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Stock impact report

Does $24.6 Billion in Debt Make Bausch Health Companies Too Risky a Buy? [The Motley Fool]

Bausch Health Companies Inc. (BHC) 
Last bausch health companies inc. earnings: 2/19 06:59 am Check Earnings Report
Company Research Source: The Motley Fool
Pharmaceutical providerBausch Health Companies(NYSE:BHCImage source: Getty Images.What seems to be the problem?Normally, pharmaceutical companies must commit a large portion of their revenues to research and development. This is because patents covering new drug discoveries last 0 years after the initial date of filing. After that date, branded drugs will see nearly all of their revenues eroded as authorized generic products begin flooding the market to bring down prices and make prescription drugs more affordable.Hence, branded-drug companies need to allocate massive amounts of capital to conducting clinical trials and bringing new drugs to market in order to protect their competitive moats. With regard to this metric, Bausch Health is performing poorly.Last year, the company's spending on research and development amounted to just $7 million, or .%, out of its $8.9 billion in revenues. Meanwhile, competitors in the sector spend an average of 0% to % on R&D.Usually, in cases such as t Show less Read more
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