Bausch Health Companies Inc (BHC) 2022 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Bausch Health Third Quarter 2022 Earnings Call. (Operator Instructions) It is now my pleasure to turn the floor over to your host, Christina Cheng, Senior Vice President, Investor Relations and Communications at Bausch Health. Ma'am, the floor is yours.

女士們，先生們，早上好，歡迎參加 Bausch Health 2022 年第三季度財報電話會議。 （操作員說明）現在我很高興將發言權交給您的主持人，博士生健康公司投資者關係和溝通高級副總裁 Christina Cheng。女士，地板是你的。

Thanks, Matt. Good morning, and welcome to our third quarter 2022 earnings conference call. Participating in today's call are Thomas Appio, Chief Executive Officer of Bausch Health and Tom Vadaketh, Chief Financial Officer. Before we begin, I'd like to remind you that our presentation today contains forward-looking information. We ask you to take a moment to read the forward-looking statements at the beginning of this presentation. Our actual results may vary materially from these expressed or implied in our forward-looking statements, and you should not place undue reliance on any forward-looking statements. Please refer to our SEC filings and filings to the Canadian securities administrators for a list of some of the factors that could cause our actual results to differ materially from expectations.

謝謝，馬特。早上好，歡迎參加我們的 2022 年第三季度財報電話會議。 Bausch Health 首席執行官 Thomas Appio 和首席財務官 Tom Vadaketh 參加了今天的電話會議。在開始之前，我想提醒您，我們今天的演示文稿包含前瞻性信息。我們請您花點時間閱讀本演示文稿開頭的前瞻性陳述。我們的實際結果可能與我們在前瞻性陳述中明示或暗示的結果存在重大差異，您不應過分依賴任何前瞻性陳述。請參閱我們向美國證券交易委員會提交的文件和向加拿大證券管理機構提交的文件，了解可能導致我們的實際結果與預期存在重大差異的一些因素的清單。

We use non-GAAP financial measures to help investors understand our ongoing business performance. Non-GAAP financial measures may not be comparable to similarly titled measures used by other companies, and should be considered along with, but not as an alternative to, measures calculated in accordance with GAAP. You will find reconciliations to our non-GAAP measures in the appendix of this presentation, which is available on Bausch Health's Investor Relations website.

我們使用非公認會計準則財務指標來幫助投資者了解我們的持續經營業績。非 GAAP 財務指標可能無法與其他公司使用的類似名稱的指標進行比較，因此應與根據 GAAP 計算的指標一起考慮，但不能作為替代指標。您將在本演示文稿的附錄中找到與我們的非公認會計原則措施的對賬，該演示文稿可在 Bausch Health 的投資者關係網站上找到。

Finally, the financial guidance in this presentation is effective as of today only. We do not undertake any obligation to update guidance. Our discussion today will focus on Bausch Pharma and Solta. However, we will briefly comment on Bausch & Lomb's results announced yesterday. We will refer to year-over-year comparisons with the same period last year unless otherwise noted. With that, it is my pleasure to turn the call over to our CEO, Thomas Appio.

最後，本演示文稿中的財務指導僅在今天有效。我們不承擔更新指南的任何義務。我們今天的討論將集中在 Bausch Pharma 和 Solta。不過，我們將簡要評論博士倫昨天公佈的業績。除非另有說明，否則我們將參考與去年同期的同比比較。有了這個，我很高興將電話轉給我們的首席執行官 Thomas Appio。

Thank you, Christina, and welcome to those of you joining the call today. Let me start with the 4 points on Slide 6 that I want you to take away from this quarter. First, we are encouraged with the sequential sales improvement for Bausch Pharma and Solta this quarter. Second, we created value during difficult market conditions with a very successful exchange offer that reduced debt principal by $2.5 billion. Third, we continue to evaluate potential options to maximize value, including improving our balance sheet and evaluating all factors related to the future distribution of Bausch & Lomb. Fourth, we continue to vigorously defend our intellectual property in XIFAXAN patent litigation.

謝謝你，克里斯蒂娜，歡迎你們今天加入電話會議。讓我從幻燈片 6 上的 4 點開始，我希望你從本季度中拿走。首先，我們對本季度 Bausch Pharma 和 Solta 的連續銷售增長感到鼓舞。其次，我們在困難的市場條件下創造了價值，通過非常成功的交換要約將債務本金減少了 25 億美元。第三，我們繼續評估實現價值最大化的潛在選擇，包括改善我們的資產負債表和評估與博士倫未來分佈相關的所有因素。第四，我們在西發訊專利訴訟中繼續大力捍衛我們的知識產權。

Let me now take you through some specifics. First, on Slide 7, I am pleased to report that we are making progress on our key priorities in each of our business segments. In Salix, we are activating patient and caregivers through targeted commercial strategies, which are starting to drive results, with XIFAXAN script growth running positive during the last 8 weeks of the quarter. Other key promoter brands also saw increased scripts, led by double-digit growth for RELISTOR and PLENVU, and mid-single-digit growth for TRULANCE. Salix had a 3% organic revenue increase in Q3, improving from the minus 2% during the first 6 months of the year. We continue to intensify our focus on near-term initiatives to improve the diagnosis and treatment of GI and HE disease.

現在讓我帶您了解一些具體情況。首先，在幻燈片 7 中，我很高興地報告，我們在每個業務部門的關鍵優先事項上都取得了進展。在 Salix，我們正在通過有針對性的商業策略來激活患者和護理人員，這些策略正在開始推動結果，XIFAXAN 腳本在本季度的最後 8 週內呈正增長。其他主要發起人品牌的劇本也有所增加，其中 RELISTOR 和 PLENVU 實現兩位數增長，TRULANCE 實現中個位數增長。 Salix 在第三季度的有機收入增長了 3%，高於今年前 6 個月的負 2%。我們將繼續加強對改善 GI 和 HE 疾病診斷和治療的近期舉措的關注。

In international, we continue to grow key markets such as Poland, Mexico and Canada with existing brands and new products. The International business posted a 10% organic growth, following a healthy 5% increase during the first half of the year. In Solta Medical, sales grew organically 4%, with strong gains in our international business following a slow first half given the ongoing COVID lockdowns in China. In Diversified Products, EBITDA margins remained stable, although sales for this segment declined by 17% on an organic basis. JUBLIA continues to benefit from our direct-to-consumer investments and script growth was 34%. Arestin drove a 9% increase in our dentistry business.

在國際上，我們通過現有品牌和新產品繼續發展波蘭、墨西哥和加拿大等主要市場。繼今年上半年健康增長 5% 之後，國際業務實現了 10% 的有機增長。 Solta Medical 的銷售額有機增長了 4%，鑑於中國持續的 COVID 封鎖，我們的國際業務在上半年緩慢增長後強勁增長。在多元化產品中，EBITDA 利潤率保持穩定，儘管該細分市場的銷售額有機下降了 17%。 JUBLIA 繼續受益於我們的直接面向消費者的投資，腳本增長率為 34%。 Arestin 推動我們的牙科業務增長了 9%。

Second, we took significant step forward in reducing our outstanding debt. After completing an open market repurchase program in the second quarter, which retired $481 million in long-term debt at a significant discount, we executed a very successful debt exchange this quarter that further reduced debt principal by $2.5 billion with minimal cash outlay. This brings our year-to-date debt reduction to approximately $3.3 billion. I want to thank the teams, both internally and externally, who worked tirelessly through the summer to complete this very successful transaction.

