Bausch Health Companies Inc. (BHC): Business Model Canvas [Dec-2025 Updated]

You're looking at Bausch Health Companies Inc. (BHC), and honestly, the story right now isn't just about new drugs; it's a high-stakes balancing act. As an analyst who's seen this play out before, I can tell you the focus is laser-sharp: managing that massive debt load-around $21 billion-while riding the strong momentum from their Salix and Solta Medical segments. With 2025 revenue guidance landing between $10.05 billion and $10.25 billion, the core value is clear, but the capital structure is the real headline. You need to see how they are structuring this whole operation, from IP defense to their relationship with Bausch + Lomb, so check out the full Business Model Canvas breakdown below.

Bausch Health Companies Inc. (BHC) - Canvas Business Model: Key Partnerships

You're looking at the structure Bausch Health Companies Inc. uses to get its products to market and manage its balance sheet. Partnerships are key, especially when dealing with massive debt loads and pipeline expansion. Here's the breakdown of the major players Bausch Health Companies Inc. relies on as of late 2025.

Financial Advisors and Liability Management

Managing the balance sheet is a huge part of the strategy, and that requires top-tier financial partners. J.P. Morgan has been central to Bausch Health Companies Inc.'s liability management efforts in 2025. The company executed a significant refinancing initiative to push out debt maturities.

In March 2025, J.P. Morgan Chase & Co. led a group kicking off a $7.4 billion bond and loan offering for Bausch Health Companies Inc. to refinance debt. This was followed by a major transaction closing on April 8, 2025, which involved $7.9 billion in refinancing, with J.P. Morgan Securities LLC acting as the lead book-running manager for the senior notes offering. The total outstanding debt stood at $21.8 billion as of March 2025. Later in the year, in November 2025, Bausch Health Companies Inc. announced offers to exchange existing notes for up to $1.6 billion aggregate principal amount of new 10.00% Senior Secured Notes due 2032.

These financing goals involved several key financial institutions:

• J.P. Morgan Securities LLC acted as lead book-running manager for the senior notes offering.
• Barclays Bank PLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., and Truist Securities also acted as joint book-running managers for the senior notes offering.
• Evercore acted as a financial advisor to Bausch Health Companies Inc. on the refinancing transactions.

Strategic Acquisitions and Pipeline Expansion

To bolster the hepatology pipeline, Bausch Health Companies Inc. made a strategic move by acquiring DURECT Corporation. This deal brought larsucosterol, an investigational treatment for alcoholic hepatitis with FDA Breakthrough Therapy Designation, into the portfolio.

The terms of the DURECT Corporation acquisition, which closed on September 11, 2025, were concrete:

Transaction Component	Financial Amount/Term
Upfront Cash Payment	$63 million
Maximum Potential Milestone Payments	Up to $350 million in aggregate
Per Share Cash Consideration	$1.75 per share
Acquisition Closing Date	September 11, 2025

This acquisition was a clear action to focus R&D efforts in areas of unmet medical need.

Global Distribution and Wholesaler Relationships

For device reach, especially in high-growth international markets, Bausch Health Companies Inc. has shifted from pure partnership to direct control. Solta Medical, the aesthetics business, completed the acquisition of its longtime distribution partner in China, Wuhan Shibo Zhenmei Technology Co., Ltd., effective December 1, 2025.

This move means Bausch Health Companies Inc. now directly controls the distribution of products like Thermage® FLX in the Chinese market, leveraging the existing network and local knowledge gained over the past decade of partnership.

External Research and Development Support

Bausch Health Companies Inc. relies on external expertise to execute clinical trials and advance research. While specific contract values aren't public, the structure involves engaging specialized external parties.

Key external relationships include:

• Contract Research Organizations (CROs) for clinical trial execution across therapeutic areas.
• Academic and research institutions for early-stage R&D collaboration.

The company's Q2 2025 results showed a focus on purposeful R&D, which is supported by these external collaborations. Finance: draft 13-week cash view by Friday.

Bausch Health Companies Inc. (BHC) - Canvas Business Model: Key Activities

You're looking at the core actions Bausch Health Companies Inc. (BHC) is taking right now to manage its complex business, which is heavily focused on balancing debt reduction with pipeline development. Honestly, the numbers tell a clear story about where the focus is in late 2025.

