Valeant stock surges 30% on report it’s in talks to sell $10-billion Salix business – Financial Post

Valeant Pharmaceuticals International Inc. shares rose Tuesday after a report by the Wall Street Journal stated that the company is in discussion to sell its Salix gastrointestinal drugs business for as much as $10 billion to Takeda Pharmaceutical Co Ltd.

The stock gained 30 per cent to $31.21 near market close in Toronto.

The company’s shares were rocked yesterday on reports that U.S. prosecutors are focusing on Valeant Pharmaceuticals International Inc.’s former CEO and CFO as they build a fraud case against the company that could yield charges within weeks, according to people familiar with the matter.

Authorities are looking into potential accounting fraud charges related to the company’s hidden ties to Philidor Rx Services LLC, a specialty pharmacy company that Valeant secretly controlled, the people said. Federal prosecutors in Manhattan and agents at the Federal Bureau of Investigation in New York have been investigating the company for at least a year.


More to come…


Financial Post Staff with files from Bloomberg



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