Bausch Health (BHC) faces key focus areas including Xifaxan patent litigation, H2 headwinds and delayed Aplenzin generic entry ahead of its Q3 results on Oct. 28, RBC Capital said in a Thursday preview note.

The brokerage estimates Q3 revenue of $2.79 billion, above FactSet consensus of $2.75 billion, and adjusted EBITDA of $1.04 billion. Xifaxan revenue is expected at $608 million, down 1.4% year over year, while Diversified revenue is forecast at $231 million, revised upward from $205 million to reflect the absence of Aplenzin generic competition to date.

According to the report, Xifaxan 550mg prescriptions fell about 10% year over year in July and August. The firm continues to model generic entry in January 2028, while noting a potential earlier launch if the US Food and Drug Administration finds that Actavis forfeited exclusivity.

For 2026, Bausch's guidance calls for RemainCo revenue of $5.35 billion to $5.50 billion and adjusted EBITDA of $3.025 billion to $3.10 billion. RBC expects revenue of $5.46 billion, according to the report.

RBC maintained its sector perform rating on the stock with a price target of $9.

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