Valeant Agrees To Sell Obagi Medical Products For $190 Million In Cash

Valeant Pharmaceuticals International Inc. said Monday it has reached an agreement to sell its Obagi Medical Products business to Haitong International Zhonghua Finance Acquisition Fund I LP for $190 million in cash. Obagi is a specialty drug company that makes products aimed at premature skin aging, skin damage and other skin problems that are mostly available from dermatologists, plastic surgeons and medical spas. The deal is expected to close in the second half and proceeds will be used to repay term loan debt. Valeant said the company was expected to generate net profit of $85 million and non-GAAP EBITDA of $30 million. Valeant shares were slightly higher premarket, and have gained 19% in 2017, while the S&P 500 has gained about 10%.