Bausch Health Chariman and CEO Joseph C. Papa said Wednesday that he isn't too concerned about the future of the pharmaceutical industry despite pledges from Congress to lower the cost of prescription drugs.
Pharmaceuticals are "the most cost effective way" to treat and improve health care, Papa said in an interview with CNBC's Jim Cramer on "Mad Money." "I absolutely know there will be some noise along the way."
High prescription drug costs have become a rare bipartisan issue, with lawmakers on both sides of the aisle demanding changes. Democrats are jockeying to prove they can lead reform. President Donald Trump has made lowering prices one of the key issues of his administration, as health care remains a top issue for voters in the 2020 elections.
Talks of reform have spooked health-care investors this year.
The Health Care Select Sector SPDR Fund, an ETF that tracks the health-care industry's biggest companies, has risen by just 4.14% year to date as of Wednesday's close, significantly lagging the broader market indexes. The S&P 500 has risen 15% over that same time period.
Papa joined Cramer after the company, formerly known as Valeant Pharmaceuticals, reported mixed second quarter financial results Tuesday.
The company posted an earnings miss, while revenues rose by 1%. The Bausch & Lomb International business reported revenues of $1.2 billion during the second quarter, accounting for approximately 56% of the company's total revenue.
In April, Bausch Health said its dermatology business, Ortho Dermatologics, received FDA approval for its DUOBRII lotion to treat plaque psoriasis. The drugmaker conducted two clinical trials, with 36% of patients in the first study and 45% in the second study seeing their skin clear up.
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