Bulletin: Valeant Pharmaceuticals International Inc. Ratings Unaffected By Planned Acquisition Of Sprout Pharmaceuticals Inc.

NEW YORK (Standard&Poor's) Aug. 20, 2015--Standard&Poor's Ratings Services said today that its ratings on Laval, Quebec-based Valeant Pharmaceuticals International Inc., including the 'BB-' corporate credit rating, are not affected by the company's plan to acquire Sprout Pharmaceuticals Inc. for about $1 billion, and a portion of future profits based upon the achievement of certain milestones. We expect Valeant to use a combination of cash and drawings on its revolving credit facility to fund this acquisition. This acquisition is modest in size relative to Valeant's business and does not materially influence Valeant's credit metrics. The FDA approved Sprout's primary product, Addyi (Flibanserin), on Aug. 18, 2015. There is substantial uncertainty around the revenue potential for Addyi, especially

...NEW YORK (Standard & Poor's) Aug. 20, 2015--Standard & Poor's Ratings Services said today that its ratings on Laval, Quebec-based Valeant Pharmaceuticals International Inc., including the '##-' corporate credit rating, are not affected by the company's plan to acquire Sprout Pharmaceuticals Inc. for about $1 billion, and a portion of future profits based upon the achievement of certain milestones. We expect Valeant to use a combination of cash and drawings on its revolving credit facility to fund this acquisition. This acquisition is modest in size relative to Valeant's business and does not materially influence Valeant's credit metrics. The FDA approved Sprout's primary product, Addyi (Flibanserin), on Aug. 18, 2015. There is substantial uncertainty around the revenue potential for Addyi, especially given the lack of comparable products. We expect sales to launch in October and for visibility of the potential demand to improve once the drug is available for a few quarters. Addyi will have...

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