The embattled pharmaceutical has some good news...in addition to the bad news about losing another $300 million.
First, it was able to file its quarterly returns on time, so, pat on the back there. Second, it does not expect to default on its debt, thank you very much, S&P. And third, it’s hard at work becoming a plain-vanilla drug company, the kind that probably won’t attract much interest from the likes of Bill Ackman, but may be able to avoid enough damaging failed hostile takeovers and controversies to perhaps maybe survive.
Chief Executive Joseph Papa, who took the helm from Michael Pearson in May, said Tuesday that Valeant would be going in a “new strategic direction” that involves reorganizing the company and its reporting segments, breaking them into three main units.
Valeant said that, as part of its reorganization, it is looking at potential alternatives for some noncore businesses with revenue totaling more than $2 billion and estimates it could sell off those businesses for as much as $8 billion.
We know what you’re saying: There’s probably some value in those three main units now that they’re not run by the people who ran Valeant into the ground. But take it down a notch or two: Papa said he’s selling off its non-core assets. If you want the rest, you’re gonna really have to blow him away.
"I have had some inbound interest expressed in some of our core and noncore assets," Papa told Reuters. "We have to think about any alternative in front of us as we look to improve shareholder value. We're going to take anything that we get, from an offer or unsolicited bid, very seriously."