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DATE

Wednesday, April 29, 2026 at 5 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Thomas Appio
  • Chief Financial Officer — Jean-Jacques Charhon
  • Chief Medical Officer and Head of Research and Development — Jonathan Sadeh

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TAKEAWAYS

  • Revenue (Total Company) -- $2.524 billion, up 12% reported and 7% organic, driven by Salix and Solta performance.
  • Adjusted Gross Margin -- 70.9%, an increase of 100 basis points year over year.
  • Adjusted Operating Expenses -- $1.23 billion, up $29 million from last year, excluding a $1.4 billion goodwill impairment charge related to the Red Sea clinical trial.
  • Adjusted EBITDA (Total Company) -- $837 million, up $176 million or 27% year over year.
  • Adjusted Operating Cash Flow (Total Company) -- $374 million, progressing as expected toward guidance.
  • Revenue (Excluding Bausch + Lomb) -- $1.28 billion, up 14% reported and 9% organic.
  • Adjusted EBITDA (Excluding Bausch + Lomb) -- $673 million, increasing 17% from last year, reflecting margin expansion in Salix and Solta.
  • Adjusted Operating Cash Flow (Excluding Bausch + Lomb) -- $319 million, nearly $200 million higher due to stronger business performance and favorable interest payment timing.
  • Salix Segment Revenue -- $639 million, rising 18%; XIFAXAN revenue up 21% and total commercial/Medicare scripts up 6%.
  • International Segment Revenue -- $285 million, up 9% reported, with EMEA organic growth at 3%; Canada declined 7% due to branded generics, offset by an 18% gain in promoted products.
  • Solta Medical Revenue -- $171 million, up 51% reported and 19% organic, with China revenue up 193% and volume growth of 52%, following Xibo distributor integration; profit up 42% reported.
  • Diversified Segment Revenue -- $185 million, down 10%, primarily reflecting Neuroscience volume declines partly offset by price.
  • Bausch + Lomb Revenue -- $1.244 billion, increasing 9% reported and 6% organic.
  • Net Debt Reduction (Excluding Bausch + Lomb) -- Decreased by approximately $115 million after $160 million in legacy litigation outflows.
  • Full-Year 2026 Guidance (Excluding Bausch + Lomb) -- Revenue expected at $5.25 billion–$5.4 billion (midpoint: 3% growth), adjusted EBITDA at $2.875 billion–$2.95 billion (midpoint: 4% growth), and adjusted operating cash flow at $1.2 billion–$1.275 billion (midpoint: 4% growth), incorporating impact of new tariffs effective September 29, 2026.
  • R&D Progress -- Advancement of larsucosterol Phase III program in alcohol-associated hepatitis, and narrowing indications for pipeline focus based on scientific rationale.
  • AI Deployment -- Company highlighted a 20% increase in sales productivity since 2023 for XIFAXAN using its AI-enabled customer insights engine, with nearly 700,000 new patient starts since launch.
  • Strategic Initiatives -- Integration of Xibo distribution in China for Solta; new product launches in EMEA and Latin America; expanded utilization of AI across all U.S. pharmaceutical businesses.
  • Capital Allocation Strategy -- Focus remains on balance sheet deleveraging, selective investments, and disciplined business development aligned with strategic priorities.
  • XIFAXAN Generic Planning -- CEO Appio stated, “we know we will have a generic entrant on 01/01/2028. Right now, today, Teva remains the first filer and has first-filer status.”
  • Balance Sheet Priorities -- CFO Charhon said, “our capital structure optimization really relies on three variables. First variable is the free cash flow we will be generating between now and the end of 2027, assuming obviously we retain exclusivity until 01/01/2028. The second variable is the EBITDA post that and LOE. And then the third variable is the average selling price we hope to get by monetizing our equity stake in BLCO in completing the separation.”
  • Salix Script Growth -- New-to-brand scripts in Salix increased 3%.
  • Solta Segment Profit Note -- Q1 profit impacted by higher inventory costs related to the Xibo acquisition.
  • Product Launches -- Over 30 new products launching in 10 EMEA countries in 2026; two new therapies expected in Mexico in Q2; Clear + Brilliant launched in Canada; Beauphine launched in the U.S. in mid-April.
  • AI in R&D -- Company is applying AI to site selection, patient recruitment, pharmacovigilance, and indication selection to accelerate trial timelines and boost efficiency.
  • Government Tender Weakness -- LATAM international performance impacted by ongoing softness in government tender orders.

