Valeant mulling sale of dermatology assets to Spanish Almirall: report
- Valent and the Spanish Amirall are considering a deal in which Almirall would acquire some of Valeant's dermatology assets, reports Reuters.
- For Valeant, the deal would help to reduce its $30 billion debt load, while picking up some of Valeant's assets would help Almirall grow its dermatology portfolio.
- Almirall shifted course in 2014, selling its respiratory portfolio to AstraZeneca for $2.1 billion and is looking to shore up its status as a dermatology-focused drug company.
Almirall used some of the $2 billion gained from the sale to acquire Poli, which Almirall picked up for $386 million last November. That deal came with three drug candidates, as well as Poli's in-house R&D department.
Now, Almirall, which still has cash on hand, is looking to make another deal, according to CEO Eduardo Sanchez as reported by Reuters. Some of Valeant's dermatology brands, which include the anti-fungal Jublia, Luzu for treatment of athlete's foot, and Solodyn, could be attractive.
Valeant's new CEO Joseph Papa has previously ruled out selling core assets, and Jublia is certainly a crown jewel in the company's dermatology portfolio. The drug generated roughly $330 million in revenues last year.
But with a heavy debt load and scaled-back revenue projections for the year, Valeant will likely look to divesting some assets to ease its burden.