Greetings. Welcome to the Bausch Health second quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, John O'Connor. You may begin. Good morning, and welcome to Bausch Health's second quarter 2023 earnings conference call. This is John O'Connor, Senior Vice President, Investor Relations for Bausch Health. I recently joined the company a few weeks ago, and I'm looking forward to leading the investor relations effort here at Bausch Health. Participating in today's call with me are Tom Appio, Chief Executive Officer of Bausch Health, and Tom Vadaketh, Chief Financial Officer. Before we begin, I'd like to remind you that our presentation today contains forward-looking information. We ask that you take a moment to read the forward-looking statements at the beginning of the slides that accompany this presentation, as they contain important information. Our actual results may vary materially from those expressed or implied in our forward-looking statements, and you should not place undue reliance on any forward-looking statements. Please refer to our SEC filings and filings with the Canadian Securities Administrators for a list of some of the factors that could cause our actual results to differ materially from our expectations. We use non-GAAP financial measures to help investors understand our ongoing business performance. Non-GAAP financial measures may not be comparable to similarly titled measures used by other companies and should be considered along with, but not as an alternative to, measures calculated in accordance with GAAP. You will find reconciliations to our non-GAAP measures in the appendix of the slides that accompany this presentation, which are available on Bausch Health's Investor Relations website. Finally, the financial guidance in this presentation is effective as of today only. We do not undertake any obligation to update guidance. Our discussion today will focus on Bausch Health, excluding Bausch + Lomb. We will briefly comment on Bausch + Lomb's results announced yesterday. We will refer to year-over-year comparisons with the same period last year, unless otherwise noted. For the benefit of those who may be listening to the replay or archived webcast, this call was held and recorded on August 3, 2023. With that, it is my pleasure to turn the call over to our CEO, Thomas Appio. Tom? Thank you, John, welcome to those of you joining the call this morning. At Bausch Health, our team is focused on enriching lives and through our relentless drive to create better health outcomes for our patients and physicians. The BHC team is tirelessly dedicated to business performance, delivering results, and progressing key strategic objectives. This dedication was on full display this quarter with a number of highlights that I will touch upon. Turning to slide 6. We had a strong quarter with revenues for Bausch, Bausch Health, excluding B&L, $1.13 billion, up $106 million, or 10% reported and 11% on an organic basis. We received a favorable motion ruling in the Xifaxan litigation, which reinforces our continued investments in the Salix growth strategy. We executed an additional proactive balance sheet initiative that further enhances our liquidity profile. We continue to take thoughtful steps as we evaluate the optimal implementation of a potential Bausch + Lomb distribution, and we continued to progress our R&D pipeline. Let me start by sharing some of our business performance highlights, as shown on slide 7. This quarter, three out of four non-B&L business segments, Salix, International, and Solta Medical, posted double-digit revenue growth, both on a reported and organic basis. The diversified segments saw a modest decline, an improvement from the last few quarters, where we have seen double-digit declines. While neurology and generics remain challenging, we are hopeful that the actions the team has taken will help temper the pressure on these businesses. Let's take each segment in turn. Salix. Q2 net sales for this segment were $557 million, growing 11% in the quarter. I am pleased to report that the investments we have made in this segment are beginning to pay off. Building on the plan we laid out since I became CEO, we are continuing to increase our commercial investments to higher than historical levels in sales and marketing to drive profitable revenue growth in this segment. I am pleased to share that we have made significant progress in our AI customer engagement initiative. We launched the new AI engine to our Xifaxan primary care field force team. The AI engine will help our team to understand how to best address patient needs by engaging with the right physicians at the right time. This initiative is a key part of our strategy to improve customer engagement and drive growth. We believe that AI has the potential to revolutionize the way we interact with our customers. We are excited to be at the forefront of this transformation. As part of our continued commitment to improve HE and IBS-D patient care, we expanded Xifaxan medical field team. The team is now fully trained and working to educate physicians and improve care for thousands of patients. The expanded MSL team leverages insights from advanced analytic models to understand the largest patient care gaps and engage with physicians to reinforce established treatment guidelines. Finally, we have increased our investment