Valeant's newly expanded Relistor franchise draws interest from potential buyers

Rumors have been flying about which assets Valeant may sell off as it looks to drum up money to pay down its massive debt pile. And now, word has it that Relistor could be one of them.

The constipation therapy has drawn interest from potential buyers, Bloomberg reports, though it’s unclear whether Valeant ($VRX) actually intends to sell it. Doing so could bring in between $400 million and $500 million, the news service notes.

Valeant has been counting on Relistor to help it challenge rival AstraZeneca ($AZN) in the opioid-induced constipation arena, and last month the Canadian drugmaker’s product got a competitive boost. The FDA approved an oral formulation of the therapy, erasing AZ’s edge with its own pill, Movantik.

Whitepaper

Simplify and Accelerate Drug R&D With the MarkLogic Data Hub Service for Pharma R&D

Researchers are often unable to access the information they need. And, even when data does get consolidated, researchers find it difficult to sift through it all and make sense of it in order to confidently draw the right conclusions and share the right results. Discover how to quickly and easily find, synthesize, and share information—accelerating and improving R&D.

Analysts still aren’t necessarily sure Relistor can bring in the blockbuster revenues Salix has predicted, though. Evercore ISI’s Umer Raffat, for one, said in July that he’s modeling about $250 million in peak sales for the entire franchise.

Relistor isn’t the only member of Valeant’s portfolio that’s potentially on the block. CEO Joseph Papa has spoken out the benefit about potential divestments, adding that in addition to raising funds, jettisoning products could also help reduce the complexity of the company’s business--an important step as it looks to improve financial transparency. So far, reports have listed Egyptian drugmaker Amoun, 2013 skincare buy Obagi Medical Products, laggard cancer vaccine Provenge and other assets as potentially up for grabs.

Meanwhile, the embattled company--which has faced pricing pushback, channel-stuffing allegations and other hurdles in addition to its debt problems--said Monday that it would be shaking up its top ranks. The company has brought on a new EVP and general counsel and an SVP of business strategy and communications, and its expanded the roles of some of its top execs, too. 

- get more from Bloomberg
- read Valeant's release

Special Report: The most influential people in biopharma today - 2016 - J. Michael Pearson - Valeant

Related Articles:
Valeant's Relistor a future blockbuster? With AZ in the game, analysts aren't buying it
Valeant considers putting Egypt's Amoun up for grabs: Bloomberg
Embattled Valeant doesn't 'need to sell anything,' new CEO says
Valeant weighs sales of controversial heart meds, laggard Provenge: Bloomberg
Valeant looks at what it might sell to raise cash: Reuters
Valeant investors, shocked by lightweight guidance, aren't buying CEO Pearson's recovery plans
Could a Bausch & Lomb IPO help save debt-laden Valeant? Ackman thinks so
Valeant posts 36% growth amid pricing scrutiny; may sell neurology biz
 

Suggested Articles

Acadia's knew it had a winner in psychosis when it called off a trial for its Nuplazid. Now analysts are seeing a blockbuster in the making.

Sandoz would still consider acquisitions, as long as they fit the Novartis unit's focus on generics and biosimilars, CEO Richard Saynor said.

Novartis is planning 80 major drug submissions in key markets over the next three years, and 25 of those could be blockbuster opportunities.