Specialty pharmaceutical R&D, focusing on late-stage assets like RED-C and Larsucosterol

Bausch Health Companies Inc. is actively building out its hepatology pipeline, a key activity that directly addresses future revenue needs, especially with the looming Xifaxan patent expiration in 2028. You saw them complete the acquisition of DURECT Corporation in September 2025, which was a definitive move to secure larsucosterol, an epigenetic modulator for alcohol-associated hepatitis (AH).

Here are the specifics on that R&D push:

• Acquisition upfront cash payment for DURECT was approximately $63 million.
• The deal includes potential additional net sales milestone payments up to $350 million in the aggregate.
• Larsucosterol addresses AH, a condition where current mortality is about 30% within 90 days of hospitalization, as there are no FDA-approved treatments.
• The RED-C program, evaluating rifaximin SSD for hepatic encephalopathy (HE), has completed enrollment in two global Phase 3 trials, with safety and efficacy results anticipated in early 2026.

Manufacturing and global supply chain management for diverse product portfolio

While direct manufacturing metrics aren't always front-and-center in investor updates, the performance of the segments relying on this infrastructure shows operational stability. Bausch Health Companies Inc. reaffirmed its full-year 2025 revenue guidance in October 2025 to be between $5.0 billion and $5.1 billion, indicating confidence in its ability to produce and supply its diverse range of products.

Sales and marketing execution for key brands (e.g., Xifaxan, Cabtreo, Thermage)

Execution in the field is driving the current top-line results, which management used to raise guidance. The Salix segment, which houses Xifaxan, posted revenues of $716 million in the third quarter of 2025. Meanwhile, the dermatology and aesthetics side, featuring Cabtreo and Thermage, showed explosive growth, which is definitely helping offset other pressures.

Here's a breakdown of the key brand performance from the Q3 2025 results:

Brand/Segment	Metric/Growth Rate (YoY)	Q3 2025 Revenue (if available)
Xifaxan (Salix)	Revenue growth of 16%	Primary contributor to Salix growth
Cabtreo (Dermatology)	Revenue growth of 186%	Triple-digit growth reported
Thermage (Solta)	Growth rate in the double-digits	Part of Solta Medical segment
Solta Medical (Total)	Reported revenue growth of 25%	Revenues of $140 million
Jublia (Dermatology)	Revenue growth of 11%	Not specified

The overall Bausch Health segment (excluding Bausch + Lomb) reported revenue of $1.4 billion for Q3 2025.

Intellectual property defense, notably for rifaximin (Xifaxan)

Defending the exclusivity of key products is a critical, though often behind-the-scenes, activity. Bausch Health Companies Inc. is actively managing the risk associated with the expected loss of exclusivity for Xifaxan in 2028, which includes fighting generics manufacturers in the courts. This defense work is happening concurrently with the development of next-generation treatments like rifaximin SSD (RED-C) to mitigate the impact of patent challenges.

Deleveraging and capital structure optimization, including debt repayment

This is arguably the most emphasized activity. Management successfully executed significant moves to push out near-term maturities and reduce interest expense. At the end of June 2025, total debt stood at $21 billion, with a Debt/EBITDA ratio around 6.2x. The focus in the second half of 2025 was on using cash to clean up the balance sheet.

Key deleveraging actions completed or announced in 2025 include:

• Total debt reduction initiatives announced in July 2025 totaled approximately $900 million using cash on hand.
• Redemption of approximately $602 million aggregate principal amount of its outstanding 9.25% Senior Notes due 2026, completed on August 28, 2025.
• Repayment and termination of the $300 million Receivables Facility, effective October 27, 2025.
• A major refinancing transaction in April 2025 secured $7.9 billion, shifting the main debt payments to the 2027-2028 period.
• Consolidated cash and cash equivalents were $1,308 million as of September 30, 2025.

The company also raised its 2025 Adjusted EBITDA guidance (excluding IPR&D) to a range of $2.7 billion to $2.75 billion. Finance: draft 13-week cash view by Friday.

Bausch Health Companies Inc. (BHC) - Canvas Business Model: Key Resources

You're looking at the hard assets that power Bausch Health Companies Inc. (BHC) right now, late in 2025. These aren't just line items on a balance sheet; they are the engines of the business.

