Blackstone, KKR said to arrange bid financing for Valeant’s Australian unit

Photo: Bloomberg

Blackstone Group LP, Carlyle Group LP and KKR & Co. are among buyout firms in talks with banks for financing to back their bids for Valeant Pharmaceutical International Inc.’s Australian drug unit, people with knowledge of the matter said.

Indicative bids for Valeant’s iNova Pharmaceuticals business were submitted this month, according to the people, who asked not to be identified because they aren’t authorized to speak publicly. The sale may fetch about A$1 billion ($773 million), the people said.

Valeant is selling iNova after a tumultuous period when its stock price slumped 90 percent over 15 months amid outrage over skyrocketing drug prices and government investigations. Its new management cut the annual profit forecast this week to well below estimates amid declining sales at some of its key prescription businesses and a bleak outlook for its generic unit.

An external spokesman for Blackstone in Sydney said he couldn’t immediately comment, while Hong Kong-based spokeswomen for Carlyle and KKR declined to comment. Representatives for Valeant couldn’t be reached for comment outside regular business hours in Canada.

Valeant, based in Laval, Quebec, bought iNova in 2011 from private equity firm Archer Capital for A$625 million upfront, with the agreement to pay an additional A$75 million when certain milestones were hit. iNova sells and distributes prescription and over-the-counter products including Nyal cough medicine and Difflam sore throat treatments, according to its website.

Also Read: Specialty drugmaker Endo explores asset sales

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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