, such as South Korea and Taiwan. More specifically, South Korea, our second-largest revenue contributor, grew 8% in Q2. While medical aesthetics tourism remains a positive driver, the market has stabilized when compared to the growth experienced over the prior 2 years.

JJ Charhon: Moving to page 17 for a review of our Solta Medical segment. Revenues were $176 million, an increase year over year of 38% on a reported basis and 12% on an organic basis. Separately, segment profit grew 69% on a reported basis. Solta delivered once again strong revenue growth in the quarter, led by performance in China, where revenue increased 136% year over year. Growth was further supported by double-digit organic growth, reflecting the successful integration of our full service distributor, Shibo, in China, and continued momentum across other key APAC markets, such as South Korea and Taiwan. More specifically, South Korea, our second-largest revenue contributor, grew 8% in Q2. While medical aesthetics tourism remains a positive driver, the market has stabilized when compared to the growth experienced over the prior 2 years.

Speaker #4: Performance by region was mixed. On an organic basis, LATAM was up 16%, and EMEA was up 9%, while Canada declined 9%, reflecting the absence of prior year one-time net pricing benefits.

Speaker #2: Separately, segment profit grew 69% on a reported basis. Sultan delivered once again strong revenue growth in the quarter led by performance in China where revenue increased 136% year over year.

Speaker #4: More specifically, here are the highlights of each geography. EMEA delivered a remarkable 14 consecutive quarters of organic revenue growth. In LATAM, revenue growth was supported by both volume expansion and favorable net pricing across our portfolio, led by Better Yekta and our newly launched Cardio Metabolic franchise.

Speaker #2: Growth was further supported by double-digit organic growth reflecting the successful integration of our full-service distributor Xibo in China and continued momentum across other key APAC markets such as South Korea and Taiwan.

Speaker #4: In Canada, excluding the $6,000,000 one-time pricing benefit recorded in Q2 of last year, our promoted brand portfolio grew 14%, led by Rialtris, which was up 64% year over year.

Speaker #2: More specifically, South Korea our second largest revenue contributor grew 8% in the second quarter. While medical aesthetics tourism remains a positive driver, the market has stabilized when compared to the growth experience over the prior two years.

Speaker #4: Now moving to page 17 for our review of our Sultan Medical segment. Revenues were $176,000,000, an increase year over year of 38% on a reported basis, and 12% on an organic basis.

Speaker #2: Taiwan our third largest market in APAC delivers strong growth of 42% reflecting robust local dynamics. The integration of Xibo has been executed exceptionally well and has already created significant for value for Bausch Health in just six months.

JJ Sharon: Taiwan, our third-largest market in APAC, delivered strong growth of 42%, reflecting robust local dynamics. The integration of Shibo has been executed exceptionally well and has already created significant full value for Bausch Health in just 6 months, a testament to the quality of the asset, the strength of our teams, and our disciplined approach to integration. Let me be more specific. As some indicated, Solta recorded segment profit of $91 million in Q2, which was the first true indicator of the value accretion associated with the integration of our full service distributor in China. Even if we adjust for revenue seasonality and expense phasing, management believe that the full year run rate for Solta's segment profit now stands at approximately $330 million, which is approximately a $100 million increase when compared to 2025.

JJ Charhon: Taiwan, our third-largest market in APAC, delivered strong growth of 42%, reflecting robust local dynamics. The integration of Shibo has been executed exceptionally well and has already created significant full value for Bausch Health in just 6 months, a testament to the quality of the asset, the strength of our teams, and our disciplined approach to integration. Let me be more specific. As some indicated, Solta recorded segment profit of $91 million in Q2, which was the first true indicator of the value accretion associated with the integration of our full service distributor in China. Even if we adjust for revenue seasonality and expense phasing, management believe that the full year run rate for Solta's segment profit now stands at approximately $330 million, which is approximately a $100 million increase when compared to 2025.

Speaker #4: Separately, segment profit grew 69% on a reported basis. Sultan delivered strong revenue growth once again in the quarter, led by performance in China, where revenue increased 136% year over year.

Speaker #2: A testament to the quality of the assets, the strength of our teams, and our discipline approach to integration. Let me be more specific. As Tom indicated, Sultan recorded segment profit of $91 million in the second quarter which was the first true indicator of the value accretion associated with the integration of our full-service distributor in China.

Speaker #4: Growth was further supported by double-digit organic growth, reflecting the successful integration of our full-service distributor, Xibo, in China and continued momentum across other key APAC markets such as South Korea and Taiwan.

Speaker #2: Even if we adjust for revenue seasonality and expense phasing, management believed that the full-year run rate for Sultan's segment profit now stands at approximately $330 million which is approximately a 100 million increase where compared to 2025.

Speaker #4: More specifically, South Korea our second largest revenue contributor grew 8% in the second quarter. While medical aesthetics tourism remains a positive driver, the market has stabilized when compared to the growth experience over the prior two years.

Speaker #4: Taiwan, our third largest market in APAC, delivered strong growth of 42%, reflecting robust local dynamics. The integration of Xibo has been executed exceptionally well and has already created significant value for Bausch Health in just six months.

Speaker #2: If we apply a conservative 10-times earnings multiple it does not seem unreasonable to assume that everything been equal this should translate into an increase in our Bausch Health Enterprise value of roughly $1 billion or 2 to $3 per share.

JJ Sharon: If we apply a conservative 10 times earnings multiple, it does not seem unreasonable to assume that everything being equal, this should translate into an increase in our Bausch Health enterprise value of roughly $1 billion or $2 to $3 per share. We do not believe that BHC current share price fully reflects that. Turning to our diversified segments, which you will find on page 18. Revenues were $219 million, flat on a reported basis compared to the same period 1 year ago. Growth in neuroscience, driven by favorable net pricing, was offset by lower revenue in dermatology, generics, and dentistry. Finally, Bausch + Lomb's revenue was $1,394,000,000, up 9% on a reported basis and 8% on an organic basis compared to the same period last year. Turning our focus to our balance sheet.

JJ Charhon: If we apply a conservative 10 times earnings multiple, it does not seem unreasonable to assume that everything being equal, this should translate into an increase in our Bausch Health enterprise value of roughly $1 billion or $2 to $3 per share. We do not believe that BHC current share price fully reflects that. Turning to our diversified segments, which you will find on page 18. Revenues were $219 million, flat on a reported basis compared to the same period 1 year ago. Growth in neuroscience, driven by favorable net pricing, was offset by lower revenue in dermatology, generics, and dentistry. Finally, Bausch + Lomb's revenue was $1,394,000,000, up 9% on a reported basis and 8% on an organic basis compared to the same period last year. Turning our focus to our balance sheet.

Speaker #2: We do not believe that BHC current share price fully reflects that. Turning now to our diversified segments which you will find on page 18.

Speaker #4: A testament to the quality of the assets, the strength of our teams, and our disciplined approach to integration. Let me be more specific. As some indicated, Sultan recorded segment profit of $91,000,000 in the second quarter, which was the first true indicator of the value accretion associated with the integration of our full-service distributor in China.

Speaker #2: Revenues were $219 million flat on a reported basis compared to the same period a year ago. Growth in neuroscience driven by favorable net pricing was offset by lower revenue in dermatology generics and dentistry.

Speaker #4: Even if we adjust for revenue seasonality and expense phasing, management believed that the full-year run rate for Sultan's segment profit now stands at approximately $330 million, which is approximately a $100 million increase compared to 2025.

Speaker #2: Finally, Bausch and Lomb's revenue were $1,394 million up 9% on a reported basis and 8% on an organic basis compared to the same period last year.

Speaker #2: Now turning our focus to our balance sheet. Adjusted operating cash flow and stood at $471 million and $465 million respectively. Our strong operating performance was the primary driver together with the favorable change in working capital.

JJ Sharon: Adjusted operating cash flow and adjusted free cash flow were outstanding in Q2 and stood at $471 million and $465 million, respectively. Our strong operating performance was the primary driver, together with a favorable change in working capital. Even more impressive was our ability to reduce our net debt by $434 million in Q2, thanks to low outflow associated with legacy litigation and restructuring payments. As a reminder, we have fully settled our opt-out litigations in the US, and the last payment was executed in Q1 2026. In summary, at the H1 mark, we are well ahead of expectations with revenue and adjusted EBITDA growing respectively 15% and 23% when compared to H1 2025. This allows us to raise our full year's guidance for Bausch Health, excluding Bausch + Lomb, across all metrics.

JJ Charhon: Adjusted operating cash flow and adjusted free cash flow were outstanding in Q2 and stood at $471 million and $465 million, respectively. Our strong operating performance was the primary driver, together with a favorable change in working capital. Even more impressive was our ability to reduce our net debt by $434 million in Q2, thanks to low outflow associated with legacy litigation and restructuring payments. As a reminder, we have fully settled our opt-out litigations in the US, and the last payment was executed in Q1 2026. In summary, at the H1 mark, we are well ahead of expectations with revenue and adjusted EBITDA growing respectively 15% and 23% when compared to H1 2025. This allows us to raise our full year's guidance for Bausch Health, excluding Bausch + Lomb, across all metrics.