Core intellectual property (IP) portfolio for key drugs like Xifaxan.

The value here is seen in performance. For instance, Xifaxan revenue growth in the third quarter of 2025 was a solid 16% compared to the prior year period. Also, new-to-brand prescriptions for that drug grew by 14% in the same quarter, showing the IP is driving new patient adoption.

Controlling ownership of Bausch + Lomb (approximately 88%).

Bausch Health Companies Inc. maintains a controlling stake in the eye health business. That ownership stake stands at approximately 88% as of mid-2025 updates. This relationship means Bausch Health consolidates the results of Bausch + Lomb, which reported revenues of $1.28 billion in the third quarter of 2025.

Global manufacturing and distribution infrastructure.

Bausch Health Companies Inc. develops, manufactures, and markets products in over 90 countries and regions. This requires a wide-reaching physical footprint to support its diverse portfolio across its segments, including Salix, International, and Solta Medical.

Specialized sales forces targeting gastroenterologists and dermatologists.

The company relies on dedicated commercial teams to reach specialists. The Salix segment, which focuses on gastroenterology (GI) products, saw revenues of $716 million in the third quarter of 2025, demonstrating the reach of that specialized sales effort. The company also markets products in dermatology.

Cash and cash equivalents of approximately $1.308 billion as of September 30, 2025.

Liquidity remains a key resource for managing obligations and funding operations. As of the end of the third quarter of 2025, consolidated cash and cash equivalents were reported at $1.308 billion. This followed a period where cash from operations was $405 million in Q3 2025.

Here's a quick look at some of the latest financial metrics that underpin these resources:

Metric	Value (as of Q3 2025)
Consolidated Reported Revenue (Q3 2025)	$2.68 billion
Consolidated Adjusted EBITDA (Q3 2025)	$986 million
Bausch + Lomb Segment Revenue (Q3 2025)	$1.28 billion
Salix Segment Revenue (Q3 2025)	$716 million
Net Cash from Operating Activities (Q3 2025)	$405 million

The operational strength supporting these resources is evident in the segment performance:

• The Salix segment revenue increased by 12% year-over-year in Q3 2025.
• The Solta Medical segment showed a 25% year-over-year revenue increase in Q3 2025.
• Bausch Health excluding Bausch + Lomb delivered 7% Reported Revenue growth in Q3 2025.
• The company raised its full-year 2025 revenue guidance to a range of $10.050 billion - $10.250 billion.

Finance: draft 13-week cash view by Friday.

Bausch Health Companies Inc. (BHC) - Canvas Business Model: Value Propositions

You're looking at the core value Bausch Health Companies Inc. delivers to its customers and stakeholders as of late 2025. It's about established franchises meeting new growth drivers.

Established, market-leading brands in gastroenterology (Salix) and aesthetics (Solta Medical) provide a solid revenue base. The Salix segment, for instance, delivered reported revenues of $716 million for the third quarter of 2025, marking a 12% increase over the prior year period. Xifaxan®, a key product in this segment, saw 16% revenue growth in that same quarter.

The aesthetics business under Solta Medical shows significant momentum. Revenues for Solta Medical reached $140 million in the third quarter of 2025, representing a 25% reported growth year-over-year. This growth is broad-based, with organic revenue up 24%, led by strong performance in APAC, particularly South Korea.

Bausch Health Companies Inc. maintains a diversified portfolio across multiple therapeutic areas, which helps manage risk. For the third quarter of 2025, Bausch Health excluding Bausch + Lomb reported total revenues of $1.400 billion. Overall, total consolidated reported revenues for the third quarter of 2025 were $2.681 billion, a 7% increase. Management raised the full-year 2025 revenue guidance to be between $5 billion and $5.1 billion.

The company is delivering on new, high-growth product launches. Cabtreo, the triple-combination acne gel, achieved triple-digit growth in the third quarter of 2025. Still, you should note that in the first quarter of 2025, the Dermatology business saw an 8% decline, as Cabtreo's launch impact was initially offset by pricing pressures.

