Bausch Health Companies Inc (BHC) 2023 Q2 法說會逐字稿

Greetings. Welcome to the Bausch Health Second Quarter 2023 Earnings Call. (Operator Instructions) Please note, this conference is being recorded.

問候。歡迎參加 Bausch Health 2023 年第二季度收益電話會議。 （操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, John O'Connor. You may begin.

現在我將把會議交給主持人約翰·奧康納。你可以開始了。

Good morning, and welcome to Bausch Health's Second Quarter 2023 Earnings Conference Call. This is John O'Connor, Senior Vice President, Investor Relations for Bausch Health. I recently joined the company a few weeks ago, and I'm looking forward to leading the Investor Relations effort here at Bausch Health. Participating in today's call with me are Tom Appio, Chief Executive Officer of Bausch Health; and Tom Vadaketh, Chief Financial Officer.

早上好，歡迎參加 Bausch Health 2023 年第二季度收益電話會議。我是 Bausch Health 投資者關係高級副總裁 John O'Connor。我幾週前剛剛加入公司，我期待著領導 Bausch Health 的投資者關係工作。與我一起參加今天電話會議的有 Bausch Health 首席執行官 Tom Appio；和首席財務官 Tom Vadaketh。

Before we begin, I'd like to remind you that our presentation today contains forward-looking information. We ask that you take a moment to read the forward-looking statements at the beginning of the slides that accompany this presentation as they contain important information. Our actual results may vary materially from those 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 with the Canadian Securities Administrators for a list of some of the factors that could cause our actual results to differ materially from our expectations.

在開始之前，我想提醒您，我們今天的演示包含前瞻性信息。我們要求您花一些時間閱讀本演示文稿隨附的幻燈片開頭的前瞻性聲明，因為它們包含重要信息。我們的實際結果可能與我們的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以及向加拿大證券管理局提交的文件，了解可能導致我們的實際結果與我們的預期產生重大差異的一些因素的列表。

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 the slides that accompany this presentation, which are 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持續的業務績效。非公認會計原則財務指標可能無法與其他公司使用的類似標題的指標相比較，因此應與根據公認會計原則計算的指標一起考慮，但不能替代根據公認會計原則計算的指標。您可以在本演示文稿附帶的幻燈片附錄中找到我們的非公認會計原則措施的調節表，這些幻燈片可在 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 Health, excluding Bausch + Lomb. 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. For the benefit of those who may be listening to the replay or archived webcast, this call was held and recorded on August 3, 2023.

最後，本演示文稿中的財務指導僅從今天起生效。我們不承擔任何更新指南的義務。我們今天的討論將集中於博士倫健康，不包括博士倫。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，我們將指與去年同期的同比比較。為了那些可能正在收聽重播或存檔網絡廣播的人的利益，本次電話會議於​​ 2023 年 8 月 3 日舉行並進行了錄音。

With that, it is my pleasure to turn the call over to our CEO, Thomas Appio. Tom?

至此，我很高興將電話轉給我們的首席執行官托馬斯·阿皮奧 (Thomas Appio)。湯姆？

Thank you, John, and welcome to those of you joining the call this morning. At Bausch Health, our team is focused on enriching lives through our relentless drive to create better health outcomes for our patients and physicians. The BHC team is tirelessly dedicated to business performance, delivering results and progressing key strategic objectives. This dedication was on full display this quarter with a number of highlights that I will touch upon.

謝謝約翰，並歡迎你們今天早上加入電話會議。在 Bausch Health，我們的團隊致力於通過不懈努力為患者和醫生創造更好的健康結果，豐富人們的生活。 BHC 團隊孜孜不倦地致力於業務績效、交付成果並推進關鍵戰略目標。這種奉獻精神在本季度得到了充分體現，我將談到一些亮點。

Turning to Slide 6. We had a strong quarter with revenues for Bausch Health, excluding B + L, $1.13 billion, up $106 million or 10% reported and 11% on an organic basis. We received a favorable motion ruling in the Xifaxan litigation, which reinforces our continued investments in the Salix growth strategy. We executed an additional proactive balance sheet initiative that further enhances our liquidity profile. We continue to take thoughtful steps as we evaluate the optimal implementation of a potential Bausch + Lomb distribution, and we continued to progress our R&D pipeline.

轉向幻燈片 6。Bausch Health 的季度收入（不包括 B + L）表現強勁，為 11.3 億美元，增長 1.06 億美元，報告增長 10%，有機增長 11%。我們在 Xifaxan 訴訟中獲得了有利的動議裁決，這加強了我們對 Salix 增長戰略的持續投資。我們執行了一項額外的主動資產負債表計劃，進一步增強了我們的流動性狀況。在評估潛在博士倫分佈的最佳實施方式時，我們將繼續採取深思熟慮的步驟，並繼續推進我們的研發渠道。

Let me start by sharing some of our business performance highlights, as shown on Slide 7. This quarter, 3 out of 4 non -- B + L business segment Salix, International and Solta Medical, posted double-digit revenue growth, both on a reported and organic basis. The diversified segment saw a modest decline, an improvement from the last few quarters where we have seen double-digit declines. While neurology and generics remain challenging, we are hopeful that the actions the team has taken will help temper pressure on these businesses.

首先讓我分享我們的一些業務業績亮點，如幻燈片7 所示。本季度，四分之三的非B+L 業務部門Salix、International 和Solta Medical 均實現了兩位數的收入增長，均實現了兩位數的增長。報告和有機基礎。多元化業務出現小幅下滑，與過去幾個季度兩位數下滑相比有所改善。儘管神經病學和仿製藥仍然具有挑戰性，但我們希望團隊採取的行動將有助於減輕這些業務的壓力。

Let's take each segment in turn. Salix, Q2 net sales for this segment were $557 million, growing a 11% in the quarter. I am pleased to report that the investments we have made in this segment are beginning to pay off. Building on the plan we laid out since I became CEO, we are continuing to increase our commercial investments to higher than historical levels in sales and marketing to drive profitable revenue growth in this segment.

讓我們依次來看每個部分。 Salix 第二季度該細分市場的淨銷售額為 5.57 億美元，本季度增長 11%。我很高興地報告，我們在這一領域的投資已開始獲得回報。根據我擔任首席執行官以來我們制定的計劃，我們將繼續將銷售和營銷方面的商業投資增加到高於歷史水平，以推動該領域的盈利性收入增長。

I am pleased to share that we have made significant progress in our AI customer engagement initiative we launched the new AI engine to our Xifaxan primary care field force team. The AI engine will help our team to understand how to best address patient needs by engaging with the right physicians at the right time. This initiative is a key part of our strategy to improve customer engagement and drive growth. We believe that AI has the potential to revolutionize the way we interact with our customers, and we are excited to be at the forefront of this transformation.

我很高興與大家分享，我們在人工智能客戶參與計劃方面取得了重大進展，我們向 Xifaxan 初級保健現場團隊推出了新的人工智能引擎。人工智能引擎將幫助我們的團隊了解如何通過在正確的時間與正確的醫生合作來最好地滿足患者的需求。這一舉措是我們提高客戶參與度和推動增長戰略的關鍵部分。我們相信人工智能有潛力徹底改變我們與客戶互動的方式，我們很高興能夠站在這一變革的最前沿。

As part of our continued commitment to improve HE and IBS-D patient care, we expanded Xifaxan medical field team. The team is now fully trained and working to educate physicians and improve care for thousands of patients. The expanded MSL team leverages insights from advanced analytic models to understand the largest patient care gaps and engage with physicians to reinforce establish treatment guidelines.

作為我們持續致力於改善 HE 和 IBS-D 患者護理的一部分，我們擴大了 Xifaxan 醫療現場團隊。該團隊現已接受全面培訓，致力於教育醫生並改善對數千名患者的護理。擴大後的 MSL 團隊利用先進分析模型的見解來了解最大的患者護理差距，並與醫生合作以加強制定治療指南。

Finally, we have increased our investment in education efforts targeted to undiagnosed, untreated consumers for both of our approved indications, IBS-D and HE. These activation campaigns are currently being deployed across a wide range of media channels such as connected and addressable TV as well as many different digital and social media platforms. We believe Xifaxan and other products in our GI portfolio are effective options for health care providers that have not yet met their full potential to provide patients with the health care they need.

