Valeant Pharmaceuticals to sell iNova for $930m

Valeant Pharmaceuticals has agreed to sell its iNova Pharmaceuticals business to a company jointly owned by funds advised and managed by Pacific Equity Partners and The Carlyle Group for $930m in cash.

Proceeds from the sale, which is expected to close in the second half of the year, will be used to permanently repay term loan debt under Valeant's senior secured credit facility.

Valeant chairman and chief executive Joseph C. Papa said: "The sale of iNova is part of the company's ongoing efforts to both simplify our operating model and strengthen our balance sheet. We will continue to evaluate opportunities that will enable us to deliver on our commitments and unlock value for shareholders."

iNova markets a diversified portfolio of prescription and over-the-counter products in several areas, such as weight management, pain management, cardiology and cough and cold, and operates in more than 15 countries around the world. It holds leading market positions in Australia and South Africa and also has an established platform in Asia

Valeant said it will maintain a strong footprint in these countries primarily through its Bausch + Lomb franchise.

At 1236 BST, Valeant shares were up 5.2% to $12.80 in pre-market trade.