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Valeant to trim debt pile with $930 million iNova sale

Staff Writer | June 8, 2017
Valeant Pharmaceuticals International said on Thursday it would sell its iNova Pharmaceuticals business for $930 million, as chief executive Joseph Papa steps up efforts to slash the embattled Canadian drugmaker's enormous debt pile.
Acquisition   Papa has narrowed its focus to its dermatology
Papa has narrowed Valeant's focus to its dermatology, eye care and gastrointestinal businesses by pruning other assets to repay its debt, which ballooned to nearly $30 billion following a furious spate of deal-making under former CEO Mike Pearson.

"It's not my goal to get the debt to zero," Papa said in an interview. "The right place for our debt is somewhere... in the range of $15 billion to $20 billion."

In August, Valeant had pledged to cut debt by $5 billion by February next year through divestments and operational performance. Papa said on Thursday Valeant was well on pace to meet that target.

Pearson's acquisition spree sent Valeant's shares from around $20 to a high of over $250 in 2015, before the stock went into a tailspin as Valeant's drug pricing strategy and ties to a specialty pharmacy came under increased political and regulatory scrutiny.