Bausch Health responds to rumors, says it is not considering bankruptcy

By Tomi Kilgore

Report from Reorg contains 'unsubstantiated rumors,' Bausch Health says

Shares of Bausch Health Cos. plunged to a 19-year low intraday on Wednesday, compelling the Canada-based drug and medical-device company to respond to "market rumors."

The stock (BHC) was down as much as 47.7% at its intraday low of $3.96, which was the lowest price seen since November 1995.

It bounced to be down 21.6% and was halted at 12:21 p.m. Eastern time for news pending.

'The article contains unsubstantiated rumors, including that the Company is considering a bankruptcy or insolvency proceeding of any kind - it is not.'Bausch Health statement

The company said in a release posted at 12:50 p.m. that it has "become aware" of a report issued by Reorg, which cited unnamed sources.

"The article contains unsubstantiated rumors, including that the Company is considering a bankruptcy or insolvency proceeding of any kind - it is not," Bausch said in the statement.

Bausch Health added that Reorg had apparently issued an update to its report to clarify that Bausch Health has not been involved in discussions with creditors regarding a potential bankruptcy.

The stock resumed trading at 1:10 p.m. Eastern. While it pared some losses, it was still down 20.5% in afternoon trading, which put it on track for its lowest close since May 12, 2022.

At the stock's latest price, the company had a market capitalization of $2.21 billion.

The company's credit was rated at CCC+ at S&P Global Ratings as of April 18. That rating is seven notches deep into S&P's speculative grade, or "junk," rating level.

Bausch Health was formerly known as Valeant Pharmaceuticals International Inc., prior to a second scandal-inspired name change in 2018. In 2022, the company spun off its eyecare business, Bausch & Lomb (BLCO), which went public in May 2022.

Bausch Health's stock has tumbled 29.7% over the past three months, while the S&P 500 has gained 7.8%.

-Tomi Kilgore

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07-24-24 1411ET

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