Corporate News Blog – Valeant Agrees to Sell iNova Pharma; Set to Use Sale Proceeds to Repay Term Loan Debt

LONDON, UK / ACCESSWIRE / October 2, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (“Valeant”), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=VRX. The Company announced on September 29, 2017, that it has completed the sale of its iNova Pharmaceuticals business to a Company jointly owned by funds advised and managed by Pacific Equity Partners and The Carlyle Group. The net proceeds from the transaction are expected to be $930 million, out of which Valeant intends to use about $920 million to repay a term loan debt under its Senior Credit Facility. Valeant is a leading pharmaceuticals Company that manufactures and markets a broad range of products in the areas of dermatology, gastrointestinal disorders, eye health, neurology, and branded generics. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

http://protraderdaily.com/register/

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on VRX and CG. Go directly to your stock of interest and access today’s free coverage at:

http://protraderdaily.com/optin/?symbol=VRX

http://protraderdaily.com/optin/?symbol=CG

The Announcement

Valeant views this agreement as the next milestone in its efforts to reduce debt and simplify its portfolio. The Company expects its core business segments to drive growth and believes it can make the biggest impact on the lives of patients through unified offerings. Also, the Company is utilizing cash from operations to repay $100 million of amounts outstanding under its revolving credit facility. Valeant stated that by focusing on key business segments, it plans to deliver high value for its shareholders.

Post the closure of the sale of the Obagi Medical Products business, which remains on track to close in 2017, Valeant expects that it will exceed its August 2016 commitment to pay down $5 billion in debt from divestiture proceeds and free cash flow before February 2018. The Company estimates that the expected revenue and adjusted EBITDA from the iNova Pharmaceuticals business in Q4 2017 would have been about $65 million and $35 million, respectively.

A Unified Portfolio

In an attempt to pay down its debt and unify the business offerings, Valeant announced the sale of Obagi Medical Products business on July 17, 2017, for $190 million in cash to Haitong International Zhonghua Acquisition Fund I, L.P. Obagi Medical Products is a global specialty pharmaceutical Company founded in 1988. The Company’s products are designed to help minimize the appearance of premature skin aging, skin damage, hyperpigmentation, acne, and sun damage, and are currently available through dermatologists, plastic surgeons, medical spas, and other skin care professionals. Valeant announced that it would use the net proceeds from the sale to permanently repay a term loan debt under its Senior Secured Credit Facility, where the transaction was expected to close in Q2 2017.

Prior to the announcement, on June 29, 2017, Valeant announced the sale of all the outstanding equity interests in its former subsidiary, Dendreon Pharmaceuticals LLC, to Sanpower Group, Co., Ltd for $819.9 million in cash. The Company estimated that the expected revenue and adjusted EBITDA (non-GAAP) from the Dendreon Pharmaceuticals business in Q2 2017 would be $170 million and $65 million, respectively. The proceeds from this sale were announced to also be used to pay down the $5 billion of debt.

Last Close Stock Review

On Friday, September 29, 2017, the stock closed the trading session at $14.33, rising 4.14% from its previous closing price of $13.76. A total volume of 14.26 million shares have exchanged hands, which was higher than the 3-month average volume of 13.39 million shares. Valeant Pharma’s stock price surged 8.64% in the last one month and 29.92% in the past six months. The stock currently has a market cap of $5.02 billion.

At the closing bell, on Friday, September 29, 2017, Carlyle Group’s stock marginally climbed 0.85%, ending the trading session at $23.60. A total volume of 578.47 thousand shares have exchanged hands. The Company’s stock price skyrocketed 21.97% in the last three months, 51.03% in the past six months, and 58.17% in the previous twelve months. Moreover, the stock soared 57.96% since the start of the year. The stock is trading at a PE ratio of 16.93 and has a dividend yield of 5.00%. The stock currently has a market cap of $7.79 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

ReleaseID: 476780