第二，我們在減少未償債務方面邁出了重要一步。在第二季度完成了公開市場回購計劃（以大幅折扣退還了 4.81 億美元的長期債務）後，我們在本季度執行了一次非常成功的債務交換，以最少的現金支出進一步減少了 25 億美元的債務本金。這使我們今年迄今的債務減少至約 33 億美元。我要感謝內部和外部的團隊，他們在整個夏天不知疲倦地工作以完成這項非常成功的交易。

We made significant progress in strengthening our financial position this quarter. We reduced our leverage, pushed back our near-term debt maturities and generated savings in annual interest costs. Third, we continue to evaluate potential options to maximize stakeholder value. This includes ongoing focus on our balance sheet and liquidity. We continue to believe that the separation of Bausch and Lomb makes strategic sense, and we will thoughtfully evaluate all factors related to the B&L separation. In the meantime, we expect that continued focus on commercial execution will improve our operating results and reinforce a solid foundation for our future.

本季度，我們在加強財務狀況方面取得了重大進展。我們降低了槓桿率，推遲了短期債務到期，並節省了年度利息成本。第三，我們繼續評估潛在的選擇，以最大限度地提高利益相關者的價值。這包括持續關注我們的資產負債表和流動性。我們仍然相信博士倫的分離具有戰略意義，我們將深思熟慮地評估與 B&L 分離相關的所有因素。與此同時，我們預計繼續專注於商業執行將改善我們的經營業績並為我們的未來奠定堅實的基礎。

Lastly, let me provide a brief update on the XIFAXAN patent litigation. We filed our appeal with the U.S. Court of Appeals for the Federal Circuit and expect the process to take approximately 12 to 18 months. We will not provide any further comments on patent litigation at this time.

最後，讓我簡要介紹一下XIFAXAN專利訴訟的最新情況。我們向美國聯邦巡迴上訴法院提出上訴，預計該過程大約需要 12 到 18 個月。我們目前不會就專利訴訟提供任何進一步的評論。

With that, I'll turn the call over to Tom Vadaketh, who will provide further details on our third quarter performance and outlook for the remainder of the year. Tom?

有了這個，我將把電話轉給 Tom Vadaketh，他將提供有關我們第三季度業績和今年剩餘時間展望的更多細節。湯姆?

Thanks, Tom. Hello, everyone, and thanks for joining us. My comments today will refer to organic growth and adjusted results. Let's start with Slide 9. We're encouraged with the progress we made this quarter, with consolidated third quarter revenues of $2 billion, up 2% on an organic basis over the same quarter last year. This represents an important inflection from the first half of the year, which was flat on an organic basis. At Bausch Pharma and Solta, third quarter revenues were $1.1 billion, improving from the 4% decline through the first half of the year to a minus 1% on an organic basis this quarter. This quarter, 3 out of 4 businesses posted organic growth, notably Salix, International and Solta. Let me discuss each segment in greater detail as shown on Slides 10 and 11.

謝謝，湯姆。大家好，感謝您加入我們。我今天的評論將涉及有機增長和調整後的結果。讓我們從幻燈片 9 開始。我們對本季度取得的進展感到鼓舞，第三季度合併收入為 20 億美元，比去年同期有機增長 2%。這代表了今年上半年的重要轉折，在有機基礎上持平。在 Bausch Pharma 和 Solta，第三季度收入為 11 億美元，從今年上半年的 4% 下降到本季度有機基礎上的負 1%。本季度，四分之三的企業實現了有機增長，尤其是 Salix、International 和 Solta。讓我更詳細地討論每個部分，如幻燈片 10 和 11 所示。

Salix revenues were $544 million, an increase of 3% versus the third quarter last year, an improvement from the 2% decline in the first half of this year. XIFAXAN revenue was up 4% from the third quarter of last year. TRx growth was flat, but ended the quarter with a positive trend. Increased demand was partially offset by an estimated $13 million reduction of inventory at the retail level. We're also pleased with the performance of TRULANCE, RELISTOR and PLENVU, with double-digit increases in sales and TRx growth of 6%, 22% and 23%, respectively.

Salix 收入為 5.44 億美元，比去年第三季度增長 3%，比今年上半年下降 2% 有所改善。 XIFAXAN 收入較去年第三季度增長 4%。 TRx 增長持平，但以積極的趨勢結束了本季度。增加的需求被零售層面估計的 1300 萬美元庫存減少所部分抵消。我們也對 TRULANCE、RELISTOR 和 PLENVU 的表現感到滿意，銷售額和 TRx 分別增長了 6%、22% 和 23%，實現了兩位數的增長。

International revenues were $250 million, an increase of 10% on an organic basis compared with the third quarter of last year, driven by strong performance in Canada and Europe and double-digit growth in a number of key brands. Solta Medical revenues of $72 million increased 4% on an organic basis this quarter, driven by strong results in the Asia Pacific region as China recovers from the COVID lockdowns. Diversified Products revenues were $238 million, down 17% on an organic basis compared with the third quarter of last year. Revenues from Neurology decreased 15%, primarily due to lower demand for Wellbutrin and a decline in COVID-related demand for certain products, offset by a 16% increase in Aplenzin revenue. As Tom noted earlier, JUBLIA continues to benefit from our marketing investments.

國際收入為 2.5 億美元，與去年第三季度相比有機增長 10%，這得益於加拿大和歐洲的強勁表現以及多個主要品牌的兩位數增長。 Solta Medical 本季度收入為 7200 萬美元，有機增長 4%，這得益於中國從 COVID 封鎖中復蘇，亞太地區業績強勁。多元化產品收入為 2.38 億美元，與去年第三季度相比有機下降 17%。神經病學的收入下降了 15%，主要是由於對 Wellbutrin 的需求下降以及對某些產品的 COVID 相關需求下降，被 Aplenzin 收入增長 16% 所抵消。正如湯姆之前所說，JUBLIA 繼續從我們的營銷投資中受益。

In dentistry, Arestin was up 10%, and we saw lower sales from legacy products in generics.

在牙科領域，Arestin 增長了 10%，我們看到仿製藥傳統產品的銷售額下降。

Lastly, on Slide 12, Bausch & Lomb revenues were $942 million, up 5% organically compared with the third quarter of 2021, with organic growth across all B&L segments led by the Surgical segment.

最後，在幻燈片 12 上，博士倫的收入為 9.42 億美元，與 2021 年第三季度相比有機增長 5%，所有 B&L 部門的有機增長均由外科部門引領。

Turning to the P&L for the quarter on Slide 15. I will first refer to results on a consolidated basis and then provide some additional color for the performance of Bausch Pharma and Solta. Third quarter consolidated adjusted gross margin was 71.5%, 90 basis points lower compared with the third quarter last year, driven by the impact of inflation. This compares to a 30-basis-point decline through the first half of the year. At Bausch Pharma and Solta, adjusted gross margin was approximately 81% and flat versus the prior year. Our long-term contractual agreements are providing some cost stability this year despite increases in energy and distribution costs. We do, however, expect greater pressure on our cost of goods next year as our contracts renew.