SUMMARY

Management emphasized that both revenue and adjusted EBITDA grew for the twelfth consecutive quarter, reflecting operational consistency outside Bausch + Lomb. Bausch Health completed all U.S. opt-out litigation settlements and continued to reduce net debt, strengthening its balance sheet flexibility for future capital allocation. The company is intensifying investment in AI-driven commercial and R&D platforms, reporting measurable improvements in productivity and efficiency. Guidance remains unchanged, with updated forecasts including the expected impact of tariffs on pharmaceutical products starting in late September 2026. Portfolio expansion continues through new product launches and business development, with a disciplined approach to aligning strategic investments and capital management priorities.

  • International segment saw diverging results, with EMEA sustaining growth, while Canada faced volume declines in branded generics, and LATAM was constrained by reduced government tender activity.
  • As part of Solta’s strategy, vertical integration in China post-Xibo acquisition provided greater pricing power and market visibility.
  • CFO Charhon explained that in the event of earlier-than-expected XIFAXAN generic entry, “that would translate, in the absence of any other levers that we would put in place, into the need to monetize some of our assets earlier than originally planned.”
  • AI-based solutions now extend across the U.S. product portfolio, leading to preliminary data pointing to a “20%+ lift in new prescriptions with certain high-priority HCP cohorts.”

INDUSTRY GLOSSARY

  • XIFAXAN: A leading Salix prescription drug indicated for irritable bowel syndrome with diarrhea and overt hepatic encephalopathy.
  • LOE (Loss of Exclusivity): The point at which patent protection expires and generic competition may enter the market.
  • 340B: U.S. federal program requiring drug manufacturers to provide outpatient drugs to eligible health care organizations at reduced prices.
  • Bedoyecta: A key commercial vitamin brand mentioned as a growth driver in LATAM.
  • SILIQ: A specialty dermatology medication that now has streamlined patient access, as blood tests are no longer required for initiation.
  • BLCO: Ticker symbol and reference to Bausch + Lomb Corporation, in which Bausch Health holds an equity stake.
  • SMID Biotech: Refers to small- and mid-cap biotechnology companies.

Full Conference Call Transcript

Thomas Appio, Chief Executive Officer; Jean-Jacques Charhon, Chief Financial Officer; and Jonathan Sadeh, Chief Medical Officer and Head of Research and Development. Before we begin, I would like to remind you that today's presentation contains forward-looking information. Please take a moment to review the forward-looking statements disclaimer at the beginning of the slides accompanying this presentation, as it contains important information. Actual results may differ materially from those expressed or implied in these forward-looking statements, and you should not place undue reliance on them. Please also refer to our SEC filings and our filings with the Canadian Securities Administrators for a discussion of certain risk factors that could cause actual results to differ materially from expectations.

We use non-GAAP financial measures to help better understand our operating performance. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should be considered in addition to, and not as a substitute for, measures calculated in accordance with GAAP. Reconciliations to our non-GAAP measures are included in the appendix of the slides accompanying this presentation, which are also available on Bausch Health Companies Inc.’s Investor Relations website. Finally, financial guidance in this presentation is effective as of today only. We do not undertake any obligation to update guidance. Our discussion today, Wednesday, April 29, 2026, will focus on Bausch Health Companies Inc. excluding Bausch and Lomb.

However, we will briefly comment on Bausch and Lomb’s results announced this morning. We will refer to year-over-year comparisons with the same period last year unless otherwise noted. With that, I will turn the call over to our CEO, Thomas Appio. Tom? Thank you, Garen. Thank you to everyone joining us today.