最後，我們增加了對針對未診斷、未治療消費者的教育工作的投資，針對我們已批准的兩種適應症：IBS-D 和 HE。這些激活活動目前正在廣泛的媒體渠道中部署，例如聯網和可尋址電視以及許多不同的數字和社交媒體平台。我們相信 Xifaxan 和我們 GI 產品組合中的其他產品對於尚未充分發揮潛力為患者提供所需醫療保健的醫療保健提供者來說是有效的選擇。

Turning to International. Revenues grew by 11% in the second quarter of 2023, both on a reported and organic basis, led by strong performances in EMEA and Canada. While the quarter's growth did benefit from a favorable comparison to the prior year, we are still pleased with our growth in the International business, which was impacted in the quarter by a voluntary recall of our Emerade epinephrine auto-injector, which Tom V will cover in more detail. While voluntary in nature, our decision to action the recall was, in our view, the prudent and responsible decision to take.

轉向國際。在 EMEA 和加拿大的強勁表現帶動下，報告收入和有機收入在 2023 年第二季度增長了 11%。雖然本季度的增長確實受益於與上一年相比的良好比較，但我們仍然對國際業務的增長感到滿意，該業務在本季度受到自願召回我們的Emerade 腎上腺素自動注射器的影響，Tom V 將負責該注射器的召回更詳細地說。雖然本質上是自願的，但我們認為，我們採取行動的決定是謹慎和負責任的決定。

Solta Medical. Revenues increased by 54% on a reported and 60% on an organic basis, reflecting strong growth in Asia Pacific region, which included the unfavorable impact related to limited activity in China in Q2 of last year due to COVID lockdowns, while performance in other Asia Pacific markets was also very strong.

索爾塔醫療。報告收入增長 54%，有機增長 60%，反映了亞太地區的強勁增長，其中包括去年第二季度因新冠疫情封鎖而導致中國活動有限的不利影響，而亞洲其他地區的表現太平洋市場也非常強勁。

This quarter, I had the pleasure to visit with our U.S., China and Hong Kong Solta teams and listen to what they are doing on working to continue to build our aesthetics franchise. The teams are highly motivated and dedicated to deliver results and launch new products as we continue to build a world-class global aesthetics business. More than 70% of Solta revenues are generated from consumable sales, represent an attractive and very durable business profile where we see significant opportunity for long-term growth. We are actively working to accelerate growth in our largest markets by expanding our sales teams in the U.S. and Europe and advance our pipeline of new product -- new market authorizations and new generation products.

本季度，我很高興拜訪了我們的美國、中國和香港 Solta 團隊，聆聽他們為繼續打造我們的美學專營權而所做的工作。隨著我們繼續打造世界一流的全球美容業務，團隊積極性很高，致力於交付成果並推出新產品。 Solta 超過 70% 的收入來自消費品銷售，代表著極具吸引力且非常持久的業務狀況，我們看到了長期增長的重大機會。我們正在積極努力通過擴大我們在美國和歐洲的銷售團隊來加速我們最大市場的增長，並推進我們的新產品管道——新市場授權和新一代產品。

Turning to Diversified. Revenues decreased by 3% on a reported and organic basis in the quarter. Dermatology and dentistry had growth in Q2, which helped moderate the decline in neurology and the generics businesses. As noted last quarter, our intention is to increase our marketing and advertising investments for Aplenzin in our neurology business and to expand our consumer awareness campaign for Jublia in our dermatology business. For the second quarter, dentistry revenues grew by 4% year-over-year, driven by Arestin. We have restructured our sales force in this business and expanded our consumer awareness efforts for Arestin to drive growth.

轉向多元化。本季度的報告收入和有機收入下降了 3%。皮膚科和牙科在第二季度有所增長，這有助於緩解神經科和仿製藥業務的下滑。正如上季度所指出的，我們的目的是增加對 Aplenzin 在神經病學業務中的營銷和廣告投資，並擴大對 Jublia 在皮膚病學業務中的消費者意識活動。第二季度，在 Arestin 的推動下，牙科收入同比增長 4%。我們重組了該業務的銷售隊伍，並擴大了我們對 Arestin 消費者意識的努力，以推動增長。

I am pleased with our overall business performance in the second quarter. We are increasing our revenue guidance for Bausch Health, excluding B + L, for this year and as always, we remain committed to delivering long-term value for stakeholders. In addition to the strong business performance, we had a number of other positive developments in the quarter.

我對我們第二季度的整體業務表現感到滿意。我們正在提高今年 Bausch Health 的收入指導（不包括 B + L），並且一如既往，我們仍然致力於為利益相關者提供長期價值。除了強勁的業務表現外，我們在本季度還取得了許多其他積極進展。

Turning to Slide 8. We shared in May 2023 the positive news that the U.S. District Court of Delaware denied Norwich Pharmaceuticals' motion to modify the court's final judgment and prevents the U.S. FDA from granting final approval for Norwich's ANDA for Xifaxan 550 milligrams before October 2, 2029. You may recall that Norwich filed this motion in order to attempt to get a skinny label approved before October of 2029. Norwich appealed this decision. Norwich appeal is now consolidated with our appeal of the final judgment in validating the IBS-D and the polymorph patents. We remain confident in our position and expect a decision on the consolidated appeals as early as Q1 2024.

轉向幻燈片8。我們在2023年5月分享了一個積極消息，美國特拉華州地方法院駁回了Norwich Pharmaceuticals修改法院最終判決的動議，並阻止美國FDA在10月2日之前最終批准Norwich的Xifaxan 550毫克ANDA ，2029 年。您可能還記得，諾維奇提出此動議是為了嘗試在 2029 年 10 月之前獲得瘦身標籤的批准。諾維奇對此決定提出了上訴。諾威奇的上訴現已與我們對 IBS-D 和多晶型物專利有效的最終判決的上訴合併。我們對自己的立場仍然充滿信心，並預計最早將於 2024 年第一季度就聯合上訴做出決定。

Following the denial of Norwich's motion to modify the final judgment, the FDA granted tentative approval to Norwich's ANDA for Xifaxan 550, but confirmed that it remains bared from granting final approval until October 2, 2029. Norwich cannot launch its ANDA product until it receives final approval from the FDA. Norwich then sued the FDA in the United States District Court for the District of Columbia. This is a separate lawsuit in a different district court than the court that issued the final judgment. Norwich requested that the D.C. District Court direct the FDA to grant final approval of the ANDA notwithstanding the Delaware Court's final judgment. The FDA opposed Norwich's action and we have intervened in this lawsuit. This matter is currently being briefed, and we expect a decision in the fall. We are fully committed to vigorously defending our intellectual property and providing health care providers and patients with the safe and effective treatment options that Xifaxan represents.

在 Norwich 修改最終判決的動議被拒絕後， FDA 暫時批准了 Norwich 的 Xifaxan 550 的 ANDA ，但確認在 2029 年 10 月 2 日之前仍無法授予最終批准。 Norwich 在收到最終批准之前無法推出其 ANDA 產品FDA 的批准。諾維奇隨後向美國哥倫比亞特區地方法院起訴 FDA。這是在與做出最終判決的法院不同的地方法院提起的單獨訴訟。儘管特拉華州法院做出了最終判決，諾維奇還是要求華盛頓特區地方法院指示 FDA 最終批准 ANDA。 FDA 反對諾維奇的行動，我們已經介入了這起訴訟。目前正在通報此事，我們預計將在秋季做出決定。我們完全致力於大力捍衛我們的知識產權，並為醫療保健提供者和患者提供 Xifaxan 所代表的安全有效的治療選擇。

We continued to be successful and proactively addressing our balance sheet entering into a $600 million nonrecourse financing facility with KKR collateralized by accounts receivable, providing us an additional source of liquidity. We continued to make progress on our efforts to complete the potential distribution of Bausch + Lomb and continue to believe that completing the separation of Bausch + Lomb makes strategic sense. As we continue to evaluate all relevant factors related to any distribution, we are exploring options for optimizing the structure if and when a distribution is completed.

我們繼續取得成功，並積極主動地解決我們的資產負債表問題，與 KKR 以應收賬款作為抵押，簽訂了 6 億美元的無追索權融資協議，為我們提供了額外的流動性來源。我們在完成博士倫潛在分配的工作中繼續取得進展，並繼續相信完成博士倫的分拆具有​​戰略意義。當我們繼續評估與任何分配相關的所有相關因素時，我們正在探索在分配完成時優化結構的選項。

Our initial intent was to effectuate a potential distribution by way of plan of arrangement, but we have since determined that the optimal way to implement the distribution made instead be through a tax-free reduction of capital, which would provide additional flexibility to the company and Bausch + Lomb. We're continuing to evaluate the structure of any distribution and its other related details and any distribution continues to be subject to the receipt of applicable shareholder and other required approvals.