The aesthetic solutions offer a proven track record. Solta Medical's Thermage technology recently surpassed a significant milestone of 5 million skin tightening and smoothing treatments performed worldwide as of September 5, 2025. This non-surgical technology is trusted globally for facial, body, and eye treatments.

Here's a quick look at the key segment revenue performance for the latest reported quarter:

Segment	Q3 2025 Reported Revenue (in millions)	Year-over-Year Reported Growth Pct.	Year-over-Year Organic Growth Pct.
Salix	$716	12%	11%
Solta Medical	$140	25%	24%
Diversified	$258	(4%)	(6%)

The company's consolidated Adjusted EBITDA attributable to Bausch Health for the third quarter of 2025 was $986 million, up 8% on a reported basis.

You can see the value proposition rests on these pillars:

• Established brands like Xifaxan® driving 16% growth in Q3 2025.
• Solta Medical revenue growth of 25% reported in Q3 2025.
• Thermage system achieving 5 million total treatments globally.
• New product Cabtreo delivering triple-digit growth in Q3 2025.
• Overall Bausch Health (excl. B+L) revenue growth of 7% reported in Q3 2025.

Finance: draft 13-week cash view by Friday.

Bausch Health Companies Inc. (BHC) - Canvas Business Model: Customer Relationships

Bausch Health Companies Inc. employs a multi-pronged approach to managing relationships across its diverse customer base, which spans specialist physicians, patients, and consumers, particularly in the aesthetics space.

For specialty pharmaceuticals, such as those in the Salix segment, the company relies on dedicated sales teams to provide high-touch support to healthcare professionals (HCPs). This direct engagement supports product adoption and continued use. For instance, the Salix business saw 67,000 new patient starts in the second quarter of 2025 alone. This focus on the prescriber base is a core relationship driver for prescription products.

To ensure patient access and adherence for specialty pharmaceuticals, Bausch Health Companies Inc. maintains patient support programs. The company has communicated its intention to cease participation in the Medicaid Drug Rebate Program (MDRP) and the 340B Drug Pricing Program, effective October 1, 2025. For Medicaid patients whose plans no longer cover Bausch Health products due to this change, the Patient Assistance Program (PAP) is available. This PAP offers certain Bausch Health medicines to qualifying patients with limited or no insurance or demonstrated financial need, providing medication at no cost, including no co-pays or shipping costs, for up to one year, subject to annual reapplication.

The relationship strategy shifts for consumer-facing areas like medical aesthetics and some over-the-counter (OTC) products, where direct-to-consumer (DTC) marketing plays a larger role. Management confirmed in mid-2025 a focus on investing heavily behind DTC efforts, alongside Oral Health Education (OHE). The Solta Medical segment, which handles aesthetics devices, shows strong growth driven by these efforts and strategic market acquisitions. The company is committed to improving the quality of life for patients by supporting the on-going medical and scientific education of HCPs, often through grants for bona-fide educational programs.

The company's commitment to direct engagement is evident across its global footprint, marketing products in more than 90 countries and regions. The acquisition of Wuhan Shibo Zhenmei Technology Co., Ltd. on December 1, 2025, directly reinforces the relationship in the critical Chinese aesthetics market by bringing distribution in-house.

Here's a look at some key operational metrics that reflect the scale of these customer-facing activities:

Area of Focus	Metric Detail	Value (Latest Available 2025 Data)	Context/Period
Salix Segment (Specialty Pharma)	New Patient Starts	67,000	Q2 2025
Solta Medical (Aesthetics)	Revenue	$140 million	Q3 2025
Solta Medical (Aesthetics)	Organic Revenue Growth	33%	Q1 2025
Global Reach	Countries of Market Presence	>90	As of 2025
Overall Company Scale	Total Employees (Approximate)	c. 7,000	As of 2025

Long-term relationships with Key Opinion Leaders (KOLs) are supported through ongoing scientific engagement. Bausch Health Companies Inc. actively supports investigator-initiated Phase 2 studies, such as the one for Relistor, demonstrating a commitment to advancing science in core therapeutic areas like hepatology and gastroenterology. This scientific collaboration is a key component of maintaining influence and trust with leading specialists.

The company's relationship structure involves several key support mechanisms:

• Dedicated sales teams supporting specialist physicians.
• Patient Assistance Programs for qualifying uninsured/underinsured patients.
• Direct investment in DTC media for growth products.
• Support for investigator-initiated studies and KOL education.

