Bausch Health Companies Inc. (BHC) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by, and welcome to the 2020 Virtual Annual Meeting of Shareholders of Bausch Health Companies Inc. [Operator Instructions] I would now like to hand the conference over to your speaker today, Chairman, Joe Papa. You may begin, sir.

Good morning. This is Joe Papa, the Chairman of the Board and Chief Executive Officer of Bausch Health Companies. It is a privilege and an honor to speak with you today and to welcome you to the 2020 Annual Meeting of Shareholders. Due to the public health impact of the coronavirus pandemic, this year's annual meeting is being held virtually. Our shareholders, officers and directors are all attending via webcast. I'd like to thank everyone for attending this meeting and for your ongoing support of the company. First, I'd like to introduce our director nominees, all of whom are currently board members and are in attendance today. Mr. Richard DeSchutter has served on our Board since 2017. He is a Director of AuVen Therapeutics, Applied Silver and Sermonix Pharmaceuticals. Mr. Robert Hale has served on the Board since 2015. He's a partner of ValueAct Capital and serves on the Board of the Olympus Corporation. Dr. Jerry Karabelas has served on our Board since 2016. He's a partner of Care Capital and also serves as a Director of REGENEXBIO and Braeburn Pharmaceuticals. Ms. Sarah Kavanagh has been a member of our Board since 2016. She's a Director of Hudbay Minerals, AST and AST Trust Company in Canada and Sustainable Development Technology Canada and a trustee of WPT Industrial REIT. Mr. John Paulson has served on our Board since 2017, is President and Portfolio Manager of Paulson & Co. Inc. Mr. Robert Power has served on the Board since 2008. He's a former faculty member of The Wharton School of Business, University of Pennsylvania, and former executive at Wyeth Pharmaceuticals. Mr. Russ Robertson has served on our Board since 2016. He's a Director of Hydro One Limited and Turquoise Hill Resources. He previously served as Vice Chair of Deloitte & Touche and as head of Anti-Money Laundering at BMO Financial Group. Mr. Thomas Ross, our Lead Independent Director, has been a member of our Board since 2016. He is President of Volcker Alliance, President Emeritus of the University of North Carolina and is a Stanford distinguished fellow in public policy. Dr. Andrew von Eschenbach joined our Board in 2018. He's a President of Samaritan Health Initiative, Inc., an Adjunct Professor at University of Texas MD Anderson Cancer Center and former Commissioner of the U.S. Food and Drug Administration. Dr. Amy Wechsler has served on our Board since 2016. She's been practicing dermatology in New York City since 2005, is board-certified dermatologist and psychiatrist and is the author of The Mind-Beauty Connection. Next, I'd like to introduce the executive officers of our company, all of whom are attending today's meeting: Paul Herendeen, Executive Vice President and Chief Financial Officer; Christina Ackermann, Executive Vice President and General Counsel; Thomas Appio, President and Co-Head of Bausch + Lomb/International; Joe Gordon, President and Co-Head Bausch + Lomb/International; and William Humphries, President, Ortho Dermatologics. We are also joined by Mark Bode, a representative of the PricewaterhouseCoopers LLP, our independent registered public accounting firm, who are also in attendance. He will be available during the question-and-answer session that will be held after the conclusion of the official business of the meeting and to respond to any questions. I'd now like to call upon Ms. Ackermann, who is serving as Secretary for this meeting to present proof that the meeting is duly constituted.

Thank you, Mr. Chairman. This meeting is held pursuant to a notice that was distributed on or about March 16, 2020, to each shareholder of record as of the close of business on March 2, 2020. I have an affidavit of Broadridge Financial Solutions, Inc. attesting to the distribution of the notice of meeting and the proxy statement. The Board has authorized me to appoint Gary Wozniak of Broadridge Financial Solutions, Inc. to serve as the scrutineer for this meeting. Mr. Wozniak has informed the company that the count of shares immediately preceding commencement of this meeting, at least 25% of the company's issued and outstanding shares entitled to vote is represented in person or by proxy at today's meeting, which represents the minimum required for a quorum under the company's articles.

Thank you, Ms. Secretary. It is now 9:09 a.m. Eastern Time on Tuesday, April 28, 2020. Notice having been given and a quorum being present, I hereby declare this meeting duly constituted for the transaction of business, and I call the meeting to order.

