2019: Pivoting to Offense - 37th Annual J.P. Morgan Healthcare Conference Jan. 7, 2019 - Bausch Health Companies Inc.
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2019: Pivoting to Offense 37th Annual J.P. Morgan Healthcare Conference Jan. 7, 2019
Forward-Looking Statements
This presentation contains forward-looking information and statements, within the include, but are not limited to, the risks and uncertainties discussed in the Company's
meaning of applicable securities laws (collectively, “forward-looking statements”), most recent annual and quarterly reports and detailed from time to time in the
including, but not limited to, statements regarding the Company's future prospects Company's other filings with the Securities and Exchange Commission and the
and performance, anticipated market trends and opportunities, planned dermatology Canadian Securities Administrators, which risks and uncertainties are incorporated
growth, anticipated revenue from our Significant Seven products (including in 2019), herein by reference. In addition, certain material factors and assumptions have been
the expected impact on long-term growth of new product approvals (including applied in making these forward-looking statements (including the plans, goals and
approvals of the Significant Seven), the anticipated submission, approval and launch expectations for 2019), including that the risks and uncertainties outlined above will
dates for certain of our pipeline products and R&D programs, the anticipated timing not cause actual results or events to differ materially from those described in these
of commencement of studies or other development work of our pipeline products and forward-looking statements, and additional information regarding certain of these
R&D programs, the anticipated closing of certain of our pending acquisitions, the material factors and assumptions may also be found in the Company’s filings
planned implementation of our new access model for our Ortho Dermatologics described above. The Company believes that the material factors and assumptions
business and the anticipated impact of such new model on such business, the reflected in these forward-looking statements are reasonable, but readers are
planned expansion and expanded launches of certain of our products and cautioned not to place undue reliance on any of these forward-looking statements.
businesses, anticipated line extensions for certain of our products, our ability to make These forward-looking statements speak only as of the date hereof. The company
additional debt repayments, expected total company revenue growth for 2019, the undertakes no obligation to update any of these forward-looking statements to reflect
amount of expected cash generated from operations and the anticipated use thereof, events or circumstances after the date of this presentation or to reflect actual
expected R&D investment growth in 2019, our ability to continue to improve outcomes, unless required by law.
operational efficiency and the expected impact thereof, expected revenue and
adjusted EBITDA (non-GAAP) growth, the Company’s mission (and the elements
and timing thereof) and the Company’s plans, goals and expectations for 2019 and
beyond and our ability to achieve such goals, plans and expectations. Forward-
looking statements may generally be identified by the use of the words "anticipates,"
"expects," “goals”, "intends," "plans," "should," "could," "would," "may," "will,"
"believes," "estimates," "potential," "target," “commit,” “tracking,” or "continue" and
variations or similar expressions. These forward-looking statements, including
management’s plans, goals and expectations for 2019 and beyond, are based upon
the current expectations and beliefs of management and are provided for the
purpose of providing additional information about such expectations and beliefs and
readers are cautioned that these statements may not be appropriate for other
purposes. These forward-looking statements are subject to certain risks and
uncertainties that could cause actual results and events to differ materially from
those described in these forward-looking statements. These risks and uncertainties
2
Non-GAAP Information
To supplement the financial measures prepared in accordance with U.S. generally However, the Company does not provide reconciliations of projected Adjusted
accepted accounting principles (GAAP), the Company uses certain non-GAAP EBITDA (non-GAAP) to projected GAAP net income (loss), due to the inherent
financial measures including Organic Revenue Growth and Adjusted EBITDA. difficulty in forecasting and quantifying certain amounts that are necessary for
Management uses these non-GAAP measures as key metrics in the evaluation of such reconciliations. In periods where significant acquisitions or divestitures are
Company performance and the consolidated financial results and, in part, in the not expected, the Company believes it might have a basis for forecasting the
determination of cash bonuses for its executive officers. The Company believes GAAP equivalent for certain costs, such as amortization, that would otherwise
these non-GAAP measures are useful to investors in their assessment of our be treated as a non-GAAP adjustment to calculate projected GAAP net income
operating performance and the valuation of our Company. In addition, these non- (loss). However, because other deductions (e.g., restructuring, gain or loss on
GAAP measures address questions the Company routinely receives from analysts extinguishment of debt and litigation and other matters) used to calculate
and investors and, in order to assure that all investors have access to similar data, projected net income (loss) may vary significantly based on actual events, the
the Company has determined that it is appropriate to make this data available to all Company is not able to forecast on a GAAP basis with reasonable certainty all
investors. deductions needed in order to provide a GAAP calculation of projected net
income (loss) at this time. The amounts of these deductions may be material
However, these measures are not prepared in accordance with GAAP nor do they and, therefore, could result in GAAP net income (loss) being materially different
have any standardized meaning under GAAP. In addition, other companies may use from (including materially less than) projected Adjusted EBITDA (non-GAAP).