在幻燈片 15 上轉向本季度的損益表。我將首先參考綜合結果，然後為 Bausch Pharma 和 Solta 的表現提供一些額外的顏色。受通脹影響，第三季度綜合調整後毛利率為 71.5%，較去年第三季度下降 90 個基點。相比之下，今年上半年下降了 30 個基點。在 Bausch Pharma 和 Solta，調整後的毛利率約為 81%，與去年持平。儘管能源和分銷成本增加，但我們的長期合同協議在今年提供了一定的成本穩定性。然而，我們確實預計，隨著我們的合同續簽，明年我們的商品成本將面臨更大的壓力。

Consolidated adjusted operating expenses for the third quarter was $758 million, an increase of $37 million or 5% with higher R&D and G&A expenses. B&L yesterday reported an increase of $26 million in operating expenses. Consolidated R&D expense increased 10% and represented 6.5% of net sales compared with 5.7% in the third quarter last year as we continue to invest in R&D priorities.

第三季度合併調整後的運營費用為 7.58 億美元，增加了 3700 萬美元或 5%，其中研發和 G&A 費用增加。 B&L 昨天報告運營費用增加了 2600 萬美元。由於我們繼續投資於研發重點，綜合研發費用增加了 10%，占淨銷售額的 6.5%，而去年第三季度為 5.7%。

The increase in consolidated G&A costs reflects the impact of the separation and the costs to stand up 2 public companies. We will continue to manage our costs prudently.

合併 G&A 成本的增加反映了分離的影響以及成立 2 家上市公司的成本。我們將繼續審慎管理成本。

Third quarter consolidated adjusted EBITDA attributable to Bausch Health was $766 million, a decrease of 13% versus last year. For Bausch Pharma and Solta, segment profit was $660 million, a decrease of 5% versus last year, driven by the decline in revenue, which includes $25 million primarily from the Amoun divestiture and $27 million from the impact of foreign exchange.

歸屬於博士生健康的第三季度合併調整後 EBITDA 為 7.66 億美元，比去年下降 13%。 Bausch Pharma 和 Solta 的分部利潤為 6.6 億美元，與去年相比下降了 5%，原因是收入下降，其中包括主要來自 Amoun 剝離的 2500 萬美元和來自外匯影響的 2700 萬美元。

On a consolidated basis, third quarter adjusted EBITDA margin was 37.4%, down 450 basis points compared with last year's 41.9%. As a reminder, adjusted EBITDA margin for Bausch Pharma and Solta approximates in the low 50s range, and for Bausch and Lomb approximates in the 20% range.

在綜合基礎上，第三季度調整後 EBITDA 利潤率為 37.4%，比去年的 41.9% 下降 450 個基點。提醒一下，Bausch Pharma 和 Solta 的調整後 EBITDA 利潤率接近 50 年代的低位，而 Bausch 和 Lomb 的調整後 EBITDA 利潤率接近 20% 的範圍。

A few words about cash flow. Excluding legacy legal settlements, separation costs, cash provided by Amoun and third-party fees related to our recently completed debt exchange, adjusted cash flow from operations on a consolidated basis was $9 million versus $382 million last year, primarily due to operating results and the timing of working capital movements. Cash flow in the quarter also included advanced payments of accrued interest on debt that was exchanged of approximately $100 million that ordinarily would have been paid after Q3. Year-to-date adjusted cash flow from operations for Bausch Pharma and Solta was $297 million, and we expect adjusted cash flow for the full year of $600 million. While cash flow has been lumpy this year due to timing, the business continues to be highly cash generative.

關於現金流的幾句話。不包括遺留法律和解、離職成本、Amoun 提供的現金以及與我們最近完成的債務交換相關的第三方費用，調整後的合併經營現金流為 900 萬美元，而去年為 3.82 億美元，主要是由於經營業績和營運資金流動的時機。本季度的現金流還包括預先支付的債務應計利息，這些債務交換後通常會在第三季度之後支付約 1 億美元。 Bausch Pharma 和 Solta 的年初至今調整後的運營現金流為 2.97 億美元，我們預計全年調整後的現金流為 6 億美元。儘管由於時機原因，今年的現金流一直不穩定，但該業務仍然具有很高的現金生成能力。

Our GAAP cash flow on Slide 14 included a payment of $1.2 billion out of the restricted cash balance related to a previous settlement of the legacy U.S. securities litigation.

我們在幻燈片 14 上的 GAAP 現金流包括從與先前解決遺留美國證券訴訟有關的受限現金餘額中支付的 12 億美元。

Now let's turn to our balance sheet on Slide 16. As Tom mentioned, we made significant strides in deleveraging our balance sheet this quarter. This was accomplished through a successful debt exchange offer that reduced our outstanding principal by $2.5 billion of debt with minimal cash outlay. The exchange offer closed on September 30. A total of $5.6 billion of previously issued senior unsecured notes were exchanged for $2.1 billion of new secured -- senior secured notes of Bausch Health and $1 billion of new senior secured notes of a wholly-owned, unrestricted subsidiary that holds approximately 38.6% of outstanding shares of Bausch and Lomb. The successful debt exchange also reduced our '25 to '26 debt maturities by $1.3 billion, which you can see in Slide 17. We expect the transaction to reduce our interest cost by approximately $65 million annually going forward.

現在讓我們轉向幻燈片 16 上的資產負債表。正如湯姆所說，我們在本季度的資產負債表去槓桿化方面取得了重大進展。這是通過成功的債務交換要約實現的，該要約以最少的現金支出將我們的未償本金減少了 25 億美元的債務。交換要約於 9 月 30 日結束。此前發行的總計 56 億美元的高級無擔保票據被交換為 21 億美元的新有擔保——博士生健康的高級有擔保票據和全資無限制的 10 億美元的新高級有擔保票據持有博士倫約 38.6% 已發行股份的子公司。成功的債務交換還將我們 25 至 26 年的債務到期減少了 13 億美元，您可以在幻燈片 17 中看到這一點。我們預計該交易將在未來每年將我們的利息成本降低約 6500 萬美元。

You'll note that the gain on extinguishment of debt of approximately $570 million is much smaller than the net reduction in our debt principal of $2.5 billion. Certain GAAP accounting guidance applicable to the exchange resulted in the recording of an approximately $1.8 billion premium on the newly issued debt. This premium will be amortized to effectively reduce GAAP interest expense over the remaining life of the new bonds. Please find additional details in our Form 10-Q.

您會注意到，約 5.7 億美元的債務清償收益遠小於我們的債務本金淨減少 25 億美元。某些適用於交易所的 GAAP 會計準則導致新發行的債務出現約 18 億美元的溢價。這筆溢價將被攤銷，以有效減少新債券剩餘期限內的 GAAP 利息費用。請在我們的 10-Q 表格中找到更多詳細信息。

As you can see on Slide 18, total debt, excluding Bausch and Lomb, is $17.1 billion, which consists of $16.1 billion of restricted debt issued by Bausch Pharma and $1 billion of senior secured notes issued by the newly created unrestricted subsidiary. Excluding B&L debt, approximately 85% of our debt is fixed, or 70% on a consolidated basis, and we have no maturities until 2025. Bausch Health and its restricted subsidiaries continue to hold the majority of the shares of Bausch and Lomb, which itself remains a restricted subsidiary. We are focused on improving the company's balance sheet and unlocking stakeholder value. We've identified potential options that we believe could advance these objectives. Unrestricting B&L is a potential component of one or more of these possible strategies. We're continuing to carefully and thoughtfully evaluate all such strategies. However, we cannot comment further on any speculation regarding future transactions.