Thomas Appio: We began 2026 with another strong performance. Our first quarter results extend our track record to 12 consecutive quarters of year-over-year growth in both revenue and adjusted EBITDA for Bausch Health Companies Inc. excluding Bausch and Lomb, reflecting strategic execution and disciplined accountability across our global organization. Our priorities remain: we are focused on execution within our core business, R&D innovation, business development and optimizing our capital structure. We delivered a strong start to the year in cash flow supported by solid operating performance. That cash generation supports continued progress on capital structure priorities, enables investments in our businesses and preserves capital allocation flexibility. It is also important to consider the composition of reported results this quarter.

Core operating performance continues to demonstrate steady growth and is tracking well with expectations. Overall, this was a solid start to the year. Let me take a moment to share a few highlights from the quarter before handing it over to JJ for a closer look at the financials. Bausch Health Companies Inc., excluding Bausch and Lomb, increased revenue by 14% on a reported basis when compared to 2025. Results were led by Salix and Solta. Within Salix, revenue growth was driven by XIFAXAN, which continues to perform well in both IBS-D and OHE. We also benefited from residual volume in certain channels that we exited starting last quarter. Underlying prescription trends remain healthy. Solta continued its double-digit growth trajectory.

Demand for systems and consumables remains robust in core markets. Adjusted EBITDA for Bausch Health Companies Inc., excluding Bausch and Lomb, increased by 17% on a reported basis, largely attributable to Salix and Solta performance. Salix benefited from improved margin dynamics following payer channel optimization, and Solta earnings growth was particularly notable given we had a one-time acquisition-related cost. Cash flow generation in the first quarter was healthy and progressing well towards guidance expectations. This includes the remaining settlement of our U.S. opt-out litigation, which have now all concluded, as well as reducing our net debt by over $100 million. Taken together, core operational performance was solid.

Turning briefly to R&D and business development, through our acquisition last year, we are advancing our larsucosterol Phase III program for alcohol-associated hepatitis, where there remains a significant unmet need. We believe larsucosterol has the potential to be a platform asset with applicability in multiple indications. In recent months, we have made meaningful progress narrowing our broader list of potential indications to those with the strongest scientific and clinical rationale. Beyond larsucosterol, we continue to assess multiple business development opportunities that leverage our proven commercial execution and strengthen our R&D pipeline. Our capital allocation strategy remains consistent and disciplined. We prioritize strengthening the balance sheet through ongoing delevering while we invest in our commercial engine and evaluate business development prospects.

Within that framework, we evaluate opportunities selectively across our portfolio, emphasizing assets aligned with our strategic model and our outstanding commercial capabilities. Overall, we are very pleased with our start to the year and the momentum we are carrying forward. With that, I will turn the call over to JJ to walk through the detailed financial results. JJ? Thank you, Tom. Let us review first our non-GAAP financial results for the first quarter, which you will find starting on Page 9. Revenue was $2.524 billion, up 12% on a reported basis and 7% on an organic basis compared to the same period a year ago. Adjusted gross margin was 70.9%, 100 basis points higher year over year.

Adjusted operating expenses were $1.23 billion, an increase of $29 million compared to the same period last year. Please note that this excludes, among other adjustments, the $1.4 billion goodwill impairment charge following the Red Sea clinical trial outcome. Adjusted EBITDA was $837 million, an increase of $176 million, or a 27% increase year over year. Finally, adjusted operating cash flow was $374 million. Moving now to the performance of Bausch Health Companies Inc. excluding Bausch and Lomb for the first quarter, starting on Page 11. As Tom indicated earlier, 2026 started on a very strong note.

