Valeant is plagued with debt, causing some concern among shareholders so any cash infusion would certainly ease concern and be a
Salix is a leader in the gastrointestinal market, which is one of a handful units Valeant operates.
Based on Valeant's
Here is a rundown of the remaining segments, based on their U.S. revenue.
- Dermatology: $208.4 million.
- Consumer: $173.1 million.
- Ophthalmology Rx: $101.7 million.
- Urology/Oncology: $77.5 million.
- Surgical: $60.5 million.
- Contact Lenses: $55.3 million.
- Dental: $44.9 million.
What Could These Be Worth?
Valeant is negotiating from a position of weakness and not strength, so any sale would come at a depressed multiple, at least according to CIBC World Markets' analyst Prakash Gowd, who
Gowd suggested Valeant could receive a multiple of 6x EBITDA on an asset sale, which would value Xifaxan, Valeant's top-selling product for the treatment of irritable-bowel disease at just $3 billion.
The opportunity to collect a quick cash infusion to pay down some debt does not justify the lost earnings and cash flow, the analyst suggested.
Moving on, selling the neuro & other/generics segment is "not a great option since the resulting cash is less, and the de-leveraging opportunity even less impactful."
|Sep 2016||Deutsche Bank||Initiates Coverage on||Hold|
|Aug 2016||Morgan Stanley||Upgrades||Equal-Weight||Overweight|
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