Bausch Health Companies Inc. (NYSE:BHC) Q2 2023 Earnings Call Transcript

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Mike Nedelcovych: Thank you for the question. I have two. My first question regards the Xifaxan litigation. Given what you know now, is it within the realm of possibility that we get a complete resolution of Xifaxan litigation and IP in the year 2024? That’s the first question. And then the second question relates to RED-C. I know that it’s a much bigger patient population, but given that HE lifetime risk in cirrhotic patients is well below 100%, do you have any sense whether physicians are prepared to adopt a prophylactic regimen rather than simply administer Xifaxan once symptoms present? Thank you.

Thomas Appio: Yes. Mike, two good questions. On the Xifaxan litigation, this appeal, as I said in my prepared remarks and earlier answers to questions, we expect to have a decision in the first quarter. It’s a complicated appeal because we’re appealing the rulings on IBS-D and the polymorphs. And of course, they’re appealing the motion. So, what I would say is, as it plays out, we have submitted our briefs, and we think we have a real good position on our IBS-D patents and polymorph patents. So, if it goes in our favor, clearly this will be resolved specifically on our appeal, all right? So, we’ll have to see how it goes, but we’re feeling confident about it. Getting to the next question on RED-C, again, we feel – as you said in your question, and as I said previously, it’s a much larger patient population.

One of the things that we have talked about, and that is one of the reasons why we’ve invested to accelerate the program, our sales teams and our medical teams will be working to really educate physicians on why prevention is the way to go for HE. If you take a look today, the investments that we’re making in Xifaxan, as I talked about in my prepared remarks, on the medical side, still today, you see patients not getting treatment after the first HE episode. And so, clearly if you look at the pharmacoeconomic data as to prevention versus having an HE episode or then multiple HE episodes, we believe from a payer perspective, from a patient perspective, that prevention is going to really be something that people will want and be interested in.

If you look at some of the work that we’re doing today on direct-to-consumer advertising today is to really educate not only patients, but also educate the caregivers of what goes – what happens to them if you have an HE episode, not only to the patient, but to the caregiver. So, we really think prevention is going to be something that will be very much accepted. But there will be a lot of education between our medical affairs team and our sales teams. But it’s a good question. Thank you. Next question, operator.

Operator: There are no further questions in queue.

Thomas Appio: Okay. So, with no further questions, I would just say, in summary, we had a solid Q2 performance and made good progress on key strategic objectives. We look forward to the second half of 2023, with the focus of profitable growth, driving performance, advancing R&D and BD, and unlocking value. Thank you for joining our call today.

Operator: This concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.

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