Valeant shares soar after sale of its iNova Business

Discussion in 'Valeant Pharmaceuticals' started by RobertPhillips900, Sep 29, 2017 at 2:36 PM.

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  1. #1 RobertPhillips900, Sep 29, 2017 at 2:36 PM
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    Valeant completed the sale of its iNova Pharmaceuticals business for $930MM in cash. The pharma company intends to use the net proceeds from the sale to repay term loan debt under its Senior Credit Facility. http://alph.st/bf137c6c
     
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  2. #2 anonymous, Sep 29, 2017 at 6:59 PM
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    Shit, I thought they would use it on R&D
     
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  3. #3 anonymous, Sep 29, 2017 at 7:32 PM
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    LOL. Agree that they should build up their pipeline for future growth since they ain't going to grow by acquisition anymore.

    IMHO, they're going to give everyone on the executive team a chunk of the proceeds for a job well done.

    Selling iNova also sold off that revenue stream, no real dent to the debt covenant ratios. Debt due in 2020 will need to be refinanced in 2019 at higher rates, so interest expense will not go down.
     
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  4. #4 anonymous, Sep 29, 2017 at 7:54 PM
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    I wouldn't say soar, Phillip Morris.
     
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  5. #5 anonymous, Sep 30, 2017 at 12:53 AM
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    He means sour.
     
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