Speaker #4: If we apply a conservative 10-times earnings multiple, it does not seem unreasonable to assume that, everything being equal, this should translate into an increase in our Bausch Health enterprise value of roughly $1 billion, or $2 to $3 per share.

Speaker #2: Even more impressive was our ability to reduce our net debt by $434 million in the second quarter thanks to low outflow associated with legacy liquidation and restructuring payments.

Speaker #4: We do not believe that BHG current share price fully reflects that. Turning now to our diversified segments, which you will find on page 18.

Speaker #4: Revenues were $219,000,000, flat on a reported basis compared to the same period a year ago. Growth in your science driven by favorable net pricing was offset by lower revenue in dermatology generics and dentistry.

Speaker #2: As a reminder, we have fully settled our opt-out liquidations in the US and the last payment was executed in the first quarter of 2026.

Speaker #2: In summary, and at the half-year mark, we are well ahead of expectations with revenue and adjusted EBITDA growing respectively 15 and 23% when compared to the first six months of 2025.

Speaker #4: Finally, Bausch and Lomb's revenue were $1,394,000,000, up 9% on a reported basis, and 8% on an organic basis compared to the same period last year.

Speaker #2: This allows us to raise our full year's guidance for Bausch Health excluding Bausch and Lomb across all metrics. More specifically, we are increasing the midpoint of our full year guidance by 100 million for revenue 150 million for adjusted EBITDA and 200 million for adjusted cash flow from operations.

Speaker #4: Now, turning our focus to our balance sheet. Adjusted operating cash flow and adjusted free cash flow were outstanding in the quarter, and stood at $471 million and $465 million, respectively.

JJ Sharon: More specifically, we are increasing the midpoint of our full year guidance by $100 million for revenue, $150 million for adjusted EBITDA, and $200 million for adjusted cash flow from operations. As a result, the new guidance for the full year now stands as follows. Revenue is expected to be between $5,350,000,000 and 5,500,000. The midpoint of that range translates into a 5% increase year over year. Adjusted EBITDA is now expected to be between $3,025,000 and 3,100,000. The midpoint of that range represents a 10% increase versus 2025. Finally, we now anticipate adjusted cash flow from operations to be between $1,400,000,000 and 1,475,000,000. The midpoint of that range would translate to a 21% increase year over year. Before I hand it back to Tom, let me conclude with some additional color on quarterly phasing as well as the implied adjusted EBITDA guidance for 2027.

JJ Charhon: More specifically, we are increasing the midpoint of our full year guidance by $100 million for revenue, $150 million for adjusted EBITDA, and $200 million for adjusted cash flow from operations. As a result, the new guidance for the full year now stands as follows. Revenue is expected to be between $5,350,000,000 and 5,500,000. The midpoint of that range translates into a 5% increase year over year. Adjusted EBITDA is now expected to be between $3,025,000 and 3,100,000. The midpoint of that range represents a 10% increase versus 2025. Finally, we now anticipate adjusted cash flow from operations to be between $1,400,000,000 and 1,475,000,000. The midpoint of that range would translate to a 21% increase year over year. Before I hand it back to Tom, let me conclude with some additional color on quarterly phasing as well as the implied adjusted EBITDA guidance for 2027.

Speaker #4: Our strong operating performance was the primary driver, together with the favorable change in working capital. Even more impressive was our ability to reduce our net debt by $434,000,000 in the second quarter, thanks to low outflow associated with legacy liquidation and restructuring payments.

Speaker #2: As a result, the new guidance for the full year now stands as follows. Revenue is expected to be between $5,350 million and $5,500 million the midpoint of that range translates into a 5% increase year over year.

Speaker #2: Adjusted EBITDA is now an expected to be between $3,025 million and $3,100 million the midpoint of that range represents a 10% increase versus 2025.

Speaker #4: As a reminder, we have fully settled our opt-out liquidations in the US and the last payment was executed in the first quarter of 2026.

Speaker #4: In summary, and at the half-year mark, we are well ahead of expectations, with revenue and adjusted EBITDA growing, respectively, 15% and 23% when compared to the first six months of 2025.

Speaker #2: Finally, we now anticipate adjusted cash flow from operations to be between $1,400 $1,475 million. The midpoint of that range would translate to a 21% increase year over year.

Speaker #4: This allows us to raise our full year's guidance for Bausch Health, excluding Bausch and Lomb, across all metrics. More specifically, we are increasing the midpoint of our full year guidance by $100,000,000 for revenue, $150,000,000 for adjusted EBITDA, and $200,000,000 for adjusted cash flow from operations.

Speaker #2: Before I hand it back to Tom, let me conclude with some additional color on quarterly phasing as well as the implied adjusted EBITDA guidance for 2027.

Speaker #2: Let's start with the difference in anticipated growth rates between the first and the second half. Even with the increase in the full year's guidance, our growth rates year over year for revenue and adjusted EBITDA will be lower in the second half of the year when compared to the first half primarily for the following three reasons.

JJ Sharon: Let's start with the difference in anticipated growth rates between H1 and H2. Even with the increase in the full year guidance, our growth rates year over year for revenue and adjusted EBITDA will be lower in H2 when compared to H1, primarily for the following three reasons. First, the change of our gross to net accrual associated with the channel inventory is anticipated to be a headwind of roughly $150 million. As a reminder, we recorded approximately a $60 million benefit at the end of Q3 last year to reflect the exit of the Medicaid and 340B channels. Conversely, we anticipate recording approximately a $90 million expense in Q4 of this year in anticipation of the increase in rebate to CMS, which is due to start on 1 January 2027.

JJ Charhon: Let's start with the difference in anticipated growth rates between H1 and H2. Even with the increase in the full year guidance, our growth rates year over year for revenue and adjusted EBITDA will be lower in H2 when compared to H1, primarily for the following three reasons. First, the change of our gross to net accrual associated with the channel inventory is anticipated to be a headwind of roughly $150 million. As a reminder, we recorded approximately a $60 million benefit at the end of Q3 last year to reflect the exit of the Medicaid and 340B channels. Conversely, we anticipate recording approximately a $90 million expense in Q4 of this year in anticipation of the increase in rebate to CMS, which is due to start on 1 January 2027.

Speaker #4: As a result, the new guidance for the full year now stands as follows: revenue is expected to be between $5.35 billion and $5.5 billion. The midpoint of that range translates into a 5% increase year over year.

Speaker #2: First, the change of our gross to net accrual associated with the challenge inventory is anticipated to be a headwind of roughly 150 million. As a reminder, we recorded approximately a 60 million benefit at the end of Q3 last year to reflect the exit of the Medicaid N340B channels.

Speaker #4: Adjusted EBITDA is now an expected to be between $3,025,000,000 and $3,100,000,000, the midpoint of that range represents a 10% increase versus 2025. Finally, we now anticipate adjusted cash flow from operations to be between $1,400,000,000 and $1,475,000,000.

Speaker #2: Conversely, we anticipate recording approximately a 90 million expense to the fourth quarter of this year in anticipation of the increase in rebate to CMS which is due to start on the 1st of January 2027.

Speaker #4: The midpoint of that range would translate to a 21% increase year over year. Before I hand it back to Tom, let me conclude with some additional color on quarterly phasing, as well as the implied adjusted EBITDA guidance for 2027.

Speaker #2: Second, a plans in sold through our neuroscience business within our diversified segment recently lost exclusivity at the end of June. We expect to have generic competition starting in Q3 which should translate into a 50 million headwind for the second half of 2026.

JJ Sharon: Second, UPLIZNA, sold through our neuroscience business within our diversified segment, recently lost exclusivity at the end of June. We expect to have generic competition starting in Q3, which should translate into a $50 million headwind for H2 2026. Third, while revenue for the Medicaid channel and patients originally covered by the 340B institution has been more resilient than originally anticipated, we still expect gradual erosion over the course of the following quarters. This is expected to represent approximately another $75 million headwind in H2 versus the revenue recorded in H1. In conclusion, 2026 is shaping to be a much stronger year than originally anticipated. Given that most of the drivers of overperformance in H1 could be qualified as transitional, we are not yet ready to increase the implicit adjusted EBITDA guidance for 2027, which still stands at $2.7 billion.

JJ Charhon: Second, UPLIZNA, sold through our neuroscience business within our diversified segment, recently lost exclusivity at the end of June. We expect to have generic competition starting in Q3, which should translate into a $50 million headwind for H2 2026. Third, while revenue for the Medicaid channel and patients originally covered by the 340B institution has been more resilient than originally anticipated, we still expect gradual erosion over the course of the following quarters. This is expected to represent approximately another $75 million headwind in H2 versus the revenue recorded in H1. In conclusion, 2026 is shaping to be a much stronger year than originally anticipated. Given that most of the drivers of overperformance in H1 could be qualified as transitional, we are not yet ready to increase the implicit adjusted EBITDA guidance for 2027, which still stands at $2.7 billion.

Speaker #4: Let's start with the difference in anticipated growth rates between the first and the second half. Even with the increase in the full year's guidance, our growth rates year-over-year for revenue and adjusted EBITDA will be lower in the second half of the year when compared to the first half, primarily for the following three reasons.

Speaker #2: And third, while revenue for the Medicaid channel and patients originally covered by the 340B institution has been more resilient than originally anticipated, we still expect gradual erosion of the course of the following quarters.