我們最初的目的是通過安排計劃的方式實現潛在的分配，但我們後來確定，實施分配的最佳方式是通過免稅減少資本，這將為公司提供額外的靈活性，並且博士倫。我們正在繼續評估任何分配的結構及其其他相關細節，並且任何分配仍然需要獲得適用的股東和其他所需的批准。

We are working hard to progress our pipeline, as shown on Slide 9. We remain excited about the RED-C program for Xifaxan for the reduction of early decompensation in cirrhosis. The global program is focused on developing novel formulations to address unmet medical needs. Specifically, the treatment is aimed at presenting the first occurrence of hepatic encephalopathy, HE, for patients with mild cirrhosis.

我們正在努力推進我們的產品線，如幻燈片 9 所示。我們仍然對 Xifaxan 減少肝硬化早期失代償的 RED-C 項目感到興奮。該全球計劃的重點是開發新的製劑來解決未滿足的醫療需求。具體來說，該治療旨在針對輕度肝硬化患者首次出現肝性腦病（HE）。

Two global Phase III studies are currently underway. Enrollment in these studies is progressing and we expect enrollment to be completed in both trials in Q1 of 2024. To date, we have completed scientific advisory meetings with the Medicines Evaluation Board in the Netherlands and Health Canada and have received positive feedback on the program from National Medical Products Administration in China. We are currently planning to meet with the authorities in Japan later this year. As I have noted, these are global programs.

目前正在進行兩項全球 III 期研究。這些研究的入組工作正在進行中，我們預計這兩項試驗的入組工作將於2024 年第一季度完成。迄今為止，我們已與荷蘭藥品評估委員會和加拿大衛生部完成了科學諮詢會議，並收到了來自以下機構的對該計劃的積極反饋：中國國家藥品監督管理局。我們目前計劃今年晚些時候與日本當局會面。正如我所指出的，這些是全球計劃。

For amiselimod, a new oral selective S1P receptor modulator that targets the treatment of mild to moderate ulcerative colitis. The Phase II trial completed enrollment in July of this year. In dermatology, we have an upcoming PDUFA date of October 20, 2023, for our NDA for IDP-126. If approved, this would be a first-in-class treatment for the triple combination of acne vulgaris and welcome addition to our established acne portfolio. Our submission in Canada was completed on May 30 of this year.

阿米塞莫德是一種新型口服選擇性 S1P 受體調節劑，旨在治療輕度至中度潰瘍性結腸炎。二期試驗於今年7月完成入組。在皮膚科領域，我們的 IDP-126 NDA 即將於 2023 年 10 月 20 日確定 PDUFA 日期。如果獲得批准，這將是針對尋常痤瘡三重組合的一流治療方法，並歡迎添加到我們現有的痤瘡產品組合中。我們在加拿大的提交已於今年5月30日完成。

Our Solta pipeline is active as well. Our next-generation Fraxel, a fractionated laser device for skin resurfacing, remains on track for submission to the FDA later this year with the potential to launch in the first half of 2024. We are excited about the benefits offered by this product, including its effectiveness in fine line, wrinkles, surface scarring, pigmentation and age spots.

我們的 Solta 管道也處於活躍狀態。我們的下一代Fraxel 是一種用於換膚的點陣激光設備，預計將於今年晚些時候向FDA 提交申請，並有可能在2024 年上半年推出。我們對該產品提供的優勢感到興奮，包括它的對細紋、皺紋、表面疤痕、色素沉著和老年斑有效。

Our Clear and Brilliant Touch program is also advancing with Europe and Canada submissions planned for 2024, Asia Pacific for 2025 Clear and Brilliant Touch is a fractionated laser device for skin rejuvenation. Our next-generation VASERlipo system, which uses ultrasound energy for aesthetic body contouring is under development and planned for release in late 2024.

我們的 Clear and Brilliant Touch 計劃也在推進，計劃於 2024 年在歐洲和加拿大提交，在亞太地區於 2025 年提交。 Clear and Brilliant Touch 是一種用於嫩膚的分段激光設備。我們的下一代 VASERlipo 系統正在開發中，該系統使用超聲波能量來塑造美麗的身體輪廓，併計劃於 2024 年底發布。

Lastly, we are developing several exciting features for Thermage FLX to improve on what is already a leading product in noninvasive skin tightening treatments. Solta is well known for the broad portfolio of products that addresses a range of aesthetic skin and body issues with continued improvements always in mind, our focus is on providing consumers with aesthetics and therapeutic benefits based on cutting-edge technology, and our R&D team is hard at work on these innovative next-generation enhancements.

最後，我們正在為 Thermage FLX 開發幾個令人興奮的功能，以改進已經是無創皮膚緊緻治療領域領先產品的產品。 Solta 以其廣泛的產品組合而聞名，這些產品解決了一系列美容皮膚和身體問題，並始終牢記持續改進，我們的重點是基於尖端技術為消費者提供美容和治療益處，我們的研發團隊正在努力開發這些創新的下一代增強功能。

As a leadership team, we remain committed to driving profitable growth through commercial excellence, intensifying our focus on business development, expanding and progressing our pipeline and unlocking the value and potential of our company. It's been an active and productive quarter for Bausch Health, and we are looking forward to building on the momentum across the board.

作為領導團隊，我們仍然致力於通過卓越的商業業績推動盈利增長，加強對業務發展的關注，擴大和發展我們的產品線，釋放公司的價值和潛力。對於 Bausch Health 來說，這是一個活躍且富有成效的季度，我們期待著全面鞏固這一勢頭。

With that, I will turn the call over to Tom Vadaketh, who will provide further details on our second quarter performance. Tom?

接下來，我會將電話轉給 Tom Vadaketh，他將提供有關我們第二季度業績的更多詳細信息。湯姆？

Thanks, Tom. Hello, everyone, and thanks for joining us. We closed the second quarter with consolidated revenues for Bausch Health of $2.2 billion, up 11% on an organic basis over the same quarter last year. Second quarter revenues for Bausch Health, excluding B + L, were $1.1 billion, up 11% on an organic basis. We saw growth in our Salix, International and Solta businesses while we experienced a more modest decline in our Diversified segment than in recent quarters.

謝謝，湯姆。大家好，感謝您加入我們。第二季度結束時，Bausch Health 的綜合收入為 22 億美元，比去年同期有機增長 11%。 Bausch Health 第二季度收入（不包括 B+L）為 11 億美元，有機增長 11%。我們看到 Salix、International 和 Solta 業務的增長，而我們多元化業務的下降幅度比最近幾個季度更為溫和。

Let's dive into the revenue performance for each segment in more detail, starting on Slide 12 with Salix. Second quarter Salix revenues increased 11% on an organic and reported basis to $557 million, driven by growth in our core products, including Xifaxan 550, Relistor and Trulance. As Tom mentioned, we're seeing our investments in Salix's commercial organization begin to pay off in the form of increased brand awareness and demand. Growth in Salix was led by Xifaxan, which grew 9% in the second quarter compared to the same quarter last year. And overall demand grew 3% year-over-year.

讓我們從幻燈片 12 的 Salix 開始，更詳細地了解每個細分市場的收入表現。第二季度 Salix 收入有機增長 11%，達到 5.57 億美元，這得益於我們的核心產品（包括 Xifaxan 550、Relistor 和 Trulance）的增長。正如 Tom 提到的，我們看到我們對 Salix 商業組織的投資開始以品牌知名度和需求增加的形式獲得回報。 Salix 的增長由 Xifaxan 引領，第二季度與去年同期相比增長了 9%。總體需求同比增長 3%。

In addition to our demand generation efforts, we are benefiting from a rebound in the long-term care channel with increases in occupancy levels that while increasing still remain below pre-pandemic levels. We are also pleased with the second quarter sales performance of Relistor and Trulance, which posted year-over-year growth of 42% and 73% with total scripts growth of 20% and 14%, respectively.

除了我們在創造需求方面所做的努力外，我們還受益於長期護理渠道的反彈，入住率有所增加，但儘管有所增加，但仍低於大流行前的水平。我們還對 Relistor 和 Trulance 第二季度的銷售業績感到滿意，它們的同比增長分別為 42% 和 73%，總腳本增長分別為 20% 和 14%。

International revenues were $259 million during the quarter, an increase of 11% on a reported and organic basis compared to the prior year period, led by strong growth in our promoted portfolio in Canada and key markets in EMEA. In EMEA, the growth was also benefited from a prior year reduction in revenues of $11 million related to a change in our estimates of future returns in one market.