similarly titled non-GAAP financial measures that are calculated differently from the
way we calculate such measures. Accordingly, our non-GAAP financial measures
may not be comparable to similar non-GAAP measures. We caution investors not to
place undue reliance on such non-GAAP measures, but instead to consider them
with the most directly comparable GAAP measures. Non-GAAP financial measures
have limitations as analytical tools and should not be considered in isolation. They
should be considered as a supplement to, not a substitute for, or superior to, the
corresponding measures calculated in accordance with GAAP.
Further information about these non-GAAP measures, as well as the reconciliations
of these historic non-GAAP measures to the most directly comparable financial
measures calculated and presented in accordance with GAAP, can be found in the
appendix here and, together with other information relating to these non-GAAP
measures, in the Company’s third quarter 2018 (3Q18) earnings presentation, which
can be found on the Company’s website at
https://ir.bauschhealth.com/~/media/Files/V/Valeant-IR/reports-and-
presentations/3q18-bausch-health-earnings-presentation.pdf.
3
2018 Accomplishments
0 2%
Organic revenue
0 >$1B 0 0 Andrew C.
Dr.
debt repaid with cash
Von Eschenbach
growth1,2 generated
YTD as of 9.30.2018 generated from Name Change New Board Member
compared to YTD operations during
9.30.2017 2018
New Product Launches Resolution of Key Legacy Issues
Achieved dismissals or other positive outcomes in
resolving litigation, disputes and investigations in
approximately 60 matters as of Nov. 7th, 2018
Bausch + Lomb ULTRA®
• Resolved XIFAXAN® IP litigation: Preserved market
Multifocal for Astigmatism exclusivity until 20283 with no financial payments made by
BHC
5
5 • Resolved Salix SEC investigation with no monetary penalty4
• Resolved Allergan securities litigation
• Resolved outstanding arbitration with Alfasigma S.p.A.
(SiHy Daily)
1. See Slide 3 for further non-GAAP information. See our 3Q18 earnings presentation for GAAP reconciliation and other non-GAAP information at 4. Subject to approval by the U.S. District Court for the
https://ir.bauschhealth.com/~/media/Files/V/Valeant-IR/reports-and-presentations/3q18-bausch-health-earnings-presentation.pdf. Southern District of New York.
2. Organic growth, a non-GAAP metric, is defined as an increase on a year-over-year basis in revenues and/or operating results on a constant currency 5. Co-promotion arrangement with third party.
4 basis (if applicable) excluding the impact of divestitures and discontinuations.
3. Actavis will be able to begin marketing the medicine earlier if another generic rifaximin product is granted approval and starts selling or distributing
such generic rifaximin product before Jan. 1, 2028.
Bausch Health: Pivoting to Offense
• Bausch + Lomb/International and Salix are driving the pivot to offense
• 76% of the total company generated 6% organic revenue growth 1,2 (YTD as of 9.30.2018 )
21% of total company
generated 16% organic
55% of total company generated 3% organic revenue growth1,2 YTD as
revenue growth1,2 YTD as of 9.30.2018 of 9.30.2018
Global Vision Care +7% Bausch + Lomb/International Salix
55% 21%
Global Surgical +3%
Global Consumer +3%
Global Ophtho Rx +4% Ortho Dermatologics
8%
International Rx 0%
Diversified Products
16%
1. See Slide 3 for further non-GAAP information. See also Appendix and our 3Q18 earnings presentation at https://ir.bauschhealth.com/~/media/Files/V/Valeant-IR/reports-and-presentations/3q18-bausch-
5 health-earnings-presentation.pdf for GAAP reconciliation and other non-GAAP information.