Speaker #4: First, the change of our gross-to-net accrual associated with the channel inventory is anticipated to be a headwind of roughly $150,000,000. As a reminder, we recorded approximately a 60 million dollar benefit at the end of Q3 last year, to reflect the exits of the Medicaid and 340B channels.

Speaker #2: This is expected to represent approximately another 75 million headwind in the second half versus the revenue recorded in the first half. In conclusion, 2026 is shaping to be a much stronger year than originally anticipated.

Speaker #4: Conversely, we anticipate recording approximately a 90 million dollar expense of the fourth quarter of this year in anticipation of the increase in rebate to CMS, which is due to start on the 1st of January 2027.

Speaker #2: Given that most of the drivers of overperformance in the first half could be qualified as transitional, we are not yet ready to increase the implicit adjusted EBITDA guidance for 2027 which still stands at 2.7 billion.

Speaker #4: Second, a plunge in sold through our neuroscience business within our diversified exclusivity at the end of June. We expect to have generic competition starting in Q3, which should translate into a 50 million dollar headwind for the second half of 2026.

Speaker #2: Please note that the 2027 guidance still assumes that we will maintain market exclusivity for Xifaxen until the 1st of January 2028. We do all of that said, I will now hand it back to Tom.

JJ Sharon: Please note that the 2027 guidance still assumes that we will maintain market exclusivity for Xifaxan until 1 January 2028. With all of that said, I will now hand it back to Tom.

JJ Charhon: Please note that the 2027 guidance still assumes that we will maintain market exclusivity for Xifaxan until 1 January 2028. With all of that said, I will now hand it back to Tom.

Speaker #1: Thank you, JJ. As JJ outlined, we delivered a very strong first half growing revenue and adjusted EBITDA respectively 15 and 23%. Moving forward, our business priorities remain unchanged.

Speaker #4: And third, while revenue for the Medicaid channel and patients originally covered by the 340B institution has been more resilient than originally anticipated, we still expect gradual erosion over the course of the following quarters.

Thomas Appio: Thank you, JJ. As JJ outlined, we delivered a very strong H1, growing revenue and adjusted EBITDA respectively 15% and 23%. Moving forward, our business priorities remain unchanged. First, drive peak performance across our portfolio, including the disciplined optimization of Xifaxan revenue and margin profile for the duration of its exclusivity period. Second, enhance the value of our portfolio through consistent organic growth and operational excellence initiatives while strengthening our competitive position and earning power for 2028 and beyond. Third, build a sustainable pipeline of future growth opportunities through selective business development and investments that maximize the value of our commercial reach and R&D capabilities. Finally, an unwavering focus on maximizing the value of Bausch + Lomb for Bausch Health shareholders.

Tom Appio: Thank you, JJ. As JJ outlined, we delivered a very strong H1, growing revenue and adjusted EBITDA respectively 15% and 23%. Moving forward, our business priorities remain unchanged. First, drive peak performance across our portfolio, including the disciplined optimization of Xifaxan revenue and margin profile for the duration of its exclusivity period. Second, enhance the value of our portfolio through consistent organic growth and operational excellence initiatives while strengthening our competitive position and earning power for 2028 and beyond. Third, build a sustainable pipeline of future growth opportunities through selective business development and investments that maximize the value of our commercial reach and R&D capabilities. Finally, an unwavering focus on maximizing the value of Bausch + Lomb for Bausch Health shareholders.

Speaker #4: This is expected to represent approximately another 75 million dollar headwind in the second half versus the revenue recorded in the first half. In conclusion, 2026 is shaping to be a much stronger year than originally anticipated.

Speaker #1: First, drive peak performance across our portfolio including the discipline optimization of Xifaxen revenue and margin profile for the duration of its exclusivity period. Second, enhance the value of our portfolio through consistent organic growth and operational excellence initiatives while strengthening our competitive position and earning power for 2028 and beyond.

Speaker #4: Given that most of the drivers of overperformance in the first half could be qualified as transitional, we are not yet ready to increase the implicit adjusted EBITDA guidance for 2027, which still stands at $2.7 billion.

Speaker #1: Third, build a sustainable pipeline of future growth opportunities through selective business development and investments that maximize the value of our commercial reach and R&D capabilities.

Speaker #4: Please note that the 2027 guidance still assumes that we will maintain market exclusivity for Xifaxan until the 1st of January 2028. We do all of that said, I will now hand it back to Tom.

Speaker #1: And finally, an unwavering focus on maximizing the value of Bausch and Lomb for Bausch Health shareholders. As previously discussed, business development remains one of our highest strategic priorities and represents a compelling opportunity to strengthen our pipeline accelerate innovation and build the next generation of growth drivers for Bausch Health.

Speaker #2: Thank you, JJ. As JJ outlined, we delivered a very strong first half, growing revenue and adjusted EBITDA respectively 15% and 23%. Moving forward, our business priorities remain unchanged.

Thomas Appio: As previously discussed, business development remains one of our highest strategic priorities and represents a compelling opportunity to strengthen our pipeline, accelerate innovation, and build the next generation of growth drivers for Bausch Health. While opportunities exist across all of our businesses, US Pharma represents one of the most attractive platforms for future value creation. Supported by a best-in-class commercial organization, an AI-powered customer insights engine that provides unparalleled visibility into market dynamics and prescribing patterns, and deep scientific expertise. We are exceptionally well-positioned to maximize the value of both our existing portfolio and future business development investments. Given the strength of our market-leading commercial infrastructure, we remain open to pursuing opportunities in new therapeutic areas where there are meaningful unmet patient needs and where we can leverage our capabilities to accelerate growth, enhance patient outcomes, and create long-term shareholder value.

Tom Appio: As previously discussed, business development remains one of our highest strategic priorities and represents a compelling opportunity to strengthen our pipeline, accelerate innovation, and build the next generation of growth drivers for Bausch Health. While opportunities exist across all of our businesses, US Pharma represents one of the most attractive platforms for future value creation. Supported by a best-in-class commercial organization, an AI-powered customer insights engine that provides unparalleled visibility into market dynamics and prescribing patterns, and deep scientific expertise. We are exceptionally well-positioned to maximize the value of both our existing portfolio and future business development investments. Given the strength of our market-leading commercial infrastructure, we remain open to pursuing opportunities in new therapeutic areas where there are meaningful unmet patient needs and where we can leverage our capabilities to accelerate growth, enhance patient outcomes, and create long-term shareholder value.

Speaker #2: First, drive peak performance across our portfolio, including the discipline optimization of Xifaxan revenue and margin profile for the duration of its exclusivity period. Second, enhance the value of our portfolio through consistent organic growth and operational excellence initiatives while strengthening our competitive position and earning power for 2028 and beyond.

Speaker #1: While opportunities exist across all of our businesses, US pharma represents one of the most attractive platforms for future value creation. Supported by a best-in-class commercial organization, an AI-powered customer insights engine that provides unparalleled visibility into market dynamics and prescribing patterns and deep scientific expertise, we are exceptionally well positioned to maximize the value of both our existing portfolio and future business development investments.

Speaker #2: Third, build a sustainable pipeline of future growth opportunities through selective business development and investments that maximize the value of our commercial reach and R&D capabilities.

Speaker #2: And finally, an unwavering focus on maximizing the value of Bausch + Lomb for Bausch Health shareholders. As previously discussed, business development remains one of our highest strategic priorities, and it represents a compelling opportunity to strengthen our pipeline, accelerate innovation, and build the next generation of growth drivers for Bausch Health.

Speaker #1: Given the strength of our market-leading commercial infrastructure, we remain open to pursuing opportunities in new therapeutic areas where there are meaningful unmet patient needs and where we can leverage our capabilities to accelerate growth, enhance patient outcomes, and create long-term shareholder value.

Speaker #1: In closing, our first half performance reinforces our firm belief that 2026 is shaping up to be another exceptional year for Bausch Health. The substantial increase in our guidance for revenue adjusted EBITDA and cash flow generation is a clear reflection of the strong momentum across our businesses and the discipline execution of our strategy.

Thomas Appio: In closing, our H1 performance reinforces our firm belief that 2026 is shaping up to be another exceptional year for Bausch Health. The substantial increase in our guidance for revenue, adjusted EBITDA, and cash flow generation is a clear reflection of the strong momentum across our businesses and the disciplined execution of our strategy. While uncertainty remains in the broader environment, our focus is unwavering to continue driving operational excellence, strengthening our portfolio, and pursuing every opportunity to create long-term value for our stakeholders. I would like to again extend my sincere thanks to our colleagues around the world. Their passion, dedication, resilience, and commitment to excellence are the foundation of our success and the reasons we continue to outperform expectations. We enter the H2 of the year with considerable momentum, a clear strategic direction, and optimism in the opportunities ahead.

Tom Appio: In closing, our H1 performance reinforces our firm belief that 2026 is shaping up to be another exceptional year for Bausch Health. The substantial increase in our guidance for revenue, adjusted EBITDA, and cash flow generation is a clear reflection of the strong momentum across our businesses and the disciplined execution of our strategy. While uncertainty remains in the broader environment, our focus is unwavering to continue driving operational excellence, strengthening our portfolio, and pursuing every opportunity to create long-term value for our stakeholders. I would like to again extend my sincere thanks to our colleagues around the world. Their passion, dedication, resilience, and commitment to excellence are the foundation of our success and the reasons we continue to outperform expectations. We enter the H2 of the year with considerable momentum, a clear strategic direction, and optimism in the opportunities ahead.

