It’s been more than a year since analysts first said Valeant could sell off its Obagi Medical Products business to raise cash, but the Canadian drugmaker has finally found a taker.
The investment fund has agreed to invest more than $ 190 million to develop business in the field of dermatology. The company will use this money to pay the entire amount of debt, which worries investors and systematically reduces the value of shares over the past few months.
“The sale of Obagi marks additional progress in our efforts to streamline our operations and reduce debt,” Valeant CEO Joseph Papa claimed in a statement announcing the sale to Haitong International Zhonghua Finance Acquisition Fund I.
Nevertheless, Valeant did not rely on a delay in repaying the debt. Last week, representatives of the company said that Valeant will reimburse $ 500 million, thereby reducing the debt to $ 4.8 billion.
Debt is by no means the only Valeant problem. The company has suffered under struggling sales, a slew of investigations and price-hike pushback in addition to concerns about debt repayment.