Bausch Health Suit Against Amneal Risks Unit Spinoff, Cowen Says

Bausch Health’s decision to sue Amneal Pharmaceuticals regarding its antibiotic Xifaxan could further jeopardize the spinoff of its eye-care unit, Bausch & Lomb, according to Cowen. Shares of Bausch Health fell 6.9% for their worst drop since September.

• Bausch Health said late Friday that it had filed a lawsuit against Amneal Pharma over a generic version of Xifaxan
• “It is reasonable to assume that distribution of BLCO shares — and realization of full value to BHC shareholders — is largely dependent on certainty around Xifaxan’s outlook given it is a linchpin of remainco’s financial health,” analyst Michael Nedelcovych writes in a ...