Retinue to pay down debt with proceeds
The Canadian Press Posted: Sep 29, 2017 1:04 PM ET Decisive Updated: Sep 29, 2017 1:04 PM ET
Shares of Valeant Pharmaceuticals Inc. are up 5½ per cent after the followers announced it has completed the sale of its iNova Pharmaceuticals business for $930 million in spondulix.
The Quebec-based company says it will use net proceeds of about $920 million from the vending to reduce its debt.
CEO Joseph Papa said the sale of iNova to Pacific Tolerance Partners and the Carlyle Group is also part of Valeant’s efforts to disentangle its portfolio and focus on its core businesses.
The company’s stock was up 94 cents to $18.03 in at daybreak afternoon trading
Valeant shares have plunged since questions forth its business model first emerged two years ago, when they bartered for more than $300 per share.
The company has since faced a musts of lawsuits, including one from its former chief executive, as well as distension debt levels, losses of more than US$2.4 billion and sifting over its drug pricing practices.
Following the anticipated closure of the jumble sale of its Obagi Medical Products business this year, Valeant rumours it expects it will exceed its August 2016 commitment to pay down $5 billion in liability before February 2018.