本季度國際收入為 2.59 億美元，與上年同期相比，報告收入和有機收入增長了 11%，這得益於我們在加拿大和歐洲、中東和非洲主要市場推廣的投資組合的強勁增長。在歐洲、中東和非洲地區，這一增長還得益於上一年收入減少 1100 萬美元，原因是我們對一個市場未來回報的估計發生了變化。

In May, Bausch Health recalled Emerade epinephrine auto-injectors for lots distributed between April 2022 and May 2023. While there was limited revenue impact in the quarter from a cost perspective, we had write-offs of finished goods and other inventory as well as charges for outstanding purchase commitments together totaling $12 million in the quarter. We are actively working to bring this important product back to market for our patients.

今年5 月，Bausch Health 召回了2022 年4 月至2023 年5 月期間分發的批次的Emerade 腎上腺素自動注射器。雖然從成本角度來看，本季度的收入影響有限，但我們沖銷了成品和其他庫存以及費用本季度未履行的採購承諾總計 1200 萬美元。我們正在積極努力將這一重要產品帶回市場，供我們的患者使用。

Solta Medical revenues were $88 million during the second quarter, an increase of 60% on an organic basis over the prior year period. Revenue growth was supported by a soft compare in the prior year quarter due to COVID-related lockdowns in China in Q2 2022. Growth in other Asia Pacific markets was a strong 23%, with overall growth of Solta tempered by a decline in the U.S. in the quarter. With several upcoming pipeline milestones, Solta Medical is primed for continued near- and long-term growth.

Solta Medical 第二季度收入為 8800 萬美元，比去年同期有機增長 60%。由於2022 年第二季度中國因新冠肺炎疫情實施的封鎖，與去年同期相比表現疲軟，為收入增長提供了支撐。其他亞太市場的增長強勁，達23%，其中Solta 的整體增長因美國市場的下滑而受到抑制。該季度。隨著幾個即將到來的管道里程碑，Solta Medical 已為近期和長期的持續增長做好了準備。

Diversified revenues were $228 million, down 3% on a reported and organic basis in the second quarter, due primarily to decreases in sales across neurology and generics, partially offset by an increase in sales in dermatology and dentistry. We continue to see volume erosion for Wellbutrin. For Aplenzin, positive demand growth was offset by a channel inventory drawdown. Lastly, on Jublia, positive demand growth was offset by higher coupons and rebates. Total sales for the segment increased sequentially, due in part to gross to net pricing pressure in Q1 that did not carry over into this quarter. With 70% of the segment's revenues coming from products that are past their LOE dates, we continue to manage the Diversified business to optimize the revenue trajectory and maximize profitability and cash with some small targeted investments where there are growth opportunities. For example, for Arestin in dentistry and Jublia in dermatology.

第二季度多元化收入為 2.28 億美元，在報告和有機基礎上下降 3%，這主要是由於神經科和仿製藥銷售額的下降，部分被皮膚科和牙科銷售額的增長所抵消。我們繼續看到維布特林的銷量下降。對於 Aplenzin 來說，積極的需求增長被渠道庫存減少所抵消。最後，在 Jublia 上，積極的需求增長被更高的優惠券和回扣所抵消。該部門的總銷售額連續增長，部分原因是第一季度的總定價壓力與淨定價壓力沒有延續到本季度。由於該部門 70% 的收入來自超過 LOE 日期的產品，我們將繼續管理多元化業務，以優化收入軌跡，並通過一些存在增長機會的小型目標投資來最大限度地提高盈利能力和現金。例如，牙科領域的 Arestin 和皮膚科的 Jublia。

As shown on Slide 13, Bausch + Lomb revenues were $1 billion during the second quarter, up 10% on a reported basis and 12% on an organic basis compared to the prior year, with growth across all B + L segments.

如幻燈片 13 所示，博士倫第二季度收入為 10 億美元，與上一年相比，報告收入增長 10%，有機增長 12%，所有 B+L 業務部門均實現增長。

Turning to the second quarter P&L on Slide 16. Second quarter consolidated adjusted gross margin was 70.1%, 60 basis points lower compared with the prior year. For Bausch Health, excluding B + L, the adjusted gross margin for the second quarter was 79.4%, 140 basis points lower than last year. The decrease was mainly driven by a change in product mix and the Emerade recall changes -- charges in the International segment that I covered earlier.

轉向幻燈片 16 上的第二季度損益表。第二季度綜合調整後毛利率為 70.1%，比上一年低 60 個基點。對於 Bausch Health 來說，不包括 B+L，第二季度調整後毛利率為 79.4%，比去年下降 140 個基點。下降的主要原因是產品組合的變化和 Emerade 召回的變化——我之前提到過的國際部門的費用。

On the B + L side, adjusted gross margin was flat compared with Q2 of 2022. Consolidated adjusted operating expenses for the second quarter were $832 million, an increase of $80 million or 12% on a constant currency basis, driven by higher SG&A expenses reflecting investments in sales and marketing and higher R&D. For Bausch Health, excluding B + L, operating expenses increased by approximately $34 million while B + L reported an increase of $46 million in operating expenses.

在B + L 方面，調整後毛利率與2022 年第二季度相比持平。第二季度合併調整後運營費用為8.32 億美元，按固定匯率計算增加8,000 萬美元，即12%，這是由於SG&A費用增加，反映出對銷售和營銷以及更高研發的投資。對於 Bausch Health 來說，不包括 B+L，運營費用增加了約 3400 萬美元，而 B+L 報告的運營費用增加了 4600 萬美元。

Selling and marketing increased for Bausch Health, excluding B + L, due to the investments we are making in the Salix sales force, our go-to-market channels and advertising and promotional activity. The increase in consolidated adjusted G&A costs reflects the costs associated with standing of 2 public companies. Adjusted G&A for Bausch Health, excluding B + L, was flat compared to the prior year.

由於我們對 Salix 銷售隊伍、上市渠道以及廣告和促銷活動進行了投資，Bausch Health（不包括 B + L）的銷售和營銷有所增加。合併調整後的一般管理費用的增加反映了與兩家上市公司的地位相關的成本。 Bausch Health 調整後的一般管理費用（不包括 B + L）與上一年持平。

Consolidated R&D expense for the quarter increased 23% compared to the prior year and represented 7% of net sales compared with 6% for the prior year period. For Bausch Health, excluding B + L, R&D expenses increased by approximately $19 million, due primarily to the focus on our clinical programs and regulatory activities to support our mid- and late-stage product development in the Salix segment. We have been successful in restructuring our approach with our third-party clinical providers, which is accelerating activity and planned spend in the RED-C program.

本季度綜合研發費用比去年同期增長 23%，占淨銷售額的 7%，而去年同期為 6%。對於 Bausch Health 來說，不包括 B + L，研發費用增加了約 1900 萬美元，這主要是由於我們重點關注我們的臨床項目和監管活動，以支持我們在 Salix 領域的中後期產品開發。我們成功地與第三方臨床提供商重組了我們的方法，這正在加速 RED-C 計劃的活動和計劃支出。

Second quarter consolidated adjusted EBITDA was $727 million, an increase of $26 million or 4% on a reported basis and 7% on a constant currency basis. For Bausch Health, excluding B + L, adjusted EBITDA was $568 million, an increase of 7% from last year, reflecting the factors previously described. On a consolidated basis, the second quarter adjusted EBITDA margin was 33.5% compared with 35.6% last year. Adjusted EBITDA margin for Bausch Health, excluding B + L, was 50.2% and for Bausch + Lomb was 17.3%.

第二季度合併調整後 EBITDA 為 7.27 億美元，按報告增長 2600 萬美元，即 4%，按固定匯率計算增長 7%。對於 Bausch Health 來說，不包括 B+L，調整後的 EBITDA 為 5.68 億美元，比去年增長 7%，反映了前面描述的因素。綜合來看，第二季度調整後 EBITDA 利潤率為 33.5%，而去年同期為 35.6%。 Bausch Health 的調整後 EBITDA 利潤率（不包括 B + L）為 50.2%，Bausch + Lomb 為 17.3%。

Turning to cash flow. On a consolidated basis, Bausch Health generated $360 million in operating cash flow in the first 6 months. The increase versus the prior year was due primarily to decreases in payments of accrued legal settlements related to the Glumetza Antitrust Litigation, the positive impact of insurance recoveries from prior legal settlements and changes in business performance.