正如您在幻燈片 18 上看到的那樣，不包括博士倫的總債務為 171 億美元，其中包括博士生製藥公司發行的 161 億美元的限制性債務和新成立的無限制子公司發行的 10 億美元的優先擔保票據。不包括提單債務，我們大約 85% 的債務是固定的，或 70% 的合併債務是固定的，我們在 2025 年之前沒有到期。博士倫及其受限子公司繼續持有博士倫的大部分股份，博士倫本身仍為受限製附屬公司。我們專注於改善公司的資產負債表和釋放利益相關者的價值。我們已經確定了我們認為可以推進這些目標的潛在選擇。無限制提單是這些可能策略中的一個或多個的潛在組成部分。我們將繼續仔細和深思熟慮地評估所有此類策略。但是，我們無法對有關未來交易的任何猜測進一步置評。

I'll now discuss our outlook for the remainder of 2022, which you can find on Slides 20 and 21. Our guidance for Bausch Pharma and Solta remains unchanged, with full year revenues of $4.3 billion to $4.42 billion, which is down 3% to flat on an organic basis. Full year adjusted EBITDA is expected to range between $2.28 billion to $2.34 billion.

我現在將討論我們對 2022 年剩餘時間的展望，您可以在幻燈片 20 和 21 上找到。我們對 Bausch Pharma 和 Solta 的指導保持不變，全年收入為 43 億美元至 44.2 億美元，下降 3% 至在有機基礎上持平。全年調整後的 EBITDA 預計在 22.8 億美元至 23.4 億美元之間。

Our previous assumptions are unchanged with the exception of adjusted tax rate, which is now expected to be a little higher at 17%, up from 15% previously. While we expect FX to continue to be a headwind, we are maintaining our previously disclosed guidance for the full year. As you heard yesterday, Bausch and Lomb has reduced its full year revenue outlook by $50 million to $3.7 billion to $3.75 billion driven by FX, and full year adjusted EBITDA by $25 million to $715 million to $755 million. As a result, we're updating our consolidated guidance for revenues of $8 billion to $8.17 billion, and adjusted EBITDA of $2.99 billion to $3.09 billion for the full year 2022.

我們之前的假設保持不變，但調整後的稅率除外，現在預計該稅率將從之前的 15% 略高至 17%。雖然我們預計外匯將繼續成為逆風，但我們將維持之前披露的全年指引。正如你昨天聽到的那樣，博士倫在外彙的推動下將其全年收入預期下調了 5000 萬美元至 37 億美元至 37.5 億美元，全年調整後 EBITDA 下調了 2500 萬美元至 7.15 億美元至 7.55 億美元。因此，我們將 2022 年全年收入的綜合指引更新為 80 億美元至 81.7 億美元，調整後的 EBITDA 為 29.9 億美元至 30.9 億美元。

Our expectation for consolidated organic growth of flat to up 2% is unchanged for the full year.

我們對全年有機增長持平至 2% 的預期保持不變。

I'll now hand the call back to Tom Appio for concluding remarks.

我現在將電話轉回給 Tom Appio 進行總結髮言。

Thank you, Tom. As I said since becoming the CEO, we have 4 priorities: one, driving sales and EBITDA growth; two, focusing on operating rigor behind R&D and business development; three, developing a high-performance results-oriented culture; and four, creating value through strategic alternatives. We have made solid progress this quarter. Our strategy is starting to produce results for Bausch Pharma and Solta, with 3 out of our 4 segments posting organic growth, and a very successful debt exchange offer that has created additional flexibility to invest and innovate. We have also made good progress in research and development, which I'd like to touch on briefly today.

謝謝你，湯姆。正如我所說，自從成為首席執行官以來，我們有 4 個優先事項：一，推動銷售和 EBITDA 增長；二、注重研發和業務發展背後的運營嚴謹性；三、發展以結果為導向的高績效文化；第四，通過戰略選擇創造價值。本季度我們取得了實質性進展。我們的戰略開始為 Bausch Pharma 和 Solta 帶來成果，我們的 4 個部門中有 3 個實現了有機增長，並且非常成功的債務交換要約為投資和創新創造了額外的靈活性。我們在研發方面也取得了不錯的進展，今天我想簡單談談。

We continue to invest strategically in R&D to advance our clinical and regulatory programs in GI, hepatology and other key areas. One of our new formulation of rifaximin gained regulatory alignment with various global health authorities on 2 pivotal Phase III trials. Our RED-C program could bring a much needed treatment to patients living with liver cirrhosis to prevent their first episode of overt hepatic encephalopathy, OHE. This is a much larger patient population than patients being treated with the current formulation of rifaximin for OHE. This would be -- this product would be a global franchise for Solta -- for Salix.

我們繼續對研發進行戰略性投資，以推進我們在胃腸道、肝病學和其他關鍵領域的臨床和監管項目。我們的一種新的利福昔明製劑在 2 項關鍵的 III 期試驗中獲得了與全球各個衛生當局的監管一致。我們的 RED-C 計劃可以為肝硬化患者帶來急需的治療，以防止他們首次出現明顯的肝性腦病 OHE。與使用當前用於 OHE 的利福昔明製劑治療的患者相比，這是一個更大的患者群體。這將是——這個產品將是 Solta 的全球特許經營權——對於 Salix。

Findings published in our second liver trends report this past quarter highlighted the urgent needs in this area. Our research finds that 81% of the respondents believe preventing the reoccurrence of liver disease symptoms is extremely important, and yet 51% of primary care physician survey were uncomfortable treating OHE. We will continue to increase our efforts to educate medical practitioners and improve both the diagnosis of HE and patient adherence. We expect the recent approval of the new ICD-10 code for HE will support the continued reimbursement for, and access to treatment of this life-threatening condition.

上一季度我們的第二肝趨勢報告中發表的調查結果強調了該領域的迫切需求。我們的研究發現，81% 的受訪者認為防止肝病症狀再次發生非常重要，但 51% 的初級保健醫生調查對治療 OHE 感到不舒服。我們將繼續加大對醫生的教育力度，提高 HE 的診斷和患者的依從性。我們預計最近批准的新 ICD-10 代碼將支持對這種危及生命的疾病的持續報銷和治療。

In conclusion, we will continue to drive growth, profitability and improve our balance sheet. We will continue to vigorously defend our intellectual property and address patient needs with XIFAXAN. We will continue to evaluate potential options to maximize value for all our stakeholders.

總之，我們將繼續推動增長、盈利能力和改善我們的資產負債表。我們將繼續大力捍衛我們的知識產權，並與西發散一起滿足患者的需求。我們將繼續評估潛在的選擇，為所有利益相關者實現價值最大化。

I'd like to thank the Bausch Health team for all their hard work, focus and dedication in driving performance and building a results-oriented culture. As I have stated before, we are a resilient team, motivated, working with a sense of urgency and ownership, and we will remain focused as we execute with excellence to drive performance.