We delivered in Q1 the twelfth consecutive quarter of year-over-year revenue and adjusted EBITDA growth, demonstrating once again the consistency of our operational execution. The highlights for the quarter were as follows. Revenue was $1.28 billion, up 14% on a reported basis and 9% on an organic basis when compared to 2025. Adjusted EBITDA was $673 million, up 17% year over year, demonstrating our continued commitment to driving profitable growth and leveraging our supply chain and SG&A infrastructure. Finally, adjusted operating cash flow was $319 million, nearly $200 million higher than in 2025 thanks to stronger business performance as well as the difference in timing of our interest payments.

Moving now to our first quarter performance by segment, starting with Salix on Page 12. Salix had another outstanding quarter. Revenues were $639 million, an increase of $97 million, or 18% on a reported basis as compared to the same period last year. Salix strong performance in the first quarter was largely driven by higher-than-expected XIFAXAN revenue, which grew 21% year over year. This was primarily attributable to continued volume growth in the channels we currently serve, net pricing and, to a lesser extent, the residual volume we are still seeing throughout Medicaid at the state level. Total scripts in the commercial and Medicare channels grew 6%, and new-to-brand script growth was 3%. Now moving to the International segment.

Revenues for the quarter were $285 million, which was up 9% on a reported basis and was broadly flat on an organic basis compared to the first quarter of last year. Performance by region was mixed. On an organic basis, EMEA was up 3%, LATAM was flat, while Canada contracted 7% due to its non-promoted portfolio. More specifically, here are the highlights of each geography. EMEA achieved its thirteenth consecutive quarter of organic revenue growth, which is remarkable. In LATAM, there was solid growth in core commercial products such as Bedoyecta. Conversely, the softness of received orders associated with government tenders continues to be a headwind.

In Canada, the performance of our promoted portfolio grew 18%, which was more than offset by the drop in volume in our branded generic portfolio. As a reminder, starting in 2024 and all the way through 2025, we benefited from higher-than-usual Wellbutrin volumes due to generic supply shortages. Now moving to Page 14 for a review of our Solta Medical segment. Revenues were $171 million, an increase year over year of 51% on a reported basis and 19% on an organic basis. Separately, segment profit grew 42% on a reported basis. Solta’s revenue performance was driven by 193% year-over-year revenue growth in China.

This remarkable performance was partially attributed to higher pricing associated with the integration of our full-service distributor, Xibo, which we acquired in December 2025, and to our impressive volume growth in the quarter, which stood at 52%. China has now reclaimed the number one position as the largest geography of Solta. South Korea, our second-largest revenue contributor, grew 17% in the first quarter. Outside of the APAC region, the U.S., EMEA and Canada also showed positive momentum, delivering high single- to low double-digit reported revenue growth in the quarter. Finally, note Solta segment profit in Q1 was impacted by the residual effect of the higher inventory costs associated with the Xibo acquisition.

Turning now to our Diversified segment, which you will find on Page 15. Revenues were $185 million, a decrease of 10% on a reported basis compared to the same period a year ago. The Diversified segment’s performance is largely driven by our Neuroscience business. The year-over-year revenue contraction this quarter was due to lower volume, partially offset by favorable pricing. Finally, Bausch and Lomb revenues were $1.244 billion, up 9% on a reported basis and 6% on an organic basis compared to the same period last year. Now turning our focus to our balance sheet. Our net debt, excluding Bausch and Lomb, decreased by approximately $115 million in the first quarter.

This is after an approximately $160 million outflow due to various legacy litigations, which included the last set of payments of our U.S. opt-out settlements. Before wrapping up with our financial priorities, let us review our full-year guidance, which you will find on Page 19. We are reaffirming our full-year 2026 guidance for Bausch Health Companies Inc. excluding Bausch and Lomb, which remains as follows. Revenue is expected to be between $5.25 billion and $5.4 billion. The midpoint of that range would translate into a 3% increase year over year. Adjusted EBITDA is expected to be between $2.875 billion and $2.95 billion, representing a 4% increase year over year at the midpoint.

