Valeant to sell iNova Pharmaceuticals for £930 million

By Romily Broad
Valeant Pharmaceuticals has agreed sell its iNova Pharmaceuticals business for $930 million in cash. It will be sold to a company jointly owned by Paci...

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.

Share

Featured Articles

Honeywell comments on post-pandemic air quality challenges

Honeywell’s Sarah James calls for air sensors to ensure good air quality & Stefano D’Agostino explores how technology can help improve indoor air quality

Oracle's generative AI prioritises patient healthcare

Oracle's vision for better healthcare focuses on improving medical professionals quality time with patients, with Oracle Clinical Digital Assistant

2San's new app provides vital diagnostic product insights

2San’s leap forward in self diagnostics will bring ‘Better Care, Better Life’ to all, in a new step for 2San’s post-COVID-19 healthcare technology

Cylera’s Richard Staynings on healthcare cybersecurity

Technology & AI

Amazon Prime & One Medical to revolutionise healthcare

Digital Healthcare

Creating robust pharma supply chains with delivery devices

Medical Devices & Pharma