The Solta Medical segment, for example, saw its revenues increase by 25% year-over-year to $140 million in the third quarter of 2025, showing that the direct control over distribution, like the acquisition in China, is intended to immediately gain access to a large customer base.

Finance: draft 13-week cash view by Friday.

Bausch Health Companies Inc. (BHC) - Canvas Business Model: Channels

You're looking at how Bausch Health Companies Inc. gets its diverse portfolio-from prescription drugs to aesthetic devices-into the hands of customers. It's a multi-pronged approach, relying on direct engagement, pharmacy networks, and global logistics.

Direct sales force to hospitals, clinics, and physician offices.

Bausch Health Companies Inc. maintains a dedicated direct sales force to reach specialists, particularly for its Salix segment products, like Xifaxan®, which drove 10% revenue growth in Q2 2025. The company markets its portfolio, which includes pharmaceuticals and aesthetic medical devices, directly or indirectly in approximately 90 countries globally. This direct channel is crucial for driving adoption of specialized treatments within the US healthcare system.

Retail and specialty pharmacies for prescription drug fulfillment.

For the bulk of its pharmaceutical offerings, Bausch Health Companies Inc. relies on established relationships with retail and specialty pharmacies. This channel handles fulfillment for the US-marketed products in the Salix segment, which reported revenues of $716 million in Q3 2025, and the Diversified segment, which reported $258 million in Q3 2025. The overall consolidated reported revenues for Bausch Health Companies Inc. reached $2.68 billion in the third quarter of 2025.

International distribution networks across EMEA, Canada, and LATAM.

The International segment, which covers sales outside the US and Puerto Rico for most products excluding Bausch + Lomb and Solta Medical, uses established international distribution networks. This segment reported revenues of $286 million in Q3 2025, down 2% reported from the prior year, though organic growth was partially offset by strength in EMEA. The segment's revenue for the first quarter of 2025 was $262 million, and for the second quarter of 2025, it was $278 million. Growth in Canada and Latin America (LATAM) has been a historical driver for this channel.

Direct control over Solta Medical's distribution in China following the Shibo acquisition.

A significant channel shift occurred in late 2025 for the aesthetics business. Bausch Health Companies Inc.'s Solta Medical segment completed the acquisition of its longtime distribution partner, Wuhan Shibo Zhenmei Technology Co., Ltd., effective December 1, 2025. This move gives Solta Medical direct control over the distribution of its products, including Thermage® FLX, in the Chinese market. The Solta Medical segment, which saw revenues of $140 million in Q3 2025, up 25% year-over-year, is heavily influenced by Asia Pacific growth, with China being a key focus area. This acquisition is intended to accelerate revenue trajectory and improve operational efficiency in one of the fastest-growing global aesthetics markets.

Here's a quick look at the segment revenue contribution in Q3 2025, showing the scale of the segments relying on these channels:

Segment	Q3 2025 Reported Revenue
Bausch + Lomb	$1.28 billion
Salix	$716 million
International	$286 million
Diversified	$258 million
Solta Medical	$140 million

The company's gross profit margin stood at 70.67% as of late 2025, supporting the high-value nature of these distribution efforts. However, managing the balance sheet remains key, with long-term debt obligations at $21 billion as of September 30, 2025.

The channel strategy is supported by:

• Leveraging an existing distribution network in China post-acquisition.
• Strong organic growth in Asia Pacific markets for Solta Medical.
• Focus on localized solutions and proven technologies in key international areas.
• A diversified portfolio spread across multiple segments to mitigate channel-specific risk.

Finance: draft 13-week cash view by Friday.

Bausch Health Companies Inc. (BHC) - Canvas Business Model: Customer Segments

You're analyzing Bausch Health Companies Inc. (BHC) and need a clear picture of who they sell to. Honestly, BHC targets very distinct groups across its specialized business units, which is why segmenting the customer base is key to understanding their revenue drivers.

The customer segments are clearly defined by the therapeutic area or specialty focus, which aligns closely with their internal reporting structure. The performance of these segments in the third quarter of 2025 gives you a good snapshot of where the current focus and growth lie.

