Bausch Health Provides Update on RED-C Phase 3 Clinical Trials

Rhea-AI Summary

Bausch Health (NYSE:BHC) announced results from the global Phase 3 RED-C program studying amorphous-rifaximin SSD for primary prevention of hepatic encephalopathy in adults with liver cirrhosis on Jan 23, 2026.

The trials were safe and well-tolerated but did not meet the primary endpoint. Management said it is reviewing the full dataset to determine potential new development opportunities and thanked patients, investigators, and research teams. Bausch Health reaffirmed its commitment to hepatology and other therapeutic areas.

Positive

• Phase 3 programs reported safe and well-tolerated safety profile
• Company is reviewing full dataset for potential development options

Negative

• Both RED-C Phase 3 trials failed to meet the primary endpoint
• No approved treatment exists for this patient population noted by management

News Market Reaction

-10.05%

3 alerts

-10.05% News Effect

-7.3% Trough Tracked

-$272M Valuation Impact

$2.44B Market Cap

4K Volume

On the day this news was published, BHC declined 10.05%, reflecting a significant negative market reaction. Argus tracked a trough of -7.3% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $272M from the company's valuation, bringing the market cap to $2.44B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Trial phase: Phase 3

1 metrics

Trial phase Phase 3 RED-C program in adults with liver cirrhosis for HE prevention

Market Reality Check

Price: $5.74 Vol: Volume 1,914,870 vs 20-da...

normal vol

$5.74 Last Close

Volume Volume 1,914,870 vs 20-day average 2,020,081 (relative volume 0.95). normal

Technical Price 6.57, trading above 200-day MA at 6.28, but 24.35% below 52-week high.

Peers on Argus

Peers show mixed moves: some up (e.g., ALVO +1.37%, INDV +1.79%), others down (e...

Peers show mixed moves: some up (e.g., ALVO +1.37%, INDV +1.79%), others down (e.g., HCM -1.91%, SUPN -1.17%, AMRX -1.24%), suggesting stock-specific impact from this trial update.

Previous Clinical trial Reports

1 past event · Latest: Aug 21 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Aug 21	Clinical/commercial update	Positive	-1.1%	Expanded public-plan access for CABTREO acne treatment in multiple Canadian regions.

Pattern Detected

Limited clinical-trial-tag history: a prior positive access/coverage update saw a modest negative price reaction, indicating potential divergence between clinical news tone and short-term trading.

Recent Company History

This announcement reports that the global Phase 3 RED-C program in liver cirrhosis patients for prevention of hepatic encephalopathy did not meet its primary endpoint, despite a favorable safety profile. Historically, tagged clinical news for Bausch Health includes an August 2025 update on expanded access to CABTREO, the first triple-combination acne treatment, where shares moved about -1.06%. That prior event was operationally positive but saw a negative reaction, underscoring that trading has not always tracked the apparent news quality.

Historical Comparison

clinical trial

+1.1 %

Average Historical Move

Historical Analysis

Past clinical-tag news for BHC showed modest single-day moves (~1.06%) even on positive updates, suggesting typically muted trading around clinical milestones.

Typical Pattern

Clinical-tag history shows movement from commercial access expansion for CABTREO in 2025 to a later Phase 3 RED-C outcome in hepatology, highlighting diversification across therapeutic areas and mixed clinical risk outcomes.

Market Pulse Summary

The stock dropped -10.1% in the session following this news. A negative reaction despite management ...

Analysis

The stock dropped -10.1% in the session following this news. A negative reaction despite management emphasizing safety and tolerability would fit the material nature of a Phase 3 failure. The RED-C program’s inability to meet its primary endpoint in hepatic encephalopathy prevention removes a potential future asset, which can weigh on sentiment. Past clinical-tag news showed modest moves (~1.06%) even on positive updates, so a sharper decline would represent a more severe repricing of pipeline expectations than seen previously.

Key Terms

phase 3, liver cirrhosis, hepatic encephalopathy

3 terms

phase 3 medical

"announced the results of the global Phase 3 RED-C clinical program evaluating"

Phase 3 is the late-stage clinical testing step for a new drug or medical treatment, where the product is given to large groups of patients to confirm effectiveness, monitor side effects, and compare it to standard care. Successful Phase 3 results are often the final scientific hurdle before regulators decide on approval and market launch—like passing a final exam before graduation—and can sharply change a company's valuation and future revenue prospects.

liver cirrhosis medical

"SSD) in adults with liver cirrhosis for the primary prevention of hepatic"

