Bulletin: Valeant Pharmaceuticals International Inc.'s Revision Of Some Elements Of Its Strategy Does Not Affect Ratings

NEW YORK (Standard&Poor's) Oct. 20, 2015—Standard&Poor's Ratings Services said today that Valeant Pharmaceuticals International Inc.'s revised strategy does not affect its ratings or outlook on the company. Valeant changed some elements of its strategy following recent negative attention from the media, politicians, and public opinion regarding the drug pricing controversy. The modified strategy includes plans to opportunistically increase its focus and spending on internal research and development (R&D) and to pursue acquisitions at a slower pace in the near term. The company also said it will no longer seek out acquisitions where the opportunity lies in significantly increasing drug prices and that it expects to generally limit annual drug price increases to 10%. In addition, the

...NEW YORK (Standard & Poor's) Oct. 20, 2015--Standard & Poor's Ratings Services said today that Valeant Pharmaceuticals International Inc.'s revised strategy does not affect its ratings or outlook on the company. Valeant changed some elements of its strategy following recent negative attention from the media, politicians, and public opinion regarding the drug pricing controversy. The modified strategy includes plans to opportunistically increase its focus and spending on internal research and development (R&D) and to pursue acquisitions at a slower pace in the near term. The company also said it will no longer seek out acquisitions where the opportunity lies in significantly increasing drug prices and that it expects to generally limit annual drug price increases to 10%. In addition, the company is contemplating the divestiture of its Neuro and Other segment which is most heavily dependent on price increases. The company emphasized plans to prioritize deleveraging through 2016 and to focus...

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