Though the talks could still be revived, Valeant is now focused on building the business, Salix Pharmaceuticals, rather than selling it, the people said.
The development represents another setback for a company that has been plagued by an accounting scandal, the departure of its top executives and a plummeting share price. As of Tuesday’s close, Valeant shares had fallen 80% in the past year.
Valeant is now moving ahead with plans to build the sales force for Salix’s crown jewel, the irritable-bowel drug Xifaxan. Valeant announced the “significant” expansion in a news release Tuesday.
Valeant’s shares, which had already been sagging after Tuesday’s announcement, fell further after The Wall Street Journal reported on the...