LONDON, UK / ACCESSWIRE / July 12, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Valeant Pharmaceuticals International, Inc. (NYSE: VRX), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=VRX. The specialty pharma Company announced on July 10, 2017, that it has paid off its senior secured term loans worth $811 million. Considering this payoff, the Company has paid off all its mandatory amortization obligations up to FY19. From the end of Q1 2016 till date, Valeant has paid off more than $4.3 billion of its debts. For immediate access to our complimentary reports, including today's coverage, register for free now at:
http://protraderdaily.com/register/
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on VRX. Go directly to your stock of interest and access today's free coverage at:
http://protraderdaily.com/optin/'symbol=VRX
In June 2017, Valeant sold off its stake in Dendreon Pharmaceuticals to Sanpower Group, Co., Ltd for an all-cash deal valued at $819.9 million. The funds from the stake sale were used to pay off the senior secured term loans.
Commenting on the matter, Joseph C. Papa, Chairman and CEO of Valeant said:
"We are continuing to deliver on our commitments as we transform Valeant. With the proceeds from the sale of Dendreon, we have reduced our total debt by an additional $811 million and met all mandatory amortization requirements through 2019."
The decision is part of the Company's commitment to pay off nearly $5 billion of its debts via funds raised from divestitures and have a free cash flow within 18 months from August 2016. Given the steps were already taken by the Company, this seems easily achievable.
Background
In the last couple of years, the Company has been plagued by legal and financial difficulties and has seen major churn in its top management which has led to the Company's shares taking a nose dive.
Valeant had been hit by an accounting scandal which led to the Company's CEO Michael Pearson stepping down from his position in March 2016. In April 2016, Joseph Papa steps in as the Company's new Chairman and CEO and pledges to restore the Company's reputation. The Company was by then burdened with a $30 billion debt due to the various acquisitions done by the Company.
In October 2016, US prosecutors investigated the possibility of a fraud case involving Valeant's former CEO Michael Pearson and former CFO Howard Schiller. In November 2016, Former Valeant executive, Gary Tanner, and former chief executive of Philidor, Andrew Davenport, are arrested and charged for running a fraud-and-kickback scheme. The two executives allegedly misled the Company about Philidor to keep the drug distribution relationship exclusive, generating millions in performance-based payments.
Joseph Papa has been relentlessly working to bring the Company back to its former financial position and gain investor confidence. He has not only taken steps to strengthen the top management team but also refinanced credit facilities and made strategic divestitures to raise funds. In FY17, the Company has already sold its CeraVe, AcneFree, and AMBI Skincare Brands to L'Oreal for $1.3 billion. The sale was announced in January 2017 and completed in March 2017. In June 2017, the Company announced the sale of iNova Pharmaceuticals business for $930 million in cash to affiliates of Pacific Equity Partners and The Carlyle Group. Valeant also completed the stake sale in Dendreon Pharmaceuticals to Sanpower Group in June 2017.
Additionally, in March 2017, Joseph Papa announced the issue of $1.25 billion and $2 billion of senior secured notes due in 2022 and 2024, respectively. These senior secured notes had better credit terms and improved the Company's financial flexibility. He also took on a new term loan of $3 billion which would mature in 2022. The funds raised from the new term loan were used to repay all term loans maturing in 2018, 2019, and 2020. This included paying off its revolving credit facility of $350 million as well as the payment of $1.1 billion of its 6.75% Senior Notes due 2018.
The combination of funds raised from divestitures as well as new credit with better terms will help the Company reduce pressure on credit payments and concentrate on improving its operational and financial performance.
About Valeant Pharmaceuticals
Laval, Quebec, Canada-based Valeant Pharma is a multinational, specialty pharmaceutical, and medical device Company. The Company has three major business verticals - The Bausch + Lomb/International, The Branded Rx, and The US Diversified products. It develops, manufactures and markets a diverse product portfolio with a focus on branded pharmaceuticals, branded generics, and over-the-counter products. It specializes in the fields of dermatology, eye health, gastrointestinal, neurology, and consumer healthcare. The Company has manufacturing sites in Canada, Brazil, Poland, and Mexico, and it has sales presence across North America, Europe and Middle-East, Latin America, and Asia/Pacific. The Company is supported by a team of over 22,000 employees worldwide.
Last Close Stock Review
On Tuesday, July 11, 2017, the stock closed the trading session at $16.57, slightly falling 0.54% from its previous closing price of $16.66. A total volume of 10.17 million shares has exchanged hands. Valeant Pharma's stock price skyrocketed 32.35% in the last one month, 68.22% in the past three months, and 7.95% in the previous six months. Furthermore, since the start of the year, shares of the Company have surged 14.12%. The stock currently has a market cap of $5.83 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
