Valeant to sell iNova Pharmaceuticals for £930 million

Valeant Pharmaceuticals has agreed sell its iNova Pharmaceuticals business for $930 million in cash.

It will be sold to a company jointly owned by Pacific Equity Partners and The Carlyle Group, and the announcement saw shares in the Canadian drugmaker bounce almost 5% in premarket trading to reach $12.60.

The sale is part of a continuing effort by new CEO Joseph Papa to tackle the company's huge long-term debts, recorded at $28.5 billion in March 2017. The debt had been piled up in an acquisition spree led by former CEO Mike Pearson. It was a spree that saw the company's share price rise as high as $257 in 2015, before nosediving in the wake of controversies over its pricing strategy and an association with a speciality pharmacy.

"The sale of iNova is part of the company's ongoing efforts to both simplify our operating model and strengthen our balance sheet," said Papa in a statement.

"We will continue to evaluate opportunities that will enable us to deliver on our commitments and unlock value for shareholders."

iNova markets a range of prescription and over-the-counter products in more than 15 countries, including weight management, pain management, cardiology and cough and cold.

Valeant will maintain a presence in these countries primarily through its Bausch + Lomb contact-lens brand, the company says, although it is reportedly considering the sale of part of this business, too.