Bausch Health Sinks After Key Liver Disease Drug Trials Fail

Bausch Health Cos. fell after the company said its treatment for a liver condition fell short of its goals in two late-stage trials.

The studies evaluated its drug for hepatic encephalopathy, a brain disorder caused by the liver failing to filter toxins from the blood. There’s currently no approved treatment for the condition.

Bausch said its drug was safe and well-tolerated, but didn’t disclose more details about the trials.

Shares of Bausch Health fell as much as 10% when markets opened Friday in New York. They had declined 16% over the past year, through Thursday’s close.

The company was “disappointed” ...