Analysts believe Valeant Pharmaceuticals will continue to offload assets to repay its nearly $29-billion debt load following the completion of the sale of its Dendreon Pharmaceuticals unit for $820 million, TheStreet reported Thursday.
Earlier this month, the company agreed to sell its iNova Pharmaceuticals unit for $930 million.
"Right now, I think [Valeant] will try to sell more of their business segments if they can get good multiples," remarked BTIG analyst Timothy Chiang, adding "but I don't see a lot of growth in the company if they keep selling assets."
"I don't think they will be trading debt for equity, since it's a riskier proposition for investors," Chiang noted, continuing "and investors won't be getting the interest payments they were receiving before."
"Pharmaceuticals are all having a hard time," cautioned Chiang, adding "they are not out of the woods yet. No one really knows what will happen next."
Conversely, Cantor Fitzgerald & Co. analyst Louise Chen said the company's execution of its stated goals increases confidence that CEO Joe Papa and chief financial officer Paul Herendeen "can return the company back to growth."
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