LAVAL, Quebec, July 17, 2017 /PRNewswire/ -- Valeant
Pharmaceuticals International, Inc. (NYSE: VRX and TSX: VRX)
("Valeant" or the "Company") today announced that certain
affiliates of the Company have entered into an agreement to sell
its Obagi Medical Products business for $190
million in cash to Haitong International Zhonghua Finance
Acquisition Fund I, L.P. (the "Fund"). Limited partners of the Fund
include industry veterans in other geographic markets, such as
China Regenerative Medicine International Limited (SEHK: 8158).
"The sale of Obagi marks additional progress in our efforts to
streamline our operations and reduce debt," Joseph C. Papa, chairman and CEO, Valeant. "As
we continue to transform Valeant, we will remain focused on the
core businesses that will drive high value for our
shareholders."
Obagi Medical Products is a global specialty pharmaceutical
company founded by leading skin care experts in 1988. Obagi
products are designed to help minimize the appearance of premature
skin aging, skin damage, hyperpigmentation, acne and sun damage and
are primarily available through dermatologists, plastic surgeons,
medical spas and other skin care professionals. More information
can be found at www.obagi.com.
Valeant will use proceeds from the sale to permanently repay
term loan debt under its Senior Secured Credit Facility. The
transaction is expected to close in the second half of 2017,
subject to customary closing conditions, including receipt of
applicable regulatory approvals.
The Company currently estimates that the full-year 2017 revenue
and Adjusted EBITDA (non-GAAP) for the Obagi business would have
been approximately $85 million and
$30 million, respectively.
In this transaction, Morgan Stanley & Co. LLC served as
financial advisor to Valeant, and Norton
Rose Fulbright acted as legal advisor to Valeant.
China Regenerative Medicine International Limited (SEHK: 8158)
is engaged in the research, development and commercialization of
innovative bio-medical, healthcare products and medical techniques.
CRMI operates seven production plants in mainland China and Hong
Kong, and the business is organized across four strategic
areas, encompassing tissue engineering, cell therapy, cosmetics and
hospital management. More information about China Regenerative
Medicine International can be found at www.crmi.hk.
About Valeant
Valeant Pharmaceuticals
International, Inc. (NYSE/TSX:VRX) is a 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. More information about Valeant can be found at
www.valeant.com.
Forward-looking Statements
This press release
may contain forward-looking statements which may generally be
identified by the use of the words "anticipates," "expects,"
"intends," "plans," "should," "could," "would," "may," "will,"
"believes," "estimates," "potential," "target," or "continue" and
variations or similar expressions. These statements are based upon
the current expectations and beliefs of management and are subject
to certain risks and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. These risks and uncertainties include, but are not
limited to, risks and uncertainties discussed in the Company's most
recent annual or quarterly report and detailed from time to time in
Valeant's other filings with the Securities and Exchange Commission
and the Canadian Securities Administrators, which factors are
incorporated herein by reference. Readers are cautioned not to
place undue reliance on any of these forward-looking
statements. These forward-looking statements speak only as of
the date hereof. Valeant undertakes no obligation to update any of
these forward-looking statements to reflect events or circumstances
after the date of this press release or to reflect actual outcomes,
unless required by law. In addition, the revenue and Adjusted
EBITDA (non-GAAP) amounts set out above are based on the current
expectations and beliefs of management, which management believes
are reasonable in the circumstances, and are subject to certain
risk and uncertainties, including those described above. These
amounts have been included to provide information relating to the
anticipated impact of the sale of the Obagi business on those
measures for the Company as a whole, and they may not be
appropriate for any other purpose.
Non-GAAP Information
To supplement the
financial measures prepared in accordance with U.S. generally
accepted accounting principles (GAAP), the Company has presented
Adjusted EBITDA (non-GAAP) in this press release. Adjusted EBITDA
represents earnings before interest, taxes, depreciation and
amortization, as further adjusted to exclude certain non-recurring
and/or unusual items. We cannot predict the amount of such
non-recurring or unusual items at this time. The Company does not
provide reconciliations of projected Adjusted EBITDA (non-GAAP) to
projected GAAP net income (loss) (its most directly comparable GAAP
financial measure), due to the inherent difficulty in forecasting
and quantifying certain amounts that are necessary for such
reconciliations. The Company uses Adjusted EBITDA both to assess
the current financial performance of the Company and to forecast
future results as part of its guidance. The Company believes that
Adjusted EBITDA (non-GAAP) focuses management on the Company's
underlying operational results and business performance. In
addition, cash bonuses for the Company's executive officers and
other key employees are based, in part, on the achievement of
certain Adjusted EBITDA (non-GAAP) targets.
The Company believes non-GAAP measures, such as Adjusted EBITDA
(non-GAAP), are useful to investors in their assessment of our
operating performance and the valuation of our Company. However,
these measures do not have any standardized meaning under GAAP and
other companies may use similarly titled non-GAAP financial
measures that are calculated differently from the way we calculate
such measures. Accordingly, our non-GAAP financial measures may not
be comparable to similar non-GAAP measures. We caution investors
not to place undue reliance on such non-GAAP measures, but instead
to consider them with the most directly comparable GAAP measures.
Non-GAAP financial measures have limitations as analytical tools
and should not be considered in isolation. They should be
considered as a supplement to, not a substitute for, or superior
to, the corresponding measures calculated in accordance with
GAAP.
Investor
Contacts:
|
|
Arthur
Shannon
|
Elif
McDonald
|
arthur.shannon@valeant.com
|
elif.mcdonald@valeant.com
|
514-856-3855
|
514-856-3855
|
877-281-6642 (toll
free)
|
877-281-6642 (toll
free)
|
|
|
Media
Contact:
|
|
Lainie
Keller
|
|
lainie.keller@valeant.com
|
|
908-927-0617
|
|
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SOURCE Valeant Pharmaceuticals International, Inc.