Bausch Health (BHC) Stock: Flying On Patent Settlement

Bausch Health BHC Stock NewsBausch Health Companies Inc (NYSE: BHC) is having an incredibly strong start to the trading session this morning and for good reason. The company announced a settlement surrounding a patent infringement case that’s exciting investors and sending the stock screaming for the top. Today, we’ll talk about:

  • The patent settlement;
  • what we’re seeing from BHC stock as a result; and
  • what we’ll be watching for ahead.

BHC Announces Patent Settlement

As mentioned above, Bausch Helath is having an incredibly strong start to the trading session this morning after announcing the end of a patent case. In a press release, the company said that its wholly owned subsidiary, Salix Pharmaceuticals, together with its licensors, have agreed to resolve outstanding intellectual property litigation with Actavis.

In the release, BHC reminded investors that the litigation surrounded XIFAXAN® (rifaximin) 550 mg tablets. Under the terms of the settlement agreement, Salix will grant Actavis a non-exclusive license that is effective as of January 1, 2028.

The company said that it will not make any financial payments or other transfers of value as part of this agreement. Also, Actavis has publicly acknowledged the validity of the licensed patents. Starting on January 1, 2028, Activis will have the option to market a royalty-free generic version of XIFAXAN® (rifaximin) 550 mg tablets, should it receive approval from the FDA. The other option is to market an authorized generic versiono fthe treatment with the drug being supplied by Salix. As a result, the parties have dissolved all litigation.

In a statement, Joseph C. Papa, Chairman and CEO at BHC, had the following to offer:

This agreement reflects the strong intellectual property rights protecting XIFAXAN, which is important for our company, and more importantly, the patients we serve… We have always believed in the durability of the XIFAXAN franchise, and this agreement supports our continued investment in the research and development of new indications for XIFAXAN to benefit patients.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Bausch Health, the news proved to be overwhelmingly positive. After all, the end of litigation came with a settlement that is in favor of the company. So, it comes as no surprise that excited investors are sending the climbing. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:51), BHC is trading at $23.80 per share after a gain of $3.13 per share or 15.14% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on BHC. In particular, we’re interested in following sales of XIFAXAN® (rifaximin) 550 mg tablets as the company maintains exclusivity through litigation. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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