in education efforts targeted to undiagnosed, untreated consumers for both of our approved indications, IBS-D and HE. These activation campaigns are currently being deployed across a wide range of media channels, such as connected and addressable TV, as well as many different digital and social media platforms. We believe Xifaxan and other products in our GI portfolio are effective options for healthcare providers that have not yet met their full potential to provide patients with the healthcare they need. Turning to international. Revenues grew by 11% in the second quarter of 2023, both on a reported and organic basis, led by strong performances in EMEA and Canada. While the quarter's growth did benefit from a favorable comparison to the prior year, we are still pleased with our growth in the international business, which was impacted in the quarter by a voluntary recall of our Emerade epinephrine auto-injector, which Tom V. will cover in more detail. While voluntary in nature, our decision to action the recall was, in, in our view, the prudent and responsible decision to take. Solta Medical. Revenues increased by 54% on a reported and 60% on an organic basis, reflecting strong growth in Asia Pacific region, which included the unfavorable impact related to limited activity in China in Q2 of last year due to COVID lockdowns, while performance in other Asia Pacific markets was also very strong. This quarter, I had the pleasure to visit with our U.S., China, and Hong Kong Solta teams and listen to what they are doing on working to continue to build our aesthetics franchise. The teams are highly motivated and dedicated to deliver results and launch new products as we continue to build a world-class global aesthetics business. More than 70% of Solta revenues are generated from consumable sales, represent an attractive and very durable business profile, where we see significant opportunity for long-term growth. We are actively working to accelerate growth in our largest markets by expanding our sales teams in the US and Europe and advance our pipeline of new market authorizations and new generation products. Turning to diversified. Revenues decreased by 3% on a reported and organic basis in the quarter. Dermatology and dentistry had growth in Q2, which helped moderate the decline in neurology and the generics businesses. As noted last quarter, our intention is to increase our marketing and advertising investments for Aplenzin in our neurology business and to expand our consumer awareness campaign for JUBLIA in our dermatology business. For the second quarter, dentistry revenues grew by 4% year-over-year, driven by Arestin. We have restructured our sales force in this business and expanded our consumer awareness efforts for Arestin to drive growth. I am pleased with our overall business performance in the second quarter. We are increasing our revenue guidance for Bausch Health, excluding B&L, for this year, and as always, remain committed to delivering long-term value for stakeholders. In addition to the strong business performance, we had a number of other positive developments in the quarter. Turning to slide 8. We shared in May 2023, the positive news that the U.S. District Court for the District of Delaware denied Norwich Pharmaceuticals' motion to modify the court's final judgment and prevents the U.S. FDA from granting final approval for Norwich's and for Xifaxan 550 mg before October second, 2029. You may recall that Norwich filed this motion in order to attempt to get a skinny label approved before October of 2029. Norwich appealed this decision. Norwich appeal is now consolidated with our appeal of the final judgment invalidating the IBS-D and the polymorph patents. We remain confident in our position and expect a decision on the consolidated appeals as early as Q1 2024. Following the denial of Norwich's motion to modify the final judgment, the FDA granted tentative approval to Norwich's ANDA for Xifaxan 550, but confirmed that it remains barred from granting final approval until October 2, 2029. Norwich cannot launch its ANDA product until it receives final approval from the FDA. Norwich sued the FDA in the U.S. District Court for the District of Columbia. This is a separate lawsuit in a different district court than the court that issued the final judgment. Norwich requested that the D.C. District Court direct the FDA to grant final approval of the ANDA, notwithstanding the Delaware Court's final judgment. The FDA opposed Norwich's action, we have intervened in this lawsuit. This matter is currently being briefed, and we expect a decision in the fall. We are fully committed to vigorously defending our intellectual property and providing healthcare providers and patients with the safe and effective treatment options that Xifaxan represents. We continued to be successful in proactively in addressing our balance sheet, entering into a $600 million non-recourse financing facility with KKR, collateralized by accounts receivable, providing us an additional source of liquidity. We continued to make progress on our efforts to complete the potential distribution of Bausch + Lomb, and continue to believe that completing the separation of Bausch + Lomb makes strategic sense. As we continue to evaluate all relevant factors related to any distribution, we are exploring options for optimizing