2. Organic growth, a non-GAAP metric, is defined as an increase on a year-over-year basis in revenues and/or operating results on a constant currency basis (if applicable) excluding the impact of divestitures
and discontinuations.Fully Integrated …Driven by Megatrends
Eye Health Business… and New Products
~1.3B 80% 8x
people globally living of all vision impairment In the U.S., individuals 65
with some form of vision globally is considered and over use 8x more eye
impairment1 avoidable1 care products vs. those
younger than 652
Myopia Epidemic
Disease Progression Environmental Factors Affecting Myopia
Myopia rates are steadily increasing, • Academic pressure: Studies show that myopia
especially in Eastern Asia increases in proportion to time spent studying3
• Lack of outdoor activities: Studies suggest that
Rate of Myopia in Hong Kong every 40 minutes of outdoor activity per day
Based on Birth Year3 decreases the chances of developing myopia by
100% 9%3
87%
• Increased screen time: U.S. adults spend
75% 70% nearly half a day—over 11 hours—listening to,
watching, reading or generally interacting with
media4
50%
30%
25% Myopia is a risk factor
for glaucoma, macular
0%
degeneration and
Pre-1950 1950-1980 Post 1997 retinal detachment3
1. https://www.who.int/news-room/fact-sheets/detail/blindness-and-visual-impairment.
6 2. Internal estimates and https://www.preventblindness.org/sites/default/files/national/documents/Future_of_Vision_final_0.pdf.
3. https://www.scmp.com/magazines/post-magazine/long-reads/article/2085125/chinas-myopia-epidemic-why-simple-solution-being.
4. https://www.nielsen.com/content/dam/corporate/us/en/reports-downloads/2018-reports/q1-2018-total-audience-report.pdf.Global Vision Care: Offerings for a Shifting Market
Key Products that Serve the
Market Dynamics and Position Changing Landscape
Shift Occurring in the Global Contact Lens Market 1 • Daily disposable contacts with patented
dehydration barrier, allowing lens to maintain
• Replacement Frequency: Daily accounts for ~50% of the ~100% of its moisture for a full 16 hours 3
market and is growing across major markets, including U.S.,
Japan, EU, Asia-Pacific and Latin America • Fastest growing full family of daily disposable
contact lenses in the U.S. 1,5
Bausch + Lomb’s Current Market Position
• Monthly disposable contacts engineered to
provide all-day comfort and consistently clear
vision
U.S. Contact Lens Market Growth in 20181
• Fastest growing full family of frequent
replacement contact lenses in the U.S. 1,5
+13%
• Daily disposable contacts with silicone hydrogel
Industry +4-5% material with the Moisture Seal™ Technology
0% 5% 10% 15% • Launched in Japan (Sept. 2018); SiHy daily
(SiHy Daily) launch planned for U.S. (2020)
• U.S. Market: Growth leader in the U.S. contact lens market;
exceeded category growth rates for 5 consecutive quarters1 Continued R&D Investment Drives 2019 Pipeline Expansion
• Bausch + Lomb ULTRA ® Multifocal for Astigmatism launch planned for
• International Market: Bausch + Lomb is the leader (#1) in 2019; expected to address the >30M under-served astigmatic
key emerging markets (China, Thailand and India), which presbyopes in the U.S. 2
represent ~40% of the world’s population and are the fastest
growing markets 4 • Continued expansion for daily disposable parameter offerings
• Specialty Vision Products: Zen Multifocal (2019), Tangible Science
Hydra-PEG ® coating (2019) and Custom Soft Contact Lenses (2020 )
1. Third party data on file and internal estimates.
2. Gallup study of the US multi-focal market, October 2015.
7 3. Internal estimates.
4. CLI, Euromonitor and internal estimates.
5. YTD 2018 through 12/2/2018.Global Consumer: New Products to
Address Eye Care
Leader in Eye Vitamin Growth Eye Redness Treatment
LUMIFY™ is the only over-the-counter eye
• PreserVision ® and Ocuvite® combined are the #1 brand drop with low-dose brimonidine for the
and the #1 driver of growth in eye vitamins category10 treatment of eye redness
Age-related Macular Degeneration (AMD) • 95% symptom improvement at one
minute
• AMD is the leading cause of blindness in the United States for
people over 65 3,4 • Reduced redness for up to eight hours
• As baby boomers reach age 65 and beyond, millions of people Consumer Reaction
are at risk for AMD 4
• #1 physician-recommended product in
• Estimated 18M will have macular degeneration by 2050 5 the Redness Reliever category 1
• Out of those diagnosed with moderate-to-advanced AMD, only • Achieved a weekly market share of
26% of people are using an AREDS vitamin 8 ~25% 2
PreserVision ® has the only
ARED2 formulation recommended
by the National Eye Institute to
help reduce the risk of Preservative-Free Formula for Dry Eye Symptom Relief
progression by 25% in people
with moderate-to-advanced AMD 9
• Dry eye is one of the most common eye conditions
in the U.S., affecting more than 140M Americans 6
Ocuvite®: Supplements for Eye Health
• Up to 86% of dry eye cases are caused by
New Product: Ocuvite ® Blue Light Vitamins Meibomian Gland Dysfunction 7, a condition that
compromises the lipid layer in the eye and affects
• Most adults spend seven or more hours daily in front the eye's ability to produce oils that coat natural
of digital devices, exposing themselves to blue light tears
for an extended period of time
• Soothe XP uses a unique combination of
• Ocuvite ® Blue Light eye vitamins contain 25
Restoryl ® mineral oils as active ingredients,
milligrams of lutein and five milligrams of zeaxanthin
which work to restore the lipid layer, seal in
isomers, the key eye nutrients that help absorb blue
moisture and protect against further irritation
light before it reaches the macula
1. IQVIA ProVoice Monthly Survey Month Ending Sept. 2018. 6. Multi-sponsor Surveys, Inc., The 2017 Gallup Study of Dry Eye Sufferers.