Speaker #2: While opportunities exist across all of our businesses, US pharma represents one of the most attractive platforms for future value creation. Supported by a best-in-class commercial organization, an AI-powered customer insights engine that provides unparalleled visibility into market dynamics and prescribing patterns and deep scientific expertise, we are exceptionally well-positioned to maximize the value of both our existing portfolio and future business development investments.

Speaker #1: While uncertainty remains in the broader environment, our focus is unwavering to continue driving operational excellence, strengthening our portfolio, and pursuing every opportunity to create long-term value for our stakeholders.

Speaker #2: Given the strength of our market-leading commercial infrastructure, we remain open to pursuing opportunities in new therapeutic areas where there are meaningful unmet patient needs, and where we can leverage our capabilities to accelerate growth, enhance patient outcomes, and create long-term shareholder value.

Speaker #1: I would like to again extend my sincere thanks to our colleagues around the world. Their passion dedication resilience and commitment to excellence are the foundation of our success and the reasons we continue to outperform expectations.

Speaker #2: In closing, our first half performance reinforces our firm belief that 2026 is shaping up to be another exceptional year for Bausch Health. The substantial increase in our guidance for revenue adjusted EBITDA and cash flow generation is a clear reflection of the strong momentum across our businesses and the discipline execution of our strategy.

Speaker #1: We enter the second half of the year with considerable momentum. A clear strategic direction and optimism in the opportunities ahead. We are committed to continuing to unlock the full potential of Bausch Health for the benefits of all stakeholders.

Thomas Appio: We are committed to continuing to unlock the full potential of Bausch Health for the benefit of all stakeholders. With that, I will turn the call over to the operator so we can open the line for Q&A.

Tom Appio: We are committed to continuing to unlock the full potential of Bausch Health for the benefit of all stakeholders. With that, I will turn the call over to the operator so we can open the line for Q&A.

Speaker #1: With that, I will turn the call over to the operator so we can open the line for Q&A.

Speaker #2: While uncertainty remains in the broader environment, our focus is unwavering. To continue driving operational excellence, strengthening our portfolio, and pursuing every opportunity to create long-term value for our stakeholders.

Speaker #3: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two 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. Thank you. Our first question comes from the line of Michael Freeman with Raymond James. Please proceed.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

Speaker #3: 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.

Speaker #2: I would like to again extend my sincere thanks to our colleagues around the world. Their passion, dedication, resilience, and commitment to excellence are the foundation of our success and the reasons we continue to outperform expectations.

Speaker #3: Thank you. Our first question comes from the line of Michael Freeman. With Raymond James. Please proceed.

Speaker #2: We enter the second half of the year with considerable momentum, a clear strategic direction, and optimism about the opportunities ahead. We are committed to continuing to unlock the full potential of Bausch Health for the benefit of all stakeholders.

Speaker #4: Hey, good afternoon. Tom and JJ. Thanks very much and congratulations on a great big second quarter here. My first question, you talked about business development as a priority.

Michael Freeman: Hey, good afternoon, Tom and JJ. Thanks very much, and congratulations on a great big Q2 here. My first question, you talked about business development as a priority. I wonder if you could maybe give us a few ideas of areas of interest where you think Bausch could really add value to assets. I wonder if you could describe some financial guidelines around, or guardrails that you might set around business development. For instance, would you be willing to increase leverage to pursue this? Thanks.

Speaker #4: I wonder if you could maybe give us a few ideas of areas of interest where you think Bausch could really add value to assets.

Speaker #2: With that, I will turn the call over to the operator so we can open the line for Q&A.

Speaker #4: And I wonder if you could describe some financial guidelines around or guardrails that you might set around business development. For instance, would you be willing to increase leverage to pursue this?

Speaker #1: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad.

Speaker #4: Thanks.

Speaker #1: A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue.

Speaker #5: Hi, Michael. Thanks for the question. Yeah, when we look at as I said in my prepared remarks, I think the first thing we could be a great partner for companies out there looking to do business development with us.

Thomas Appio: Hi, Michael. Thanks for the question. As I said in my prepared remarks, I think the first thing, we could be a great partner for companies out there looking to do business development with us. If you look at the infrastructure we have and the great commercial engine we have, we think we have a competitive advantage there over many companies. When we look at business development, as we talked about in terms of the therapeutic areas that we're in, of course, GI, specifically liver, our neuroscience business, our derm business. We also have a pain team as well. If you look at some of the other areas that are adjacent to that are very interesting to us as we did the acquisition of DURECT, what we think we can do there.

Tom Appio: Hi, Michael. Thanks for the question. As I said in my prepared remarks, I think the first thing, we could be a great partner for companies out there looking to do business development with us. If you look at the infrastructure we have and the great commercial engine we have, we think we have a competitive advantage there over many companies. When we look at business development, as we talked about in terms of the therapeutic areas that we're in, of course, GI, specifically liver, our neuroscience business, our derm business. We also have a pain team as well. If you look at some of the other areas that are adjacent to that are very interesting to us as we did the acquisition of DURECT, what we think we can do there.

Speaker #1: 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.

Speaker #5: Our if you look at the infrastructure we have and the great commercial engine we have. So we think we have a competitive advantage there over many development, as we talked about, in terms of the therapeutic areas that we're in, of course GI, specifically liver, our neuroscience business, our derm business.

Speaker #1: Thank you. Our first question comes from the line of Michael Freeman. With Raymond James. Please proceed.

Speaker #3: Hey, good afternoon. Tom and JJ, thanks very much, and congratulations on a great big second quarter here. My first question, you talked about business development as a priority.

Speaker #5: We also have a pain team as well. And then if you look at some of the other areas that are adjacent to that, are very interesting to us is as we we did the acquisition of Direct, what we think we can do there.

Speaker #3: I wonder if you could maybe give us a few ideas of areas of interest where you think Bausch could really add value to assets.

Speaker #3: And I wonder if you could describe some financial guidelines around or guardrails that you might set around business development. For instance, would you be willing to increase leverage to pursue this?

Speaker #5: So as we look at it, I keep as I said in my prepared remarks, an open mind to the assets that we can bring in to drive future growth.

Thomas Appio: As we look at it, I keep, as I said in my prepared remarks, an open mind to the assets that we can bring in to drive future growth. What I would say is, there are adjacency categories to where we compete, but also there are other categories that I think that we can add value as well given the outstanding commercial infrastructure we have, and then, of course, our AI engine that we have adapted into our various other therapeutic areas. In terms of the capital allocation, this is always a discussion that J.J. and I have, looking at our assets today and then where we can allocate capital. It also depends on the asset that we are looking at and the cost. I will just hand it to J.J. Maybe he may want to make a few other comments on capital allocation.

Tom Appio: As we look at it, I keep, as I said in my prepared remarks, an open mind to the assets that we can bring in to drive future growth. What I would say is, there are adjacency categories to where we compete, but also there are other categories that I think that we can add value as well given the outstanding commercial infrastructure we have, and then, of course, our AI engine that we have adapted into our various other therapeutic areas. In terms of the capital allocation, this is always a discussion that J.J. and I have, looking at our assets today and then where we can allocate capital. It also depends on the asset that we are looking at and the cost. I will just hand it to J.J. Maybe he may want to make a few other comments on capital allocation.

Speaker #3: Thanks.

Speaker #4: Hi, Michael. Thanks for the question. Yeah, when we look at, as I said in my prepared remarks, I think the first thing we could be a great partner for companies out there looking to do business development with us.

Speaker #5: And what I would say is there is adjacency categories to where we compete but also there's other categories that I think that we can add value as well given the outstanding commercial infrastructure we have and then of course our AI engine that we've adapted in various into our various other therapeutic areas.

Speaker #4: If you look at the infrastructure we have and the great commercial engine we have, so we think we have a competitive advantage there. Over many companies, when we look at business development, as we talked about, in terms of the therapeutic areas that we're in, of course, GI, specifically liver, our neuroscience business, our derm business, we also have a pain team as well.

Speaker #5: In terms of the capital allocation, this is always a discussion that JJ and I have. Looking at our assets today, and then where we can allocate capital and it also depends on the asset that we're looking at and the cost.

Speaker #5: I'll just hand it to JJ. Maybe he may want to make a few other comments on capital allocation.

Speaker #4: And then if you look at some of the other areas that are adjacent to that, our very interesting to us is as we did the acquisition of Direct, what we think we can do there.

Speaker #2: Yeah, absolutely. Hi, Michael. The strategy that we've set up for capital allocation remains the same. The first one is obviously to fix the capital structure and reduce our net debt leverage.

JJ Sharon: Absolutely. Hi, Michael. The strategy that we have set out for capital allocation remains the same. The first one is obviously to fix the capital structure and reduce on net debt leverage. Second is to reinvest in the business. Then, if there is any return to shareholders at some point in time, we may want to consider it, but obviously not a topic for discussion at this point in time. This leads us to different type of assets that we could go after. As we have communicated in the past, there are really two buckets. The first one would be relatively small investments that could be at the development stage, and I think DURECT is a good example of that we have done Q3 of last year. We can not only digest the upfront, but also fund the further development until the product comes to market.

