Valeant Pharmaceuticals International Inc. (NYSE: VRX) agreed to sell three skin care brands and its Dendreon cancer business for about $2.1 billion, a move that will help the company ease its debt burden.
The drugmaker said Tuesday it will sell its three skin-care brands--CerAve, AcneFree and Ambi—to the Paris-based cosmetic giant L’Oreal SA for $1.3 billion. While Chinese conglomerate Sanpower Group Co. will pay Valeant about $820 million for its Dendreon Pharmaceuticals unit.
Valeant’s shares jump 7.23 percent to $16.47 in the early trading in New York. The stock has lost nearly 90 percent of its market since early August 2015.
These deals show the company’s efforts to pay down about $30 billion in Debt.
The deal with Sanpwoer will be closed in the first half of this year, while the L’Oreal deal will be closed in the first quarter, according to a statement Tuesday.
"With this sale, we are better aligning our product portfolio with Valeant's new operating strategy by exiting the urological oncology business, which is one of our non-core assets," Valeant Chief Executive Joseph Papa said in a statement on Monday.