Bausch suit creates added uncertainty on B+L spin, says TD Cowen

After Bausch Health (BHC) along with its gastroenterology unit Salix Pharmaceuticals announced that it filed a lawsuit against Amneal Pharmaceuticals (AMRX), TD Cowen analyst Michael Nedelcovych said this lawsuit “appears to have restarted the clock on months or years’ worth of litigation” that must be settled to ensure Xifaxan’s outlook. Since certainty around Xifaxan is critical to the financial health of the Bausch “remainco,” this news would seem to further jeopardize, or at least delay, a Bausch + Lomb (BLCO) share distribution, contends the analyst, who keeps a Hold rating on Bausch Health shares.