Thank you, Mr. Chairman. I would like to take a moment to briefly explain the procedures that will be followed at this meeting. As stated in our proxy statement, 4 proposals are subject to shareholder vote at this meeting. If you have any questions regarding the proposals, you may submit them in the field provided in the web portal. I will describe each of the 4 proposals, then respond to relevant questions we have received regarding the proposals. Any questions received during this time on matters other than the proposals may be addressed during the general question-and-answer period at the end of the meeting. For shareholders who wish to vote at the meeting, please note that our polls are currently open and will remain open until after all proposals have been described and any relevant questions have been addressed. Any shareholder who hasn't yet voted or wishes to change their previously submitted vote may do so by clicking the voting button on the web portal and following the instructions provided. Shareholders who have already voted via proxy card, telephone or internet do not need to take any action unless they would like to change their previously submitted vote. After the close of voting and the conclusion of the official business of this meeting, we will give a short presentation on the company. Following this presentation, we will hold a general question-and-answer period. As provided in our rules of conduct for this meeting, we ask that you save any questions of a general nature for the question-and-answer session and that you limit yourself to one question. We may be unable to respond to every question we receive. If we are unable to respond to your question during the question-and-answer session, we encourage you to contact Investor Relations via the telephone number or website provided in the rules of conduct for this meeting. Finally, please be reminded that recording of this meeting is not permitted. Prior to considering the 4 proposals subject to shareholder vote, the first item of business at today's meeting is the submission of the financial statements of the company. The annual report of the company on Form 10-K along with the comparative consolidated financial statements of the company as of and for the fiscal year ended December 31, 2019, together with the reports of the auditors and the company's management discussion and analysis has been mailed to the shareholders of the [Audio Gap] available on the Internet, as described in the notice regarding Internet availability of proxy materials and on EDGAR and SEDAR. They are also being made available to you this morning in the web portal for this meeting. I hereby place these materials before the meeting. I will now describe each of the 4 proposals subject to shareholder approval at this meeting. The first proposal we will consider is the election of directors. 11 nominees for election as directors were named in our proxy statement. The Board has proposed that the 11 nominees named in the proxy statement be elected at this meeting, each to serve as the director until the close of the 2021 Annual Meeting of Shareholders, his or her successor is duly elected or appointed or his or her earlier resignation or removal. Information regarding the nominees proposed by the Board is set out in our proxy statement. The Board has recommended a vote for electing each of the 11 director nominees named in the proxy statement. I move that the following 11 individuals be elected as directors of the company, each to hold office until the close of the 2021 Annual Meeting of Shareholders, his or her successor is duly elected or appointed or his or her earlier resignation or removal. Mr. DeSchutter, Mr. Hale, Dr. Karabelas, Ms. Kavanagh, Mr. Papa, Mr. Paulson, Mr. Power, Mr. Robertson; Mr. Ross, Dr. von Eschenbach and Dr. Wechsler.

Ms. Secretary, my name is Dennis Asharin. I'm a shareholder of the company, and I second the motion.

Thank you. I now declare the nominations closed. The second proposal we will consider is the advisory vote on executive compensation. The nonbinding advisory vote on the compensation of the company's named executive officers is described in our proxy statement. The Board has recommended that shareholders vote in favor of this proposal. I move to approve the nonbinding advisory resolution in favor of the executive compensation of the company's named executive officers as described in the proxy statement.

Ms. Secretary. This is Dennis Asharin. I second the motion.

Thank you. The third proposal we will consider is the amendment to the company's amended and restated 2014 Omnibus Incentive Plan to increase the number of common shares authorized for issuance under the plan. This proposal is described in further detail, and the text of the amended plan is provided in our proxy statement. The Board has recommended that shareholders vote in favor of this proposal. I move to approve the amendments to the company's amended and restated 2014 Omnibus Incentive Plan as described in the proxy statement.

Ms. Secretary, this is Dennis Asharin. I second the motion.

Thank you. The fourth and final proposal we will consider is the appointment of PricewaterhouseCoopers LLP as the company's independent registered accountant or auditor to serve until the close of the 2021 Annual Meeting of Shareholders and to authorize the Board to fix the auditor's remuneration. The Audit and Risk Committee of the Board has recommended that PricewaterhouseCoopers LLP be appointed by the shareholders as the company's auditor and that the shareholders authorize the Board to fix the auditor's remuneration. The Board has endorsed this recommendation. I move that the shareholders appoint PricewaterhouseCoopers LLP as the company's auditors to serve until the close of the 2021 Annual Meeting of Shareholders and that the shareholders authorize the Board to fix the auditor's remuneration.