轉向現金流。綜合來看，Bausch Health 前 6 個月的運營現金流為 3.6 億美元。與上一年相比的增長主要是由於與 Glumetza 反壟斷訴訟相關的應計法律和解付款的減少、先前法律和解的保險追償的積極影響以及業務績效的變化。

As with recent quarters, we have also reclassified a portion of our cash interest payments to financing cash flows as a result of the accounting treatment for bonds issued as part of our 2022 debt exchange. Adjusted cash flow from operations on a consolidated basis in the first half was $196 million. For Bausch Health, excluding B + L, the year-to-date adjusted cash flow from operations was $234 million from strong cash conversion in the first half, which was in line with our expectations. Adjusted cash flow includes adjustments for the net -- payment of separation costs, business transformation costs and insurance settlement proceeds and also includes payment of the full contractual interest.

與最近幾個季度一樣，由於對 2022 年債務交換中發行的債券進行了會計處理，我們還將部分現金利息支付重新分類為融資現金流。上半年調整後合併運營現金流為 1.96 億美元。對於 Bausch Health 來說，不包括 B+L，由於上半年強勁的現金轉換，年初至今調整後的運營現金流為 2.34 億美元，這符合我們的預期。調整後的現金流包括淨額調整——支付離職成本、業務轉型成本和保險結算收益，還包括支付全部合同利息。

Now let's turn to our balance sheet. We continue to prioritize the delevering of our balance sheet, and in the second quarter of 2023, we reduced our debt for Bausch Health, excluding B + L, by $181 million, including revolver payments -- repayments.

現在讓我們看看我們的資產負債表。我們繼續優先考慮資產負債表去槓桿化，在 2023 年第二季度，我們將 Bausch Health 的債務（不包括 B + L）減少了 1.81 億美元，包括循環付款（還款）。

As shown on Slides 18 and 19, total debt for Bausch Health, excluding Bausch + Lomb, at the end of the quarter was $16.3 billion, which consisted of $15.3 billion of restricted debt issued by Bausch Health, excluding B + L, and $1 billion of senior secured notes issued by the unrestricted subsidiary created in the third quarter of last year. Excluding B + L debt, approximately 85% of our debt is fixed and approximately 70% of the company's debt on a consolidated basis is fixed.

如幻燈片18 和19 所示，本季度末Bausch Health 的總債務（不包括Bausch + Lomb）為163 億美元，其中包括Bausch Health 發行的153 億美元的限制性債務（不包括B + L）和10 億美元。去年第三季度創建的無限制子公司發行的高級擔保票據。不包括 B+L 債務，我們約 85% 的債務是固定的，公司合併債務的約 70% 是固定的。

At the end of the quarter, we entered into a $600 million accounts receivable facility with KKR, giving Bausch Health access to an additional liquidity source for approximately 5 years with proceeds available for general corporate purposes. We did not draw on the facility in the second quarter, but have subsequently drawn $350 million as of August 2. With the closing of the accounts receivable facility, inclusive of cash and cash equivalents and available capacity under our revolving credit facility, the company has liquidity in excess of $1 billion.

本季度末，我們與 KKR 簽訂了 6 億美元的應收賬款融資協議，使 Bausch Health 在大約 5 年內獲得了額外的流動性來源，收益可用於一般公司用途。我們在第二季度沒有動用該貸款，但隨後截至8 月2 日已提取了3.5 億美元。隨著應收賬款融資（包括現金和現金等價物以及循環信貸融資下的可用能力）的關閉，該公司已流動資金超過10億美元。

Looking ahead towards the second half of the year, we have updated our 2023 guidance for Bausch Health, excluding B + L, which can be viewed on Slide 21. For Bausch Health, excluding B + L, we now expect revenues in the range of $4.5 billion to $4.65 billion, an increase of $50 million on both the low and high end of the range. This change is primarily due to favorable movements in foreign exchange, leaving our view of organic growth of 2% to 5% unchanged.

展望下半年，我們更新了 Bausch Health 的 2023 年指導（不包括 B + L），可在幻燈片 21 中查看。對於 Bausch Health（不包括 B + L），我們現在預計收入範圍為45 億美元至46.5 億美元，低端和高端均增加了5,000 萬美元。這一變化主要是由於外彙的有利變動，使我們對有機增長 2% 至 5% 的看法保持不變。

In terms of first half and second half dynamics, within Salix, we typically see a seasonal step up in sales in the second half, particularly in Xifaxan, primarily due to wholesaler inventory dynamics as well as patient level patterns related to insurance deductible activity. We also expect to see continued positive impact from our investments in the Salix commercial organization.

就上半年和下半年的動態而言，在Salix 內部，我們通常會看到下半年銷售額出現季節性增長，尤其是Xifaxan，這主要是由於批發商庫存動態以及與保險免賠額活動相關的患者水平模式。我們還期望看到我們對 Salix 商業組織的投資持續產生積極影響。

For International, our revenue guidance assumes ongoing momentum with promoted brands and takes into consideration the tailwinds we expect to see as a result of competitor supply shortages. These positives will be somewhat offset by the loss of Emerade revenue due to the recall of that product as well as new generic entries driving volume declines.

對於國際市場，我們的收入指引假設推廣品牌的持續增長勢頭，並考慮到我們預計由於競爭對手供應短缺而帶來的不利影響。這些積極因素將在一定程度上被 Emerade 因產品召回而造成的收入損失以及新仿製藥產品導致銷量下降所抵消。

For our Diversified segment, we expect sales in the second half to increase sequentially from the first half, with second half revenue relatively flat compared to the prior year, driven by growth in Jublia, Arestin and Aplenzin, offsetting declines in mature brands across neurology, generics and dermatology. We continue to expect gross margin to be in the 80% range, in line with prior guidance.

對於我們的多元化細分市場，我們預計下半年的銷售額將比上半年連續增長，下半年收入與上年相比相對持平，這主要得益於Jublia、Arestin 和Aplenzin 的增長，抵消了神經科成熟品牌的下滑，仿製藥和皮膚病學。我們繼續預計毛利率將在 80% 範圍內，與之前的指導一致。

Full year EBITDA for Bausch Health, excluding B + L, is still expected to be $2.3 billion to $2.4 billion. Our adjusted guidance reflects the acceleration of approximately $50 million in R&D spend from 2024 for critical programs, and we currently expect higher R&D investment in 2023 than contemplated when initially providing guidance for the year. Adjusted EBITDA also includes the impact of the Emerade recall. These items are partially offset by the favorable impact of foreign exchange and cost savings.

Bausch Health 全年 EBITDA（不包括 B + L）預計仍為 23 億至 24 億美元。我們調整後的指導反映出，從 2024 年起，關鍵項目的研發支​​出將增加約 5000 萬美元，我們目前預計 2023 年的研發投資將高於最初提供當年指導時的預期。調整後的 EBITDA 還包括 Emerade 召回的影響。這些項目被外彙和成本節約的有利影響部分抵消。

On the expense side, we will continue to invest in sales and marketing activities to drive growth in our key brands in our Salix, International and Solta Medical segment. These expenditures include sales force expansion, direct-to-consumer advertising and investments in sales force tools. As Tom mentioned, we're starting to see the positive impacts from these initiatives on revenues, which we expect to continue through this year.

在費用方面，我們將繼續投資於銷售和營銷活動，以推動 Salix、International 和 Solta Medical 領域主要品牌的增長。這些支出包括銷售隊伍擴張、直接面向消費者的廣告和銷售隊伍工具的投資。正如湯姆提到的，我們開始看到這些舉措對收入的積極影響，我們預計這種影響將持續到今年。

Moving below adjusted EBITDA. We continue to expect our full year effective non-GAAP tax rate to be approximately 15%. We expect our contractual interest cost to remain unchanged at approximately $1.3 billion.

低於調整後的 EBITDA。我們仍然預計全年有效非 GAAP 稅率約為 15%。我們預計合同利息成本將保持在約 13 億美元不變。

Lastly, we continue to expect Bausch Health, excluding B + L, to generate approximately $625 million in adjusted operating cash flow. We have generated less than half of this expected cash flow through the second quarter, which as I said earlier, is in line with our expectations and adjusted operating cash flow will benefit from the higher second half adjusted EBITDA we're expecting compared to the first half of the year.

