• In January 2026, Bausch Health Companies Inc. reported that its global Phase 3 RED-C program testing amorphous-rifaximin solid soluble dispersion in adults with liver cirrhosis for primary prevention of hepatic encephalopathy did not meet its primary endpoint, despite a favorable safety and tolerability profile.
• This outcome highlights both the clinical challenges in preventing hepatic encephalopathy and the implications for Bausch Health’s efforts to expand its hepatology pipeline.
• We will now examine how the Phase 3 trial’s failure to meet its primary endpoint shapes Bausch Health’s broader investment narrative.

These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

What Is Bausch Health Companies' Investment Narrative?

To own Bausch Health today, you need to believe the core business can keep generating enough cash to service a heavy debt load while slowly cleaning up the balance sheet and defending key franchises. The RED-C Phase 3 setback dents the hepatology expansion story and removes a potential medium term growth driver, but the immediate business remains anchored in existing products and the ongoing refinancing plan, which has already pushed out major maturities to 2032. With revenue expected to drift lower and earnings growth trailing the wider market, the near term narrative is less about rapid expansion and more about balance sheet resilience, execution on cost control, and avoiding further clinical or regulatory disappointments. Recent share price pressure suggests investors are already reassessing these trade offs in light of the trial failure.

However, the debt burden still raises questions that investors should not ignore. Despite retreating, Bausch Health Companies' shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Six Simply Wall St Community fair value estimates span roughly US$7.43 to a very large US$66.77 per share, underlining just how differently people see Bausch Health. Set this wide dispersion against the RED-C trial failure and ongoing debt refinancing, and you can see why many are rethinking how much risk they are prepared to accept for this turnaround story.

Explore 6 other fair value estimates on Bausch Health Companies - why the stock might be a potential multi-bagger!

Build Your Own Bausch Health Companies Narrative

Disagree with this assessment? Create your own narrative 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 4 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.

Looking For Alternative Opportunities?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

• Rare earth metals are the new gold rush. Find out which 32 stocks are leading the charge.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.

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.