Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is looking forward to receive about US$930 million in cash for its iNova unit. The top company is selling it out to some two fund managers which some years back used to be its rival bidders for the prescription and over-the-counter drug business.
The buyers are funds managed by The Carlyle Group and the Pacific Equity Partners. These two have revealed that they will soon be channeling more resources towards growing Nova Pharmaceuticals.
Over the years, iNova has been marketing a variety of products for pain management, weight management, cardiology as well as for the treatment of coughs and colds. David Bluff, the Carlyle Group managing director while recently speaking to a number of top news reporters said, “We are very pleased to have finalized an agreement to acquire iNova. This is a strong company with great products with growth opportunities particularly in new markets.”
Managing director of Pacific Equity Partners, David Brown, in a recent board meeting outlined that had intentions to invest in geographical expansion, product development, staff, marketing and potential acquisitions of additional brands.
In a joint statement with Carlyle Group, Brown said that they were at the moment partnering with Valeant and the relevant regulatory authorities and that they soon hoped to close the transaction. That will most probably be in the second half of 2017.
According to Yahoo.com, Valeant feels pressured and is willing to do all within its means to repay the debt. According to the company’s insiders, the top provider might resort to the sale of iNova to repay debt.
While addressing a press conference recently, one of the top executives working with the company said that the sale of iNova was part of the provider’s ongoing efforts to both strengthen its balance sheet as well as simplify its operating model. He added that they were not going to let anything stand between them and success.
They were going to proceed with the evaluation of opportunities and soon they hoped to deliver to all their commitments. Unlocking value for shareholders sticks out as one of the top priorities for the giant provider. However, none of the companies outlined how the iNova deal was going to be split between the two buyers.