Here's a breakdown of the primary customer groups:

• Patients with chronic gastrointestinal and liver diseases.
• Dermatologists and patients needing acne and skin treatment.
• Aesthetic medical practices and consumers.
• Ophthalmologists and patients globally.

The Salix segment directly addresses the first group. This unit focuses on treatments for conditions like Irritable Bowel Syndrome with Diarrhea (IBS-D). A major customer base driver here is the continued success of Xifaxan, which saw its revenue jump by 16% in the third quarter of 2025 compared to the prior year period. Furthermore, Bausch Health Companies Inc. completed the acquisition of DURECT Corporation, bringing in Larsucosterol, which targets alcohol-associated hepatitis (AH), signaling a commitment to expanding services for complex liver disease patients. The Salix segment reported revenues of $716 million for the third quarter of 2025.

For dermatologists and their patients, the focus is split. While some dermatology products fall into the Diversified segment, the high-growth aesthetic side is captured by Solta Medical. For acne and general skin treatment, which includes products like Cabtreo, the performance is mixed within the broader structure. The Diversified segment, which includes some of these areas, posted revenues of $258 million in Q3 2025, but this was a 4% decrease year-over-year.

Aesthetic medical practices and consumers are the core of the Solta Medical segment. This group drives demand for non-invasive aesthetic procedures. This segment was a powerhouse in Q3 2025, reporting revenues of $140 million, representing a significant 25% increase over the third quarter of 2024. Their organic revenue growth was even stronger at 24%, led by APAC, especially South Korea.

Ophthalmologists and patients worldwide are served through the Bausch + Lomb segment, which is a separate, publicly traded entity in which Bausch Health Companies Inc. holds a controlling interest. This is the largest revenue contributor. For the twelve months ending September 30, 2025, Bausch + Lomb's trailing twelve-month (TTM) revenue stood at $4.97 Billion USD. In the third quarter of 2025 specifically, this segment brought in $1.28 billion, marking a 7% reported increase year-over-year.

Here's a quick look at how the main product-focused segments stacked up in Q3 2025:

Customer Segment Focus (BHC Segment)	Q3 2025 Reported Revenue (in millions)	Year-over-Year Growth (Reported)
Ophthalmology (Bausch + Lomb)	$1,280	7%
Gastroenterology/Liver (Salix)	$716	12%
Aesthetics (Solta Medical)	$140	25%
Dermatology/Other (Diversified)	$258	-4%

The company's overall strategy, as indicated by the CFO, involves making these best businesses more valuable, which directly relates to maximizing engagement and sales within these specific customer groups. If onboarding takes 14+ days, churn risk rises, especially in the high-growth Solta Medical space where patient satisfaction with procedure scheduling is critical.

Bausch Health Companies Inc. (BHC) - Canvas Business Model: Cost Structure

The Cost Structure for Bausch Health Companies Inc. is heavily influenced by its capital structure and the operational demands of a diversified, global pharmaceutical and medical device portfolio. You need to watch the interest burden closely, as it directly impacts cash flow available for reinvestment.

The most significant financial anchor in the cost structure is the debt load. As of September 30, 2025, Bausch Health Companies Inc. reported $21,042 million in Total long-term debt and other, net of premiums, discounts and issuance costs. This substantial figure means interest expense is a major, non-discretionary cost. For instance, in the second quarter of 2025, higher interest expense partially offset gains from higher revenues, and in the third quarter of 2025, higher interest expense partially offset the increase in adjusted net income.

Operating costs are substantial, covering global sales, marketing, and corporate overhead. The Selling, General, and Administrative (SG&A) category is a large component, which includes Selling, Advertising & Promotion (A&P) and General & Administrative (G&A) expenses. For the third quarter of 2025, GAAP Selling, A&P was reported at $583 million, and GAAP G&A was $212 million. To be fair, management noted lower SG&A expenses as a driver for higher operating income in Q3 2025 compared to Q3 2024.

Innovation and pipeline maintenance require significant outlay in Research and Development (R&D). This cost is amplified by strategic moves, such as the acquisition of DURECT Corporation, which brought in non-recurring charges. In the third quarter of 2025, GAAP R&D expense was $166 million, and there was an additional $81 million charge for Acquired IPR&D (In-Process Research and Development).