The 2026 guidance for adjusted EBITDA now includes the anticipated impact of the new tariffs on pharma products expected to be effective on 09/29/2026. Finally, we expect adjusted operating cash flow to be between $1.2 billion and $1.275 billion. The midpoint of that range would translate to a 4% increase year over year. Please also note that the guidance for 2026 is at current FX rates. Before I turn it over to Tom for his wrap-up, let me review our financial priorities, which remain broadly unchanged. First, increasing the value of Bausch Health Companies Inc. Our management team remains committed to driving profitable growth through innovation, excellence in operational execution, effective resource investments and selective business development projects.

Second, evaluating all options for unlocking value for all stakeholders, including maximizing the value of the Bausch Health Companies Inc. and Bausch and Lomb assets. On the Bausch and Lomb front, we believe in the Bausch and Lomb management team and their Vision 2027 plan. We fully expect the financial markets to reward Bausch and Lomb’s progress in the future. This will likely guide, among other considerations, the timing of our equity stake monetization. And third, optimizing our capital structure. While our current debt maturity profile allows us to take a more opportunistic approach to capital allocation decisions, we will continue to look at all options to improve our liquidity and financial flexibility.

In summary, we had a great first quarter and remain confident in our financial outlook given the strength of our current operational momentum. I will now hand it back to Tom.

Operator: Thank you, JJ.

Thomas Appio: Looking ahead, we see continued progress building our company for growth in 2026 and beyond. Throughout our markets, we are gaining share, seeing favorable prescription trends, expanding partnerships, advancing new product launches and extending the reach of our existing products to new geographies. This progress reflects strong execution within our portfolio, the integration of new businesses and disciplined investments that strengthen our competitive position. As we have noted on prior calls, certain dynamics relating to our exit from Medicaid and 340B may impact our growth as reflected in our Salix and Diversified segments in the back half of the year.

Even so, we are excited about initiatives under way across the portfolio to ensure we plant the seeds for future growth. A few examples from different segments illustrate the breadth of that progress. Within U.S. capital deployment, we are focusing our resources on high-growth opportunities that drive demand and operational efficiency, high levels of physician engagement, improved patient access and a channel mix that reinforces both stability and scale. We are investing thoughtfully, prioritizing returns and optimizing growth that can be realized from a highly resilient, well-established franchise. Turning to Solta China, we are pleased with our integration of the Xibo distribution business, which is progressing as planned.

By deepening our vertical integration within this core market, this acquisition secures a critical segment of our value chain. It provides unfiltered visibility into end-consumer behavior, enabling more precise demand forecasting and strengthening our long-term competitive advantage. In EMEA, 2026 is expected to be an active year for new product launches. Products launched in 2025 and those launched throughout this year are expected to contribute meaningfully to growth in 2026 and beyond. We currently have more than 30 products launching in 10 countries within EMEA, spanning gastroenterology, dermatology, joint health, neurology and hospital-based therapies. We are also targeting geographic expansion of existing portfolio products, including Poland and Serbia-Montenegro. In Latin America, we continue to extend our cardiometabolic franchise.

In addition to the three products launched in Mexico during the back half of last year, two additional therapies are expected to launch in the second quarter. Within Solta, we launched Clear + Brilliant in Canada, expanding access to advanced aesthetics technologies in new markets. Within dermatology, our collaboration with the FDA has successfully streamlined patient access for SILIQ. Patients can now begin their journey with this specialty medication sooner, as pre-prescription blood tests are no longer a requirement for starting on-site sampling. More recently, in mid-April, we also launched Beauphine in the United States.

First developed in France, this heritage formulation is gentle for sensitive skin, is scientifically proven to fortify the skin barrier and is now available without the need of a prescription. While these investments vary in scale, each is a strategic building block in our global portfolio. They reflect our commitment to investing with purpose, ensuring we have the right mix of products to drive consistent operational excellence across the entire organization. Beyond product innovation, we continue scaling our core capabilities. Given the frequent questions, I want to dive deeper into our AI roadmap and how it is delivering our growth. We were early in recognizing the potential of AI to drive commercial performance, and that conviction has paid off.

