Valeant Pharmaceuticals International, Inc. announced that its affiliate has completed the sale of all of the outstanding equity interests in its former subsidiary Dendreon Pharmaceuticals LLC to the Sanpower Group, Co., Ltd. , for $819.9 million in cash.
Valeant will use net proceeds from the sale to permanently repay term loan debt under its Senior Credit Facility.
With the closing of this transaction, the Company reiterates its expectation to pay down $5 billion in debt from divestiture proceeds and free cash flow within 18 months of August 2016.
"We continue to deliver on our commitments to reduce debt and simplify our portfolio, while focusing resources on our core businesses," said Joseph C. Papa, chairman and CEO, Valeant. "The proceeds from this sale along with the recently announced sale of the iNova business move us closer to paying down $5 billion of debt from divestitures and free cash flow, and we are confident we will meet and potentially exceed this commitment."
The Company estimates that the expected revenue and Adjusted EBITDA (non-GAAP) from the Dendreon business in the second half of 2017 would have been approximately $170 million and $65 million, respectively.
Established in 1993, the Sanpower Group has become one of the largest, private conglomerates in China. Headquartered in Nanjing, it offers a global platform for its three primary sectors: Healthcare, Retail and Financial Services.
Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics. More information about Valeant can be found at www.valeant.com.
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