Manufacturing and supply chain costs support the diverse product range spanning Salix, Solta Medical, and other segments. These costs are embedded within the Cost of Revenues, which, for Q3 2025, resulted in a Gross Margin of 62.6% on reported revenues of $2.68 billion. The complexity of managing a global supply chain for prescription drugs, aesthetics devices, and consumer products inherently drives these costs.

Legal defense costs for key product Intellectual Property (IP) are an ongoing, though often variable, cost. While specific annual figures aren't always broken out clearly, the successful defense against challenges, such as the Norwich case mentioned in Q1 2025 updates, is critical to protecting future revenue streams, making the associated legal spend a necessary investment against potential revenue loss.

Here's a quick look at the major cost categories from the third quarter of 2025 results (in millions USD):

Cost Category	Q3 2025 GAAP Amount ($M)	Q3 2025 Adjusted Amount ($M)
Selling, A&P	583	N/A (Included in Total Adj. OpEx)
G&A	212	194
R&D	166	166
Acquired IPR&D Charge	81	N/A (Often excluded from Adjusted)
Total Operating Expense (Excl. COGS)	1,058	1,024

You can see the impact of the IPR&D charge clearly when comparing GAAP to Adjusted figures. The total operating expense reduction from GAAP to Adjusted was about $34 million for the quarter, primarily driven by the exclusion of the IPR&D charge and other items.

Key cost drivers that you should monitor include:

• Interest Expense on total debt of approximately $21.042 billion as of September 30, 2025.
• SG&A expenses, which were $795 million (GAAP A&P + G&A) in Q3 2025.
• Acquired IPR&D charges, such as the $81 million recognized in Q3 2025.
• The cost of goods sold necessary to support the $2.68 billion in Q3 2025 consolidated revenues.
• Debt refinancing costs, like the approximately $602 million paid in August 2025 to redeem 9.25% Senior Unsecured Notes due 2026.

Finance: draft 13-week cash view by Friday.

Bausch Health Companies Inc. (BHC) - Canvas Business Model: Revenue Streams

You're looking at how Bausch Health Companies Inc. (BHC) brings in the money as we approach the end of 2025. It's a mix of specialty pharma, devices, and consumer health, but the revenue streams are clearly segmented.

The overall expectation for the year is solid, showing management's confidence after recent strategic moves. Consolidated full-year 2025 revenue guidance is set between $10.05 billion and $10.25 billion. This guidance was raised following strong third-quarter execution.

The Salix segment, focused on gastroenterology, remains a core revenue engine. Product sales from this segment are heavily influenced by key brands. For instance, Xifaxan saw a notable 10% revenue growth in Q2 2025, which helped drive the segment's overall performance. By the third quarter, the Salix segment reported revenues of $716 million, marking a 12% year-over-year increase.

The Solta Medical segment, dealing in aesthetic and dermatological devices, has shown impressive acceleration. Revenue from this segment grew by 25% year-over-year in Q3 2025, reaching $140 million. This strong growth was largely fueled by demand in the Asia-Pacific region, especially South Korea.

The Bausch + Lomb segment, which is now a separate entity but still contributes significantly to the consolidated view, reported $1.28 billion in Q3 2025 revenue. This represented a 7% increase compared to the third quarter of 2024.

Here's a quick look at the segment revenue snapshot from Q3 2025:

Segment	Q3 2025 Revenue (Reported)	Year-over-Year Growth Mentioned in Outline/Data
Bausch + Lomb	$1.28 billion	N/A (Segment Revenue Provided)
Salix	$716 million	Xifaxan growth of 10% (Q2 2025)
Solta Medical	$140 million	25% growth (Q3 2025)

Finally, Bausch Health Companies Inc. also generates smaller, yet strategic, income from non-core activities. This includes licensing agreements and milestone payments from partnerships. While these are definitely a smaller stream compared to product sales, they reflect the value of the company's intellectual property and pipeline development, such as the recent acquisition of DURECT Corporation.

You can see the primary sources of cash flow generation below:

• Product sales from the Salix segment.
• Revenue from the Solta Medical segment.
• Sales from the Bausch + Lomb segment.
• Income from licensing deals and milestones.

Finance: draft 13-week cash view by Friday.