Valeant Pharmaceuticals today announced that a couple of financial developments is making helping the Laval, Que.-based pharma firm pay down a $5 billion in debt that it had previously incurred.
A statement from the company said that an “earlier-than-expected sale of its three skincare brands to cosmetics firm L’Oreal and the closing of the divestiture of Valeant’s manufacturing facility in Brazil has reduced its loans by approximately $220 million.
“In aggregate, the company has now reduced approximately $3.6 billion of debt from the end of first quarter 2016,” a statement from Valeant said. The company continues to advance toward its expectation of paying down $5 billion in debt from divestiture proceeds and free cash flow within 18 months of August 2016.
Valeant is multinational specialty pharmaceutical company that develops, manufactures, and markets a broad range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics.
Valeant has been under scrutiny for alleged fraud and raising prices of old drugs with little or no competition.
It has been trying to sell its non-core assets to pay off its debts.