Nov 30 Takeda Pharmaceutical Co Ltd's
negotiations to acquire Valeant Pharmaceuticals International
Inc's Salix stomach-drug business have stalled over
price disagreements, people familiar with the matter said on
Shares of Valeant were down more than 8 percent at $15.71 on
Wednesday after the Wall Street Journal reported that the talks
had broken down. A deal for Salix would help Valeant trim the
large debt pile it accumulated through aggressive acquisitions.
Valeant had said on Nov. 1 that it was in talks with several
parties about selling Salix. But on Tuesday, the Canadian
company said it was expanding its sales force for Salix's key
product, Xifaxin, among other drugs, suggesting plans to keep
the business for the long term.
The sources asked not to be identified because the
negotiations are confidential. Valeant and Takeda declined to
Previous reports said that a sale of Salix could raise as
much as $10 billion for Valeant, which has been struggling under
a roughly $30 billion debt load after repeatedly slashing
Valeant's stock has declined more than 90 percent in the
past year, erasing nearly $90 billion in market capitalization,
over disclosures that it secretly worked with a specialty
pharmacy to boost sales of its medicines. The company is the
subject of multiple investigations by federal agencies and state
Salix Pharmaceuticals makes treatments for disorders such as
irritable bowel syndrome and diarrhea.
Valeant's new chief executive officer, Joseph Papa, has
committed to selling around $8 billion in non-core assets to
help pay down debt that it accumulated over the course of a
series of large acquisitions.
Takeda tried earlier this year to buy Salix as part of a
joint bid with private equity firm TPG, a few weeks before Papa
took over as CEO. But Valeant's board rejected the offer as it
wanted to give Papa time to map out a course for the company.
Takeda told Reuters in September that it was scouting for
multibillion-dollar acquisitions in the United States and other
overseas markets as it seeks to boost its core therapy areas,
including gastrointestinal medicine.
(Reporting by Carl O'Donnell in New York and Svea
Herbst-Bayliss in Boston; Editing by Phil Berlowitz)