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RBC Capital Trims Bausch Health Companies Price Target to US$9.00; Maintains Sector Perform

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-- RBC Capital Market trimmed its price target on the shares of Bausch Health Companies (BHC.TO, BHC) by US$1.00 to US$9.00, with a sector-perform rating ahead of the company's first-quarter earnings.

Analyst Douglas Miehm is forecasting revenue of US$2.43 billion, slightly above consensus forecast of US$2.41 billion.

The lowered price target of US$9.00 reflects revised estimates and lowered total prescriptions for key drugs, Miehm says, noting that total prescriptions for Xifaxan 550mg formulation declined 6.2% y/y in the first quarter, following a 1.1% y/y decline in the fourth quarter. However, he anticipates volume losses will be partially offset by improved net pricing.

Key areas of focus for the earnings include updates on the Xifaxan patent litigation, management's strategic vision for monetizing the Bausch & Lomb (BLCO.TO) asset, and the return to growth at Solta following a depressed fourth quarter, he adds.

Bausch Health reports its first-quarter earnings after market close on April 29.

Price: $7.81, Change: $+0.12, Percent Change: +1.56%

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