Valeant Chief Executive
Officer has revealed that the company is set to sell billions of dollars of
non-core assets and could accept offers for its main businesses, as the drug company
is working to restore investor trust after a year of bad news.
Valeant's U.S. shares rose
more than 25 percent, touching a two-month high, after the company outlined its
reorganization and sell-off plan, and also confirmed full-year forecasts. Even
so, the stock is down nearly 90 percent from a year ago.
Last fall, political
concerns about Valeant's sharp drug price increases and investor scrutiny of
its dealings with pharmacy Philidor RX dragged down Valeant's shares. Congress
and several U.S. government agencies also opened investigations and the company
restated earnings earlier this year.
Since then, its largest
investor and board member, activist Bill Ackman, has been leading a drive to
try to stabilize the company. New Chief Executive Joe Papa joined in May,
replacing long time CEO Mike Pearson.
Papa announced a few small
sales on Tuesday, and said Valeant was eyeing $8 billion worth of sales for
non-core assets. He added in an interview that he may go further, after
receiving unsolicited interest in core businesses as well.
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