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All of Valeant ex Bausch & Lomb for sale at right price: Odeon

June 15, 2017

Odeon Capital hosted Valeant Pharma (NYSE: VRX) CFO Paul Herenden yesterday and came away with the following takeaways:

  • While B+L is the core business, everything is for sale at the right price.
  • Management is highly focused on debt reduction. Prior comments from management have targeted optimum total debt of $15B-$20B, but it seems realistic number is in the $20 range.
  • How do they get there? Asset sales and operating cash flow.
  • Equity/equity linked securities are definitely a consideration for debt reduction, but not at $12-$13/share.
  • The Dendreon sale to a Chinese acquirer is still slated to close mid year. Financing is not an issue.
  • The recently announced sale of iNova Pharmaceuticals is primarily Valeant’s Australian assets (sales are global) and does not include any B+L business lines. I believe timing for close is 2H17 and there are limited tax implications.
  • All asset sale proceeds are to reduce debt.


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