2017 may turn out to be great for the company
Published By: Patrick Arruda on January 11, 2017 08:06 am EST
The year 2016 has been a bad one for Valeant Pharmaceuticals Intl Inc. (NYSE:VRX) as its shares lost most of their value. In a move to improve the financial position of the company, CEO Joseph Papa has said that he plans to bring down the debt of the company by $5 billion in the next year and a half. This move is part of efforts taken by the company to make a turnaround this year.
The CEO gave the following statement on CNBC’s Halftime report when elaborating his plans: "A combination of asset sales — additional asset sales of our noncore assets — plus the operation results of our company. It's the combination of both of those that we think will get us that $5 billion over the next 18 months."
The Canada based pharmaceutical company has been accused of fraud which played its part in the stock price to plummet. It has started to sell its non-core assets so that it can reduce the amount of debt. Shares fell as much as 80% last year, making the stock an investor’s nightmare. However, the shares started to rise yesterday after the company closed the deal with L’Oreal to sell off three skin care products for a sum of $1.3 billion.
The CEO further said, "We believe these products will benefit even further from the resources and capabilities of a global beauty company like L'Oréal.” The company will also sell off its Dendreon Pharmaceuticals unit to China Sanpower. This deal will generate a sum of $820 million for the struggling company.
The Canada based company has been under scrutiny for its malpractices when its former executives were charged of fraud and kickback scheme. This resulted in a loss of millions for the company. Valeant Stock rose by 6.84% in the last session following this development. The market price of the shares as per the last close stood at $16.40.