Our AI-enabled customer insights engine, first developed for XIFAXAN, has been instrumental in the continued growth of the brand within both OHE and IBS-D indications. These insights ensure our field teams are engaging the right customers at the right frequency with the right message. Since the 2023 launch of the customer insights engine, we have seen a 20% surge in sales productivity. More importantly, this efficiency has enabled nearly 700 thousand XIFAXAN new patient starts, directly advancing our mission to deliver better health outcomes for those living with OHE and IBS-D. These core capabilities are evolving into a suite of digital tools that streamline the HCP experience while significantly increasing the precision and impact of our promotional efforts.

Building on that foundation, we have expanded AI-driven insights in additional U.S. Pharmaceutical brands at various stages of field force deployment for 2026. While still early, our preliminary data suggest as much as a 20%+ lift in new prescriptions with certain high-priority HCP cohorts. And with the most recent launch of the customer insights engine for Neurosciences late in the first quarter, all U.S. pharmaceutical businesses now leverage AI and advanced analytics, driving meaningful increases in field productivity and effectiveness. On the other end of the spectrum, AI is also playing an expanded role in accelerating both the efficiency and effectiveness of our R&D organization, spanning operations, clinical development, medical affairs, pharmacovigilance and project management.

Three examples illustrate the tangible impact. In clinical operations, we leverage AI-enabled site selection and patient recruitment models to evaluate site expertise and patient population, expanding our qualified investigator network. Not only did the number of eligible sites increase by a substantial margin in less time, but we believe this has led to a significant increase in high-quality investigator sites expected to reduce recruitment timelines and study costs relative to traditional methods. Pharmacovigilance is a second area of impact where AI-assisted workflows are eliminating months of manual effort and improving the speed and consistency of our safety monitoring.

Finally, in indication selection, we applied AI-driven analysis to our full asset portfolio, integrating internal data with public domain sources to identify potential new indications as well as model probability of success and sharpen prioritization. While we are in the early stages of our AI transformation, our initial targeted applications have already delivered measurable impact. These early wins give us the confidence to invest in building a sustainable competitive advantage in how we develop and market life-changing medicines. Lastly, I want to highlight our continued focus on business development. Our approach is disciplined and consistent with the financial priorities I outlined earlier.

We are actively screening opportunities based on therapeutic fit, with a focus on areas where we have established expertise, including GI, hepatology, neurosciences and anesthetics, and where we believe we can create the most value. We are prioritizing assets that are late-stage or commercial-ready, where our existing outstanding commercial capabilities allow for efficient execution from development to commercialization across the markets. This focus helps ensure that any potential investment is aligned with how we operate the business today. We continue to screen opportunities through the lens of our capital allocation strategy. By first ensuring an efficient capital structure, we can then focus on disciplined investments and business development that deliver sustainable long-term value creation.

In closing, our solid first quarter performance is a testament to our global team’s relentless commitment to operational excellence. Our performance in the first quarter gives us the confidence to reaffirm our full-year guidance. As we strengthen our balance sheet and execute with discipline, we remain steadfast in our mission to drive long-term value for shareholders. With that, can we open the line for Q&A? Operator,

Operator: We will now open the call for questions. Thank you. We will now be conducting a question-and-answer session. Our first question today is coming from Leszek Sulewski from Truist. Your line is now live.

Analyst: Hey, this is Jeevan on for Les. Thanks for taking our questions. What are your expectations for the vaccine inventory destocking in 4Q due to IRA? Do you have any color on how you expect wholesalers to act ahead of the pricing step down in 2027? Thanks.

Thomas Appio: Yeah. I think, JJ, you can take that.

Jean-Jacques Charhon: Yeah. So in terms of volume, there is really not that much destocking. As we indicated during our fourth quarter call, we are expecting a gross-to-net accrual adjustment as a result of that higher discount rate that will be effective 01/01/2027. So that will be an entry we will take, but in terms of volume we are not anticipating any change versus the current volume we are seeing right now.

Thomas Appio: Operator, next question.

