Bausch Health’s Slow Rebuild Faces New Scrutiny After Lombard Odier Cuts Its Stake

Lombard Odier Asset Management (USA) Corp cut its stake in Bausch Health Companies (NYSE:BHC) by 3,334,000 shares in the third quarter, reducing its position by approximately $22,564,800, according to a November 14, 2025 filing.

• The change represents approximately 1.53% of Lombard Odier Asset Management (USA) Corp's reportable U.S. equity assets
• Post-trade holding remains at 1,716,000 shares valued at approximately $11,068,200
• The position now represents approximately 0.74% of fund AUM, placing it outside the fund's top five holdings

What happened

According to a Securities and Exchange Commission (SEC) filing dated November 14, 2025, Lombard Odier Asset Management (USA) Corp reduced its holding in Bausch Health Companies by 3,334,000 shares in the third quarter. The position’s value fell to $11.07 million as of September 30, 2025, with 1,716,000 shares remaining in the portfolio.

What else to know

The reduction means Bausch Health Companies now accounts for 0.74% of the fund’s reportable assets, down from 2.6% the previous quarter

Top holdings after the filing:

• NASDAQ: SLN: $7.12 million (1.9% of AUM)
• NYSE: RSG: $6.99 million (1.86% of AUM)
• NYSE: VZ: $5.01 million (1.34% of AUM)
• NASDAQ: GOOGL: $4.76 million (1.27% of AUM)
• NYSE: RBC: $4.70 million (1.25% of AUM)

As of November 13, 2025, shares were priced at $6.62, down 24.6% over the past year, underperforming the S&P 500 by 40.08 percentage points

Company Overview

Company Snapshot

Bausch Health Companies Inc. is a global healthcare company with a broad product portfolio spanning pharmaceuticals, medical devices, and consumer health products. It offers a diversified portfolio of pharmaceutical, medical device, and over-the-counter products, with key revenue streams from eye health, gastroenterology, dermatology, and international markets.

Bausch Health Companies Inc. generates revenue through the development, manufacturing, and global distribution of branded and generic drugs, medical devices, and consumer health products across multiple therapeutic segments.

The company serves healthcare professionals, hospitals, clinics, and retail pharmacies worldwide, with a significant presence in the United States and international markets.

Foolish take

Lombard Odier’s decision to shrink its Bausch Health position carries weight because it comes at a moment when investors are still trying to understand whether the company’s recent weakness reflects temporary strain or deeper structural limits. A reduction from a core position to a smaller residual one signals that the fund still sees upside but no longer assigns the same level of conviction to the outcome. When a measured investor recalibrates exposure like this rather than exiting outright, it often suggests that the balance between risk and reward has shifted beneath the surface.

Bausch Health operates with a mature product portfolio that still generates cash but no longer delivers the growth needed to support its heavy debt load. The company depends on established franchises in eye health, gastroenterology, and dermatology, and those franchises were never built to carry this level of leverage for this long. The company has adjusted its strategy many times since the Valeant era, but the central issue remains whether its cash generation can outpace interest costs and ongoing legal liabilities. The low share price often gives the appearance of an easy turnaround, yet the stock’s recent decline points to a capital structure that leaves management with very limited flexibility.

For investors, the next phase depends on whether Bausch can create breathing room without selling off the assets that support the equity case. The outcome will hinge on refinancing progress, actual cash conversion, and any moves that reduce leverage rather than delay it. If Bausch can demonstrate that its cash generation is strong enough to gradually ease the pressure of its capital structure, the stock’s long-term potential may look different from what today’s reduced institutional exposure implies.

Glossary

Asset Management: The professional management of investments such as stocks, bonds, and other assets for clients.
Stake: The ownership interest or share held in a company by an investor or institution.
Position: The amount of a particular security or asset held in a portfolio.
Reportable U.S. equity assets: U.S. stock holdings that must be disclosed in regulatory filings due to their size or significance.
AUM (Assets Under Management): The total market value of investments managed by a fund or asset manager on behalf of clients.
Top holdings: The largest investments in a fund’s portfolio, typically by market value or percentage of assets.
Filing: An official document submitted to regulators, such as the SEC, disclosing financial or investment information.
TTM: The 12-month period ending with the most recent quarterly report.
Branded drugs: Medications marketed under a proprietary, trademarked name by a pharmaceutical company.
Generic drugs: Medications with the same active ingredients as branded drugs, sold under their chemical name after patent expiration.
Therapeutic segments: Categories of medical treatment areas, such as eye health or dermatology, targeted by a company’s products.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Bausch Health Companies and Verizon Communications. The Motley Fool has a disclosure policy.