5 Best Mid-Cap Healthcare Stocks To Buy Now

4. Bausch Health Companies Inc. (NYSE:BHC)

Number of Hedge Fund Holders: 41

Bausch Health Companies Inc. (NYSE:BHC) is involved in the development, production, and commercialization of a variety of pharmaceutical, medical device, and over-the-counter products, with a primary focus on the areas of eye health, gastroenterology, and dermatology. In the fourth quarter of 2022, Bausch Health Companies Inc. (NYSE:BHC)’s revenue of $2.2 billion outperformed Wall Street estimates by $60 million. It is one of the best healthcare stocks to invest in. 

In mid-November last year, Evercore ISI analyst Umer Raffat said the FDA has released new guidance for generic Xifaxan that is specifically tailored to the product. The “key change” in this guidance is that the waiver for in vivo testing for the 550 mg strength based on 200 mg testing is no longer granted. This means that generics will have to jump through an additional hurdle, according to Raffat, who noted that the 550 mg dose is the most important as it represents 99% of Xifaxan’s volume. The analyst assigned Bausch Health Companies Inc. (NYSE:BHC)’s stock an In Line rating.

According to Insider Monkey’s fourth quarter database, 41 hedge funds were bullish on Bausch Health Companies Inc. (NYSE:BHC), compared to 44 funds in the last quarter. John Paulson’s Paulson & Co is the biggest stakeholder of the company, with 26.4 million shares worth $166 million. 

Here is what Miller Value Partners Opportunity Trust Fund has to say about Bausch Health Companies Inc. (NYSE:BHC) in its Q2 2022 investor letter:

“Bausch Health Companies Inc. (NYSE:BHC) declined during the quarter as the company consummated its Bausch+Lomb IPO at valuations far below expectations, reported disappointing Q1 2022 results, and delayed its plan to spin out its Solta (aesthetics) business due to difficult market conditions. While the company spun off 10% of Bausch+Lomb (BCLO) they retained 90% of the company which they intend to distribute once they have met their target leverage ratio of 6.5-6.7x. The future spin-off value of the Bausch+Lomb piece represents a value of $12.55 per share, 39% above where Bausch Health is currently trading. The company recently appointed John Paulsen as Chair of the Board, which should accelerate value realization.”