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Valeant Pharmaceuticals to Sell Infergen
  Valeant Pharmaceuticals in Talks With Potential Buyer for Infergen Hepatitis C Treatment
November 01, 2007: 11:28 AM EST
NEW YORK (Associated Press) - Drug maker Valeant Pharmaceuticals International said Thursday the company is negotiating with a potential buyer for its hepatitis C treatment Infergen.
"Infergen has shown important clinical benefits in treating refractory patients with hepatitis C," said President and Chief Executive Timothy C. Tyson in a statement. "But the market has been more challenging than we anticipated, and the product no longer is a strategic fit in our portfolio."
Valeant's Infergen operations were reflected as discontinued operations for the third quarter. The company expects the sale to close in the fourth quarter. Infergen accounted for sales of about $8.6 million and costs of about $18.6 million in the most recent quarter.
The CEO said Valeant's decision to sell Infergen is a major step in the company's overall plan to improve operating performance by divesting low-margin products and streamlining its sales force in certain markets.
In an analyst note, Citi Investment Research analyst Andrew Swanson said the planned sale makes sense as a strategy to improve the company's profitability.
Valeant shares plunged $1.63, or 11.2 percent, to $12.92 in morning trading, after hitting a 52-week low of $12.51 earlier in the session. Top of page
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