Healthcare Sell side update for Valeant Pharmaceuticals International, Inc. (NYSE:VRX)

Sell side update for Valeant Pharmaceuticals International, Inc. (NYSE:VRX)

Published By News Desk at January 11, 2017 09:17 am BTIG maintained its Neutral rating whereas Evercore ISI says its good news

BTIG analyst Timothy Chiang updated on Valeant Pharmaceuticals Intl Inc (NYSE:VRX) as it sold its Dendreon business for ~$820M (~$415M was paid for this in 2015) and three skincare products (CeraVe, AcneFree, and AMBI) for ~$1.3B (~7.7x annualized revenue of $168M). Money from these deals will go to paying debt, which totaled ~$30B at the end of 3Q16 down.

"We anticipate Valeant to look to sell more non-core assets in CY17 with the target of reducing its debt levels, which stay large," Chiang remarked. "While we see these asset sales as somewhat encouraging, we think 20 17 will mostly be a transition year. Now, we predict 2017 sales of ~$9.5B and EPS of $4.79." BTIG maintained a Neutral rating on .

Evecore ISI analyst Umer Raffat considered in on  subsequent 3 press-releases from yesterday which he mentioned "all read good."

Raffat remarked, "these divestitures are both delivering and free up room compared to covenants - Valeant effectively got ~13x average EV:EBITDA across the selling of Dendreon (offered for ~$819M; ~8x) and Cerave (sold for $1.3B; ~20x). In addition, I compute that these trades are around neutral on EPS (as a result of interest savings)."