TD Cowen downgrades Bausch on valuation, Xifaxan loss of exclusivity

TD Cowen analyst Michael Nedelcovych downgraded Bausch Health (BHC) to Market Perform from Outperform with a price target of $12, down from $35. Bausch appears fairly valued based primarily on its 90% stake in Bausch + Lomb (BLCO), the analyst tells investors in a research note. There is upside to a full separation, “but that is at risk,” says the firm. Xifaxan is critical to enabling the spin and to Bausch Health value, but its loss of exclusivity date may remain uncertain for years, writes TD. It believes Bausch’s debt hampers its ability to prepare for this LOE while its existing pipeline is “somewhat lacking.”