Progressive scarring of the liver that reduces its ability to filter toxins, make important proteins, store energy, and aid blood clotting; it results from long-term liver damage and can lead to serious illness. Investors care because cirrhosis creates steady demand for medical treatments, diagnostics and care services, influences regulatory attention and trial design, and can reshape a company’s potential market — like a factory’s worn-out filter that drives spending on repairs and replacements.

hepatic encephalopathy medical

"for the primary prevention of hepatic encephalopathy (HE). While safe and"

A decline in brain function caused when a failing liver can no longer remove toxins from the blood, allowing substances such as ammonia to build up and interfere with thinking, coordination and alertness. Think of the liver as the body’s filter: when it clogs, toxic “smog” reaches the brain and causes confusion, sleepiness or coma. Investors watch this condition because its prevalence, available treatments, clinical-trial outcomes and regulatory decisions can materially affect the market value and prospects of healthcare companies and drug developers.

AI-generated analysis. Not financial advice.

LAVAL, QC, Jan. 23, 2026 /PRNewswire/ -- Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC), today announced the results of the global Phase 3 RED-C clinical program evaluating amorphous-rifaximin solid soluble dispersion (SSD) in adults with liver cirrhosis for the primary prevention of hepatic encephalopathy (HE). While safe and well-tolerated, both clinical trials did not meet the primary endpoint.

"We are disappointed in the results, as there is currently no approved treatment for these patients. We are currently reviewing the full dataset to determine potential new development opportunities," said Thomas J. Appio, Chief Executive Officer, Bausch Health. "We want to thank the patients, families, investigators, and research teams whose participation made this important clinical research possible."

Bausch Health remains committed to bringing new treatments to patients across hepatology and other therapeutic areas.

About the RED-C Program
The RED-C program consists of two global, randomized, double-blind, placebo-controlled Phase 3 trials involving more than 1,000 patients across 398 sites in 17 countries. The clinical trials evaluated rifaximin SSD for the delay of the first episode of hepatic encephalopathy (HE) in adults with liver cirrhosis who had no prior HE episodes.

About Cirrhosis
Cirrhosis is a major cause of end-stage liver disease in the US. Based on October 25, 2024, data from the Centers for Disease Control and Prevention, chronic liver disease and cirrhosis rank ninth as a cause of death. In a patient with cirrhosis, progression is characterized by the development of hepatic encephalopathy (HE), jaundice, clinically significant ascites, or variceal hemorrhage.

About Bausch Health
Bausch Health Companies Inc. (NYSE:BHC)(TSX:BHC), is a global, diversified pharmaceutical company enriching lives through our relentless drive to deliver better health care outcomes. We develop, manufacture and market a range of products primarily in gastroenterology, hepatology, neuroscience, dermatology, dentistry, aesthetics, international pharmaceuticals and eye health, through our controlling interest in Bausch + Lomb Corporation. Our ambition is to be a globally integrated healthcare company, trusted and valued by patients, HCPs, employees and investors. For more information about Bausch Health, visit www.bauschhealth.com and connect with us on LinkedIn.

Forward-looking Statements
This news release may contain forward-looking statements within the meaning of applicable securities laws, including the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.  Forward-looking statements may generally be identified by the use of the words "will," "anticipates," "hopes," "expects," "intends," "plans," "should," "could," "would," "may," "believes," "subject to" and variations or similar expressions. These statements are neither historical facts nor assurances of future performance, are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Actual results are subject to other risks and uncertainties that relate more broadly to Bausch Health's overall business, including those more fully described in Bausch Health's most recent annual and quarterly reports and detailed from time to time in Bausch Health's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference.  Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update any of these forward-looking statements to reflect events, information or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

BHC-PRODUCTS

Investor Contact:	Media Contact:
Garen Sarafian	Katie Savastano
ir@bauschhealth.com	corporate.communications@bauschhealth.com
(877) 281-6642 (toll free)	(908) 569-3692

 

 

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SOURCE Bausch Health Companies Inc.

FAQ

What did Bausch Health (BHC) announce about the RED-C Phase 3 trials on January 23, 2026?

Bausch Health announced that both global RED-C Phase 3 trials of amorphous-rifaximin SSD were safe and well-tolerated but did not meet the primary endpoint.

Did the RED-C Phase 3 trials for amorphous-rifaximin SSD show safety concerns for BHC?

No; the company reported the trials were safe and well-tolerated.

What is Bausch Health's next step after the RED-C Phase 3 results (BHC)?

The company said it is reviewing the full dataset to determine potential new development opportunities.

Do the RED-C Phase 3 results mean there is an approved treatment for primary prevention of hepatic encephalopathy?

No; management noted there is currently no approved treatment for these patients.

When did Bausch Health provide the RED-C Phase 3 update for BHC?

The update was provided on January 23, 2026.