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Key Takeaways
- Bausch Health pushed back against a research report that alleged the company was considering bankruptcy.
- The company issued a statement saying it isn’t looking at insolvency options.
- Shares initially fell to a near-20-year low before recovering.
It was quite a day for shares of Bausch Health Cos. ( BHC ), which were cut nearly in half before recovering as it addressed a research firm’s report saying it was mulling bankruptcy options.
Bausch’s stock finished Wednesday down 23%, above earlier lows that represented their lowest level in nearly 20 years. After trading in the shares was halted Wednesday afternoon, the pharmaceutical company issued a statement citing a report by Reorg.
Investopedia has not read the report, and Reorg did not respond to a reporter’s request in time for publication.
“The [Reorg] article contains unsubstantiated rumors, including that the company is considering a bankruptcy or insolvency proceeding of any kind — it is not,” the company said. “We understand that Reorg has subsequently issued an update to its original news article to clarify that the company has not been involved in discussions with its creditors regarding bankruptcy proceedings.”
Bausch is scheduled to report second-quarter results before the opening bell on August 1. In the first quarter, the company posted a net loss of $64 million.