Business Corpus: Bausch Health Stock Pops As Blockbuster Hopeful Delivers BeatBausch Health, formerly Valeant Pharmaceuticals, on Tuesday reported losses of $2.49 per share on $2.13 billion in sales for its second quarter. The post Bausch Health Stock Pops As Blockbuster Hopeful Delivers Beat appeared first on Investor's Business Daily.

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Bausch Health (BHC) stock popped Tuesday after the drugmaker topped second-quarter views on better-than-expected sales of gastrointestinal drugs, including blockbuster hopeful Xifaxan.

On the stock market today, Bausch Health stock jumped 4.5%, to 23.52. Earlier, shares lifted as much as 10.5%. Meanwhile, drug stocks advanced a fraction, tacking on gains for the seventh consecutive day and touching their highest point since January 2016.

Mizuho analyst Irina Koffler classified Bausch Health's second quarter as a strong "beat and raise," noting the drugmaker outperformed "in most segments." This is Bausch Health's first report under its new name. It was formerly known as Valeant Pharmaceuticals.

Bausch Health reported a net loss of $2.49 per share on about $2.13 billion in sales. Net losses widened from an 11-cent per-share loss in the year-ago period. Sales declined 6% on a constant-currency basis, but grew 3% organically.

Adjusted income worked out to 93 cents per share, declining nearly 10% vs. last year. But that still topped the consensus of analysts polled by Zacks Investment Research for 81 cents. Sales also beat expectations for $2.05 billion.

Gastrointestinal Drugs Strength

Organically, the best growth came from Bausch Health's Salix business. The drugmaker acquired Salix and its suite of gastrointestinal drugs in 2015. Salix unit sales grew 14% to $441 million.

That included $294 million in sales of Xifaxan, a gastrointestinal drug and blockbuster hopeful. Mizuho's Koffler noted the consensus had called for $274.3 million in Xifaxan sales. Revenue from the drug grew 26% year over year, Bausch Health said in a news release.

Sales of Relistor, which treats opioid-induced constipation, grew 43% vs. the year-ago period. But growth from ulcerative colitis drugs Uceris and Apriso was more muted. Sales of both drugs advanced 3% year over year. Both are facing generic competition.

Bausch and Lomb/international sales grew 4% on an organic basis to $1.209 billion. That was in line with the consensus view for $1.2 billion, Koffler said in a note to clients. Organic growth in the quarter was driven by volume increases and strength in China and Europe, the firm said.

Dermatology sales declined 11% organically to $142 million. Still, that "surprisingly beat" views for $116.3 million, Koffler said. Diversified sales of $336 million fell 8% organically, but topped expectations for $271 million, showing strength among drugs soon to lose patent protection.

For the year, Bausch Health reiterated sales guidance for $8.15 billion to $8.35 billion despite a negative $60 million impact from foreign exchange rates, Koffler said. The consensus had seen about $8.3 billion in sales and adjusted profit of $3.41 a share.

Bausch Health also boosted guidance for adjusted earnings before interest, taxes, depreciation and amortization. For the year, it now sees $3.2 billion to $3.35 billion adjusted EBITDA, vs. its prior outlook for $3.15 billion to $3.3 billion.

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The post Bausch Health Stock Pops As Blockbuster Hopeful Delivers Beat appeared first on Investor's Business Daily.