the structure, if and when a distribution is completed. Our initial intent was to effectuate a potential distribution by way of plan of arrangement, but we have since determined that the optimal way to implement the distribution may instead be through a tax-free reduction of capital, which would provide additional flexibility to the company and Bausch + Lomb. We're continuing to evaluate the structure of any distribution and its other related details, and any distribution continues to be subject to the receipt of applicable shareholder and other required approvals. We are working hard to progress our pipeline, as shown on slide 9. We remain excited about the RED-C program for Xifaxan for the reduction of early decompensation in cirrhosis. The global program is focused on developing novel formulations to address unmet medical needs. Specifically, the treatment is aimed at presenting the first occurrence of hepatic encephalopathy, HE, for patients with mild cirrhosis. Two global phase III studies are currently underway. Enrollment in these studies is progressing, and we expect enrollment to be completed in both trials in Q1 of 2024. To date, we have completed scientific advisory meetings with the Medicines Evaluation Board in the Netherlands and Health Canada, and have received positive feedback on the program from the National Medical Products Administration in China. We are currently planning to meet with the authorities in Japan later this year. As I've noted, these are global programs. For amiselimod, a new oral selected S1P receptor modulator that targets the treatment of mild to moderate ulcerative colitis. The phase II trial completed enrollment in July of this year. In dermatology, we have an upcoming PDUFA date of October 20th, 2023, for our NDA for IDP126. If approved, this will be a first-in-class treatment for the triple combination of acne vulgaris, and welcome addition to our established acne portfolio. Our submission in Canada was completed on May 30th of this year. Our Solta pipeline is active as well. Our next generation Fraxel, a fractionated laser device for skin resurfacing, remains on track for submission to the FDA later this year, with the potential to launch in the first half of 2024. We are excited about the benefits offered by this product, including its effectiveness in fine-line wrinkles, surface scarring, pigmentation, and age spots. Our Clear + Brilliant Touch program is also advancing, with Europe and Canada submissions planned for 2024, Asia Pacific for 2025. Clear + Brilliant Touch is a fractionated laser device for skin rejuvenation. Our next generation VASERlipo System, which uses ultrasound energy for aesthetics body contouring, is under development and planned for release in late 2024. Lastly, we are developing several exciting features for Thermage FLX to improve on what is already a leading product in non-invasive skin tightening treatments. Solta is well known for the broad portfolio of products addresses a range of aesthetic skin and body issues. With continued improvements always in mind, our focus is on providing consumers with aesthetics and therapeutic benefits based on cutting-edge technology, our R&D team is hard at work on these innovative next-generation enhancements. As a leadership team, we remain committed to driving profitable growth through commercial excellence, intensifying our focus on business development, expanding and progressing our pipeline, and unlocking the value and potential of our company. It's been an active and productive quarter for Bausch Health, we are looking forward to building on the momentum across the board. With that, I will turn the call over to Tom Vadaketh, who will provide further details on our second quarter performance. Tom? Thanks, Tom. Hello, everyone, thanks for joining us. We closed the second quarter with consolidated revenues for Bausch Health of $2.2 billion, up 11% on an organic basis over the same quarter last year. Second quarter revenues for Bausch Health, excluding B&L, were $1.1 billion, up 11% on an organic basis. We saw growth in our Salix, International, and Solta businesses, while we experienced a more modest decline in our diversified segment than in recent quarters. Let's dive into the revenue performance for each segment in more detail, starting on slide 12 with Salix. Second quarter Salix revenues increased 11% on an organic and reported basis to $557 million, driven by growth in our core products, including Xifaxan 550, RELISTOR, and TRULANCE. As Tom mentioned, we're seeing our investments in Salix's commercial organization begin to pay off in the form of increased brand awareness and demand. Growth in Salix was led by Xifaxan, which grew 9% in the second quarter compared to the same quarter last year, and overall demand grew 3% year-over-year. In addition to our demand generation efforts, we are benefiting from a rebound in the long-term care channel, with increases in occupancy levels that, while increasing, still remain below pre-pandemic levels. We are also pleased with the second quarter sales performance of RELISTOR and TRULANCE, which posted year-over-year growth of 42% and 73%, with total scripts growth of 20% and 14% respectively. International revenues were $259 million during the quarter, an increase of 11% on a reported and organic basis compared to the prior year period, led