Ms. Secretary. This is Dennis Asharin. I second the motion.

Thank you. We have not received any questions from shareholders regarding these proposals. I will pause for a moment to allow for shareholders to complete their voting before we close the poll. [Voting]

Now that shareholders have had the opportunity to vote, I declare the polls for the 2020 Annual Meeting of Shareholders of Bausch Health Companies Inc. close at 9:17 a.m. Eastern Time. Mr. Chairman, our scrutineer, Mr. Wozniak has informed me that the preliminary vote report shows that more than a majority of the votes cast have been voted for the election of Mr. DeSchutter, Mr. Hale; Dr. Karabelas, Ms. Kavanagh; Mr. Paulson, Mr. Papa, Mr. Power, Mr. Robertson, Mr. Ross, Dr. von Eschenbach and Dr. Wechsler as directors, each to hold office until the close of the 2021 Annual Meeting of Shareholders, their respective successors are duly elected or appointed or such director's earlier resignation or removal; for the approval of an advisory basis -- on an advisory basis of the compensation of the company's named executive officers; for the amendment to the company's amended and restated 2014 Omnibus Incentive Plan to increase the number of common shares authorized for issuance under that plan; and for the appointment of PricewaterhouseCoopers LLP as the company's auditors to serve until the close of the 2021 [Audio Gap] shareholders and for authorizing the Board to fix the auditor's remuneration.

I declare each of those individuals to be elected for such term, the advisory resolution on compensation to be approved, the amendment to the company's amended and restated 2014 Omnibus Incentive Plan to be approved and PricewaterhouseCoopers LLP to be appointed as the company's independent registered public accountant and the Board authorized to fix the remuneration. Following the conclusion of our meeting, we will have a presentation on our company, followed by a general question-and-answer period. There being no further business to come before this meeting, I move that the meeting be concluded.

Mr. Chairman, this is Dennis Asharin. I second the motion.

Thank you. It is now 9:18 a.m. Eastern Time on April 28, 2020, and the 2020 Annual Meeting of Shareholders of Bausch Health Companies is now adjourned. We will now move on to the presentation.

Thank you. Before we begin the presentation and general question-and-answer period, please turn your attention to the slides containing our cautionary statement regarding forward-looking statements. Please read this slide carefully as it contains important information. This slide explains that certain statements made in this presentation and the Q&A session afterwards may constitute forward-looking statements and should be received with caution. And these forward-looking statements speak only as of the date hereof. Bausch Health undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect actual outcomes except as required by law. In addition, this presentation contains non-GAAP financial measures. Please see the relevant slides accompanying this presentation regarding our use of non-GAAP financial measures and the reconciliations of such measures with the comparable GAAP financial measures.