我要感謝 Bausch Health 團隊在推動績效和建立以結果為導向的文化方面的所有辛勤工作、專注和奉獻。正如我之前所說，我們是一個有彈性的團隊，積極進取，以緊迫感和主人翁意識工作，我們將保持專注，以卓越的執行力來推動績效。

With that, we will now take any questions you will have. Operator, please open the line for Q&A.

有了這個，我們現在將回答您的任何問題。接線員，請打開問答線路。

(Operator Instructions) Your first question is coming from Gary Nachman from BMO Capital Markets.

（操作員說明）您的第一個問題來自 BMO 資本市場的 Gary Nachman。

Great. So first, maybe you could talk at a high level, what are the different options you might have related to the distribution of B&L? Is it all related to achieving appropriately -- the appropriate leverage targets? Have those targets changed at all? How are you thinking about them? And without visibility on the XIFAXAN appeal at this point, can you actually still do the distribution? Can you affect that?

偉大的。那麼首先，也許您可以高談一下，您可能有哪些與 B&L 分配相關的不同選擇？這一切都與適當地實現——適當的槓桿目標有關嗎？這些目標有沒有改變？你是怎麼想他們的？在這一點上沒有看到 XIFAXAN 的吸引力，你真的還能做分發嗎？你能影響它嗎？

And then secondly, just a follow-up. Just, Tom, maybe you could talk also at a high level just the status of potential divestitures? Are you close to anything? Do you feel like discussions have progressed and maybe what the time frame is for us to hear about something on that front?

其次，只是一個後續行動。只是，湯姆，也許你也可以在高層次上談談潛在剝離的狀況？你靠近什麼嗎？您是否覺得討論已經取得進展，也許我們在這方面聽到一些事情的時間範圍是多少？

Okay. Gary, thanks. What I'll do is I'll let Tom Vadaketh take the first part, and then I'll answer the second part. Tom?

好的。加里，謝謝。我要做的是讓 Tom Vadaketh 承擔第一部分，然後我將回答第二部分。湯姆?

Gary, thanks for your question. Look, in terms of options, we continue to consider all options, as you mentioned, criteria being, what's going to create value for all our stakeholders. And so we're focused on that. And then also what would position the company for long-term success. I think you've seen already this year that we've been quite thoughtful in the steps we have taken, and we're going to continue to be thoughtful with each action and each step that we're going to take. And so we're not going to comment on this call on individual actions. But we are considering everything and taking each step pretty thoughtfully. So I would -- that's all we can say about next steps vis-a-vis distribution or unrestricting or anything else on that front.

加里，謝謝你的提問。看，就選項而言，我們將繼續考慮所有選項，正如您所提到的，標準是，什麼將為我們所有的利益相關者創造價值。所以我們專注於這一點。然後還有什麼將使公司獲得長期成功。我想你今年已經看到，我們在採取的步驟中非常周到，我們將繼續對我們將要採取的每一個行動和每一步都深思熟慮。因此，我們不會就個人行動發表評論。但是我們正在考慮所有事情，並且非常周到地採取每一步。所以我會 - 這就是我們可以說的關於分發或無限製或其他任何方面的後續步驟的全部內容。

Yes, Gary, on the question on divestitures. I continue and the team continues to look at the assets that we have globally, and seeing what we have, what we can do. So it's something that we're viewing constantly. And then, of course, we have a lot of valuable assets, and if there was a divestiture it would have to be at a premium price. But that's something that we continue to look at because if we were able to divest some assets, we do have some things that we're very interested in from an investment standpoint or paying down debt. Next question?

是的，加里，關於資產剝離的問題。我繼續，團隊繼續關注我們在全球範圍內擁有的資產，看看我們擁有什麼，我們能做什麼。所以這是我們一直在觀察的東西。然後，當然，我們有很多有價值的資產，如果要進行資產剝離，它必須以高價出售。但這是我們繼續關注的事情，因為如果我們能夠剝離一些資產，從投資或償還債務的角度來看，我們確實有一些我們非常感興趣的事情。下一個問題？

Your next question is coming from Georgi Yordanov from Cowen.

您的下一個問題來自 Cowen 的 Georgi Yordanov。

So we have one, and I guess, a follow-up -- just on a follow-up on the previous questions. Can you confirm that at this point, you've satisfied all the debt covenant requirements to allow for the spin? And what is your updated thinking on the previously-guided optimum leverage ratios?

所以我們有一個，我猜是一個跟進——只是對前面問題的跟進。您能否確認此時您已滿足所有允許旋轉的債務契約要求？您對先前指導的最佳槓桿比率的最新想法是什麼？

And then just as a follow-up, do you have -- do you have any updates on the citizens petition? And if you can talk about what those bioequivalence guidance might look like? Are there any examples that the FDA has required from other generic products in a specific -- in a similar product-specific guidance?

然後作為後續行動，你有沒有 - 你有關於公民請願的任何更新嗎？如果你能談談那些生物等效性指導可能是什麼樣子？是否有 FDA 要求其他仿製藥產品在特定產品中的任何示例——在類似的產品特定指南中？

Okay. So, Georgi, I'll let Tom take the first part, and I'll take the second part.

好的。所以，Georgi，我會讓 Tom 承擔第一部分，我將承擔第二部分。

George, thanks. The -- in terms of criteria for spin, as we've said before, there are certain leverage targets that the company had set -- we've set for ourselves as well as various regulatory and other approvals and steps that we've got to take. So we are considering all of those and not just leverage targets. Obviously, the debt exchange has made a -- is nice progress, as Tom said, and I've said in our prepared remarks. But at this point, we have no further comments on whether or not we're closer to a spin.

喬治，謝謝。 - 就旋轉標準而言，正如我們之前所說，公司設定了某些槓桿目標 - 我們為自己設定了各種監管和其他批准和步驟採取。因此，我們正在考慮所有這些，而不僅僅是槓桿目標。顯然，正如湯姆所說，債務交換取得了很好的進展，我在準備好的評論中也說過。但在這一點上，我們沒有進一步評論我們是否更接近旋轉。

Yes. Regarding the second part of the question regarding the citizens petition, right now, the FDA granted Bausch's petition in part and intends to revise the XIFAXAN product-specific guidance, but as of right now, have not issued the actual guidance yet. Next question?

是的。關於公民請願問題的第二部分，目前，FDA 部分批准了 Bausch 的請願，並打算修改 XIFAXAN 產品特定指南，但截至目前，尚未發布實際指南。下一個問題？

Your next question is coming from David Amsellem from Piper Sandler.

您的下一個問題來自 Piper Sandler 的 David Amsellem。

This is Isaac on for David. Two for me. So on XIFAXAN, we saw the tentative approval for Allergan generic of the 200-milligram strength a month or 2 ago. And it looks like the agency went ahead with their decision without updating the draft guidance. So how does that dynamic alter your thinking about a potential label carve-out for the HE indication?

這是大衛的艾薩克。兩個給我。因此，在 XIFAXAN 上，我們在一個月或 2 個月前看到了 200 毫克強度的艾爾建仿製藥的初步批准。看起來該機構在沒有更新指導草案的情況下繼續他們的決定。那麼，這種動態如何改變您對 HE 適應症潛在標籤剝離的想法？

And then as a follow-up, this one on XIFAXAN commercially, what is your ability to invest more given the state of the capital structure? Or should we, at this point, think XIFAXAN as a largely mature asset that you're going to just manage and maximize the cash flows out of?