JJ Charhon: Absolutely. Hi, Michael. The strategy that we have set out for capital allocation remains the same. The first one is obviously to fix the capital structure and reduce on net debt leverage. Second is to reinvest in the business. Then, if there is any return to shareholders at some point in time, we may want to consider it, but obviously not a topic for discussion at this point in time. This leads us to different type of assets that we could go after. As we have communicated in the past, there are really two buckets. The first one would be relatively small investments that could be at the development stage, and I think DURECT is a good example of that we have done Q3 of last year. We can not only digest the upfront, but also fund the further development until the product comes to market.

Speaker #4: So as we look at it, I keep, as I said in my prepared remarks, an open mind to the assets that we can bring in to drive future growth.

Speaker #2: Second is to reinvest in the business. And then if there's any return to shareholders at some point in time, then we may want to consider it.

Speaker #4: What I would say is, there are adjacent categories to where we compete, but there are also other categories where I think we can add value as well, given the outstanding commercial infrastructure we have and, of course, our AI engine that we've adapted into our various other therapeutic areas.

Speaker #2: But obviously not a topic for discussion at this point in time. Which then leads us to different type of assets that we could go after.

Speaker #2: As we've communicated in the past, they're all really two buckets. The first one would investments that could be at the development stage and I think Direct is a good example of that, that we've done third quarter of last year we can not only digest the upfront but also fund the further development until the product comes to market.

Speaker #4: In terms of the capital allocation, this is always a discussion that JJ and I have. Looking at our assets today, it also depends on the asset that we're looking at and the cost.

Speaker #2: As you've seen with Direct, it fits totally our strategy and our scientific and commercial capabilities. And then on the other end of the spectrum, we could go for a larger asset either in the form of a single asset or a company.

JJ Sharon: As you have seen with DURECT, it fits totally our strategy and our scientific and commercial capabilities. On the other end of the spectrum, we could go for a larger asset, either in the form of a single asset or a company, but the payback would have to be relatively quick. It would have to be relatively close to commercialization, or we would have to have good line of sight into significant synergies and the ability to turn around the P&L of the asset that we would acquire, because it cannot too much stand in the way of our first strategy, which is to ultimately fix the capital structure.

JJ Charhon: As you have seen with DURECT, it fits totally our strategy and our scientific and commercial capabilities. On the other end of the spectrum, we could go for a larger asset, either in the form of a single asset or a company, but the payback would have to be relatively quick. It would have to be relatively close to commercialization, or we would have to have good line of sight into significant synergies and the ability to turn around the P&L of the asset that we would acquire, because it cannot too much stand in the way of our first strategy, which is to ultimately fix the capital structure.

Speaker #4: I'll just hand it to JJ. Maybe he may want to make a few other comments on capital allocation.

Speaker #2: But the payback would have to be relatively quick. So close to commercialization or we would have to have good line of sight into significant synergies and the ability to turn around the P&L of the assets that we would acquire.

Speaker #2: Second is to reinvest in the business. And then if there's any return to shareholders at some point in time, then we may want to consider it.

Speaker #2: Because it cannot too much stand in the way of our first strategy which is to ultimately fix the capital structure.

Speaker #2: But obviously, that's not a topic for discussion at this point in time, which then leads us to different types of assets that we could go after.

Thomas Appio: I think also, Michael, when we look at business development, as I said in my prepared remarks, the biggest focus and the greatest opportunity is in the US pharma platform, in terms of those therapeutic areas. Because when you look at the international side, we are continuing to do tuck-in type acquisitions in our branded generic businesses in EMEA and Latin America. When we look at it, we discussed it in the prepared remarks of what we have done in Latin America. We had a really good quarter. The overall portfolio did well, but along with our entrance into the cardiometabolic franchise and our expansion there. I think when we are also looking at business development, when we look at the US, we are also trying to do North American deals that we know we can get new products into Canada.

Tom Appio: I think also, Michael, when we look at business development, as I said in my prepared remarks, the biggest focus and the greatest opportunity is in the US pharma platform, in terms of those therapeutic areas. Because when you look at the international side, we are continuing to do tuck-in type acquisitions in our branded generic businesses in EMEA and Latin America. When we look at it, we discussed it in the prepared remarks of what we have done in Latin America. We had a really good quarter. The overall portfolio did well, but along with our entrance into the cardiometabolic franchise and our expansion there. I think when we are also looking at business development, when we look at the US, we are also trying to do North American deals that we know we can get new products into Canada.

Speaker #5: I think also, Michael, when we look at business development, as I said in my prepared remarks, the biggest focus and the greatest opportunity is in the US pharma.

Speaker #2: As we've communicated in the past, there are really two buckets. The first one would be relatively small investments that could be at the development stage, and I think Direct is a good example of that, which we've done in the third quarter of last year.

Speaker #5: Platform in terms of those therapeutic areas. Because when you look at the international side, we are continuing to do tuck in type acquisitions in our branded generic businesses and EMEA.

Speaker #2: We can not only digest the upfront, but also fund the further development until the product comes to market. As you've seen with Direct, it fits totally with our strategy and our scientific and commercial capabilities.

Speaker #5: And Latin America. So a when we look at it, I mean, we discussed it in the prepared remarks of what we've done in Latin America.

Speaker #2: And then on the other end of the spectrum, we could go for a larger asset, either in the form of a single asset or a company, but the payback would have to be relatively quick.

Speaker #5: We had a really good quarter of the overall portfolio did well. But along with the our entrance into the cardiometabolic franchise and our expansion there.

Speaker #2: So it would have to be relatively close to commercialization, or we would have to have good line of sight into significant synergies and the ability to turn around the P&L of the asset that we would acquire.

Speaker #5: I think when we're also looking at business development, we're when we look at the US, we're also trying to do North American deals that we know we can get new products into Canada.

Speaker #2: Because it cannot stand too much in the way of our first strategy, which is to ultimately fix the capital structure.

Speaker #5: So that's an area where I think we also have to do some business development. In the promoted brands that we have in Canada, they're doing well.

Thomas Appio: That's an area where I think we also have to do some business development. In the promoted brands that we have in Canada, they're doing well. It's the LOEs that drag the business a little bit on the Canadian side. If we can do North American deals, that would be the focus as well.

Tom Appio: That's an area where I think we also have to do some business development. In the promoted brands that we have in Canada, they're doing well. It's the LOEs that drag the business a little bit on the Canadian side. If we can do North American deals, that would be the focus as well.

Speaker #4: I think also, Michael, when we look at business development, as I said in my prepared remarks, the biggest focus and the greatest opportunity is in the U.S. pharma.

Speaker #5: It's the LOEs that drag the business a little bit on the Canadian side. So if we can do North American deals, that would be the focus as well.

Speaker #4: Platform in terms of those therapeutic areas. Because when you look at the international side, we are continuing to do tuck in type acquisitions in our branded generic businesses and EMEA.

Speaker #4: Okay. All right. Thank you for that fulsome answer. That's great. Just one follow-up. I wonder if you could describe what might be the next observable milestone in monetizing the Bausch and Lomb asset.

Michael Freeman: Okay. All right. Thank you for that fulsome answer. That's great. Just one follow-up. I wonder if you could describe what might be the next observable milestone in monetizing the Bausch + Lomb asset.

Speaker #4: And Latin America. So when we look at it, we discussed it in the prepared remarks of what we've done in Latin America. We had a really good quarter of the overall portfolio, did well.

Speaker #2: So I will start with kind of the high-level strategy here. As you know, we've done a large refinancing last year in 2025. And I think the objective was to extend the runway for lack of a better term and therefore increase flexibility around the timing and the process.

JJ Sharon: I will start with kind of the high-level strategy here. As you know, we've done a large refinancing last year in 2025, and I think the objective was to extend the runway, for lack of a better term, and therefore increase flexibility around the timing and the process we might decide to fully realize the value of our B+L asset for BHC shareholders. That continues to be the mindset. There are obviously a number of considerations to evaluate and to figure out exactly how do we translate the value of B+L into a BHC share price, and we're looking at all and any avenues to do so. The company, B+L, communicated some aggressive financial targets, Vision 2027, with a significant increase in EBITDA and revenue by 2028. Obviously, that's an important consideration of how we think about our options.

JJ Charhon: I will start with kind of the high-level strategy here. As you know, we've done a large refinancing last year in 2025, and I think the objective was to extend the runway, for lack of a better term, and therefore increase flexibility around the timing and the process we might decide to fully realize the value of our B+L asset for BHC shareholders. That continues to be the mindset. There are obviously a number of considerations to evaluate and to figure out exactly how do we translate the value of B+L into a BHC share price, and we're looking at all and any avenues to do so. The company, B+L, communicated some aggressive financial targets, Vision 2027, with a significant increase in EBITDA and revenue by 2028. Obviously, that's an important consideration of how we think about our options.

Speaker #4: But along with the our entrance into the cardiometabolic franchise and our expansion there. I think when we're also looking at business development, we're when we look at the US, we're also trying to do North American deals that we can get new products into Canada.