by strong growth in our promoted portfolio in Canada and key markets in EMEA. In EMEA, the growth was also benefited from a prior year reduction in revenues of $11 million, related to a change in our estimates of future returns in one market. In May, Bausch Health recalled Emerade epinephrine auto-injectors for lots distributed between April 2022 and May 2023. While there was limited revenue impact in the quarter, from a cost perspective, we had write-offs of finished goods and other inventory, as well as charges for outstanding purchase commitments, together totaling $12 million in the quarter. We are actively working to bring this important product back to market for our patients. Solta Medical revenues were $88 million during the second quarter, an increase of 60% on an organic basis over the prior year period. Revenue growth was supported by a soft compare in the prior year quarter due to COVID-related lockdowns in China in Q2 2022. Growth in other Asia Pacific markets was a strong 23%, with overall growth for Solta tempered by a decline in the US in the quarter. With several upcoming pipeline milestones, Solta Medical is primed for continued near and long-term growth. Diversified revenues were $228 million, down 3% on a reported and organic basis in the second quarter, due primarily to decreases in sales across urology and generics, partially offset by an increase in sales in dermatology and dentistry. We continue to see volume erosion for Wellbutrin. For Aplenzin, positive demand growth was offset by a channel inventory drawdown. Lastly, on JUBLIA, positive demand growth was offset by higher coupons and rebates. Total sales for the segments increased sequentially, due in part to gross to net pricing pressure in Q1 that did not carry over into this quarter. With 70% of the segment's revenues coming from products that are past their LOE dates, we continue to manage the diversified business to optimize the revenue trajectory and maximize profitability and cash, with some small targeted investments where there are growth opportunities, for example, for Arestin in dentistry and JUBLIA in dermatology. As shown on slide 13, Bausch + Lomb revenues were $1 billion during the second quarter, up 10% on a reported basis and 12% on an organic basis compared to the prior year, with growth across all B+L segments. Turning to the second quarter P&L on slide 16, second quarter consolidated adjusted gross margin was 70.1%, 60 basis points lower compared with the prior year. For Bausch Health, excluding Bausch + Lomb, the adjusted gross margin for the second quarter was 79.4%, 140 basis points lower than last year. The decrease was mainly driven by a change in product mix and the Emerade recall charges in the international segment that I covered earlier. On the Bausch + Lomb side, adjusted gross margin was flat compared with Q2 of 2022. Consolidated adjusted operating expenses for the second quarter were $832 million, an increase of $80 million or 12% on a constant currency basis, driven by higher SG&A expenses, reflecting investments in sales and marketing and higher R&D. For Bausch Health, excluding B+L, operating expenses increased by approximately $34 million, while B+L reported an increase of $46 million in operating expenses. Selling and marketing increased for Bausch Health, excluding B+L, due to the investments we are making in the Salix sales force, our go-to-market channels, and advertising and promotional activity. The increase in consolidated adjusted G&A costs reflects the costs associated with standing up two public companies. Adjusted G&A for Bausch Health, excluding B+L, was flat compared to the prior year. Consolidated R&D expense for the quarter increased 23% compared to the prior year and represented 7% of net sales, compared with 6% for the prior year period.... For Bausch Health, excluding BNL, R&D expenses increased by approximately $19 million, due primarily to the focus on our clinical programs and regulatory activities to support our mid- and late-stage product development in the Salix segment. We have been successful in restructuring our approach with our third-party clinical providers, which is accelerating activity and planned spend in the RED-C program. Second quarter consolidated adjusted EBITDA was $727 million, an increase of $26 million or 4% on a reported basis, and 7% on a constant currency basis. For Bausch Health, excluding BNL, adjusted EBITDA was $568 million, an increase of 7% from last year, reflecting the factors previously described. On a consolidated basis, the second quarter adjusted EBITDA margin was 33.5%, compared with 35.6% last year. Adjusted EBITDA margin for Bausch Health, excluding BNL, was 15.2%, and for Bausch + Lomb was 17.3%. Turning to cash flow. On a consolidated basis, Bausch Health generated $360 million in operating cash flow in the first six months. The increase versus the prior year was due primarily to decreases in payments of accrued legal settlements related to the Glumetza antitrust litigation, the positive impact of insurance recoveries from prior legal settlements, and changes in business performance. As with recent quarters, we have also reclassified a portion of our cash interest payments to financing cash flows as a result of the accounting treatment for bonds issued as part of our 2022 debt exchange. Adjusted cash flow from