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$VRX said it will sell Sprout, the subsidiary that produces Addyi-the female libido pill, to a former shareholder of Sprout in exchange for a 6% royalty on global sales of Addyi. The sale is expected to close before the end of 2017. Addyi is the only approved and commercialized product of Sprout.
The debt-ridden drug maker $VRX swung to profit during 3Q17, helped by strong performance in Bausch and Lomb business. Net income was $1.30Bil, or $3.69 per share, versus net loss of $1.22Bil, or $3.49 per share in 3Q16. Total revenue came in at $2.22Bil, down 10%, due to decrease in volume in the U.S. Diversified Products and Branded Rx segments.
$VRX's dermatology business continues to underperform. To address the challenges, the company has stabilized Derm ASP and have rebranded the business unit as Ortho Dermatologics during 2Q17. The company launched SILIQ on July. 27, 2017 as the new product under this business unit.
$VRX, Quebec-based drugmaker, reported 8% drop in its 2Q17 revenue to $2.23Bil. This decrease was mainly due to decline in volume and pricing of its U.S. Diversified Products segment. The company's net loss narrowed to $38MM, or $0.11 per share, compared to $302MM or $0.88 per share during 2Q16, mostly due to progress in debt reduction.
$VRX has entered into an agreement to sell its Obagi Medical Products business for $190MM in cash to Haitong International Zhonghua Finance Acquisition Fund I, L.P. The transaction is expected to close in second half of 2017. $VRX intends to use the proceeds from the sale to permanently repay term loan debt under its Senior Secured Credit Facility.
$VRX pays down $811MM of senior secured term loans using the net proceeds of the sale of Dendreon Pharmaceuticals LLC. The company has now reduced its debt by more than $4.3Bil since the end of 1Q16. $VRX still expects to pay down $5Bil in debt from divestiture proceeds and free cash flow within 18 months of August 2016.
$VRX stated that on a YoY basis in 1Q17, it has seen some brand price increase and was price positive both in the Branded RX and Bausch & Lomb International business. On a constant currency basis, Bausch & Lomb International also had volume growth, but the result was a negative FX.
As the drugmaker posted 1Q17 results, $VRX raised its FY17 guidance for non-GAAP EBITDA to $3.60-3.75Bil from previously expected $3.55-3.70Bil. The revised outlook reflects the impact of the sale of the CeraVe, AcneFree and AMBI skincare brands, but not the sale of the Dendreon business expected to close mid-year.
$VRX, whose stock longtime backer Bill Ackman unceremoniously dumped in March this year, delivered $954MM in cash flow from operations in 1Q17. Debt fell by $3.6Bil to $1.3Bil in the quarter, with Bausch Lomb/International segment revenues inching less than 1% up to $1.15Bil. U.S. Diversified Products segment revenues slipped 37% to $355MM.