2. Retail dollar share for total US (MULO) for the week ending December 23rd, 2018, according to IRI and One Click Retail. 7. Lemp, M. A., Crews, L. A., Bron, A. J., Foulks, G. N., & Sullivan, B. D. (2012). Distribution of Aqueous-Deficient and Evaporative
3. Bressler NM. Age-related Macular Degeneration is the leading cause of blindness: [Commentary by Neil M. Bressler, MD]. Dry Eye in a Clinic-Based Patient Cohort. Cornea, 31(5), 472-478. doi:10.1097/ico.0b013e318225415a.
JAMA. 2004;291(15):1900–1901. 8. Prevalence of Blindness Data. https://nei.nih.gov/eyedata/pbd_tables. Accessed September 11, 2017 IRI Panel data L52
8 4. Friedman DS, O’Colmain BJ, Muñoz B, et al; for The Eye Diseases Prevalence Research Group. Prevalence of age-related week ending 12/2/18.
macular degeneration in the United States. Arch Ophthalmol. 2004;122(4):564–572. 9. Age-Related Eye Disease Study Research Group. Arch Ophthalmol. 2001;119(10):1417-1436.
5. Jordan, Serena. Nearly 18 Million Will Have Macular Degeneration by 2050. But newer treatments could reduce related 10. IRI Total US Mulo Latest 52 Weeks Ending 09-30-18 (dollar sales).
blindness by 35%. HealthDay. USNews.com/Health. 4/2009.Global Surgical: Innovation and Platform Expansion
• ~25M cataract surgeries were done globally in 2018 1
• Globally, an estimated 330M people have cataracts and do not use surgical
Market intervention 2
Opportunity • Number of people blind from cataracts in the world is estimated to be increasing
by ~1M per year3
Developing a
Premium Portfolio and Software Innovation Expanding Our Platform
Expanding the Market
New in 2018 Helping eye surgeons Continued R&D investment
• enVista® toric MX60T increase efficiency, cut costs
intraocular lens (IOL) and improve workflow • Two clinical trials underway
• Crystalsert® 2.6 injector (CI-26) investigating new surgical
• New eyeTELLIGENCE™ technologies; a novel
• 25- and 27-gauge Bi-Blade® ophthalmic viscosurgical device
applications, which run on the
dual port vitrectomy cutters for formulation as well as an
IBM Cloud, to help eye
the Stellaris Elite™ platform investigational trifocal IOL, the
surgeons and surgical facilities
Innovative Technologies optimize practice efficiency enVista® MX60EF IOL
• Stellaris Elite™ platform when using the company’s
• Vitesse® Stellaris Elite™ platform
9 1. Market scope.
2. Market scope estimate based on WHO 2017 Global Data on Vision Impairment and a 2005 British Journal of Ophthalmology article.
3. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1705965/.Global Ophthalmology Rx:
VYZULTA® Market Opportunity
Prostaglandins represent 80% of the Why VYZULTA®?
