Valeant Drops after the Deal with Takeda Broke Down

Valeant Pharmaceuticals International, Inc. (NYSE:VRX) has decided to keep its stomach-drug unit in house after talks to sell Salix to Japan’s Takeda Pharmaceutical Co. broke down. Earlier this month, Valeant was reported in talk with Japanese drug maker Takeda to sell Salix Pharmaceuticals for about $10 billion. The rumor sent Valeant’s stock up 34 percent. The discussions broke down due to the last-minute disagreements over price, according to people familiar with the matter. Dow Jones first reported the news.

Valeant on Tuesday said in a news release that it would build the sales force for two Salix products, the irritable-bowel drug Xifaxan and constipation treatment Relistor. Valeant shares dropped 8 percent to $15.79 in Wednesday.

Valeant bought Salix for $11.1 billion in 2015. After that, the company has been suffered from regulatory investigations about its high prices and accounting issues. The stock has lost more than 90 percent of its value since its peak in August 2015.

The failure to sell Salix make the company under pressure again. The company now has about $30 billion in debt and it has expected the sale would help pay off about $12 billion debt.

Leave a Comment