Bausch Health: Strong Margins, Weak Volumes, Equity Story Hinges On Deleveraging

Bausch Health delivered a Q1 revenue and net profit beat, but organic growth remains weak and demand is stagnant. BHC's improved margins stem from reduced rebates and discounts, but underlying sales volumes declined, especially in key segments. The investment thesis hinges on deleveraging; if debt is reduced by 20-30%, shares could rise 15-30%, but risks remain high.