U.S. glaucoma market 1 Brings Eye Care Professionals A Dual Mechanism of Action
• VYZULTA ® is the first and only FDA-approved nitric oxide–releasing agent that
targets both the uveoscleral and trabecular meshwork pathways to lower
intraocular pressure in patients with glaucoma or ocular hypertension
• Nitric oxide increases trabecular meshwork outflow by inhibiting 2 key causes of
trabecular meshwork cellular contraction: Rho Kinase and Calcium Signaling
U.S. Prostaglandin Market (TRx Data)2
Has Proven Efficacy
• In the Apollo and Lunar Studies, mean IOP reduction of 7.5 to 9.1mmHg from
baseline, in Phase 3 trials vs timolol 0.5% were achieved 3,4
• In the Voyager Study, 34.6% reduction of IOP from baseline was achieved with
VYZULTA ® patients compared to 29.8% with Xalatan (latanoprost) 0.005% 5
Latanoprost, • In a post hoc analysis, 42% of patients achieved a reduction of at least 2mmHg
71% more with VYZULTA ® than the mean diurnal IOP reduction for Xalatan 6
Has A Demonstrated Safety and Tolerability Profile
• VYZULTA ® had a less than 1% dropout rate in Phase 3 trials
Lumigan, 15%
• Hyperemia was reported in less than 6% of patients
Now Available: Medicare Part D
Travantan Z, 13%
30% coverage and more to come Now Approved
in Canada
Commercial Coverage: 80%
Including ESI and CVS
All Other, 1%
Xalatan, 0%
5. Weinreb RN, Ong T, Scassellati Sforzolini B, et al. A randomised, controlled comparison
1. IQVIA TRx data (Nov 2018). of latanoprostene bunod and latanoprost 0.005% in the treatment of ocular hypertension
2. IMS Smart TRx 12 months total TRx through 11/2017. and open angle glaucoma: the VOYAGER study. Br J Ophthalmol. 2015;99:738-745.
3. Weinreb RN, Scassellati Sforzolini B, Vittitow J, Liebmann J. Latanoprostene bunod 0.024% versus Timolol maleate 0.5% in
10 subjects with open-angle glaucoma or ocular hypertension: the APOLLO study. Ophthalmology. 2016;123(5):965-973.
6. Weinreb RN, Ong T, Scassellati SB, et al. A randomised, controlled comparison of
latanoprostene bunod and latanoprost 0.005% in the treatment of ocular hypertension
4. Medeiros FA, Martin KR, Peace J, et al. Comparison of latanoprostene bunod 0.024% and timolol maleate 0.5% in open- and open angle glaucoma: the VOYAGER study. Br J Ophthalmol. June 2015;99(6):738-745.
angle glaucoma or ocular hypertension: the LUNAR study. Am J Ophthalmol. 2016;168:250-259.Salix: Leading Our Pivot to Offense
2018 Highlights Coming in 2019
• Strong Durable Growth: Delivered 16% organic revenue • Expected continued growth across the segment’s promoted
growth 1,2 during first three quarters of 2018 compared to first brands including, +$1B product XIFAXAN ® and RELISTOR ®
three quarters of 2017, driven by continued strong fundamental
growth in XIFAXAN® and RELISTOR ®, despite UCERIS® LOE • 4 late stage R&D programs ongoing and/or planned for 2019
4 new collaborations and 3 new products, including Clinical Status Development
Formulation Indication
7 7 (Ready) Start Date
Rifaximin SSD Acute OHE Phase 2 FH 2018
• Resolved XIFAXAN ® IP litigation: Preserved market
Rifaximin EIR Post Operative Crohn’s Disease Phase 3 FH 20196
exclusivity until 20283 with no financial payments made by
Bausch Health
Prevention of Complications of
Xifaxan 550 mg Phase 2 FH 20196
Decompensated Cirrhosis
• Resolved legacy Salix SEC investigation with no monetary
penalty4 Xifaxan 550 mg SIBO Phase 2 FH 20196
• Resolved outstanding arbitration with Alfasigma S.p.A.
Bolt-on Opportunity: “Stalking Horse” Agreement
Revenue growth YTD as of 9.30.18 vs. Pending acquisition of certain assets of Synergy Pharmaceuticals,
YTD as of 9.30.17 which is expected to close in 1Q19 5, includes:
XIFAXAN® +26% • TRULANCE ® for adults with chronic idiopathic constipation and
irritable bowel syndrome with constipation (IBS-C)
RELISTOR® +62%
• Pipeline: Investigational compound dolcanatide, which has
demonstrated proof-of-concept in treating patients with opioid-
APRISO® +9% induced constipation and ulcerative colitis
1. See Slide 3 for further non-GAAP information. See our 3Q18 earnings presentation for GAAP reconciliation and other non-GAAP information 4. Subject to approval by the U.S. District Court for the Southern District
at https://ir.bauschhealth.com/~/media/Files/V/Valeant-IR/reports-and-presentations/3q18-bausch-health-earnings-presentation.pdf. of New York.
2. Organic growth or change, a non-GAAP metric, is defined as a change on a year-over-year basis in revenues and/or operating results on a 5. Subject to other interested parties having an opportunity to submit
competing bids, bankruptcy court approval and other customary closing
11 constant currency basis (if applicable) excluding the impact of divestitures and discontinuations.
conditions.
