Bausch buy of Synergy ‘inconsequential financial deal,’ says Wells Fargo

After Bausch Health (BHC) announced plans to acquire certain assets of Synergy Pharmaceuticals (SGYP), which makes irritable bowel syndrome drug Trulance, Wells Fargo analyst David Maris called the acquisition “an inconsequential financial deal that points to a bigger picture of [Bausch] returning to its cost-cutting deal roots and a potential lack of confidence in growth of the core business.” He views the $700M of added market value for Bausch in return for a $200M deal as unjustified and probably reflective of short-covering, Maris added. He maintains an Underperform rating and $9 price target on Bausch Health shares.

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