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Valeant Pharmaceuticals in possible Salix sale

Wednesday, November 2, 2016 8:29
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Shares in Valeant Pharmaceuticals International Inc (NYSE:VRX) lost almost 9% in New York having surged late Tuesday after it emerged it was mulling a possible sale of Salix – its stomach drug arm.

Reports said the group was in talks with Japan’s Takeda Pharmaceutical Co over the sale of the drug franchise for US$10bn.

The purchase price would include around $8.5 billion in cash and future royalty payments to Valeant, said sources apparently familiar with the matter.

Sources added the caveat, as is oft the way in these cases, that there was no guarantee a deal would be struck.

Valeant said in a statement on Tuesday: “We are currently in discussions with third parties for various divestitures including but not limited to Salix.

“The discussions may or may not lead to a definitive agreement.

“Valeant does not intend to comment further on market speculation or disclose any developments unless and until it otherwise deems further disclosure is appropriate or required.”

Valeant shares have been uninspired in recent months and plunged from highs earlier in the year as traders fret over its debt position and its acquisition -led growth trajectory.

It has  reportedly been working with banks to now explore asset sales, of which Salix could be one.

If the Salix deal comes off, it could largely pay back its  lenders, according to reports.

Valeant shares tumbled 8.21% to US$ 21.90.

Story by ProactiveInvestors


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