Thank you. We can now move to the presentation. It's a pleasure to present our progress in transforming our company into a global diversified company with durable revenue. Our results in 2019 built on the 2018 momentum and the mega trends in each of our businesses. We have durable revenue, critical mass and can impact the world today. Every day, more than 150 million people around the world use a Bausch Health product. We are focused on eye health, where we see mega trends like myopia increasing in the incidence, the over 65 population using increasing amounts of eye health. In the area of gastroenterology macro trends, we've seen the microbiome becoming increasingly important and it can play a very important role in areas that are beyond gastrointestinal disease, including in the inflammatory pathway. And finally, in dermatology, we see a move to consumerism and aesthetics. So clearly, we have great brands and great opportunities to move forward and impact the world. And every day, more than 150 million people around the world are using a Bausch Health product. If I talk about our pivot to offense in 2019, how did we do? We had strong execution across our business in 2019. First, we defined our theme in 2019 as pivot to offense. And indeed, we did. That is exactly what happened. Bausch Health in 2019 reported revenues of plus 3%, and organic revenue increased by 4%. Bausch + Lomb, our largest segment, reported a 2% revenue growth and 5% organic revenue growth for the full year in 2019, driven by very strong performance across the consumer business with LUMIFY leading the way, our Vision Care business, international business and our Global Surgical business and the launch of new products. Salix reported full year revenue of over $2 billion for the first time ever, driven by strong growth of XIFAXAN with 8% TRx growth versus 2018 and TRULANCE, our new addition, which saw over 30% growth. Clearly, in our gastroenterology business, we think we have a best-in-class offering with our best-in-class product for IBS-D for -- with XIFAXAN and a product with TRULANCE, which we believe has best-in-class label for IBS-C. So truly a great combination offering in our gastroenterology business. Additional highlights for 2019, we generated $1.5 billion of cash from operations during 2019, and we were able to make an increased investment in R&D, up 14% versus the previous year. That investment, we believe, is going to pay off great dividends in the future. We also used $1.1 billion to reduce debt and for bolt-on acquisitions. We repaid approximately $900 million of debt and used approximately $250 million to acquire TRULANCE and dolcanatide and EM-100, eye drop for allergic eyes. And we licensed in amiselimod; XIPERE; NOV03, a product for dry eye; and investigational compound for NASH. The clear answer, though, for our future is that the new products will produce results. We see it already, and we expect more of this to continue. If I look at just some of these products, clearly, Thermage, phenomenal launch in Asia Pacific and around the world. We saw 70% reported revenue growth in 2018 -- versus 2018. Thermage is now one of our top 10 products. With LUMIFY, we recorded $63 million of revenue in fiscal year '19 and achieved a weekly market share of over 40%, approximately 43% to be exact. We are now the #1 physician-recommended product in redness reliever category, clearly an exciting opportunity and one that we are looking to expand beyond just the U.S. And into Canada, we filed the product in Canada and look to take this across other geographies around the world. TRULANCE reported $55 million of revenue in 2019. Very strong growth in TRxs, over 30% growth versus the previous year. And what we were able to do is increase the reach and frequency to make sure health care providers understood the value that TRULANCE could bring for their patients. And we've also significantly improved market access, with some key formulary wins of approximately 35 million lives and is off to a great start in 2020 as well. DUOBRII, our product for psoriasis, had a 25% growth in the fourth quarter versus the launch quarter of the third quarter of 2019. And we already have approximately 63% commercial access in the first 8 months of launch. We think it's on its way to a very significant product. To be clear, it is picking up a significant number of new-to-brand psoriasis patients, and that's where we think that it has the best opportunity. Now there are many more products I could put on this list, VYZULTA, clearly showing good growth. And we've got a number of recent wins we're excited about as well and also new products that we'll launch later this year, like our silicone hydrogel product in the United States. So very excited about what these new products will mean to us for the future. Having said all that, I need to update you all on COVID-19. It is an unprecedented global pandemic. At Bausch Healthcare, the global business, we saw early signs of what was happening in Asia. And our Asia business in January and February helped us to plan for and prepare for COVID-19. The executive initiative started very quickly, initiated 4 different work streams to think about what was happening in the business and what would -- we needed to do in the near term to protect our employees, protect our supply chain, make sure we look at our commercial opportunities and how we're going to interact with customers and, of course, our financials and liquidity. So all those have started very quickly. From the point of view, is -- our first priority was to make sure that we have protection of our employees. And I'm delighted to say that while we have had a few employees be stricken with COVID, but most of them are all on the road to recovery. And soon, we expect them all to be back working, and we're really happy with being able to see that they've recovered. On the question of the supply chain, our objective there is to maintain uninterrupted availability of our products. And I can -- very importantly, I want to say to all of you that there has been no material disruption in our supply chain, and manufacturing facilities are certainly online, largely online today. In the area of our financials, we are in a very strong position. Our leadership team has been working on this. And Paul Herendeen and the financial group have done an excellent job preparing over the last 3 years for improving our liquidity situation, and I'm delighted to say we're on a strong point of view. 2019, we generated $1.5 billion of cash from operations and utilized that for both repaying debt and also bolt-on acquisition. Importantly, there's no significant debt maturity until Q1 of 2022. So we believe we're in a strong liquidity position, admittedly with significant amount of debt and leverage. Finally, we also wanted to make sure that we did everything we could to ensure that we dealt with our customers and made sure that we had customer contacts through our commercial operations team, both internationally and in United States. And we've had a number of very good interactions and making sure that we're meeting the needs of our customers. In addition, on the next slide, you see we are trying to help how we can help patients with COVID-19, reflecting our mission to improve people's lives with our health care products. We will continue to seek these opportunities to support and aid institutions, patients and health care providers battling this pandemic. If you think about what we've done already, we've provided medicines and supplies. For example, we ramped up the manufacturing of chloroquine and azithromycin with the goal of donating product where and when needed in Europe. We also initiated clinical trial programs in Canada, evaluating investigational use of Virazole. Virazole is ribavirin for inhalation solution through nebulization to treat hospitalized patients with COVID-19. We've also heard recently from Italy, they also are very interested in utilization of our Virazole product. We also are making available product donations for ARTELAC in Spain to help patients with local hospitals. We're working towards investigative trials in United States to evaluate XIFAXAN to potentially address some of the GI symptoms of COVID-19. If successful, we will make sure that we work with all the major hospitals and institutions to make sure that we make supplies of XIFAXAN available. We are also donated Biotrue ONEday daily disposable contact lenses to health care providers to alleviate some of the problems they face in fogging of eyeglasses while wearing protective gear such as goggles, face masks, containment suits, for example, in China. And finally, we converted one of our production lines in China to make sure that we could donate hand sanitizer, which was obviously needed for patients and health care providers, first-line responders. So clearly, working along many different avenues to take our resources and make sure we help patients. Also, because we know that these are extraordinarily difficult times for patients, unemployment has increased dramatically. We've got our Bausch Health Patient Assistance Program up and running to ensure eligible U.S. patients in need of -- lack health care coverage could have access to our products during this clear issue and -- initiated by the global pandemic. If I go to the final page, I want to just summarize where we are as a company as we enter 2020. We transitioned to 2020, our company is global, diversified with durable revenue. First, if I talk about the diversified, we have -- only one product accounts for more than 5% of our revenue. We're diversified by revenue type in the prescription side, the over-the-counter and devices and, of course, by geography. The executive leadership team is focused on driving value for all of our stakeholders by building on the diversity, the global footprint and, of course, the durable revenue flow, driven by the mega trends that I briefly mentioned before. We now have 8 consecutive quarters of total company organic revenue growth led by our Bausch + Lomb/International and our Salix business. And finally, the critical mass of people consuming our health care products, as I mentioned before, 150 million people every day consuming our products. We clearly are going to be an important contributor to health care in -- around the world. And we are excited by what that means for all of our employees, what it means for all of our shareholders and stakeholders in our company. Thank you very much for listening to the presentation today. I'm now going to open it up to a question-and-answer period.