3. Actavis will be able to begin marketing the medicine earlier if another generic rifaximin product is granted approval and starts selling or
distributing such generic rifaximin product before Jan. 1, 2028. 6. Anticipated start date.
7. Co-promotion arrangement with third party.IBS-D: Large Untapped Market Opportunity
Feb. 2017 2017-2018 2019 & Beyond
Primary Care team added Results from Primary Care expansion Focus on remaining large untapped market
Two-week courses of rifaximin 500 mg TID
XIFAXAN® IBS-D NRx Branded Share in Primary Care1 provided consistent (open-label vs. double-blind),
55% significant and durable improvement in abdominal
45% pain and bloating symptoms vs. placebo using
45% Added Primary
Care Team modified definitions of IBS-D response
%Share
35%
25% Abdominal Pain and Bloating Response3,4
24%
15% 60
Open-label rifaximin (n=2438)
Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18
P=0.02 Double-blind rifaximin (n=328)
50 47.7
P=0.03 Double-blind placebo (n=308)
43.6
40.5
IBS-D Market Opportunity (in TRx Volume)2 40 37.2 P=0.17
Responders (%)
35.4
31.5
27.3 28.4
30
7%
2% 23.4
25%
20
XIFAXAN®
Competitor
10
n=1163
n=1062
n=133
n=906
n=116
n=97
Antispasmodic
n=84
n=93
n=72
>90% of the market
Antidiarrheals remains untapped
0
≥30% abdominal pain and ≥40% abdominal pain and ≥50% abdominal pain and
≥1-point bloating response ≥1-point bloating response ≥1-point bloating response
66% during ≥2 weeks of first during ≥2 weeks of first during ≥2 weeks of first
4 weeks post-treatment 4 weeks post-treatment 4 weeks post-treatment
1. IQVIA Rx Monthly (Xponent).
2. IQVIA SMART Factored Rx weekly (Q4 2018).
3. Response defined as simultaneously meeting weekly response criteria for abdominal pain (≥30%, ≥40%, or ≥50% improvement from baseline in the weekly average abdominal pain score) and bloating (≥1-point
12 decrease from baseline in weekly average bloating score) during ≥2 weeks of the first 4 weeks post-treatment.
4. Lacy, B., et al. Rifaximin for Improving Abdominal Pain and Bloating Symptoms in Patients With Irritable Bowel Syndrome With Diarrhea Using Modified Definitions of Pain Response. Poster Presented at the
American College of Gastroenterology 2018 Scientific Meeting; October 5-10, 2018; Philadelphia, PA.Ortho Dermatologics: 2019 Catalysts
New Products, New Market Access Model
3 New Products to Serve the Unmet Needs of Patients
Psoriasis Focus
• Large Market Opportunity: 7.5M psoriasis sufferers in the – Expanded Launch Jan. 2018
U.S. with 150,000 to 260,000 new cases of psoriasis
diagnosed each year 1,2,3 • First and only IL-17 Receptor A Blocker resonates with physicians who
remain impressed with its fast response and high percentage of patients
• Population Not Satisfied with Current Therapies reaching complete clearance
• ~80% of patients started on SILIQ™ have stayed on therapy 5
• >90% of patients are open to new treatments 4
– Launched Nov. 2018
• Only 10% of patients are extremely or very satisfied
• New potent topical steroid treatment for plaque psoriasis; safety has
with current treatments 4 been established in clinical trials with dosing for up to 8 weeks with no
increase in epidermal atrophy
• >60% of patients have been on 5 or more products for
• For the patient with more mild-to-moderate disease, sporadic flares and
the treatment of plaque psoriasis 4
symptomatic irritation
• Topical Therapy Preferred Method: >85% of patients on 6
– PDUFA Feb. 15, 2019
therapy use topical medication 4
Launch expected 1Q19 7
% of Patients on Therapy4 • Expected to be the first and only topical lotion that contains a unique
combination of halobetasol propionate and tazarotene in one formulation
100
for the treatment of plaque psoriasis in adult patients, allowing for a
80
potentially expanded duration of use
• For the patient with more moderate-to-severe disease, chronic or long-
60
lasting episodes and thicker, stubborn plaques
40
20
Solta: Delivered 17% organic revenue growth8,9 during
0 first three quarters of 2018 compared to first three
Phototherapy Topical Oral Biologic Other Nothing
medications medications medications quarters of 2017
1. Rachakonda TD et al. J Am Acad Dermatol. 2014 Mar. Psoriasis prevalence among 6. Provisional name.
adults in the United States https://www.ncbi.nlm.nih.gov/pubmed/24388724. 7.Subject to FDA approval.