operations on a consolidated basis in the first half was $196 million. For Bausch Health, excluding BNL, the year-to-date adjusted cash flow from operations was $234 million, from strong cash conversion in the first half, which was in line with our expectations. Adjusted cash flow includes adjustments for the payment of separation costs, business transformation costs, and insurance settlement proceeds, and also includes payment of the full contractual interest. Now, let's turn to our balance sheet. We continue to prioritize the delevering of our balance sheet, and in the second quarter of 2023, we reduced our debt for Bausch Health, excluding BNL, by $181 million, including revolver repayments. As shown on slides 18 and 19, total debt for Bausch Health, excluding Bausch + Lomb, at the end of the quarter was $16.3 billion, which consisted of $15.3 billion of restricted debt issued by Bausch Health, excluding BNL, and $1 billion of senior secured notes issued by the unrestricted subsidiary created in the third quarter of last year. Excluding BNL debt, approximately 85% of our debt is fixed, and approximately 70% of the company's debt on a consolidated basis is fixed. At the end of the quarter, we entered into a $600 million accounts receivable facility with KKR, giving Bausch Health access to an additional liquidity source for approximately 5 years, with proceeds available for general corporate purposes. We did not draw on the facility in the second quarter, but have subsequently drawn $350 million as of August second. With the closing of the accounts receivable facility, inclusive of cash and cash equivalents, and available capacity under our revolving credit facility, the company has liquidity in excess of $1 billion. Looking ahead towards the second half of the year, we have updated our 2023 guidance for Bausch Health, excluding BNL, which can be viewed on slide 21. For Bausch Health, excluding BNL, we now expect revenues in the range of $4.5 billion-$4.65 billion, an increase of $50 million on both the low and high end of the range. This change is primarily due to favorable movements in foreign exchange, leaving our view of organic growth of 2%-5% unchanged. In terms of first half and second half dynamics, within Salix, we typically see a seasonal step-up in sales in the second half, particularly in Xifaxan, primarily due to wholesaler inventory dynamics, as well as patient level patterns related to insurance deductible activity. We also expect to see continued positive impact from our investments in the Salix commercial organization. For International, our revenue guidance assumes ongoing momentum with promoted brands and takes into consideration the tailwinds we expect to see as a result of competitor supply shortages. These positives will be somewhat offset by the loss of Emerade revenue due to the recall of that product, as well as new generic entries driving volume declines. For our Diversified segment, we expect sales in the second half to increase sequentially from the first half, with second half revenue relatively flat compared to the prior year, driven by growth in JUBLIA, Arestin, and Aplenzin, offsetting declines in mature brands across neurology, generics, and dermatology. We continue to expect gross margin to be in the 80% range, in line with prior guidance. Full-year EBITDA for Bausch Health, excluding BNL, is still expected to be $2.3 billion-$2.4 billion. Our adjusted guidance reflects the acceleration of approximately $50 million in R&D spend from 2024 for critical programs, and we currently expect higher R&D investment in 2023 than contemplated when initially providing guidance for the year. Adjusted EBITDA also includes the impact of the Emerade recall. These items are partially offset by the favorable impact of foreign exchange and cost savings. On the expense side, we will continue to invest in sales and marketing activities to drive growth in our key brands in our Salix, International, and Solta Medical segment. These expenditures include salesforce expansion, direct-to-consumer advertising, and investments in salesforce tools. As Tom mentioned, we're starting to see the positive impacts from these initiatives on revenues, which we expect to continue through this year. Moving below adjusted EBITDA, we continue to expect our full year effective non-GAAP tax rate to be approximately 15%. We expect our contractual interest costs to remain unchanged at approximately $1.3 billion. Lastly, we continue to expect Bausch Health, excluding BNL, to generate approximately $625 million in adjusted operating cash flow. We have generated less than half of this expected cash flow through the second quarter, which, as I said earlier, is in line with our expectations. Adjusted operating cash flow will benefit from the higher second half-adjusted EBITDA we're expecting compared to the first half of the year. As I said earlier, adjusted cash flow includes adjustments for the payment of separation costs, the payment of the full contractual interest, also includes impact of cash tax payments, inclusive of the tentative Granite Trust settlement, which we expect to be finalized with the IRS in the coming months. I'll now hand the call back to Tom. Thank you, Tom. In summary, although we still have much work to do, I am pleased with the quarter business performance and the progress we have made. Our strategic priorities remain intact, as you can see on slide 23. We have a clear purpose on enriching lives through our relentless drive to create better health outcomes for our patients and physicians. We have made key focused investments in our sales teams, marketing programs, and R&D projects, which will drive future growth. We have progressed key strategic objectives. Finally, and importantly, we have an all-in team that is principled, creative, problem solvers, and results focused. On behalf of our entire Bausch Health team, I thank you for your interest in and support of our company. With that, we will now take questions. Operator, please open the line for Q&A. Certainly. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we poll for questions. Your first question for today is coming from Glen Santangelo with Jefferies. Oh, yeah, thanks for taking my question. Hey, Tom, I think I'll ask a question that's kind of on everyone's mind. Everyone's kind of curious about this Tax-Free Reduction of Capital. We were wondering if you could maybe put a little bit of a finer point in terms of what you mean, and I guess why the pivot at this point? Because it seems like you had a plan, and now it seems like you may be pivoting, and I'm kind of curious as to what changed. Yeah, Glenn, good question. Let me just take it from the top. It's a good question. It's complicated. What I would say is, is when we look at it, of course, the, the spin, and the IPO was announced 3 years ago. It was a different management team at that point. Really trying to, as I took over as CEO and the team took over, really looking at what was going to be the best way to do it. Basically, when we looked at it, we, you know, we believed that trying to find a way that could simplify the process to help manage, you know, some of the risks identified, and we believe that, you know, we can create some additional strategic flexibilities for both companies if we're able to work under a reduction of capital. Tom, if I'll just add a couple of things. Glen, just transactionally, what the, the difference... what, what this is, is, like, like the term suggests, it's a reduction in capital, and in this, in this case, the reduction is the value of BNL, and, and effectively, the result of those BNL shares being returned to the shareholders. The, the end result is exactly the same, in the sense that the BNL shares are distributed, as we intended before. No change there, no change in the tax efficiency, et cetera, et cetera. What, what we're really talking about is behind the scenes, almost, the bookkeeping changes slightly. Tom, can I just clarify that a little bit? Because I thought maybe the obvious move was to sell another 8% or 9% of BLCO, but maintain that 80% threshold, so you preserve the, the tax-free nature of the spin. Are you talking about something different than that? No, no, still, still the same numbers. They're still the same. The, the plan right now is, is the same, is to distribute 80%. No change in that. Okay, perfect. Maybe just my, my last question, then I'll hop, is, I'm kind of curious about this $600 million facility and what are the uses of that cash? Because it seems like you already have ample liquidity. You're generating some cash flow, and now you're talking about, you know, selling more of BLCO, which would raise, you know, potentially more money, or maybe you're just gonna spin it, you know, depending upon how you transactionally do it. I just wanna make sure I understand what the use of that capital is, because, you know, you didn't buy back very much debt in the quarter, and I would've expected a little bit more. I'm just kind of curious as to the use of those proceeds. Thanks. Yeah. I mean, look, in the grand scheme of things, it's an efficient and cost-effective source of capital for us. It was available, you know, we like it. It's a source of capital now for the next 5 years. As I said in my prepared remarks, as it happens, just shortly after the end of the quarter, we did draw down about $350 million and have paid down the revolvers. That's 1 example. It's essentially for general corporate purposes. We haven't earmarked it for anything in particular, but it's available to do all the things that you just kind of listed, including OMRs, et cetera. We will, you know, in addition to that, as I said, expect to generate more than $600 million in operating cash flow, and debt reduction and deleveraging continues to be our priority. Yep, thanks very much. Appreciate the details. Operator, next question. Your next question is coming from Jason Gerberry with Bank of America. Hey, guys. Thanks for taking my question. Just wanted to follow up on Glen's question a little bit more. Just so you talked about added strategic flexibility, I think, in the PR, pursuing strategic growth via the RemainCo. Would... Under the revised, I guess, distribution mechanism, would RemainCo carry less debt or have a more favorable leverage ratio? Just kind of curious, thinking about what that entity might look like on the other side and how much firepower the company might have, because we've long thought of, like, RemainCo as a company that was carrying, like, north of 6.5 turns of leverage and not a lot of leeway to deploy capital for M&A. Thanks. Yeah. Go ahead, Tom. Yeah. I'll start, and Tom, maybe Tom will add some