最後，我們繼續預計 Bausch Health（不包括 B + L）將產生約 6.25 億美元的調整後運營現金流。我們第二季度產生的現金流量不到預期現金流量的一半，正如我之前所說，這符合我們的預期，調整後的運營現金流量將受益於我們預計下半年調整後EBITDA 高於第一季度的情況半年。

As I said earlier, adjusted cash flow includes adjustments for the payment of separation costs, the payment of the full contractual interest and also includes impact of cash tax payments, inclusive of the tentative Granite Trust settlement, which we expect to be finalized the IRS in the coming months.

正如我之前所說，調整後的現金流包括支付離職費用、支付全部合同利息的調整，還包括現金稅支付的影響，包括暫定的花崗岩信託和解協議，我們預計國稅局將在未來幾個月。

I'll now hand the call back to Tom.

我現在將把電話轉回給湯姆。

Thank you, Tom. In summary, although we still have much work to do, I am pleased with the quarter business performance and the progress we have made. Our strategic priorities remain intact, as you can see on Slide 23. We have a clear purpose on enriching lives through our relentless drive to create better health outcomes for our patients and physicians. We have made key focused investments in our sales teams, marketing programs and R&D projects, which will drive future growth. We have progressed key strategic objectives.

謝謝你，湯姆。總而言之，儘管我們還有很多工作要做，但我對本季度的業務表現和所取得的進展感到滿意。正如您在幻燈片23 中看到的那樣，我們的戰略重點保持不變。我們有一個明確的目標，即通過不懈的努力為我們的患者和醫生創造更好的健康結果，從而豐富人們的生活。我們對銷售團隊、營銷計劃和研發項目進行了重點投資，這將推動未來的增長。我們已經推進了關鍵戰略目標。

Finally, and importantly, we have an all-in team that is principled, creative, problem solvers and results focused. On behalf of our entire Bausch Health team, I thank you for your interest and support of our company.

最後，也是重要的是，我們擁有一支有原則、富有創造力、善於解決問題並註重結果的全心全意的團隊。我謹代表 Bausch Health 整個團隊感謝您對我們公司的關注和支持。

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

現在我們將回答問題。接線員，請開通問答線路。

(Operator Instructions) Your first question for today is coming from Glen Santangelo with Jefferies.

（操作員說明）今天您的第一個問題來自 Jefferies 的 Glen Santangelo。

Tom, I think I'll ask a question that's kind of on everyone's mind. Everyone is kind of curious about this tax-free reduction of capital. I'm wondering if you could maybe put a little bit of a finer point in terms of what you mean. And I guess why the pivot at this point? Because it seems like you had a plan and now it seems like you may be pivoting in them. I'm kind of curious as to what changed.

湯姆，我想我會問一個每個人都在想的問題。每個人都對這種免稅減資感到好奇。我想知道您是否可以根據您的意思提出一些更詳細的觀點。我猜為什麼要在這個時候轉向？因為你似乎有一個計劃，但現在你可能正在按照計劃進行調整。我有點好奇到底發生了什麼變化。

Yes, Glen, good question. Let me just take it from the top. It's a good question. It's complicated. What I would say is when we look at it, of course, the spin and the IPO was announced 3 years ago. It was a different management team at that point and really trying to -- as I took over as CEO and the team took over, really looking at what was going to be the best way to do it. So basically, when we looked at it, we believed that trying to find a way that could simplify the process to help manage some of the risks identified. And we believe that we can create some additional strategic flexibilities for both companies if we're able to work under a reduction of capital.

是的，格倫，好問題。讓我從上面看一下。這是一個好問題。情況很複雜。我想說的是，當我們審視它時，當然，分拆和 IPO 是三年前宣布的。當時這是一個不同的管理團隊，並且確實在努力——當我接任首席執行官時，團隊接手後，真正在尋找最好的方法。因此，基本上，當我們研究它時，我們相信試圖找到一種可以簡化流程的方法，以幫助管理已識別的一些風險。我們相信，如果我們能夠在資本減少的情況下開展工作，我們可以為兩家公司創造一些額外的戰略靈活性。

Tom, if I'll just add a couple of things. So Glen, just transactionally what the difference. So what this is like the term suggests, it's a reduction in capital. And in this case, the reduction is the value of B + L, and effectively the result of those B + L shares being returned to the shareholders. So the end result is exactly the same in the sense that the B + L shares are distributed as we intended before. No change there. No change in the tax efficiency, et cetera, et cetera. What we're really talking about is behind the scenes almost the bookkeeping changes slightly.

湯姆，我補充幾件事。那麼格倫，只是交易上有什麼區別。所以這就像這個術語所暗示的那樣，這是資本的減少。在這種情況下，減少的就是 B+L 的價值，實際上是這些 B+L 股份返還給股東的結果。因此，最終結果與 B + L 股按照我們之前的預期分配的意義上完全相同。那裡沒有變化。稅收效率沒有變化，等等。我們真正談論的是幕後幾乎簿記略有變化。

But Tom, can I just clarify that a little bit? Because I thought maybe the obvious move was to sell another 8% or 9% of BLCO but maintain that 80% thresholds, so you preserve the tax-free nature of the spin. Are you talking about something different than that?

但是湯姆，我可以澄清一下嗎？因為我認為最明顯的舉動可能是出售另外 8% 或 9% 的 BLCO 股份，但維持 80% 的門檻，這樣就可以保留旋轉的免稅性質。你在談論與此不同的事情嗎？

No, no. Still the same numbers. So it's still the same. We -- the plan right now is the same, is to distribute 80%. No change in that.

不，不。還是一樣的數字。所以還是一樣。我們——現在的計劃是一樣的，就是分配80%。沒有改變。

Okay. Perfect. And maybe just my last question, then I'll hop is, I'm kind of curious about the $600 million facility. And what are the uses of those -- of that cash? Because it seems like you already have ample liquidity, you're generating some cash flow and now you're talking about selling more of BLCO, which would raise potentially more money or maybe you're just going to spin it depending upon how you transactionally do it. But I just want to make sure I understand what the use of that capital is because you didn't buy back very much debt in the quarter, and I would have expected a little bit more. So I'm just kind of curious as to use of those proceeds.

好的。完美的。也許我的最後一個問題是，我對這筆 6 億美元的設施有點好奇。這些現金有什麼用途？因為看起來你已經擁有充足的流動性，你正在產生一些現金流，現在你正在談論出售更多的 BLCO，這可能會籌集更多的資金，或者你可能只是根據你的交易方式來旋轉它做吧。但我只是想確保我了解這些資本的用途，因為你在本季度沒有回購太多債務，而且我本來期望會多一點。所以我只是對這些收益的用途感到好奇。

Yes. I mean, look, in the grand scheme of things, it's an efficient and cost-effective source of capital for us. It was available. So we like it. It's a source of capital now for the next 5 years. As I said in my prepared remarks, as it happens just shortly after the end of the quarter, we did draw down about $350 million and have paid down the revolver. So that's one example. But it's essentially for general corporate purposes. We haven't earmarked it for anything in particular. But it's available to do all the things that you just kind of listed, including OMRs, et cetera.

是的。我的意思是，從長遠來看，這對我們來說是一種高效且具有成本效益的資金來源。它是可用的。所以我們喜歡它。現在它是未來5年的資金來源。正如我在準備好的發言中所說，由於事情發生在本季度結束後不久，我們確實提取了約 3.5 億美元並還清了左輪手槍。這就是一個例子。但它本質上是用於一般企業目的。我們沒有指定它用於任何特定用途。但它可以執行您剛剛列出的所有操作，包括 OMR 等。

We will -- in addition to that, as I said, expect to generate more than $600 million in operating cash flow and debt reduction and deleveraging continues to be our priority.

除此之外，正如我所說，我們預計將產生超過 6 億美元的運營現金流，減少債務和去槓桿化仍然是我們的首要任務。

Your next question is coming from Jason Gerberry with Bank of America.

您的下一個問題來自美國銀行的 Jason Gerberry。

So just wanted to follow up on Glen's question a little bit more. Just so you talked about added strategic flexibility, I think, in the PR pursuing strategic growth via the RemainCo. So would -- or under the revised, I guess, distribution mechanism would RemainCo carry less debt or have a more favorable leverage ratio? Just kind of curious thinking about what that entity might look like on the other side and how much firepower the company might have because we've long thought of like RemainCo as a company that was carrying like north of 6.5 turns of leverage and not a lot of leeway to deploy capital for M&A.