2. Cowen. Therapeutic Outlook Dermatology. March 2016. 8. See Slide 3 for further non-GAAP information. See also our 3Q18 earnings presentation at
3. IMS Claims Data. April 2015- March 2016, IQVIA. Data on file. https://ir.bauschhealth.com/~/media/Files/V/Valeant-IR/reports-and-presentations/3q18-bausch-health-earnings-
13 4. National Psoriasis Foundation 2018 Survey, N=314. presentation.pdf for GAAP reconciliation and other non-GAAP information.
5. LiquidHub. 9. Organic growth, a non-GAAP metric, is defined as an increase on a year-over-year basis in revenues and/or operating results on
a constant currency basis (if applicable) excluding the impact of divestitures and discontinuations.Ortho Dermatologics:
Extensive Pipeline to Fuel Growth
BRYHALI™ (Launched Nov. 2018): New potent to super potent topical corticosteroid treatment for plaque psoriasis;
safety has been established in clinical trials with dosing for up to 8 weeks with no increase in epidermal atrophy; for the
patient with more mild-to-moderate disease, sporadic flares and symptomatic irritation
DUOBRII™2 (PDUFA Feb. 15, 2019; launch expected 1Q193): Expected to be the first and only topical lotion that
contains a unique combination of halobetasol propionate and tazarotene in one formulation for the treatment of plaque
psoriasis in adult patients, allowing for a potentially expanded duration of use; for the patient with more moderate-to-
severe disease, chronic or long-lasting episodes and thicker, stubborn plaques
Psoriasis IDP-131 (KP-470) (POC4 planned for 2019): New chemical entity with novel mechanism of action for psoriasis
ALTRENO™ (Launched Oct. 2018): First and only .05% tretinoin lotion; is a cosmetically elegant formulation that the
patient targets – adult women – want but are not able to get from their dermatologist because of a challenging payer
environment; cash-only option allows patients to get the product at a predictable price point and bypass the hassle of
insurance allowing the treatment decision to be back in the hands of the dermatologist and patient
IDP-120 (Submit 20201): First fixed combination tretinoin/benzoyl peroxide in novel dual chamber pump; previously
two efficacious products were not able to be delivered together because they degrade each other
IDP-123 (Submit 20191): First tazarotene lotion, unique concentration at less than half of approved tazarotene
products for acne
IDP-126 (Submit 20211): First topical triple combination product for acne
Acne Also, OTC acne product opportunity
Atopic IDP-124 (Submit 20201): First pimecrolimus lotion, target moderate to severe atopic dermatitis
Dermatitis IDP-133 (Submit 20211): Expand halobetasol propionate lotion beyond psoriasis for all steroid responsive dermatoses
Thermage FLX®: Launched in U.S. and Hong Kong (2017), Thailand, South Korea and Japan (3Q18) and China,
Solta Vietnam and Australia (4Q18); planned launches in Taiwan, Canada, South East Asia and EMEA (2019)
1. Expected.
14 2. Provisional name.
3. Subject to FDA approval.
4. Proof of concept.A Transformational Business Model
Plan to separate into two access models with the goal to deliver improved,
predictable and sustainable patient fulfillment options for our skin care products
Reimbursed Medical Dermatology Cash Pay Dermatology
Innovative prescription Rx products featuring Leading legacy brands prescribed by physicians,
strong value propositions for patients and payers desired by patients and purchased via cash-pay
promoted and distributed in the traditional channels
specialty pharma model
1,2
&
>5 investigational products >5 leading legacy brands
expect to be added expect to be added in 2019
We believe that the emerging Cash Pay Dermatology business will enable us to
preserve and capture, in a durable way, the brand equity associated with Solta
and our legacy dermatology products as well as several pipeline assets facing
challenging patient access environments.
15
1. Investigational product subject to FDA approval.
2. Provisional name.Significant Seven
New Product Launches Expected to Drive Long-Term Growth
$150M4 ~$300M4
1,2
(SiHy Daily)
RELISTOR ® VYZULTA® First Launch Sept. 20183; Plans
(methylnatrexone bromide) (latanoprostene bunod for global rollout PDUFA Feb. 15, 2019
Launched Sept. 2016 ophthalmic solution)
Launched Dec. 2017
Launched Nov. 2018
Launched July 2017 Launched May 2018
1. Investigational product subject to FDA approval.
16 2. Provisional name.
