Bausch Health Companies Inc. (BHC): Billionaire Howard Marks Likes This Pharma Stock

We just covered the Billionaire Howard Marks’ 10 Stock Picks with Huge Upside Potential and Bausch Health Companies Inc. (NYSE:BHC) ranks 1st on this list.

Bausch Health Companies Inc. (NYSE:BHC) has been a consistent feature in the 13F portfolio of Oaktree Capital Management since the third quarter of 2023. Back then, this position comprised 1.3 million shares. The fund has not made major additions or subtractions to this stake since then, Filings for the fourth quarter of 2025 show that the fund owned 1.27 million shares in the company. Bausch operates as a diversified specialty pharmaceutical and medical device company. It develops, manufactures, and markets products primarily in the therapeutic areas of gastroenterology, hepatology, neurology and dermatology.

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Bausch Health Companies Inc. (NYSE:BHC) is being rewarded for an aggressive de-leveraging strategy. Over the last few years, it has paid down more than $8 billion in debt through non-core asset divestitures and cash flow from operations. Despite legal headwinds, the company generated roughly $780 million in Free Cash Flow (FCF) over the trailing twelve months, providing the fuel needed to manage remaining debt load without extreme dilution. For 2026, management has provided a revenue range of $5.25 billion and $5.4 billion, suggesting stable organic growth. The aesthetics business, named Solta, continues to be a high-margin hidden gem within the portfolio, with recent launches like the Clear + Brilliant Touch laser in Canada keeping growth momentum alive.

While we acknowledge the risk and potential of BHC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BHC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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