Bausch Health Companies (NYSE: BHC) saw its stock price surge by nearly 40% in July, fueled by a strategic regulatory win in Canada and a robust quarterly earnings report that exceeded analyst expectations.
Regulatory Milestone for Prokedi
The rally began on July 6, when Bausch announced that its schizophrenia medication, Prokedi, was added to the Quebec Health Insurance Board’s formulary for adult patients. This development is significant because drug commercialization in Canada requires a two-step process: federal approval from Health Canada followed by provincial formulary inclusion. Quebec serves as the first province to integrate Prokedi into its coverage.
Q2 Earnings Beat Expectations
The momentum accelerated three weeks later with the release of the company’s second-quarter earnings report. Bausch reported $2.85 billion in revenue, marking a 13% year-over-year increase and comfortably surpassing the consensus analyst estimate of $2.66 billion.
Profitability metrics were equally strong. Adjusted net income rose 42% to $476 million, or $1.26 per share, outperforming the projected $1.23 per share expected by market analysts.
Strong Performance Across Business Units
Growth was widespread across the company’s portfolio, with nearly every reporting unit posting revenue increases. The Salix gastroenterology and hepatology division proved particularly strong, growing 21% to $758 million. Meanwhile, the company’s core eyecare unit, Bausch + Lomb (B+L), saw its revenue climb 9% to approximately $1.39 billion.
This quarter marked the thirteenth consecutive period of year-over-year growth in both revenue and adjusted EBITDA for Bausch’s operations, excluding the B+L unit. CEO Thomas Appio attributed these results to the strength of the company’s portfolio, disciplined execution, and the global efforts of its teams.
Upward Guidance for 2026
Reflecting confidence in sustained momentum, management raised its revenue and adjusted EBITDA guidance for the full year 2026. The company now projects total revenue between $10.79 billion and $11.04 billion, an increase from its previous forecast of $10.67 billion to $10.92 billion.
Similarly, the outlook for adjusted EBITDA has been revised upward to a range of $4.05 billion to nearly $4.18 billion, a notable improvement over the former projection of $3.89 billion to $4.01 billion.