Thank you, Joe. We have a few ones that have come in. The first one is 2 parts. The turnaround of a lifetime appears to have stalled as a result of COVID-19. What can you do right now to help kickstart that turnaround? And the second part is can we market LUMIFY internationally?

Sure. So on the question of what's happening relative to the first question or part of the question in terms of the turnaround opportunity, we believe we have very durable brands that will continue to remain very strong and will get stronger around the world. We are working on those plans. I think the great news for our company is, part of what I said, it's driven by mega trends for each business. Eye health, the incidence of myopia continues to go up. The clear need for incremental eye health for people over the age of 65 are all part of that story. On the gastrointestinal, I made the comment about the microbiome. Clearly, I think that's an important part of what we're focused on and also in the derm, the consumerism in dermatology. So I think all those will be important parts of how we are looking at the story of Bausch Health for not just 2020 but 2020 and beyond into the future. And clearly, on the LUMIFY side, I mentioned the comment, we've also had great success within United States. We're continuing to grow that business. We have already filed in Canada and expect that opportunity to expand. And we'll look at other geographies around the world to expand with LUMIFY.

We have another question that has come in. Does it make sense at this point to sell assets to pay down debt and get the overhang off the stock, for example, sell Salix?

Well, as I've been saying since I joined the company, everything is on the table, especially during an unprecedented COVID-19. We have to consider all options. If you think about, though, if you step back for a second, since I joined the company 4 years ago, we have divested approximately $3.8 billion of proceeds we received from divestments. We are continuing to invest in R&D, strengthen our business and look at to open -- we're open to all options for unlocking the value, including spin-off, asset sales to deliver shareholder value. And we're looking at it with urgency and focus. I don't want to rule out anything. I think we're open to all options, and I probably would stay with that in terms of what we would do to continue to create value. But importantly, we're investing behind each of our businesses so that we'll have strong independent businesses. If you see what we've done historically with our Salix business, we invested in primary care. We're investing in new indications. We're investing in new formulations. Those are all things, we think, will help build long-term shareholder value. And same comment with our Bausch + Lomb business and our dermatology business. We're investing in a pipeline of products. We think that's the way to create long-term shareholder value. But clearly, as a company, we've always said, we're open to any alternatives to increase shareholder value.

