Canadian drugmaker Bausch Health Companies Inc announced on Wednesday that it would sell all its stake in Egypt’s Amoun Pharmaceutical Co to Abu Dhabi-based ADQ for around $740 million.
The move came as part of Bausch’s plans to pare down its debt.
The company has been shedding non-core assets to pay down debt. The sale, which Bausch expects to complete in the first half of 2021, comes ahead of a planned separation of the company’s eye care unit Bausch + Lomb.
Amoun makes branded generic drugs for human and animal health.
Goldman Sachs & Co LLC and Morgan Stanley & Co LLC acted as financial advisors to Bausch for the transaction.
“The sale of Amoun marks significant progress in our efforts to reduce overall Bausch Health debt as we continue to pursue all opportunities to drive value for our shareholders, including preparing for the spinoff of Bausch & Lomb,” Bausch’s chief executive Joseph C. Papa said in a statement.
In a note Bausch published Wednesday before the sale announcement, Bloomberg Intelligence analyst Ann-Hunter van Kirk said the solo Bausch & Lomb could be worth $20 billion to $30 billion, considerably more than Bausch Health’s market capitalisation of around $11 billion.
“An independent Bausch & Lomb unit could have more room and focus to expand its global market share, but leverage reduction may still be a priority after its spinoff,” Kirk added.
