Research Desk Line-up: IntelliPharmaCeutics Intl. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 19, 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 Company announced on July 17, 2017, that certain affiliates of the Company have signed an agreement to sell its Obagi Medical Products Inc. ("Obagi"). China's Haitong International Zhonghua Finance Acquisition Fund I, L.P. is acquiring the Obagi Medical Products business for $190 million in an all-cash transaction. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Discover more of our free reports coverage from other companies within the Drug Delivery industry. Pro-TD has currently selected IntelliPharmaCeutics International Inc. (NASDAQ: IPCI) for due-diligence and potential coverage as the Company reported on July 11, 2017, its results of operations for Q2 2017 which ended on May 31, 2017. Tune into our site to register for a free membership, and be among the early birds that get our report on IntelliPharmaCeutics Intl. when we publish it.

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Commenting on the sale, Joseph C. Papa, Chairman and CEO of Valeant, said:

"The sale of Obagi marks additional progress in our efforts to streamline our operations and reduce debt. As we continue to transform Valeant, we will remain focused on the core businesses that will drive high value for our shareholders."

Transaction details

The transaction is expected to close in H2 2017 and is subject to getting requisite regulatory approvals and other closing conditions. Valeant plans to use the funds realized from the divestment to permanently pay off its term loan debt under Senior Secured Credit Facility.

As per the Company's estimates, the divestment of the Obagi Medical Products business will impact revenue and non-GAAP Adjusted EBITDA for FY17 by approximately $85 million and $30 million, respectively.

About the buyer

China's Haitong International Zhonghua Finance Acquisition Fund has industry veterans like China Regenerative Medicine International Limited as its limited partners. China Regenerative Medicine International Limited is a Hong Kong-based investment holding Company principally engaged in the research and development of bio-medical and healthcare products and medical techniques. Its business is divided into four verticals: tissue engineering, cell therapy, cosmetics, and hospital management. It has seven production plants located in mainland China and Hong Kong.

About Obagi Medical Products

Irvine, California based Obagi was founded in 1988. It is a specialty pharmaceutical Company that develops, markets, and sells clinically-proven skin health products and systems primarily for the dermatology, plastic surgery, and related aesthetic markets. It is owned by and is a division of Valeant Pharmaceuticals North America. Obagi's products are designed to improve common and visible skin conditions like premature skin aging, skin damage, hyperpigmentation, acne, and sun damage. Obagi's products are available only through physicians, medical spas, and other skin care professionals.

About Valeant Pharmaceuticals

Valeant is a Canadian multinational, specialty pharmaceutical and medical device Company. It develops, manufactures, and markets a diverse range of products with a focus on branded pharmaceuticals, branded generics, and over-the-counter products. 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.

Why is Valeant selling its businesses?

Valeant has been trying to deal with its mounting debt of approximately $30 billion which was a result of aggressive acquisitions. The Company has also been working on restoring investor confidence in the aftermath of the accounting scandal in 2016.

Joseph Papa took over as Chairman and CEO of the Company in April 2016 and since then has been relentlessly working on both issues. He has taken various steps including the strengthening of the Company's top management team, improving the Company's financials by divesting non-core businesses, and using funds raised from divestitures to pay off debts.

Recently, on July 10, 2017, Valeant had paid off senior secured term loans worth $811 million. In June 2017, it raised $819.9 million from the sale of its stake in Dendreon Pharmaceuticals and used the funds to pay off debts.

From the end of Q1 2016 until early July 2017, Valeant has paid off more than $4.3 billion of its debts.

Last Close Stock Review

On Tuesday, July 18, 2017, the stock closed the trading session at $17.16, falling 1.21% from its previous closing price of $17.37. A total volume of 13.13 million shares has exchanged hands. Valeant Pharma's stock price advanced 35.55% in the last one month, 91.73% in the past three months, and 12.60% in the previous six months. Furthermore, since the start of the year, shares of the Company have gained 18.18%. The stock currently has a market cap of $5.88 billion.

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