然後作為後續，這個關於西發訊的商業，考慮到資本結構的狀態，你有什麼能力進行更多的投資？或者，在這一點上，我們是否應該將 XIFAXAN 視為一項基本成熟的資產，您將只管理和最大化現金流出？

Okay. I'll take those 2 questions. Firstly, on the 200-milligram, I can't speculate on this time regarding that question. What I would say is, let's just talk about XIFAXAN and what I believe, and the team believes we have. We have a great asset here in 2 very important indications. If you take a look at the incidence of these diseases clearly, we have a lot of area for growth. And if I take -- just take a look from an IBS-D perspective, 2.5 million patients are diagnoses -- diagnosed with IBS-D, but only 140,000 are treated with second-line medication like XIFAXAN. So there's a lot of area there to grow.

好的。我會回答這兩個問題。首先，關於 200 毫克，我無法推測這個問題。我想說的是，讓我們來談談西發尚和我的信念，以及團隊相信我們擁有的東西。我們在這裡有兩個非常重要的跡象。如果您清楚地了解這些疾病的發病率，我們有很大的增長空間。如果我從 IBS-D 的角度看一下，有 250 萬患者被診斷出患有 IBS-D，但只有 140,000 人接受了像 XIFAXAN 這樣的二線藥物治療。所以那裡有很多地方可以發展。

We are investing in this year and next year. Our plan is just to continue and to put more investment behind this franchise. When we take a look at HE, our analytics indicates that there's about 193,000 patients potentially have HE and only 50,000 are treated with XIFAXAN, which is a standard of care and the only approved medication in this indication. So I believe there is a lot of space there to continue to grow this franchise, and we put extra investment in the XIFAXAN franchise for 2022, and we are expecting to increase that investment in 2023. So I think there's -- as we look at it, this is a really core franchise for us that we can continue to grow. Next question.

我們在今年和明年投資。我們的計劃只是繼續並在這個特許經營權背後投入更多投資。當我們看一下 HE 時，我們的分析表明大約有 193,000 名患者可能患有 HE，只有 50,000 名患者接受了 XIFAXAN 治療，這是一種護理標準，也是該適應症中唯一獲批的藥物。所以我相信有很大的空間可以繼續發展這個特許經營權，我們在 2022 年對 XIFAXAN 特許經營權投入了額外的投資，我們預計在 2023 年會增加投資。所以我認為有——正如我們所看到的那樣它，這對我們來說是一個真正的核心特許經營權，我們可以繼續發展。下一個問題。

Your next question is coming from Umer Raffat from Evercore.

您的下一個問題來自 Evercore 的 Umer Raffat。

A couple of quick ones, if I may. Number one, you mentioned you're evaluating numerous options to maximizing shareholder value. Could Solta be on the table? And then also if you could remind us if a shareholder approval is needed for spin to go through on BLCO?

如果可以的話，有幾個快速的。第一，您提到您正在評估多種選擇以最大化股東價值。索爾塔能上桌嗎？然後，您是否可以提醒我們是否需要股東批准才能通過 BLCO 進行旋轉？

Omer, thanks for the question. Okay. So of course, the Solta franchise, I believe, is, again, another great asset that we have. As now -- again, with a part of the Bausch Health family of assets gives us a global footprint around the world. I think this is an asset that we can continue to grow, continue to invest in, but keep all options open. But again, as I stated previously, any type of actions that we would take with our assets would have to be especially an asset like Solta at a premium price. So again, we always -- we're open to looking at different things, but we believe this asset can really grow for us and really be part of the Bausch Health family. So Tom, do you want to take the second part of the question regarding shareholder approval?

奧馬爾，謝謝你的提問。好的。所以當然，我相信 Solta 特許經營權再次成為我們擁有的另一項重要資產。和現在一樣——再次，通過 Bausch Health 資產家族的一部分，我們在全球範圍內擁有了足跡。我認為這是一項資產，我們可以繼續增長，繼續投資，但保留所有選擇。但是，正如我之前所說，我們對資產採取的任何類型的行動都必須特別是像 Solta 這樣的高價資產。再說一次，我們總是 - 我們對不同的事物持開放態度，但我們相信這項資產可以真正為我們增長，並真正成為 Bausch Health 大家庭的一部分。那麼湯姆，你想回答關於股東批准的問題的第二部分嗎？

Yes. Omer, yes, indeed, shareholder approval is required for the spin -- for B&L spin.

是的。奧馬爾，是的，確實，旋轉需要股東批准——對於 B&L 旋轉。

Next question.

下一個問題。

Your next question is coming from Annabel Samimy from Stifel.

您的下一個問題來自 Stifel 的 Annabel Samimy。

This is Jack calling in for Annabel.

這是傑克打電話給安娜貝爾。

So you touched on HE briefly, but would you be able to provide any additional color on any update for some of the other rifaximin programs? And which of the several you have going, might have the potential to offer a future offset to XIFAXAN revenues?

所以你簡單地談到了 HE，但你能否為其他一些利福昔明程序的任何更新提供任何額外的顏色？您將參加的幾個項目中的哪一個可能有可能在未來抵消 XIFAXAN 的收入？

Jack, as I said in my prepared remarks, when I look at the RED-C program, I think that this is an area where this is a much larger patient population. And so this indication and the work that's going on here will be in a -- is a much larger pool. So we believe that this program can really be a really growth driver for us in the future. Of course, we have to wait and see on the data, but the RED-C program is a high priority for us, and we really believe in it. Next question.

傑克，正如我在準備好的評論中所說，當我查看 RED-C 計劃時，我認為這是一個患者群體要大得多的領域。所以這個跡象和這裡正在進行的工作將在一個更大的池中。所以我們相信這個項目真的可以成為我們未來真正的增長動力。當然，我們還要在數據上拭目以待，但RED-C計劃對我們來說是重中之重，我們真的相信它。下一個問題。

Your next question is coming from Greg Fraser from Truist Securities.

您的下一個問題來自 Truist Securities 的 Greg Fraser。

On the P&L spin, are the IRS dispute in the remaining legacy legal cases package that could influence the process? I guess do you need visibility on those in order to move forward?

在損益表中，剩餘的遺留法律案件包中的 IRS 爭議是否會影響流程？我想您是否需要了解這些才能繼續前進？

And then on working capital, can you just comment further on the quarter? You mentioned the changes in working capital impacted cash flow from ops. Any additional color there would be helpful.

然後是營運資金，您能否進一步評論本季度？您提到營運資本的變化影響了運營現金流。那裡的任何其他顏色都會有所幫助。

Greg, Tom Vadaketh here. I'll take both. So on the working capital, it's nothing unusual really that goes beyond what occurs at most companies. It's hard to predict and have an even cash flow pattern throughout the year. And we've just had just working capital movements, moving cash in and out of the quarter. And so Q2 and Q3 have been particularly low, as you know. And so this year, we're going to end up with the sort of barbell year where we had pretty nice cash flow in Q1, and then we expect Q4 to be pretty strong as well.

格雷格，湯姆·瓦達克思在這裡。我兩個都要。因此，在營運資金方面，超出大多數公司的實際情況並沒有什麼不尋常的。很難預測並且全年都有一個均勻的現金流模式。而且我們剛剛進行了營運資金流動，將現金進出本季度。如您所知，Q2 和 Q3 特別低。所以今年，我們將結束那種槓鈴年，我們在第一季度有相當不錯的現金流，然後我們預計第四季度也會非常強勁。

And then on the legacy, I think you meant the IRS litigation, correct, Greg?

