Material Cashflows At-Risk: A U.S. District court invalidated the patents regarding U.S. patents protecting the composition and use of XIFAXAN for the treatment of IBS-D. The court also held that U.S. patents protecting the composition and use of XIFAXAN for the treatment of hepatic encephalopathy (HE) recurrence are valid. BHC will appeal the court's anticipated final order, and the FDA may require an in vivo bioequivalency study before approving generic version of XIFAXAN. As such, a generic entrant for the IBS-D indication may be delayed for a time. Nevertheless, the order places revenues and profitability of XIFAXAN at risk, earlier than expected in 2028. If Bausch Health proceeds with the separation of BLCO, the XIFAXAN patent risk is amplified. 'CCC' IDRs Reflect Potential Operating/Financial Stress: The possibility of losing a significant portion of its profitable product, XIFAXAN, poses significant headwinds to the company's operating and financial performance.