Bausch Health Companies Inc. (NYSE: BHC) is a specialty pharmaceutical company that operates in multiple countries. Bausch Health Companies was known as Valeant Pharmaceuticals International until the firm changed its name in 2018. The name change was driven in part by the negative image that Valeant built up during a period of aggressive expansion. Valeant Pharmaceuticals International acquired many subsidiaries. Fortunately, one of the companies that Valeant purchased, Bausch & Lomb, had a more positive image. The new name of Bausch Health Companies comes from Bausch & Lomb.
Bausch manufactures and markets a vast array of pharmaceutical products. They focus on eye health, dermatology, neurology, and generic medications. Interestingly, their products also include over-the-counter (OTC) drugs. Bausch operates through two segments—developed markets and emerging markets. As most consumers are aware, their developed market operations include OTC products and pharmaceuticals sold in the United States. Bausch's emerging market activities focus on the sale of generic-branded pharmaceutical products, OTC products, and medical devices. Unsurprisingly, most of Bausch’s sales efforts focus on North America, Europe, Latin America, and the Middle East. Bausch maintains manufacturing sites in the United States, Canada, Brazil, Germany, Ireland, Poland, Mexico, Serbia, and the United Kingdom.
In its days as Valeant, Bausch Health Companies got some unwanted attention as a pharmaceutical powerhouse that gains brands through acquiring smaller or failing companies. Valeant then pushed these products through into its own supply stream and considerably raised prices. However, this led to Valeant’s success and dominance in the pharmaceutical manufacturing space. Three of the top subsidiaries that Bausch Health Companies acquired as Valeant are described below.
Bausch & Lomb
Bausch & Lomb originated as an American company. It was founded in 1853 by Dr. John Bausch and his financial backer, Henry Lomb. The company is among the world’s largest and best-recognized suppliers of eye care and health products, including contact lenses and medications for eye diseases. One product line, the Ray-Ban brand of sunglasses, was integral in bringing Bausch & Lomb fame and a positive public image. Bausch & Lomb was a public company that traded on the New York Stock Exchange (NYSE). However, it was acquired in 2007 by private equity firm Warburg Pincus PLC. Valeant bought Bausch & Lomb from that firm in 2013 in a deal worth over $8 billion. At least half the total cash was earmarked to pay off Bausch & Lomb's debts. Bausch & Lomb remains a leader in its field, operating in 50 countries with its headquarters in Bridgewater, New Jersey.
Salix Pharmaceuticals is an American specialty pharmaceutical company. It was one of the largest gastrointestinal specialty pharmaceutical companies in the world as of 2017. Salix is responsible for developing and producing medical devices and prescription medications that work to prevent or treat digestive disorders or ailments. The company began in 1989. Salix was headquartered in California until it relocated to North Carolina in 2000. In 2015, the firm moved operations to Bridgewater, New Jersey.
The company's founding products were licensed from European pharmaceutical firms and sold in the United States. Before going generic in 2007, Colazal generated more than $110 million for the company.
Salix, since its founding, remained steadfast in continuing as an independent company. The firm survived a hostile takeover attempt by a Canadian pharmaceutical company. Salix also acquired several other firms, including InKine Pharmaceutical Company in 2005, Oceana Therapeutics in 2011, and Santarus in 2013. After being boosted by acquisitions, total sales for all Salix products were over $1 billion in 2014. Salix was eventually taken over by Valeant in 2015 for a total of $14.5 billion.
ECR Pharmaceuticals Company Inc.
ECR Pharmaceuticals Company Inc. is a manufacturer and wholesale seller of pharmaceutical products. The company was established in 2009, and it promotes certain branded pharmaceuticals through the use of its sales force. This subsidiary company was initially acquired by Akorn Inc. (NASDAQ: AKRX) when it bought Hi-Tech Pharmacal. Akorn sold ECR Pharmaceuticals to Valeant in mid-2014 in a $41 million cash deal.