comments. Essentially, there is no change in our plan, right? So the company has put out that target of 6.5-6.7. That remains the case, and that we, we put that out as a kind of threshold to, in order to complete the distribution. From my perspective, as the CFO of the company, that's too high, and we, we will continue to, you know, pay that down, pay the debt down and reduce it as we go forward. This particular transaction that we're talking about or this change in structure that we are considering, has, has no connection with, you know, those debt targets or the, or the liquidity that we need to be at or anything like that. Yeah, Jason, this is Tom. Let me just add to that. You know, the objectives and the goals of the transaction haven't changed. We just, you know, when we looked at it, the key was to see, you know, how we could simplify it and then really create as much flexibility strategically as possible for both companies, now and in the future. Thanks. Operator, next question. squeeze in. Yeah. Go, yeah, go ahead, Jason. I was just gonna ask a follow-up on the Xifaxan Federal Circuit appeal. Is the court reviewing, you know, all the patent rulings, or, or is the court reviewing whether the injunction should be in place still? Just kind of just wondering if we think about early 2024, what that outcome could look like. Yeah. As I said in my prepared remarks, you know, we are appealing the patents on IBS-D, and on the polymorphs, which Norwich is appealing the motion on the 60(b) motion. That's where, where it stands. Of course, the appeals are now together, and we're expecting a court, you know, the, the court to rule in Q1 of 2024. We feel strongly on our position with our, with our patents, and we're gonna vigorously defend it. Got it. Thanks, guys. Thanks. Next question? Your next question is coming from Omer Raffat at Evercore ISI. Hi, guys. Thanks for taking my question. There's construction behind me, so please bear with me. My question is, going into the Xifaxan district court ruling, this is a Norwich versus FDA, what are you expecting, and how does that change whatever plan you have now or whatever the updated plan is on the spin? Thank you. Thanks, Omer, for the question. You know, when we look at the case that Norwich filed, you know, against the FDA, again, we feel confident here. We have intervened as well, so, you know, that's going to progress. You know, again, we feel confident in, in, where, you know, the FDA position is they are upholding the, you know, what the court ruled in Delaware. Therefore, you know, we feel real confident that, you know, in that case, we're in good shape. Timeline, you know, again, is the fall of, you know, if we just talk about a timeline, we're thinking of fall of 2023, to, you know, hear the outcome of that. Operator, next question. Your next question is coming from David Ams ellem with Piper Sandler. Thanks. So looking longer term, as you think about debt maturities in 2027 and 2028, and the LOE for Xifaxan, this is the based on the settlements that are in place. How do you address that, given the importance of Xifaxan to the P&L? Just help us better understand, you know, the long-term solvency of the companies in light of, you know, what you could be facing later in the decade. Thanks. Yeah, I, I won't get into any specific, long-term forecasting here on this call, but maybe just in generalities, we, we have a business that's highly cash generative. This year, as I said, about $600 million. We're investing in growth. We're starting to see that momentum build, and we expect to see the business grow between now and 2027 or 2028, including from Xifaxan and including from Salix. That will significantly increase the cash generation. Any revenue growth should drop right down to the bottom line. We would expect to use, or prioritize debt leverage, as we have, as the company has for the last 5 or 6 years, and we'll continue to do that. We think we'll knock a chunk out of that debt between now and then, David. At that point, if there is any debt left over, we will have to refinance it, of course. At that time, what lenders are gonna be looking at are forward-looking leverage ratios, we, we, we're investing in a bunch of these products in the pipeline, as you, as you heard from Tom, and we would expect many of those to come to fruition. Even though, yes, Xifaxan will go generic in 2028, and we will see a drop in revenue, it will be offset by other products coming into play and growing. Obviously, it's a very key question. The management team and the board are focused on it, and one of, one of the things that we're, you know, we're working through. Yeah, David, let me just add to that, what Tom said. Clearly I talked about in my prepared remarks, you know, the pipeline. That's why, you know, last quarter, this quarter, continue to talk about the progress we're making. As you saw, the investments that we're making in R&D and accelerating the RED-C program, you know, that is really an exciting program for us. Clearly, we have accelerated now, and making sure that we will have, of course, if the data comes through, the product before we, you know, we will lose Xifaxan. We're very, very excited about it. Of course, this is a huge patient population, you know, much larger today than the current Xifaxan population. RED-C is on track. It's