Bausch (TSX:BHC) Stocks Rise On Amoun Sale Plans

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 Bausch (TSX:BHC) Stocks Rise On Amoun Sale Plans

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Summary

  • Bausch Health Companies Inc (TSX:BHC) announced on Wednesday, March 31, that it is selling its interests in Amoun Pharmaceutical Company SAE to holding company ADQ for US$ 740 million.
  • Following the announcement, the pharmaceutical giant saw its stocks rise by over two per cent on Wednesday morning (11AM EST).
  • If all goes as per plan, the deal could close in the first six months of 2021.

Canadian company Bausch Health Companies Inc (TSX:BHC) announced on Wednesday, March 31, that it is selling its interests in Amoun Pharmaceutical Company SAE to holding company ADQ for US$ 740 million.

Following the announcement, the pharmaceutical giant saw its stocks rise by over two per cent on Wednesday morning (11AM EST).

Bausch Health’s Amoun Pharmaceutical Sale – Key Highlights


Bausch Health CEO Joseph C Papa said that this sale, which comes ahead of its split from eyecare division Bausch & Lomb, is being made in efforts to reduce its debt.

If all goes as per plan, the deal could close in the first six months of 2021.

©Kalkine Group 2021

As per Bausch and ADQ’s agreement, the cash that Amoun raises in the period between the locked-box date of January 1 and the closing date will go to ADQ and is not expected to be included in Bausch Health's financial results.

Based in Egypt, Amoun Pharmaceutical deals with the manufacture of branded generic drugs for human and animal health and is one of the top pharmaceutical companies in the country, Bausch said in a statement Wednesday.

Bausch Health Companies Inc (TSX:BHC) Stock Performance


Stocks of Bausch Health Companies recorded a growth of nearly 82 per cent in the past one year and that of almost 49 per cent in 2021.

The healthcare stock hit a fresh 52-week high of C$ 43.9 earlier this month (March 9), and has since declined by nearly nine per cent.

©Kalkine Group 2020

With a market cap of C$ 14.23 billion, Bausch Health posts a price-to-book (P/B) ratio of 20.97, a price-to-cashflow ratio (P/CF) of 9.7 and a debt-to-equity (D/E) ratio of 44.72, as per the data on TMX.

Bausch Health Financials


The Laval-headquartered company saw its total revenues slide by seven per cent year-over-year (YoY) to C$ 8,027 million in the fiscal year ending 31 December 2020.

Bausch Health’s adjusted net income posted a decrease of eight per cent YoY to C$ 1.428 billion for the year.

Its annual net loss, meanwhile, reduced to C$ 560 million in 2020 from that of C$ 1.788 billion in 2019.

 

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