After the company declared it has finished the sale of its iNova Pharmaceuticals business for $930 million in cash, shares of Valeant Pharmaceuticals Inc. climbed up nearly five percent on Friday.
The Quebec-based company says it will utilize net proceeds of about $920 million from the deal to diminish it’s debt.
CEO Joseph Papa said the sale of iNova to Pacific Equity Partners and the Carlyle Group is additionally part of Valeant’s endeavors to improve its portfolio and concentrate on its core business.
On Friday, the company’s stock rose 79 cents to close at $17.88 on the TSX.
Valeant shares have fallen since inquiries concerning its business model initially rose two years prior, when they traded for more than $300 per share.
The company has since confronted a series of lawsuits, including one from its previous CEO, and swelling debt levels, losses of more than US$2.4 billion and investigation over its drug proving practices.
Following the foreseen conclusion of the sale of its Obagi Medical Products business this year, Valeant says it expects it will surpass its August 2016 commitment to pay down $5 billion in debt before February 2018.