3. In Japan.
4. Expected.2018 Achievements and 2019 Catalysts
2018 2019
Bausch + Lomb/International Bausch + Lomb/International
VYZULTA® Launched Planned launch of Bausch + Lomb ULTRA® Multi-Focal for
Stellaris Elite™ Launched Astigmatism
LUMIFY® Launched Continued planned expansion for daily disposable parameter
AQUALOX™ (SiHy Daily) Launched in Japan offerings
Crystalsert ® 2.6 Injector Launched Specialty Vision Products (anticipated): Zen Multifocal and
Bausch + Lomb ULTRA® Multi-Focal for Astigmatism Tangible Science Hydra-PEG® coating
Approved Planned improvement for flagship PreserVision ® AREDS2
Consumer E-commerce Growth (Amazon and Alibaba) offering: Smaller size softgel product
Ocuvite ® eye performance planned line extension
Salix Loteprednol Etabonate Ophthalmic Gel, 0.38% (Ocular
PLENVU® Approved and Launched Inflammation) – PDUFA date Feb. 25, 2019
XIFAXAN® Next Generation Clinical Trial Consumer E-commerce growth expected
Salix
Ortho Dermatologics 4 late-stage R&D programs in progress
Psoriasis / SILIQ™ sales force expansion “Bolt-on” opportunities: pending acquisition of certain assets
ALTRENO™ Approved and Launched from Synergy Pharmaceuticals 3
BRYHALI™ Approved and Launched
DUOBRII™ 1 Resubmission with PDUFA date Feb. 15, 2019
Ortho Dermatologics
Corporate / Other ALTRENO™ Planned Full-year Launch
Resolved Allergan securities litigation BRYHALI™ Planned Full-year Launch
Additional debt repayments to a total of $1.07B in 2018 DUOBRII™ 1 PDUFA date Feb. 15, 2019; Launch expected in
OraPharma co-promotion of SPRIX ® 1Q192
Thermage FLX ® launches planned in Taiwan, Canada, South
East Asia and EMEA
IDP-123 anticipated submission
New access model to be implemented
17 1. Provisional name.
2. Subject to FDA approval.
3. Subject to other interested parties having an opportunity to submit competing bids, bankruptcy court approval and other customary closing conditions..2019: Pivot to Offense
Year of Growth for Bausch Health
• Expect reported revenue for total company to grow in 2019 vs. 2018,
based on today’s FX rate
• Expected cash generated from operations of >$1B to be used to reduce
debt and/or for “bolt-on” acquisitions
• R&D investment expected to grow by ~10% in 2019 vs. 2018
• Revenue generated from the Significant Seven expected to
approximately double in 2019 vs. 2018
• Continued improvement in operational efficiency (i.e. Project CORE)
expected to deliver >$75M in 2019
Bausch Health expects 3yr CAGR2 of revenue growth of 4% - 6% and Adjusted
EBITDA (non-GAAP)1 growth of 5% - 8% during 2018-2021
18 1. See Slide 3 for further non-GAAP information. See our 3Q18 earnings presentation for GAAP reconciliation and other non-GAAP information at
https://ir.bauschhealth.com/~/media/Files/V/Valeant-IR/reports-and-presentations/3q18-bausch-health-earnings-presentation.pdf.
2. Compound annual growth rate.Appendix 19
Reconciliation of Reported Growth to Organic Growth ($M)
(Year-to-Date)1
Change in
2 2
2018 2017 Organic Revenue
Changes Organic Organic
Revenue Revenue
in Revenue Divested Revenue
as as Amount Pct.
Exchange (Non- Revenues (Non-
Reported Reported
Rates (a) GAAP) (b) GAAP) (b)
B+L / International and Salix 4,782 (59) 4,723 4,732 (290) 4,442 281 6%
(a) The impact for changes in foreign currency exchange rates is determined as the difference in the current period reported revenues at their current period currency exchange rates and the current period reported revenues revalued using the monthly average currency exchange rates during the
comparable prior period.
(b) To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures. For additional information about the Company’s use of such non-GAAP financial measures, refer to Slide 3. Organic
revenue and/or operating results (non-GAAP) for the current year are calculated as revenue and/or operating results as reported adjusted for the impact for changes in exchange rates. Organic revenue and/or operating results (non-GAAP) for the prior year are calculated as revenue and/or operating results
as reported less revenues and/or operating results attributable to divestitures and discontinuances during the twelve months prior to the day of divestiture or discontinuance, as there are no revenues and/or operating results from those businesses and assets included in the comparable current period.
Organic revenue and/or operating results is also adjusted for acquisitions.
20
1. YTD at September 30, 2018 vs. YTD at September 30, 2017.
2. YTD as of September 30.You can also read
