By Clifton Leaf and Sy Mukherjee
April 5, 2017

Greetings, readers. This is Sy with your daily roundup.

Valeant Pharmaceuticals can’t seem to catch a break. The troubled drug maker’s stock hit a 52-week low in Wednesday trading, falling into the single digits. That’s a stunning fall from grace for a firm that was trading at more than $200 per share just two years ago and puts Valeant’s market value at about $3.2 billion—a more than 95% cut since April 2015.

The latest investor revolt appears to center on news that Valeant didn’t get the kinds of bids that it wanted for one of its pharmaceutical units, iNova, which sells and distributes over-the-counter and prescription medications in Australia, New Zealand, and a few other countries outside the U.S. The drug maker bought the company for $625 million upfront in late 2011—and it’s been a pretty good performer, bringing in about $100 million in annual sales.

But as Valeant continues to struggle with regulatory probes, dour finances, and a variety of lawsuits (including a recent one launched by its own former CEO Michael Pearson), it’s trying desperately to raise some much needed cash. So the firm decided to start looking for suitors for iNova last fall, seeking more than $1 billion for the unit.

So far, the bids have come up short, according to the Australian Business Review, with various private parties offering around $900 million. And that adds to a trend that’s wreaking havoc on Valeant’s turnaround strategy, which will require the firm to get a big cash jolt from somewhere or other.

“To us, [the iNova bids are] another disappointment in what was promised to be $8 billion worth of asset sales that so far has only been approximately $2 billion,” writes Wells Fargo’s David Maris in a note.

Read on for the day’s other news.

Sy Mukherjee


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