Speaker #2: We might decide to fully realize the value of our BNL asset for BHG shareholders. That continues to be the mindset. There are obviously a number of considerations to evaluate and to figure out exactly how do we translate the value of BNL into BHG share price.

Speaker #4: So that's an area where I think we also have to do some business development. In the promoted brands that we have in Canada, they're doing well.

Speaker #4: It's the LOEs that drag the business a little bit on the Canadian side. So if we can do North American deals, that would be the focus as well.

Speaker #2: And we're looking at all and any avenues to do so. The company BNL communicated some aggressive financial targets vision 2027 with a significant increase in EBITDA and revenue by 2028.

Speaker #3: Okay. All right. Thank you for that fulsome answer. That's great. Just one follow-up. I wonder if you could describe what might be the next observable milestone in monetizing the Bausch and Lomb asset.

Speaker #2: So I will start with kind of the high-level strategy here. As you know, we've done a large refinancing last year, in 2025. And I think the objective was to extend the runway, for lack of a better term, and therefore increase flexibility around the timing and the decision to fully realize the value of our BNL asset for BHC shareholders.

Speaker #2: So obviously that's an important consideration how we think about our options.

Speaker #5: Okay. Operator, next question.

Thomas Appio: Okay. Operator, next question.

Tom Appio: Okay. Operator, next question.

Speaker #1: Thank you. Our next question comes to the line of Michael D. Fiore. With Evercore ISI, please proceed.

Operator: Thank you. Our next question comes to the line of Michael DiPietro with Evercore ISI. Please proceed.

Operator: Thank you. Our next question comes to the line of Michael DiFiore with Evercore ISI. Please proceed.

Speaker #6: Hi guys. This is Mike D. Fiore in for Omer. Thanks so much for taking my question and congrats on what's a great quarter. Two for me.

Michael DiPietro: Hi, guys. This is Mike DiPietro in for Umer. Thanks so much for taking my question and congrats on what's a great quarter. Two from me. Ex B+L, what EBITDA do you expect to settle at once Xifaxan is fully generic? My other question is, if payers have referenced IRA pricing in your 2027 commercial contracting, has this happened, and what leakage are you assuming into the commercial book? Thank you.

Michael DiFiore: Hi, guys. This is Mike DiFiore in for Umer. Thanks so much for taking my question and congrats on what's a great quarter. Two from me. Ex B+L, what EBITDA do you expect to settle at once Xifaxan is fully generic? My other question is, if payers have referenced IRA pricing in your 2027 commercial contracting, has this happened, and what leakage are you assuming into the commercial book? Thank you.

Speaker #2: That continues to be the mindset. There are obviously a number of considerations to evaluate and to figure out exactly how do we translate the value of BNL into BHG share price.

Speaker #6: XBNL, what EBITDA do you expect to settle at once Zyofaxin is fully generic? And my other question is, if payers have referenced IRA pricing in your 2027 commercial contracting, has this happened?

Speaker #2: And we're looking at all and any avenues to do so. The company, BNL, communicated some aggressive financial targets—Vision 2027—with a significant increase in EBITDA and revenue by 2028.

Speaker #6: And what leakage are you assuming into the commercial book? Thank you.

Speaker #2: So hi, Michael. I will take those questions. We haven't provided any guidance for 2028. One of the variables is obviously the pending IP litigation associated with Zyofaxin.

JJ Sharon: Hi, Michael. I will take those questions. We haven't provided any guidance for 2028. One of the variables is obviously the pending IP litigation associated with Xifaxan. Once that is settled, I think we should be in a better position to start guiding the market as to what 2028 looks like. We have provided a guidance for 2027 that stands currently at $2.7 billion. That includes the impact of the incremental CMS rebate that we are contractually obligated to provide starting 1 January 2027. If you look at our guidance for 2026, you look at our guidance for 2027, everything of being equal and factoring some growth in the rest of portfolio, we should be able to deduct fairly easily what is the magnitude of the additional rebate associated with CMS.

JJ Charhon: Hi, Michael. I will take those questions. We haven't provided any guidance for 2028. One of the variables is obviously the pending IP litigation associated with Xifaxan. Once that is settled, I think we should be in a better position to start guiding the market as to what 2028 looks like. We have provided a guidance for 2027 that stands currently at $2.7 billion. That includes the impact of the incremental CMS rebate that we are contractually obligated to provide starting 1 January 2027. If you look at our guidance for 2026, you look at our guidance for 2027, everything of being equal and factoring some growth in the rest of portfolio, we should be able to deduct fairly easily what is the magnitude of the additional rebate associated with CMS.

Speaker #2: So obviously that's an important consideration how we think about our options.

Speaker #2: So once that is settled, I think we should be in a better position to start getting the market as to what 2028 looks like.

Speaker #4: Okay. Operator, next question.

Speaker #2: We have provided a guidance for 2027 that stands currently at 2.7 billion dollars. That includes the impact of the incremental CMS rebate that we are contractually obligated to provide starting January 1st, 2027.

Speaker #1: Thank you. Our next question comes from the line of Michael Di Fiori with Evercore ISI. Please proceed.

Speaker #5: Hi, guys. This is Mike Di Fiori in for Omar. Thanks so much for taking my question, and congrats on what’s a great quarter. Two for me.

Speaker #2: So if you look at our guidance for 2026, you look at our guidance for 2027, everything has been equal and factoring some growth in the rest of the portfolio, you should be able to deduct fairly easily what is the magnitude of the additional rebate associated with CMS.

Speaker #5: Ex-BNL, what EBITDA do you expect to settle at once Zyvaxin is fully generic? And my other question is, if payers have referenced IRA pricing in your 2027 commercial contracting—has this happened?

Speaker #5: Yes. Michael on the second part of your question. I don't believe the payers have referenced the part the pricing in 2027 contracts, but it would have to, again, have to see how that plays out.

Speaker #5: And what leakage are you assuming into the commercial book? Thank you.

Thomas Appio: Michael, on the second part of your question, I don't believe the payers have referenced the Part D pricing in 2027 contracts, but again, have to see how that plays out. All right?

Tom Appio: Michael, on the second part of your question, I don't believe the payers have referenced the Part D pricing in 2027 contracts, but again, have to see how that plays out. All right?

Speaker #2: Hi Michael. I will take those questions. We haven't provided any guidance for 2028. One of the variables is obviously the pending IP litigation associated with Zyvaxin.

Speaker #5: All right.

Speaker #6: Thank you.

Michael DiPietro: Thank you.

Michael DiFiore: Thank you.

Speaker #5: Operator, next question.

Thomas Appio: Operator, next question.

Tom Appio: Operator, next question.

Speaker #1: Thank you. As a reminder, it is STAR 1 to ask a question. Our next question comes to the line of Doug Miehm. With RBC Capital Markets, please proceed.

Operator: Thank you. As a reminder, it is star one to ask a question. Our next question comes to the line of Doug Miehm with RBC Capital Markets. Please proceed.

Speaker #2: So once that is settled, I think we should be in a better position to start getting the market as to what 2028 looks like.

Speaker #3: Yeah. Thanks very much. I just wanted to go back to Ulta. Very strong numbers in the quarter. And JJ, I think you talked about a baseline business now at 330 million.

Doug Miehm: Yeah. Thanks very much. I just wanted to go back. Solta. Very strong numbers in the quarter. JJ, I think you talked about a baseline business now at $330 million, but would you be able to maybe provide a bit more detail on that $330 million? If we use what we're seeing for this year and then look at revenue growth, that would be a good yardstick in terms of how we should think about the opportunity available to Solta as we look to next year.

Speaker #3: But would you be able to maybe provide a bit more detail on that 330 million? And then as we look into next year, is there the opportunity for margin growth or if we use what we're seeing for this year and then look at revenue growth, that would be a good yardstick in terms of how we should think about the opportunity available to Solta as we look to next year?

Speaker #2: So if you look at our guidance for 2026, you look at our guidance for 2027, everything else being equal and factoring some growth in the rest of the portfolio, you should pre-build we should be able to deduct fairly easily what is the magnitude of the additional rebate associated with CMS.

Speaker #4: Yes. Michael, on the second part of your question, I don't believe the payers have referenced the part, the pricing in 2027 contracts, but it would have to, again, have to see how that plays out.

Speaker #4: All right.

Speaker #5: Yeah, Doug. I'll give the question to JJ, but just make an opening comment when you look at the performance. Of course, we had an outstanding quarter in China.

Thomas Appio: Yeah, Doug, I'll give the question to J.J., but I'll just make an opening comment. When you look at the performance, of course, we had an outstanding quarter in China. We look at our business in Asia Pacific, continues to perform well in China and Korea. Taiwan had a very good quarter as well, and returning Taiwan back to growth. We're pleased with our results, and continuing to look at the business, and drive it forward. Looking in the US, to again, look to do more direct-to-consumer and investing in maximizing our field force. The Solta franchise is a great platform for us, and we think, as we go forward, what we can do with it.