accelerated. This is a global program, and so therefore we will have the global rights. This will be our first global product at Bausch Health. We're excited about it. Of course, amiselimod, you know, the phase II studies have completed enrollment, and we are really excited as to get the data as it, as it comes through, you know, probably at the end of the year, beginning of next year. Next question, operator. Your next question is coming from Douglas Miehm with RBCCM. Yeah, good morning. First question, just going back to the change, the tax-free reduction of capital. Could that be affected by moving the hold co from the parent that has the 38.7% and the $1 billion in bonds to BLCO? Is that an example of what could occur or something like that, in addition to, say, the distribution of the remainder of the shares, the 50.1%? Doug, I don't know if I completely followed what you asked, as I said, I think maybe to the first question, there is no change in the end result, right? In the sense that we, we will distribute, the plan right now is to distribute 80% or more than 80% in order to preserve the tax-free or tax-efficient nature of the spin. I don't know if I got the whole of your question. I know we'll have some follow, a follow-up discussion after this call. Happy to talk about it a little bit more. Yeah, I'm happy to go through that. Second one, Tom, maybe just has to do with RED-C. We know that you expect to complete enrollment of those two phase III clinical trials in Q1 of 2024, but when do we expect the readout? When do we expect the data in our hands? Yes. Doug, you know, yeah, we, we've completed enrollment, and of course, in order to get this product approved prior to Xifaxan going off patent, you know, we'd be looking to see readout of data, probably, in late, you know, maybe, you know, late 2025, early 2026, and then, of course, have to file. That would I would say probably somewhere in the 2026 range. Okay, that's great. Thanks very much. Your next- Next question. Coming. Your next question is coming from Michael Nedelcovych at TD Cowen. Thank you for the question. I have two. My first question regards the Xifaxan litigation. Given what you know now, is it within the realm of possibility that we get a complete resolution of Xifaxan litigation and IP in the year 2024? That's the first question. The second question relates to RED-C. I know that it's a much bigger patient population, but given that HE lifetime risk in cirrhotic patients is well below 100%, do you have any sense whether physicians are prepared to adopt a prophylactic regimen rather than simply administer Xifaxan once symptoms present? Thank you. Yeah, Mike, 2, 2 good questions. You know, when we... On the Xifaxan litigation, you know, this appeal, as I said in my prepared remarks, and earlier answers to questions, you know, we expect to have, you know, a decision in the 1st quarter. You know, it's a complicated appeal because, you know, we're, you know, we are appealing the rulings on IBS-D, and the polymorphs, and of course, they're appealing the motion. What I would say is, is as it plays out, you know, we have submitted our briefs, and we think we have a real good position on our IBS-D patents and polymorph patents. If it goes in our favor, you know, clearly, this will be, you know, it will be resolved, you know, specifically on our appeal. All right? We'll have to see how it goes, and we're feeling confident about it. Getting to the next question on RED-C, we feel, as you said in your question, it, and as I said previously, it's a much larger patient population. One of the things that we have talked about, and that is one of the reasons why we've invested to accelerate the program, we will have, you know, our sales teams, and, you know, and our medical teams, will be working to really educate physicians on why prevention is the way to go for HE. You know, if you take a look today, you know, the investments that we're making in Xifaxan in... As I talked about in my prepared remarks on, you know, the medical side, still today, you see patients not getting treatment after the first HE episode. Clearly, if you look at the pharmacoeconomic data, as to prevention versus having an HE episode or then multiple HE episodes, you know, we believe, from a payer perspective, from a, a, a patient perspective, that prevention is going to really be something that people will want and be interested in. If you look at some of the work that we're doing today, on direct-to-consumer advertising today, is to really educate, not only patients, but also educate the caregivers of what they go, what happens to them, if you have an HE episode, not only to the patient, but to the caregiver. We really think prevention is going to be something that will be very much accepted, but there will be a lot of education between our medical affairs team and our sales teams. It's a good question. Thank you. Next question, operator. There are no further questions in queue. Okay, with no further questions, I would just say, you know, in summary, we had a solid Q2 performance and made good progress on key strategic objectives. We look forward to the second half of 2023, with the focus of profitable growth, driving performance, advancing R&D and BD, and unlocking value. Thank you for joining our call today. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.