Billionaire John Paulson’s 10 Stocks with Huge Upside Potential

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

Paulson & Co.’s Stake: $213.10 million

Number of Hedge Fund Holders: 36

Average Upside Potential as of May 2: 60.38%

Bausch Health Companies Inc. (NYSE:BHC) is a diversified specialty pharmaceutical and medical device company. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, generic pharmaceuticals, over-the-counter products, aesthetic medical devices, and eye health.

The company’s Salix Pharmaceuticals segment is known for driving revenue through its gastrointestinal products, most notably the drug Xifaxan. In Q1 2025, Salix reported a revenue of $542 million, which was a 9% increase year-over-year. Xifaxan itself saw an 8% growth, where total retail scripts increased by 1.5%, and new patient starts on Xifaxan showed both year-over-year and quarter-over-quarter growth. Over 59,000 new patients initiated on the therapy in Q1 2025.

Bausch Health Companies Inc.’s (NYSE:BHC) RED-C program is also progressing with Phase 3 global studies fully enrolled. It’s studying a novel rifaximin formulation for patients with cirrhosis before their first decompensation event. This patient population in the US is estimated to be at least 3x larger than the current hepatic encephalopathy market served by Xifaxan. Initial data readout from the RED-C program is expected by early 2026.