Operator: Thank you. Our next question today is coming from the line of Douglas Miehm from RBC Capital Markets. Your line is now live.

Douglas Miehm: Thank you. Very strong numbers that came out of Solta, especially out of China. And of course, part of that is a function of the Xibo acquisition and seeing a full quarter of that. But even so, you did have about 19% organic growth, I believe. And I am just wondering, that seems in contrast to a couple of other companies that we have heard recently, including Bausch and Lomb this morning. They said that is probably their weakest market. So just wondering why you are having so much success over there and if it is sustainable. Thank you.

Thomas Appio: Thanks, Doug. Thanks for the question. I think the first thing, as mentioned, the acquisition of Xibo was a part of what we wanted to build there to be able to get closer to the providers, the customers and the consumer. What I would say is we have an outstanding team in China. We have a team that is executing to precision. The integration is going extremely well. What we are seeing right now is there is high demand. In terms of ability to pay, it is a business and a customer base that is somewhat insulated from broader macroeconomic conditions. So we still see strong demand for the product.

As you know, it is a durable business both with capital and consumables. So the more capital we can put in, with this integration of Xibo and then driving our installed base, the stronger our recurring consumables revenue becomes. We also continue to invest in go-to-market to support this momentum. Overall, we see the opportunity as sustainable given the depth of the market, our strengthened channel presence and our ability to price and innovate appropriately.

Douglas Miehm: Okay. Very helpful. Thank you.

Thomas Appio: Operator, next question.

Operator: Certainly. Our next question is coming from Umer Raffat from Evercore ISI. Your line is now live.

Umer Raffat: Hi, guys. Thanks for taking my question. I have two here if I may. First, your planning around separation, debt refi, etcetera — how does that change, considering your current scenario is January 2028? How does that change if the DC Circuit Court reverses some of the prior findings of courts? And how does that change the level of urgency and planning? Do you have a contingency plan in place if that were to happen on XIFAXAN? Number two, JJ, you mentioned you are looking at tuck-in opportunities for assets that are either already on the market or coming to market, with the pipeline.

My question is, do you guys have the flexibility and room to be able to raise equity to finance some of those? This is a strategy that has been used very successfully by a lot of SMID biotechs, but what I did not know is do you have visibility on being able to raise cash from the markets to finance those R&D and the trials in case you were to find a good asset, let us say, a Chinese asset or the like? Thank you.

Thomas Appio: Okay. Umer, I will take the first part of your question and hand it off to JJ for the second part. Thanks for calling in and the question. The way we are looking at it right now, we know we will have a generic entrant on 01/01/2028. Right now, today, Teva remains the first filer and has first-filer status. As you know, recently the one thing that has changed is that Teva gained final approval by the FDA. So as we look at it, there are two appeal cases that are fully briefed and we are waiting on a decision. Clearly, as I said, we remain planning for a generic entrance on 01/01/2028.

As we look at our contingency planning, of course we are always looking at contingencies and what we would do, but we continue to remain confident in our IP and planning for 01/01/2028. JJ?

Jean-Jacques Charhon: Yeah. Hi, Umer. Let me take a step back first and reiterate the equation we are dealing with. As you know, our capital structure optimization really relies on three variables. First variable is the free cash flow we will be generating between now and the end of 2027, assuming obviously we retain exclusivity until 01/01/2028. The second variable is the EBITDA post that and LOE. And then the third variable is the average selling price we hope to get by monetizing our equity stake in BLCO in completing the separation, if that is the path we are going to be taking.

In case we lose XIFAXAN exclusivity before 01/01/2028, what it does, as you know, is curtail free cash flow generation between now and 2027. So that would translate, in the absence of any other levers that we would put in place, into the need to monetize some of our assets earlier than originally planned. But from an operational standpoint, I think Tom covered it. Obviously, it is an event we have been preparing for. We are trying to mitigate it as much as possible through looking at potential BD opportunities, but it is not something that would be a dramatic change of plans. There are opportunities to increase our level of financial flexibility, including the ability to potentially [inaudible].