Placing Both Bausch Entities Under Review Following Mixed Court Ruling on Xifaxan Patent Case

We are placing Bausch Health and Bausch & Lomb under review following the July 28 news of a mixed ruling on the rifaximin patent case between Norwich Pharma and Bausch Health. Bausch Health shares fell over 50% following the ruling and trading was halted; Bausch & Lomb shares declined heavily when the market opened but were down a more moderate 7.5% as of afternoon trading. Our Very High Morningstar Uncertainty Rating for Bausch Health was meant to capture some of the risk, though the market’s reaction was perhaps more severe than we had anticipated.