...- An oral order has been issued in Bausch Health Cos. Inc.'s (BHC) ongoing litigation with Norwich (a subsidiary of Alvogen Pharma US Inc.), indicating the court will invalidate patents protecting the composition of matter and use of Xifaxan to treat irritable bowel syndrome with diarrhea (IBS-D). The decision would open a pathway to generic competition for Bausch Health's top product much earlier than our previous base case that there would be no generic competition before 2028. - We now view Bausch Health's business prospects as much more challenging, increasing the risk that the company will be unable to refinance or repay its sizable debt maturities beyond 2026 and increasing the likelihood it will pursue debt repurchase or exchange transactions that we could consider tantamount to a default. - We lowered our issuer credit rating on BHC to '###+' from 'B'. At the same time, we lowered our rating on the senior secured debt to 'B' from '##-' and our rating on the unsecured debt to '###'...
