Sector News

More Valeant up for bid: Weighs sale of eye-surgery biz

November 3, 2016
Life sciences

Another day, another Valeant asset sale rumor. Less than 24 hours after word got out that Valeant and Takeda were in Salix deal talks, the embattled drugmaker is said to be exploring a sale of its eye-surgery business, too.

The equipment business–which Valeant acquired when it snapped up Bausch & Lomb three years back–could nab up to $2.5 billion, The Wall Street Journal reports. But the sale process is still in the early stages, meaning there’s no guarantee it’ll happen.

Valeant has been searching for ways to drum up cash as it struggles under an M&A-fueled mountain of debt. New CEO Joseph Papa has touted divestments as a way to do just that, and influential board member Bill Ackman has suggested an all-out Bausch & Lomb IPO could do the trick, too.

The Canadian pharma isn’t interested in giving up the contact lenses, solutions and prescription eye drugs B&L brought over, though, the WSJ’s sources say, and a spokesman told the newspaper that the “Bausch & Lomb franchise and its dedicated team are a critical part of our business.”

When it comes to other pieces of the puzzle, though? Valeant may finally be ready to bid farewell. The company is “in discussions with third parties for various divestitures,” a spokesman told the Journal.

One thing’s now for sure–those divestitures include Salix, the GI drugmaker whose 2015 purchase created much of the company’s current debt burden. And as the WSJ reported Tuesday, Valeant may have a willing buyer in Takeda, which is reportedly weighing a $10 billion deal that includes $8.5 billion in cash.

That cash could come in handy more than ever, thanks to a federal accounting fraud probe into Valeant’s former relationship with now-dead specialty pharmacy Philidor. If the feds act, the company could owe sizeable penalties, not to mention the hefty legal fees required to deal with this and other investigations, as well as lawsuits.

“We strongly suggest investors consider the risks of potential sizable financial penalties and costly legal actions on a company with more than $30 billion of debt that has already sought debt waivers twice,” Wells Fargo analyst David Maris wrote this week in a note to clients.

By Carly Helfand

Source: Fierce Pharma

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach