After failed Allergan offensive, Valeant finally taking break from M&A focus
- After a huge attempted buy-out debacle in which Valeant did not acquire Allergan, the company is regrouping and taking a break from acquisitions to reduce debt.
- Since 2008, Valeant has spent $19 billion on 40 acquisitions.
- The new strategy to reduce debt and increase stock price is slated to last two to three quarters after which Valeant plans to resume pursuing acquisitions.
According to analysts, Valeant has more than $16.3 billion in debt and its bonds are considered third-level junk—not necessarily the strongest position from which to attempt to acquire other companies.
Therefore, Valeant's strategy is to rein in spending, pay down debt, and sell more of its new products, including its toenail fungus drug, Jublia, and its new line of Bausch and Lomb Ultra contact lenses.