Valeant to divest iNova Pharmaceuticals for $930m

A company jointly owned by funds advised and managed by Pacific Equity Partners and The Carlyle Group will acquire the business from Valeant.

iNova is engaged in the development and marketing a range of over-the-counter (OTC) and prescription medicines in the Australasia, Asia-Pacific, South Africa, the Americas and other international markets.

The firm’s prescription and OTC products can be used in various applications, including weight management, pain management, cardiology, cough and cold.

With operations in around 15 countries, iNova has a good market share in Australia and South Africa, as well as an established platform in Asia.

Through Bausch + Lomb franchise, Valeant will maintain its operations in these countries.

Valeant intends to use proceeds from the deal to permanently repay term loan debt under its senior secured credit facility.

Subject to customary closing conditions, the deal is expected to complete in the second half of this year.

Valeant chairman and CEO Joseph Papa said: "The sale of iNova is part of the company's ongoing efforts to both simplify our operating model and strengthen our balance sheet.

"We will continue to evaluate opportunities that will enable us to deliver on our commitments and unlock value for shareholders."

In 2011, Valeant acquired iNova Pharmaceuticals for $623.39m. The deal also included an additional $74.8m in potential milestones.

Valeant is engaged in the development and marketing of various pharmaceutical products in different areas, including dermatology, gastrointestinal disorders, eye health, neurology and branded generics.

Image: iNova develops and markets a range of OTC and prescription medicines. Photo: courtesy of jk1991 / FreeDigitalPhotos.net.