We have another question, Joe. Does pulling your offering in early March mean you don't have access to the debt market right now? Do you need to have access right now?

Well, first of all, as we've looked at our debt, the offering in early March was simply opportunistic for us. We did not need to do it at that time, but we looked at the debt market. As Paul Herendeen and Will Woodfield always do, they look at it opportunistically to pay down debt where we can or to lower our interest rate. That was an opportunistic approach. We -- to be reinforced, we do not have any significant debt maturities coming due until the first quarter of 2022. So we still have quite some time. And obviously, we'll continue to increase -- use our cash flow to also pay down debt. So I would say that relative to the question early March, it was an opportunistic point of view. Do we need to have access right now? We don't have anything urgently at this time, nothing in fact due until the first quarter of 2022 of any significance.

If we have time for another question, there are a few more. Let me ask one more question. Why don't you have more diversity on your Board?

Sure. I think that's a -- it's a great question. We always seek to increase diversity and fill any gaps in our Board. I think if you think about our Board of Directors, as I introduced them, you saw we have a relatively young or new Board of Directors in terms of their tenure with our company. Approximate tenure is approximately 4 years. So -- but we always seek to increase diversity, fill gaps. We've defined some of the important functions that we needed was pharmaceutical experience, international experience, business development experience, regulatory experience, medical experience. So those are all some of the things that we've always tried to make sure we had the best person. But we also clearly are looking beyond just the Board of Directors. For example, we are instituting a scientific advisory panel, and that scientific advisory panel will help us with expertise as we think about some of the next opportunities and challenges that we face in the world of science as we develop new therapies. So we look at it as being getting great input across a very diverse organization and ensuring that we have geographic diversity, making sure we have gender diversity and all kinds of diversity in our organization. We continue to look to try and improve that. I think, Christina, we have probably time for one more question, and then we probably should conclude.

Okay. Thank you, Joe. We have another question. Can you explain what you learned from China during the COVID-19 crisis and how you applied that knowledge to the rest of your business?

Yes, that's a great question. We are very fortunate because as I mentioned, we have a global business, and I partially addressed in my presentation that with the global business, we learned from some of the things that were happening with COVID-19 in China, in Asia in the January, February time frame. And one of our leaders at Bausch + Lomb/International business, Tom Appio, has been helpful to us as thinking about some of the issues that have occurred in Asia and helping us to get ahead of that in terms of the things that we needed to do to run our business and to be -- to ensure that there were no COVID-related stock-outs as an example and make sure that we had sufficient supply of our products like XIFAXAN, where we have approximately 5 months of finished goods supply. And Dennis Asharin has been doing a great job making sure all those things continue. So did we learn from some of the international activities with COVID-19? The answer is yes. It helped us to prepare. It helps us to think about the work streams that we need to take on in terms of what we were doing with our employees, led by Kelly Webber; what did we do within our supply chain, led by Dennis Asharin, Head of Global Supply Chain; and Louis Yu, Head of Quality; what we were doing from a commercial point of view headed up in the United States by Joe Gordon and internationally by Tom Appio; and of course, on our financial point of view, headed up by Paul Herendeen. So it helped us to put the work streams together to think about where we are going with the organization, and I'm very pleased at how the team has come together in some pretty challenging and unprecedented times. So yes is the answer, we did learn, and I'm very delighted to say that we've been able to work through some of the issues and questions. Clearly, COVID-19 is a significant, significant issue. But having said that, I think the team is absolutely focused on all the right issues and trying to make sure we protect our employees, make sure we have our supply chain up and running, make sure we're doing everything we can to help our customers through this unprecedented time, and importantly, that we have the appropriate financials in place to ensure the long-term viability of our company. I think we've unfortunately run out of time for the question-and-answer period. I thank everyone. If we were not able to address your question, you may reach out to Investor Relations via the telephone number or the website provided in the rules of conduct for this meeting. This concludes the presentation and question-and-answer period. Of behalf of Bausch Health, I'd like to extend our appreciation for your attendance today. Thank you very much for joining us.

This concludes today's meeting. Thank you for your participation. You may now disconnect.