Durect

Bausch Health's RED-C Phase 3 Trial Fails to Meet Primary Endpoint in Hepatic Encephalopathy Prevention

- Bausch Health Companies reported that its global Phase 3 RED-C program for hepatic encephalopathy prevention failed to meet its primary endpoint, representing a significant clinical setback. - The trial failure leaves the company without a clear successor to its blockbuster drug Xifaxan, raising concerns about future revenue growth prospects. - Despite the clinical disappointment, analysts suggest the stock may be undervalued at $5.91 compared to a fair value estimate of $7.43. - The company faces additional challenges from potential Medicare price cuts for Xifaxan and a substantial debt burden of $16.1 billion.