所以只是想進一步跟進格倫的問題。我認為，正如您談到的，在公關中通過留歐派追求戰略增長時增加了戰略靈活性。那麼，或者我猜，根據修訂後的分配機制，RemainCo 會承擔更少的債務，或者擁有更有利的槓桿率嗎？只是有點好奇地思考該實體在另一邊可能是什麼樣子以及該公司可能擁有多少火力，因為我們長期以來一直認為像 RemainCo 這樣的公司槓桿率在 6.5 轉以上，而且不多資本配置併購的餘地。

Yes.

是的。

Go ahead, Tom.

繼續吧，湯姆。

I'll start, and maybe Tom will add some comments. Essentially, there is no change in our plan, right? So the company has put up a target of 6.5% to 6.7%. That remains the case, and that we put that out as a kind of threshold to -- in order to complete the distribution. From my perspective as the CFO of the company, that's too high, and I -- we will continue to pay the debt down and reduce it as we go forward. This particular transaction that we're talking about of this change in structure that we are considering has no connection with those debt targets or the liquidity that we need to be at or anything like that.

我先開始，也許湯姆會添加一些評論。本質上，我們的計劃沒有改變，對嗎？因此該公司提出了6.5%至6.7%的目標。情況仍然如此，我們將其作為完成分配的一種門檻。從我作為公司首席財務官的角度來看，這個數字太高了，我們將繼續償還債務，並在前進的過程中減少債務。我們正在討論的這一特定交易，即我們正在考慮的結構變化，與這些債務目標或我們需要的流動性或類似的東西無關。

Yes, Jason, this is Tom. Let me just add to that. The objectives and the goals of the transaction haven't changed. We just -- when we looked at it, the key was to see how we could simplify it and then really create as much flexibility strategically as possible for both companies now and in the future.

是的，傑森，這是湯姆。讓我補充一下。交易的目標沒有改變。當我們審視它時，關鍵是看看如何簡化它，然後真正為兩家公司現在和未來的戰略上創造盡可能多的靈活性。

Well, I was just going to ask a follow-up on the Xifaxan Federal Circuit appeal. So is the court reviewing all the patent rulings or is the court reviewing whether the injunction should be in place still? Just kind of just wondering, if we think about early 2024, what that outcome could look like and (technical difficulty).

嗯，我只是想詢問 Xifaxan 聯邦巡迴法院上訴的後續情況。那麼法院是否正在審查所有專利裁決，或者法院是否仍在審查是否應該實施禁令？只是想知道，如果我們考慮 2024 年初，結果會是什麼樣子以及（技術難度）。

Yes. So as I said in my prepared remarks, we are appealing the patents on IBS-D and on the polymorphs, which Norwich is appealing the motion on the 60(B) motion. So that's where it stands. Of course, the appeals are now together and we're expecting the court to rule in Q1 of 2024. We feel strongly on our position with our patents, and we're going to vigorously defend it.

是的。正如我在準備好的發言中所說，我們正在對 IBS-D 和多晶型物的專利提出上訴，諾維奇正在對 60(B) 動議提出上訴。這就是現在的情況。當然，上訴現已集中，我們預計法院將於 2024 年第一季度做出裁決。我們對我們的專利立場有強烈的感覺，我們將積極捍衛它。

Your next question is coming from Umer Raffat at Evercore ISI.

您的下一個問題來自 Evercore ISI 的 Umer Raffat。

There's construction behind me. So please bear with me. My question is going into the Xifaxan District Court ruling, this is a Norwich versus FDA, what are you expecting? And how does that change, whatever plan you have now or whatever the updated plan is on the spin?

我身後有施工。所以請耐心聽我說。我的問題是關於 Xifaxan 地方法院的裁決，這是諾維奇與 FDA 的訴訟，您期待什麼？無論您現在有什麼計劃，或者正在實施的更新計劃是什麼，這種情況會發生怎樣的變化？

Thanks, Umer, for the question. When we look at the case that Norwich filed against the FDA, again, we feel confident here. We have intervened as well. So that's going to progress. And again, we feel confident in where -- the FDA's position is they are upholding what the court ruled in Delaware. So therefore, we feel real confident that in that case, we're on good shape. Time line, again, is the fall of -- if we just talk about a time line, we're thinking a fall of 2023 to hear the outcome of that.

謝謝烏默提出的問題。當我們再次審視諾維奇向 FDA 提起的案件時，我們對此充滿信心。我們也進行了乾預。所以這將會取得進展。再次，我們對 FDA 的立場充滿信心，他們支持特拉華州法院的裁決。因此，我們非常有信心，在這種情況下，我們的狀態良好。再說一次，時間線是——如果我們只談論時間線，我們會考慮在 2023 年秋天聽到結果。

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

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

So looking longer term, as you think about the debt maturities in '27 and '28 and the LOE for Xifaxan, this is a -- based on the settlements that are in place, how do you address that given the importance of Xifaxan to the P&L? And just help us better understand the long-term solvency of the companies in light of what you could be facing later in the decade.

因此，從長遠來看，當您考慮 27 年和 28 年的債務到期日以及 Xifaxan 的 LOE 時，這是一個基於現有和解的問題，考慮到 Xifaxan 對 Xifaxan 的重要性，您如何解決這個問題損益？並幫助我們根據您在十年後可能面臨的情況更好地了解公司的長期償付能力。

Yes. I won't get into any specific long-term forecasting here on this call, but maybe just in generalities, we have a business that's highly cash generative. This year, as I said, about $600 million. We're investing in growth. We're starting to see that momentum build. And we expect to see the business grow between now and say, '27 or '28, including from Xifaxan and including from Salix. That will significantly increase the cash generation any revenue growth should drop right down to the bottom line. And so we would expect to use or prioritize debt leverage as we have as the company has for the last 5 or 6 years, and we'll continue to do that. And so we think we'll knock a chunk out of that debt between now and then, David.

是的。我不會在這次電話會議上進行任何具體的長期預測，但也許只是籠統地說，我們的業務具有很高的現金生成能力。正如我所說，今年大約有 6 億美元。我們正在投資於增長。我們開始看到這種勢頭正在增強。我們預計從現在到 27 或 28 年，業務將會增長，包括來自 Xifaxan 和 Salix 的業務。這將顯著增加現金產生量，任何收入增長都應該下降到底線。因此，我們希望像公司過去五六年那樣使用或優先使用債務槓桿，並且我們將繼續這樣做。因此，我們認為，從現在到那時，我們將減少大部分債務，大衛。

And then at that point, if there is any debt left over, we will have to refinance it, of course. At that time, what lenders are going to be looking at our forward-looking leverage ratios. And we're investing in a bunch of these products in the pipeline as you heard from Tom, and we would expect many of those to come to fruition. And even though, yes, Xifaxan will go generic in '28, and we will see a drop in revenue, it will be offset by other products coming into play and growing. And so obviously, it's a very key question. The management team and the Board are focused on it and one of the things that we're working through.

到那時，如果還有剩餘債務，我們當然必須為其再融資。到時候，貸款人會關注我們的前瞻性槓桿率。正如您從湯姆那裡聽到的那樣，我們正在投資一系列正在醞釀中的產品，我們預計其中許多產品將會取得成果。是的，儘管 Xifaxan 將在 28 年通用，我們將看到收入下降，但它將被其他產品的發揮作用和增長所抵消。顯然，這是一個非常關鍵的問題。管理團隊和董事會都專注於此，也是我們正在解決的事情之一。

Yes, David, let me just add to that what Tom said. And clearly, I talked about in my prepared remarks, the pipeline. That's why last quarter, this quarter, we continue to talk about the progress we're making. And as you saw, the investments that we're making in R&D and accelerating the RED-C program, and that is really an exciting program for us.

是的，大衛，讓我補充一下湯姆所說的內容。顯然，我在準備好的發言中談到了管道。這就是為什麼上個季度、本季度我們繼續談論我們正在取得的進展。正如您所看到的，我們在研發和加速 RED-C 項目方面進行的投資，這對我們來說確實是一個令人興奮的項目。

Clearly, we have accelerated now and making sure that we will have, of course, if the data comes through the product before we will lose Xifaxan. So -- and we're very, very excited about it. Of course, this is a huge patient population, much larger today than the current Xifaxan population. So RED-C is on track. It's accelerated. This is a global program. And so therefore, we will have the global rights. This will be our first global product at Bausch Health and we're excited about it.

