Bausch Health Companies (BHC) formerly Valeant Pharmaceuticals has had a share price erosion of 90% from its peak in 2015 on account of legal scrutiny in price rigging,
Wrongdoings by Valeant were first published by Citron Research, which had called out its malpractices. Now Citron Research has published a report on 15th October on BHC highlighting the successful turnaround in the company based on
1. EBITDA growth in 2 consecutive quarters post 3 years of EBITDA declines.
2. Manageable debt with the next maturity in 2023 already repaid $8bn over last 3 years.
3. Full year profits for the first time in last 4 years.
Further company’s drug dermatology drug Duobrii, launched 6 months back, has become the most successful dermatology drug in US in last 10 years.
The above factors led to the recent price increase of 50% in BHC.