Tom Appio: Yeah, Doug, I'll give the question to J.J., but I'll just make an opening comment. When you look at the performance, of course, we had an outstanding quarter in China. We look at our business in Asia Pacific, continues to perform well in China and Korea. Taiwan had a very good quarter as well, and returning Taiwan back to growth. We're pleased with our results, and continuing to look at the business, and drive it forward. Looking in the US, to again, look to do more direct-to-consumer and investing in maximizing our field force. The Solta franchise is a great platform for us, and we think, as we go forward, what we can do with it.

Speaker #5: Thank you.

Speaker #4: Operator, next question.

Speaker #1: Thank you. As a reminder, it is *star one* to ask a question. Our next question comes from the line of Doug Mee with RBC Capital Markets. Please proceed.

Speaker #5: And we look at our business in Asia Pacific, continues to perform well in China and Korea. Taiwan had a very good quarter as well.

Speaker #5: Yeah. Thanks very much. I just wanted to go back to Ulta. Very strong numbers in the quarter. And JJ, I think you talked about a baseline business now at 330 million.

Speaker #5: And returning Taiwan back to growth. So we're pleased with our results. And continuing to look at the business and drive it forward. And then looking in the US, to again, look to do more direct-to-consumer and investing in maximizing our fuel force.

Speaker #5: But would you be able to maybe provide a bit more detail on that $330 million? And then, as we look into next year, is there the opportunity for margin growth, or if we use what we're seeing for this year and then look at revenue growth, would that be a good yardstick in terms of how we should think about the opportunity available to Solta as we look to next year?

Speaker #5: So the Solta franchise is a great platform for us. And we think as we go forward, what we can do with it and clearly the acquisition of Shebo in China for service distributor has really powered our growth, not only on the top line, as JJ articulated and is prepared remarks on the bottom line.

Thomas Appio: Clearly, the acquisition of Shibo in China, our first service distributor, has really powered our growth, not only on the top line, as J.J. articulated in his prepared remarks on the bottom line. He can give you more color to the $330 million.

Tom Appio: Clearly, the acquisition of Shibo in China, our first service distributor, has really powered our growth, not only on the top line, as J.J. articulated in his prepared remarks on the bottom line. He can give you more color to the $330 million.

Speaker #4: Yeah, Doug. I'll give the question to JJ, but I'll just make an opening comment. When you look at the performance, of course, we had an outstanding quarter in China.

Speaker #5: But he can give you more color to the 330 million. Yeah. Well, first of all, if you look at the halfway mark, you're not far away from the, I would say, the half of the 330, which is 165.

JJ Sharon: Yeah. Well, first of all, if you look at the halfway mark, you're not far away from, I would say, the half of the $330, which is $165. One thing that you need to take into consideration is the fact that, in Q1, we still had the residual impact of the inventory step-up that we acquired when we fully integrated our full service distributor. The Q1 margin was a little bit depressed for, I would say, the last time. Obviously, it was the case also in Q4 of 2025. This is why I think we're referencing to Q2 as a good starting point for thinking about the full-year run rate.

JJ Charhon: Yeah. Well, first of all, if you look at the halfway mark, you're not far away from, I would say, the half of the $330, which is $165. One thing that you need to take into consideration is the fact that, in Q1, we still had the residual impact of the inventory step-up that we acquired when we fully integrated our full service distributor. The Q1 margin was a little bit depressed for, I would say, the last time. Obviously, it was the case also in Q4 of 2025. This is why I think we're referencing to Q2 as a good starting point for thinking about the full-year run rate.

Speaker #4: And we look at our business in Asia Pacific, which continues to perform well in China and Korea. Taiwan had a very good quarter as well.

Speaker #5: One thing that you need to take into consideration is the fact that in the first quarter, we still had the residual impact of the inventory step up that we acquire when we fully integrated our full service distributor.

Speaker #4: And returning Taiwan back to growth. So we're pleased with our results. And continuing to look at the business, and drive it forward. And then looking in the US, to again, look to do more direct-to-consumer and investing in maximizing our fuel force.

Speaker #5: So the Q1 margin was a little bit depressed for, I would say, the last time. Obviously, it was a case also in the fourth quarter of '25.

Speaker #4: So the SOLTA franchise is a great platform for us. And we think as we go forward, what we can do with it and clearly the acquisition of Shebo, in China, the first service distributor has really powered our growth, not only on the top line, as JJ articulated in his prepared remarks on the bottom line.

Speaker #5: And this is why I think we're referencing to Q2 as a good starting point for thinking about the full year run rate. What you have to factor in, which you have put in my prepared remark, is really, I think, the phasing of the expenses particularly on the junior on the commercial side.

JJ Sharon: What you have to factor in, which I put in my prepared remark, is really, I think, the phasing of the expenses, particularly on the JNI on the commercial side, were a little bit light in Q2. That's why the $330 doesn't quite reconcile to $91 times four. It's a good starting point. It does include the full, I would say, price increase, really the fact that we've done this vertical integration. Of course, the continued growth we're seeing in the China market and also in South Korea, basically brings kind of the run rate to the $330 I provided.

JJ Charhon: What you have to factor in, which I put in my prepared remark, is really, I think, the phasing of the expenses, particularly on the JNI on the commercial side, were a little bit light in Q2. That's why the $330 doesn't quite reconcile to $91 times four. It's a good starting point. It does include the full, I would say, price increase, really the fact that we've done this vertical integration. Of course, the continued growth we're seeing in the China market and also in South Korea, basically brings kind of the run rate to the $330 I provided.

Speaker #5: We're a bit light in the second quarter. That's why the 330 doesn't quite reconcile to 91 times four. But it's a good starting point.

Speaker #4: But he can give you more color to the 330 million.

Speaker #5: It does include the full, I would say, pricing increase really the fact that we've done this vertical integration. And then, of course, the continued growth we're seeing in the China market and also in South Korea that basically brings kind of the run rate to the 330 I provided.

Speaker #2: Yeah. Well, first of all, if you look at the halfway mark, you're not far away from the, I would say, the half of the 330, which is 165.

Speaker #2: One thing that you need to take into consideration is the fact that in the first quarter, we still had the residual impact of the inventory step-up that we acquired when we fully integrated our full-service distributor.

Speaker #3: Okay. That's very helpful.

Doug Miehm: Okay. That's very helpful.

JJ Sharon: For next year, just a couple of mention. When you think about, I would say I'll start with gross margin. Gross margin is fairly stable. Really the integration of our full services in China really hasn't materially changed really the gross margin profile for the business. Obviously, when you grow the top line, you continue to manage tightly expenses like we do in Solta and like we do across our portfolio. You're going to have operating leverage. Not that it's by design, because it's already fairly high at Solta. We want to make sure we're funding innovation and we're funding commercial investment to continue to support all of our business across all of our geographies. We've communicated consistently that from a top-line perspective, we're still expecting the medium term for this business to grow double digits.

Speaker #5: And then for next year, just a couple of mention. When you think about, I would say, I'll start with gross margin. Gross margin is fairly stable.

JJ Charhon: For next year, just a couple of mention. When you think about, I would say I'll start with gross margin. Gross margin is fairly stable. Really the integration of our full services in China really hasn't materially changed really the gross margin profile for the business. Obviously, when you grow the top line, you continue to manage tightly expenses like we do in Solta and like we do across our portfolio. You're going to have operating leverage. Not that it's by design, because it's already fairly high at Solta. We want to make sure we're funding innovation and we're funding commercial investment to continue to support all of our business across all of our geographies. We've communicated consistently that from a top-line perspective, we're still expecting the medium term for this business to grow double digits.

Speaker #2: So the Q1 margin was a little bit depressed for, I would say, the last time. Obviously, it was the case also in the fourth quarter of '25.

Speaker #2: And this is why I think we're referencing Q2 as a good starting point for thinking about the full-year run rate. What you have to factor in, which I have put in my prepared remarks, is really, I think, the phasing of the expenses, particularly on the Genia, on the commercial side.

Speaker #5: Really, the integration of our full services in China really hasn't materially changed really the gross margin profile for the business. Obviously, when you grow, the top line, you continue to manage tightly expenses like we do in Solta and like we do across our portfolio, you're going to have operating leverage.

Speaker #2: We're a little bit light in the second quarter. That's why the $330 doesn't quite reconcile to $91 times 4. But it's a good starting point.

Speaker #5: So not that it's by design because it's already fairly high at Solta. We want to make sure we're funding innovation and we're funding commercial investment to continue to support all of our business across all of our geographies.

Speaker #2: It does include the full, I would say, price increase—really, the fact that we've done this vertical integration. And then, of course, the continued growth we're seeing in the China market and also in South Korea basically brings the run rate to the $330 million I've provided.

Speaker #5: We've communicated consistently that from a top line perspective, we're still expecting in the medium term for this business to grow double digit. I think the key thing to look for as we've said a number of times is really rebalance the contribution of growth, not only coming from other Asian markets besides South Korea and China, but also in the US, which is a very important market for us.

JJ Sharon: I think the key thing to look for, as we've said a number of times, is really rebalance the contribution of growth, not only coming from other Asian markets besides South Korea and China, but also in the US, which is a very important market for us.

JJ Charhon: I think the key thing to look for, as we've said a number of times, is really rebalance the contribution of growth, not only coming from other Asian markets besides South Korea and China, but also in the US, which is a very important market for us.

Speaker #5: Okay. That's very helpful.

