Select Page

Reuters reported. While Valeant has not decided to sell any major business thus far, the move represents the clearest indication yet that the Canadian drug maker needs to divest assets to bolster its finances. Valeant has turned to investment banks that include Goldman Sachs Group and Centerview Partners Holdings as it reviews strategic options and seeks advice on dealing with its creditors. Both Valeant Chief Executive Officer Michael Pearson and board member William Ackman, who is also the CEO of activist hedge fund Pershing Square, have said that the company was considering selling “noncore assets” to help trim its $30 billion debt pile. Since announcing its openness to asset sales, Valeant has received a flurry of inquiries from interested buyers, according to the sources. One coveted asset is Xifaxin, the largest product in Valeant’s gastrointestinal division, which it acquired last year as part of its $11 billion acquisition of Salix Pharmaceuticals. Other assets that have attracted interest from potential bidders include its aesthetics products, Obagi and Solta, and its skin care product, CeraVe. Valeant has been under pressure to reduce its debt burden after its stock plunged more than 80 percent since August due to increased political criticism of high drug prices and controversy around its relationship with a specialty pharmacy. Ratings agencies S&P and Moody’s have downgraded the company’s credit rating, and lenders have demanded higher coupon payments after the company violated certain debt agreements pertaining to the timing of the filing of its 10-K. Valeant has undergone changes in recent months such as adding several new board seats, including a spot for Ackman, and asking Pearson to step down. A search for a new CEO is under way while Pearson remains in his post, Reuters added. Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter products, and medical devices worldwide. The company offers Solodyn to treat red and pus-filled pimples of acne in patients, as well as Ziana, Acanya, Atralin, Retin- A Micro, and ONEXTON gel; Wellbutrin XL for major depressive disorder in adults; Jublia for onychomycosis of the toenails; Xenazine for chorea; Targretin for Cutaneous T-Cell Lymphoma; Arestin, a subgingival sustained-release antibiotic; and PROVENGE for the treatment of prostate cancer. It also provides Zovirax, an antiviral for recurrent herpes labialis and initial genital herpes; Syprine to treat patients with Wilson’s disease; Elidel to treat atopic dermatitis; Prolensa for inflammation and pain following cataract surgery; Duromine, a weight loss drug; and Lotemax gel for post-operative inflammation and pain. In addition, the company offers PreserVision, an antioxidant eye vitamin and mineral supplement; CeraVe to rebuild and repair the skin barrier; ReNu Multiplus to lubricate and rewet soft contact lenses; Biotrue for healthy contact lens wear; Ocuvite, a lutein eye vitamin and mineral supplement; Boston, a cleansing solution for gas permeable contact lenses; Artelac to treat dry eyes; AntiGrippin for acute respiratory and respiratory viral diseases, and influenza; and Bedoyecta, a vitamin B complex product. Further, it provides SofLens daily disposable contact lenses; PureVision, a contact lens; various ophthalmic surgical products; Biotrue ONEday lens; medical device systems for aesthetic applications; and Bausch + Lomb Ultra, a contact lens. Additionally, the company offers Tobramycin and Dexamethasone ophthalmic suspension for steroid responsive inflammatory ocular conditions; Cardizem CD to treat hypertension and angina; and Latanoprost for the treatment of glaucoma. Valeant was founded in 1983 and is headquartered in Laval, Canada.]]>