Bausch Health Companies Inc.

Good morning and welcome to the Bausch House second quarter 2021 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. As a reminder, this call is being recorded. I'd now like to turn the conference over to Art Shannon, Senior Vice President, Head of Investor Relations and Global Communications. Please go ahead, sir.

Thank you, Rocco. Good morning, everyone, and welcome to our second quarter 2021 Financial Results Conference Call. Participating on today's call are Chairman and Chief Executive Officer, Mr. Joe Papa, and Chief Financial Officer, Mr. Sam Eldesuki, Bausch Farmer CEO, Tom Appio, and CEO of Solta, Scott Hirsch. In addition to this live webcast, a copy of today's slide presentation and a replay of this conference call will be available on our website under the investor relations section. Before we begin, we'd like to remind you that our presentation today contains forward-looking information. We would ask that you take a moment to read the forward-looking statement legend at the beginning of our presentation as it contains important information. This presentation contains non-GAAP financial measures. For more information about these measures, please refer to slide two of the presentation Non-GAAP reconciliations can be found in the appendix to the presentation posted on our website. Finally, financial guidance in this presentation is effective as of today only. It is our policy to generally not update guidance until the following quarter and not to update or affirm guidance other than through broadly disseminated public disclosure. With that, it is my pleasure to turn the call over to Joe.

Thank you, Art, and thank you, everyone, for joining us today. I will start by briefly covering the second quarter highlights before turning the call over to Sam Eldestuki, our CFO, to review the financial results in detail and discuss our 2021 guidance. We'll then review the segment results and recovery. Finally, we'll provide an update on the spinoff of Bausch & Lomb before opening the line for questions. But before I address these topics, I would like to comment on this morning's announcement that we have decided to pursue an IPO of our Solta medical business. Over the last few months, we completed a thorough review of the strategic alternatives for Solta, including audit of the financial performance, growth drivers, and future revenue opportunities. We believe a Solta IPO will help us accomplish two important objectives. First, we intend to use the proceeds of the proposed IPO to pay down debt, which will help effectuate the previously announced spinoff of Bausch & Lomb. Second, we believe an IPO of Solta Medical will help unlock the value of a high-growth business that would compare very favorably to peer medical aesthetic companies in terms of valuations while maintaining future optionality. Simply stated, we believe that the actions we've announced will result in the creation of three attractive, focused companies, Bausch & Lomb, a pure play integrated eye health company, Bausch Pharma, a global diversified pharmaceutical business, and Solta Medical, a leading global provider in the medical aesthetics market. Moving now to slide four, while there are some pockets of variability due to new COVID variants, our overall recovery from the impact of the pandemic remains in progress over the second quarter. In Q2 2021, total company revenue grew by 26% on a reported basis and by 23% organically, driven by strong year-over-year recovery across the business units. This strong growth was offset by the impact of a recall of an international consumer product due to a quality issue at a third-party supplier that I will discuss in more detail when we cover the global consumer business. Importantly, Our business generated strong cash flows from operations of $395 million on a gap basis and an adjusted cash from operations of $425 million in the second quarter. We continue to see strong performance, including market share gains and recovery from leading brands. In fact, Mumafi achieved a record sales of $29 million in the second quarter, and we expect it now to be a $100 million brand on an annualized basis. We also delivered near-term R&D catalysts during the quarter, including we completed the enrollment of a phase three trial for Novo3. We obtained FDA approval for and launched ClearVisc, and we are submitting an NDA for Zypera with a PDUFA date of October 30th, 2021. Debt repayment remains a priority as we continue to focus on accelerating strategic alternatives to unlock shareholder value. We repaid $300 million of debt in the second quarter of 2021 using cash generated from operations. Year to date, as of August 3rd, we have reduced debt by $1.25 billion, which includes a $600 million in connection with the moon divestiture, which we announced the closing of yesterday. And today, we announced that we plan to redeem an additional $350 million of bonds, which, when completed, will bring our aggregate debt reduction for the year to $1.6 billion. Finally, I want to mention that we have settled another legacy legal matter that relates back to a 2012 patent settlement agreement on GUMESA. As will be disclosed in our 10Q filing, we have now reached agreements in principle to resolve the claims of the class and the non-class plaintiffs. To summarize, our second quarter results demonstrate that recovery remains in progress. Our business is generating strong cash flow from operations, which has enabled us to make great progress paying down our debt. And we are taking action to accelerate the strategic alternatives process and unlock shareholder value. With that, I'll turn it over to Sam to cover the financial results in more detail.