然後關於遺產，我認為您的意思是美國國稅局的訴訟，對嗎，格雷格？

IRS in a (inaudible) lawsuits that still remain.

美國國稅局（IRS）仍然存在（聽不清）訴訟。

Yes. Look, like I said at the beginning, and Tom's also said, we are evaluating all the factors and then evaluating all the options and trying to very carefully step forward and take actions and steps that are in the best interest and beneficial for the company as well as our stakeholders. So all of these factors kind of play into that decision-making process as they have been, really, frankly, for the last few years.

是的。看，就像我在開頭所說的那樣，湯姆也說過，我們正在評估所有因素，然後評估所有選擇，並努力非常小心地向前邁進，採取最符合公司利益和利益的行動和步驟，因為以及我們的利益相關者。因此，坦率地說，在過去的幾年裡，所有這些因素都會在決策過程中發揮作用。

Next question?

下一個問題？

Your next question is coming from Douglas Miehm from RBC Capital Markets.

您的下一個問題來自加拿大皇家銀行資本市場的 Douglas Miehm。

Two questions. Number one, can you talk about turnover at the company, and how things are looking from that perspective? And then secondly, for Tom, when we think about the debt covenant construct and where the Holdco sits, which is outside of that, leverage ratios would appear to be below or at the 6.5% to 6.7%. Could you elaborate on how you're viewing the $1 billion that's held within the Holdco?

兩個問題。第一，你能談談公司的營業額，以及從這個角度來看情況如何？其次，對於湯姆來說，當我們考慮債務契約結構以及控股公司所處的位置時，槓桿率似乎低於或處於 6.5% 至 6.7% 之間。您能否詳細說明您如何看待控股公司持有的 10 億美元？

Douglas, I'll take the first part, and then Tom will take the second part. If we take a look at since the IPO of B&L, there's been a lot of, of course, changes in the company. And then as we went through the year, with the normal course that we see on turnover in the sales force is pretty much what has been tracking for the previous years. Again, there can be spikes from -- at times, but we're taking as we look at it, but we haven't seen turnover above what was in prior years. When we look at what our policies are in terms of returning to work post-COVID, we have been really putting some things in place there that give our employees optionality of how they want to work. So that has helped also.

道格拉斯，我負責第一部分，然後湯姆負責第二部分。如果我們看一下自 B&L 首次公開募股以來，公司當然發生了很多變化。然後當我們度過這一年時，我們看到的銷售人員流動的正常過程幾乎就是前幾年一直在跟踪的。同樣，有時可能會出現峰值，但我們正在考慮它，但我們沒有看到營業額高於前幾年的水平。當我們查看我們在 COVID 後重返工作崗位方面的政策時，我們確實已經在其中製定了一些措施，讓我們的員工可以選擇他們想要的工作方式。所以這也有幫助。

We have restacked our global headquarters. So we now are separated between Bausch Pharma and Solta and of course, then B&L. So we're seeing a stabilization. And of course, as you know, with what has taken place globally from a workforce perspective, there are some movements around. But right now, we're seeing it pretty stable in that regard other than some spikes here and there.

我們已經重新組建了我們的全球總部。因此，我們現在將 Bausch Pharma 和 Solta 分開，當然還有 B&L。所以我們看到了穩定。當然，如您所知，從勞動力的角度來看，全球範圍內發生了一些變化。但是現在，我們看到它在這方面非常穩定，除了這里和那裡的一些峰值。

Tom, do you want to take the second part?

湯姆，你想參加第二部分嗎？

Yes. Let me just take your -- the second part of your question in pieces. So I think first, just around the covenant and our credit agreements. The debt, the $1 billion that is at that Holdco level, that is an unrestricted subsidiary. And so I don't want to -- I'll get into trouble with my legal team if I try and attempt to interpret our agreements, but I can tell you briefly that, that debt is not part of our -- would not count in the covenants basically and any leverage ratios that we are calculating in accordance with the covenants. On the 6.5% to 6.7%, I'll remind you that, that was a company target and a leverage ratio that we had set out for ourselves to ensure that the remaining company is financially strong.

是的。讓我把你的問題的第二部分分成幾部分。所以我首先想，就在契約和我們的信用協議周圍。債務，即在該控股公司級別的 10 億美元，是一家不受限制的子公司。所以我不想——如果我試圖解釋我們的協議，我會與我的法律團隊發生麻煩，但我可以簡單地告訴你，債務不是我們的一部分——不算數基本上在契約中以及我們根據契約計算的任何槓桿比率。在 6.5% 到 6.7% 之間，我會提醒你，這是我們為自己設定的公司目標和槓桿率，以確保剩餘公司的財務狀況良好。

And so we have never said -- we've not said how that's going to be calculated. And I don't -- I don't want to speculate on whether we are at that level or not. The debt, the $1 billion is a debt of the consolidated company, and I'll just leave it at that.

所以我們從來沒有說過——我們還沒有說這將如何計算。而且我不 - 我不想推測我們是否處於那個水平。債務，這 10 億美元是合併後公司的債務，我就不說了。

Next question?

下一個問題？

Your next question is coming from Rishi Parekh from JPMorgan.

您的下一個問題來自摩根大通的 Rishi Parekh。

I have two. One, you've noted in the past that you would consider all options as it relates to the spin. Do any of these options include just not moving forward with the spin? Or are you at the point where the spin is happening and it's just about market timing and meeting covenant requirements?

我有兩個。一，您過去曾指出，您會考慮與旋轉相關的所有選項。這些選項中的任何一個是否包括不繼續旋轉？或者您是否正處於旋轉發生的地步，而這只是關於市場時機和滿足契約要求？

And my follow-up, as it relates to the requirements, you're below the leverage target. I believe you are at or near your interest coverage target. And then as it relates to that 50% equity that you own, what's holding you back from unrestricting that? Is it the litigation? Does that have to do with the Canadian approval process? Anything with the solvency opinions? Can you just walk us through just what's remaining and what's holding you back?

我的後續行動，因為它與要求有關，你低於槓桿目標。我相信您已達到或接近您的興趣覆蓋目標。然後，當它涉及到你擁有的 50% 股權時，是什麼阻礙了你解除限制？是訴訟嗎？這與加拿大的審批程序有關嗎？有償付能力意見嗎？你能告訴我們剩下的是什麼，是什麼阻礙了你嗎？

And then in constructing that 50% spin-off, will it move to the unrestricted sub that you created back in August?

然後在構建 50% 的衍生產品時，它會轉移到您在 8 月份創建的不受限制的子產品嗎？

Okay, Rishi. I will take the first part. Tom will take the second part. So the first part of your question, so what I said in my prepared remarks, we continue to evaluate all relevant factors and considerations regarding the Bausch and Lomb distribution. This includes looking at, of course, the XIFAXAN patent situation. And we're focused on doing everything that we can to continue improving the company's balance sheet and liquidity. So we -- again, we have identified potential options and paths that we believe could reach the objectives. We still think the spin-off makes strategic sense, but we were considering everything given the situation that we have today.