顯然，我們現在已經加快了步伐，並確保在我們失去 Xifaxan 之前，如果數據通過該產品，我們將會擁有。所以——我們對此非常非常興奮。當然，這是一個巨大的患者群體，比目前的 Xifaxan 群體要大得多。所以 RED-C 已步入正軌。速度加快了。這是一個全球計劃。因此，我們將擁有全球權利。這將是 Bausch Health 的第一個全球產品，我們對此感到興奮。

Of course, amiselimod, the Phase II studies have completed enrollment, and we are really excited as to get the data as it comes through probably at the end of the year, beginning of next year.

當然，阿米塞莫德，二期研究已經完成了招募，我們非常高興能夠在今年年底、明年初獲得數據。

Your next question is coming from Douglas Miehm with RBC CM.

您的下一個問題來自 RBC CM 的道格拉斯·米姆 (Douglas Miehm)。

First question, just going back to the change, the tax-free reduction in capital, could that be affected by moving the holdco from the parent that has the 38.7% in the billing and bonds to BLCO? Is that an example of what could occur or something like that in addition to, say, the distribution of the remainder of the shares, the 50.1%?

第一個問題，回到資本的免稅減少這一變化，這是否會受到將控股公司從擁有 38.7% 賬單和債券的母公司轉移到 BLCO 的影響？這是除了剩餘股份（即 50.1%）的分配之外可能發生的情況或類似情況的示例嗎？

Doug, I don't know if I completely followed what you asked. But as I said, I think maybe to the first question, there is no change in the end result, right, in the sense that we will distribute. The plan right now is to distribute 80% or more than 80% in order to preserve the tax-free or tax-efficient nature of the spin. I don't know if I got the whole of your question. I know we'll have some follow-up discussion after this call. Happy to talk about it a little bit more.

道格，我不知道我是否完全遵循了你的要求。但正如我所說，我認為也許對於第一個問題，最終結果沒有變化，對吧，從我們將分配的意義上來說。目前的計劃是分配 80% 或超過 80%，以保持旋轉的免稅或節稅性質。我不知道我是否聽清了你的全部問題。我知道這次通話後我們將進行一些後續討論。很高興能多談論一點。

Yes. I'm really happy to go through that. Second one, Tom, maybe just has to do with RED-C. We know that you expect to complete enrollment of those 2 Phase III clinical trials in Q1 2024. But when do we expect the readout? When do we expect the data in our hands?

是的。我真的很高興經歷這一切。第二個，湯姆，也許只是與 RED-C 有關。我們知道您預計在 2024 年第一季度完成這 2 項 III 期臨床試驗的入組。但是我們預計什麼時候會公佈結果？我們預計什麼時候能拿到我們手中的數據？

Yes. So Doug, yes, we've completed enrollment. And of course, in order to get this product approved prior to Xifaxan going off patent, we'll be looking to see readout of data probably in late 2025, early 2026, and then, of course, have to file. So that would -- I would say probably somewhere in the 2026 range.

是的。道格，是的，我們已經完成了註冊。當然，為了在 Xifaxan 專利到期之前獲得該產品的批准，我們可能會在 2025 年底、2026 年初看到數據讀出，然後當然必須提交文件。所以我想說可能在 2026 年範圍內的某個地方。

Your next question is coming from Mike Nedelcovych at TD Cowen.

您的下一個問題來自 TD Cowen 的 Mike Nedelcovych。

I have two. My first question regards to the Xifaxan litigation. Given what you know now, is there -- is it within the realm of possibility that we get a complete resolution of Xifaxan litigation and IP in the year 2024? That's the first question.

我有兩個。我的第一個問題是關於 Xifaxan 訴訟。根據您現在所知，我們是否有可能在 2024 年完全解決 Xifaxan 訴訟和知識產權問題？這是第一個問題。

And then the second question relates to RED-C. I know that it's a much bigger patient population, but given that HE lifetime risk in [thioctic] patients is well below a 100%, do you have any sense whether physicians are prepared to adopt a prophylactic regimen rather than simply administer Xifaxan once symptoms present?

第二個問題與 RED-C 相關。我知道患者群體要大得多，但鑑於 [thioctic] 患者的 HE 終生風險遠低於 100%，您是否知道醫生是否準備好採取預防性治療方案，而不是在症狀出現後簡單地服用 Xifaxan ？

Mike, 2 good questions. When we -- on the Xifaxan litigation, this appeal, as I said in my prepared remarks and earlier answers to questions, we expect to have decision in the first quarter. It's a complicated appeal because we are appealing the ruling is on IBS-D and the polymorphs. And of course, they're appealing the motion. So what I would say is as it plays out, we have submitted our briefs. And we think we have a real good position on our IBS-D patents and polymorph patents. So if it goes in our favor, clearly, this will be -- it will be resolved specifically on our appeal, all right? So we'll have to see how it goes, and -- but we're feeling confident about it.

邁克，兩個好問題。正如我在準備好的發言和之前回答問題時所說，當我們就 Xifaxan 訴訟、這一上訴提出要求時，我們預計將在第一季度做出決定。這是一個複雜的上訴，因為我們正在對 IBS-D 和多晶型物的裁決提出上訴。當然，他們正在對這項動議提出上訴。所以我想說的是，隨著事情的發展，我們已經提交了我們的簡報。我們認為我們在 IBS-D 專利和多晶型專利方面擁有真正的優勢。因此，如果它對我們有利，顯然，這將是——它將根據我們的上訴具體解決，好嗎？所以我們必須看看事情進展如何，而且——但我們對此充滿信心。

Getting to the next question on RED-C. Again, we feel -- as you said in your question, and as I said previously, it's a much larger patient population. One of the things that we have talked about and that is one of the reasons why we've invested to accelerate the program. We will have -- our sales teams and our medical teams will be working to really educate physicians on why prevention is the way to go for HE.

進入關於 RED-C 的下一個問題。再次，我們覺得——正如你在問題中所說的，以及我之前所說的，這是一個更大的患者群體。這是我們討論過的事情之一，也是我們投資加速該計劃的原因之一。我們的銷售團隊和醫療團隊將努力真正教育醫生為什麼預防是治療 HE 的出路。

If you take a look today, the investments that we're making in Xifaxan as I talked about in my prepared remarks on the medical side. Still today, you see patients not getting treatment after the first HE episode. And so clearly, if you look at the pharmacoeconomic data, as to prevention versus having an HE episode or then multiple HE episodes, we believe from a payer perspective, from a patient perspective, that prevention is going to really be something that people will want and be interested in.

如果你今天看看我們在 Xifaxan 進行的投資，正如我在準備好的醫療方面的發言中談到的那樣。直到今天，您仍然會看到患者在第一次 HE 發作後沒有接受治療。很明顯，如果你看一下藥物經濟學數據，關於預防與 HE 發作或多次 HE 發作的對比，我們相信，從付款人的角度、從患者的角度來看，預防將真正成為人們想要的東西並感興趣。

If you look at some of the work that we're doing today, on direct-to-consumer, advertising today is to really educate not only patients, but also educate the caregivers of what they -- what goes -- what happens to them if you have an HE episode not only to the patient, but to the caregiver. So we really think prevention is going to be something that will be very much accepted, but there will be a lot of education between our medical affairs team and our sales teams. But it's a good question. Thank you.

如果你看看我們今天在直接面向消費者方面所做的一些工作，今天的廣告不僅要真正教育患者，還要教育護理人員他們的情況——發生了什麼——發生在他們身上的事情如果您不僅對患者而且對護理人員都有HE 發作。因此，我們確實認為預防將會被廣泛接受，但我們的醫療事務團隊和銷售團隊之間將會進行大量的教育。但這是一個好問題。謝謝。

There are no further questions in queue.

隊列中沒有其他問題。

Okay. So with no further questions, I would just say, in summary, we had a solid Q2 performance and made good progress on key strategic objectives. We look forward to the second half of 2023, with the focus of profitable growth, driving performance, advancing R&D and BD and unlocking value. Thank you for joining our call today.

好的。因此，沒有其他問題，我只想說，總而言之，我們第二季度的業績表現穩健，並且在關鍵戰略目標上取得了良好進展。我們展望 2023 年下半年，重點是盈利增長、推動業績、推進研發和業務拓展以及釋放價值。感謝您今天加入我們的電話會議。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。