Truist notes Bausch Health announced that Phase 3 results of the RED-C program did not meet the primary endpoint. Recall, the program included two global Phase 3 trials evaluating rifaximin solid-state dispersion for the delay of the first episode of hepatic encephalopathy in adults with liver cirrhosis with no prior hepatic encephalopathy episodes. The firm thinks the results could place more pressure on Bausch's options after Xifaxan loss of exclusivity by year-end 2027. The company could now be missing out on a potential rifaximin SSD total addressable market of nearly 3 times that of Xifaxan, and other paths to monetization are unclear. Truist would anticipate investor focus shifts to remaining pipeline opportunities. The firm has a Hold rating on Bausch with a price target of $8.