好的，瑞希。我將參加第一部分。湯姆將參加第二部分。所以你問題的第一部分，正如我在準備好的評論中所說的那樣，我們將繼續評估有關博士倫分佈的所有相關因素和考慮因素。這當然包括看西發訊的專利情況。我們專注於盡我們所能繼續改善公司的資產負債表和流動性。因此，我們再次確定了我們認為可以實現目標的潛在選擇和途徑。我們仍然認為分拆具有戰略意義，但鑑於我們今天的情況，我們正在考慮一切。

Tom, do you want to take the second part?

湯姆，你想參加第二部分嗎？

Yes. Rishi, I think Tom sort of addressed the second part of your question as well. The unrestricting is just a step. It's -- I don't view it as some end in itself. It's a step towards our overall strategic path here towards the separation of the company. And so in doing that and in deciding to unrestrict or not, we are, as Tom said, looking at all the options. We're trying to be very thoughtful about each step we're taking, and we haven't unrestricted B&L yet, and I'll leave it at that.

是的。 Rishi，我認為湯姆也解決了你問題的第二部分。無限制只是一步。它——我不認為它本身就是某種目的。這是我們向公司分離的整體戰略路徑邁出的一步。因此，在這樣做並決定是否取消限制時，正如湯姆所說，我們正在考慮所有選項。我們正在努力對我們正在採取的每一步進行深思熟慮，我們還沒有不受限制的 B&L，我將把它留在那裡。

Next question?

下一個問題？

Our last question is coming from Jason Gerberry from Bank of America Securities.

我們的最後一個問題來自美國銀行證券的 Jason Gerberry。

This is Chi on for Jason. So maybe on XIFAXAN, I wondering if you can elaborate on the price and volume dynamic this quarter. I think coming out of COVID IBS-D was a little slower to pick up. So I'm wondering if you can talk about the underlying growth dynamics between the IBS-D and HE indications? And I guess on Solta, can you talk a little -- elaborate a bit more on the growth dynamics, your 4% organic growth? Do you think this segment has returned to more normalized growth? And if not, when might you expect this segment to return to more normalized growth?

這是傑森的智商。所以也許在 XIFAXAN，我想知道你是否可以詳細說明本季度的價格和數量動態。我認為從 COVID IBS-D 中出來的速度要慢一些。所以我想知道你是否可以談談 IBS-D 和 HE 適應症之間的潛在增長動態？我想關於 Solta，你能談談 - 詳細說明增長動態，你的 4% 有機增長嗎？您認為該細分市場是否已恢復正常增長？如果沒有，您預計該細分市場何時會恢復更正常的增長？

And I hate to squeeze that last one in, but I know you can't talk a lot more about what you have done -- what you already have with the distribution. But I'm curious, (inaudible) previously talked about potential timing for a spin. And I'm wondering, do you guys have an internal estimate of what that timeline might be?

我不想把最後一個擠進去，但我知道你不能談論更多關於你所做的事情——你已經通過發行版擁有的東西。但我很好奇，（聽不清）之前談到了旋轉的潛在時機。我想知道，你們對這個時間表可能有一個內部估計嗎？

So let's -- we'll break this question down. So I'll take the one on Solta first. When we look at the growth, when we look at Asia Pac, which is a big part of our business, as Asia Pac returns to normal post-COVID, with the lockdowns in China somewhat coming back to normalized levels, again, this growth dynamic, I think this business can get back on the trajectory of good growth. We have a lot of areas where we can continue to invest in driving the performance. Clearly, we do have, in China, regulatory hurdles that we have to overcome, which is ongoing work. But as we look at what this business -- what it can do around the world globally, we see really good things ahead.

所以讓我們 - 我們將分解這個問題。所以我會先拿 Solta 上的那個。當我們看增長時，當我們看亞太地區時，這是我們業務的重要組成部分，隨著亞太地區在 COVID 後恢復正常，中國的封鎖再次回到正常水平，這種增長動力，我認為這項業務可以重回良好增長的軌道。我們有很多領域可以繼續投資以推動業績。顯然，在中國，我們確實有必須克服的監管障礙，這是正在進行的工作。但是，當我們審視這項業務——它可以在全球範圍內做什麼時，我們看到了未來的美好前景。

We look at our European business. Clearly, COVID impacted our investments there and our build-out of Solta. So that has -- there's a really great opportunity to accelerate that build-out that we had planned for, but was delayed due to COVID. So from a Solta perspective, I think this is a really great asset. We have great products, and we have some really good work going on, on the R&D front as we continue to innovate in this area.

我們關注我們的歐洲業務。顯然，COVID 影響了我們在那裡的投資以及我們對 Solta 的擴建。因此，這是一個非常好的機會來加速我們計劃的擴建，但由於 COVID 而被推遲。所以從 Solta 的角度來看，我認為這是一項非常棒的資產。隨著我們在這一領域不斷創新，我們有很棒的產品，並且在研發方面我們正在進行一些非常好的工作。

What I'll do is I'll pass the next -- your second part of the question to Tom regarding the distribution timing and the XIFAXAN underlying performance.

我要做的是將下一個問題 - 關於分發時間和 XIFAXAN 基礎性能的問題的第二部分交給 Tom。

Yes, I'll start with distribution timing. I -- as we've said several times on this call, we are not really going to comment on our next steps, and so I'll leave it at that. On XIFAXAN and on Salix, in particular, just a reminder, our growth -- organic growth for the quarter was 3%, and that was predominantly price that's coming through. So we took pricing actions at the beginning of the year, and we're seeing most of that stick, which is great.

是的，我將從分發時間開始。我——正如我們在本次電話會議上多次說過的那樣，我們不會真正評論我們的下一步行動，所以我將就此擱置。在 XIFAXAN 和 Salix 上，特別是提醒一下，我們的增長——本季度的有機增長為 3%，這主要是價格上漲。所以我們在年初採取了定價行動，我們看到了大部分情況，這很棒。

On the volume side, as I mentioned, we've seen an uptick in prescription growth in the back half of the quarter. TRx growth for the full quarter was basically flat, but we're excited by the growth that we saw in the last part of the quarter that was coming across both indications. And -- but that growth then was offset by a drop in -- or at least we are seeing, we think, a drop in retail inventory of about $13 million, which I mentioned in my comments. And so volume growth was negative during the quarter.

正如我所提到的，在數量方面，我們看到本季度後半段的處方增長有所回升。整個季度的 TRx 增長基本持平，但我們對本季度最後一部分看到的增長感到興奮，這兩個跡像都出現了。而且 - 但這種增長隨後被下降所抵消 - 或者至少我們認為，我們看到零售庫存下降了約 1300 萬美元，我在評論中提到了這一點。因此，本季度的銷量增長為負數。

So we don't have any more questions. So we'll end the conference call here. What I'd like to say thank you very much to everybody who joined today. Really appreciate the time that you took to spend with us and look forward to continuing the dialogue as we move forward with building and growing this company. Thank you.

所以我們沒有更多的問題。所以我們將在此結束電話會議。我想說的非常感謝今天加入的每個人。非常感謝您與我們共度的時間，並期待在我們繼續建設和發展這家公司的過程中繼續對話。謝謝你。

Ladies and gentlemen. This concludes today's event. You may disconnect at this time, and have a wonderful day.

女士們先生們。今天的活動到此結束。此時您可能會斷開連接，並度過美好的一天。