Speaker #2: And then for next year, just a couple of mentions. When you think about it, I would say, I'll start with gross margin. Gross margin is fairly stable.

Speaker #5: Yeah. I think, Doug, the other thing that when we look at it, if we just stay focused on China, now that the integration has taken place, we continue to look for areas to continue to invest.

Thomas Appio: Yeah, I think, Doug, the other thing that when we look at it, if we just stay focused on China, now that the integration has taken place, we continue to look for areas to continue to invest, and build out more of our field force capabilities. If you look at in the US, clearly investing behind our field force with field force effectiveness initiatives and also increases along with really today the direct-to-consumer advertising is essential. There's investments to be made to continue to drive the revenue growth, and ensure profitability.

Tom Appio: Yeah, I think, Doug, the other thing that when we look at it, if we just stay focused on China, now that the integration has taken place, we continue to look for areas to continue to invest, and build out more of our field force capabilities. If you look at in the US, clearly investing behind our field force with field force effectiveness initiatives and also increases along with really today the direct-to-consumer advertising is essential. There's investments to be made to continue to drive the revenue growth, and ensure profitability.

Speaker #2: Really, the integration of our full services in China really hasn't materially changed the gross margin profile for the business. Obviously, when you grow the top line, you continue to tightly manage expenses, like we do in SOLTA and like we do across our portfolio, you're going to have operating leverage.

Speaker #5: And build out more of our field force capabilities. And then if you look at in the US, clearly investing behind our field force with field force effectiveness initiatives and also increases along with really today the direct-to-consumer advertising is essential.

Speaker #2: So, not that it's by design, because it's already fairly high at Solta. We want to make sure we're funding innovation and we’re funding commercial investment to continue to support all of our business across all of our geographies.

Speaker #2: We've communicated consistently that from a top line perspective, we're still expecting the medium term for this business to grow double digit. I think the key thing to look for as we've said a number of times is really rebalance the contribution of growth, not only coming from other Asian markets besides South Korea and China, but also in the US, which is a very important market for us.

Speaker #5: So there's investments to be made to continue to drive the revenue growth and ensure profitability.

Speaker #3: Okay. That's very helpful. Thank you.

Doug Miehm: Okay. That's very helpful. Thank you.

Speaker #5: Okay, Doug. Thanks. Operator, next question.

Thomas Appio: Okay. Doug, thanks. Operator, next question.

Tom Appio: Okay. Doug, thanks. Operator, next question.

Speaker #2: Thank you. Our last question comes from the line of Mike Nedelcovych with TD Cowan. Please proceed.

Operator: Thank you. Our last question comes from the line of Mike Neldelkovich with TD Cowen. Please proceed.

Speaker #4: Yeah, I think, Doug, the other thing that when we look at it, if we just stay focused on China, now that the integration has taken place, we continue to look for areas to continue to invest.

Speaker #3: Hi. Thanks for the question. I have one. We recently got some news on the tariff front from the current administration indicating that tariffs on generics in the United States may be forthcoming.

Mike Neldelkovich: All right. Thanks for the question. I have one. We recently got some news on the tariff front from the current administration indicating that tariffs on generics in the United States may be forthcoming. I know that generics, strictly speaking, is kind of a small portion of your business, but I'm just curious how you estimate the impact of that announcement one way or the other, given that generics are also an important part of the ecosystem. Thanks.

Mike Nedelcovych: All right. Thanks for the question. I have one. We recently got some news on the tariff front from the current administration indicating that tariffs on generics in the United States may be forthcoming. I know that generics, strictly speaking, is kind of a small portion of your business, but I'm just curious how you estimate the impact of that announcement one way or the other, given that generics are also an important part of the ecosystem. Thanks.

Speaker #4: And build out more of our field force capabilities. Then if you look at the US, clearly, we're investing behind our field force with field force effectiveness initiatives and also increases, along with, really today, the direct-to-consumer advertising, which is essential.

Speaker #3: I know that generics strictly speaking is kind of a small portion of your business, but I'm just curious how US estimate the impact of that announcement one way or the other, given that generics are also an important part of the ecosystem.

Speaker #3: Thanks.

Thomas Appio: Well, as you know, those tariffs are not going to be effective until the middle of 2028. Obviously, we have to understand the size of our generic business at that time to better assess that impact, to your point, which should be fairly small in relation to the other components of our business. Should be in a better position to do that, assuming obviously those tariffs hold, sometime next year.

Tom Appio: Well, as you know, those tariffs are not going to be effective until the middle of 2028. Obviously, we have to understand the size of our generic business at that time to better assess that impact, to your point, which should be fairly small in relation to the other components of our business. Should be in a better position to do that, assuming obviously those tariffs hold, sometime next year.

Speaker #5: Yeah. Well, as you know, those tariffs are not going to be effective until the middle of 2028. So obviously, we have to understand the size of our generic business at that time, to better assess that impact to your point, which should be fairly small in relation to the other components of our business.

Speaker #4: So, there are investments to be made to continue to drive the revenue growth and ensure profitability.

Speaker #5: So it should be in a better position to do that, assuming obviously those tariffs hold sometime next year.

Speaker #5: Okay. That's very helpful. Thank you.

Speaker #4: Okay, Doug. Thanks. Operator, next question.

Speaker #3: Great. Thanks.

Mike Neldelkovich: Great. Thanks.

Mike Nedelcovych: Great. Thanks.

Operator: Thank you. There are no further questions. I'll pass the call back over to Tom for any closing remarks.

Speaker #2: Thank you. There are no further questions. I'll pass the call back over to Tom for any closing remarks.

Speaker #1: Thank you. Our last question comes from the line of Mike Mill Delkovich with TD Cowen. Please go ahead.

Speaker #5: Thank you, operator. I wanted to say, thank you for all the questions today. And the continued interest in Bausch Health. We talked about in the prepared remarks, we're exiting this quarter with strong momentum.

Thomas Appio: Thank you, operator. I want to just say thank you for all the questions today, and the continued interest in Bausch Health. We talked about in the prepared remarks, we're exiting this quarter with strong momentum. We have a favorable outlook. We raised guidance, and confidence in the ability to execute against our strategic priorities. Across the organization, our teams continue to operate with focus, discipline, accountability, and positioning us to capitalize on the opportunities ahead. While there is always more to achieve, we remain committed to driving profitable growth and unlocking the full potential of our company for all stakeholders. Thank you for your continued engagement and support. We look forward to updating you on the progress in the quarters ahead. Thank you, and have a pleasant evening.

Tom Appio: Thank you, operator. I want to just say thank you for all the questions today, and the continued interest in Bausch Health. We talked about in the prepared remarks, we're exiting this quarter with strong momentum. We have a favorable outlook. We raised guidance, and confidence in the ability to execute against our strategic priorities. Across the organization, our teams continue to operate with focus, discipline, accountability, and positioning us to capitalize on the opportunities ahead. While there is always more to achieve, we remain committed to driving profitable growth and unlocking the full potential of our company for all stakeholders. Thank you for your continued engagement and support. We look forward to updating you on the progress in the quarters ahead. Thank you, and have a pleasant evening.

Speaker #5: Hi, thanks for the question. I have one. We recently got some news on the tariff front from the current administration, indicating that tariffs on generics in the United States may be forthcoming.

Speaker #5: I know that generics strictly speaking is kind of a small portion of your business, but I'm just curious how you estimate the impact of that announcement one way or the other, given that generics are also an important part of the ecosystem.

Speaker #5: We have a favorable outlook. We raised guidance and confidence in the ability to execute against our strategic priorities. So across the organization, our teams are continue to operate with focus, discipline, accountability, and positioning us for to capitalize on the opportunities ahead.

Speaker #5: Thanks.

Speaker #2: Yeah, well, as you know, those tariffs are not going to be effective until the middle of 2028. So, obviously, we have to understand the size of our generic business at that time to better assess that impact, to your point, which should be fairly small in relation to the other components of our business.

Speaker #5: So while there is always more to achieve, we remain committed to driving profitable growth and unlocking the full potential of our company for all stakeholders.

Speaker #2: So it should be in a better position to do that, assuming obviously those tariffs hold sometime next year.

Speaker #5: Thank you for your continued engagement and support. We look forward to updating you on the progress in the quarters ahead. Thank you. And have a pleasant evening.

Speaker #5: Great. Thanks.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Speaker #1: Thank you. There are no further questions. I'll pass the call back over to Tom for any closing remarks.

Speaker #4: Thank you, operator.

Speaker #2: I wanted to say thank you for all the questions today. And the continued interest in Bausch Health. We talked about in the prepared remarks, we're exiting this quarter with strong momentum.

Speaker #2: We have a favorable outlook. We raised guidance and are confident in the ability to execute against our strategic priorities. So, across the organization, our teams continue to operate with focus, discipline, and accountability, positioning us to capitalize on the opportunities ahead.

Speaker #2: So, while there is always more to achieve, we remain committed to driving profitable growth and unlocking the full potential of our company for all stakeholders.

Speaker #2: Thank you for your continued engagement and support. We look forward to updating you on our progress in the quarters ahead. Thank you, and have a pleasant day.

Q2 2026 Bausch Health Companies Inc Earnings Call

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