Does Paulson’s Larger Stake in Bausch Health (BHC) Signal a Shift in Strategic Priorities?

• Earlier in August 2025, Paulson Capital Inc. and its affiliates acquired 34,721,118 Bausch Health Companies shares previously held by Carl Icahn’s group, resulting in a 19.13% stake and the resignation of two Icahn-appointed board members.
• This shift in major shareholder influence, with John Paulson increasing his direct holdings and the end of the Director Appointment and Nomination Agreement, signals renewed confidence and possible changes to Bausch Health’s governance and strategy.
• We’ll examine how John Paulson’s increased ownership stake may impact expectations for Bausch Health Companies’ growth, risk profile, and strategic direction.

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Bausch Health Companies Investment Narrative Recap

To be a Bausch Health Companies shareholder today, you need to believe that the company can overcome sector-wide pricing pressure and regulatory scrutiny while leveraging its recent profitability, expanding portfolio, and strengthening board to maintain earnings growth. The recent shift in major shareholder influence, driven by Paulson Capital’s increased stake and John Paulson’s personal share purchases, brings renewed confidence but does not materially alter the company’s most important catalyst, which remains the upcoming U.S. Medicare drug price negotiations for Xifaxan, or its biggest risk: ongoing high debt levels and exposure to regulatory changes.

Among recent announcements, Bausch Health’s Q2 2025 earnings stand out: quarterly revenue rose to US$2,530 million, with net income jumping to US$148 million from US$10 million a year ago. This financial improvement, coming just before the board change and Paulson’s increased involvement, highlights the importance of operational execution and profit momentum as the company prepares for the challenges and opportunities ahead.

However, despite improved earnings, the risk that high leverage may limit Bausch Health's flexibility is one detail investors should not overlook…

Read the full narrative on Bausch Health Companies (it's free!)

Bausch Health Companies' narrative projects $10.1 billion revenue and $264.4 million earnings by 2028. This requires a 0.9% yearly revenue decline and a $166.4 million earnings increase from $98.0 million today.

Uncover how Bausch Health Companies' forecasts yield a $7.08 fair value, a 15% downside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community estimate Bausch Health's fair value between US$7.08 and US$64.84, showing a wide range of outlooks. With many focused on the company’s debt profile and exposure to regulatory pressure, you can compare opinions and decide which perspective best aligns with your expectations.

Explore 5 other fair value estimates on Bausch Health Companies - why the stock might be worth over 7x more than the current price!

Build Your Own Bausch Health Companies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bausch Health Companies research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Bausch Health Companies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bausch Health Companies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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