November 30, 2016 / 8:37 PM / a year ago

BUZZ-Valeant Pharmaceuticals: Talks to sell Salix unit to Takeda stall

(Updates)

** Canadian drugmaker’s U.S.-listed shares drop as much as 11.13 pct to $15.25, Toronto shares as much as 11.15 pct to C$20.48

** Takeda Pharmaceutical Co Ltd’s negotiations to acquire Valeant’s Salix stomach-drug business have stalled over price disagreements, people familiar with the matter said

** The Canadian drugmaker said it was expanding its sales force for Salix’s key product, Xifaxin, among other drugs, suggesting plans to keep the business for the long term

** Appears from correspondence that in response to concerns highlighted by SEC, Valeant is re-assessing its current non-GAAP reporting and disclosures and is likely to present new measures and disclosures with its 2017 guidance and Q4 2016 results, including a potential new adjusted net income measure - Wells Fargo

** Valeant was not immediately available for comment

** The drugmaker said in early November it was in talks with third parties to sell its Salix stomach-drug business and other assets, but did not name the companies

** Valeant took charge of $1.05 bln in Q3, reflecting lower fair value of some U.S. businesses, mainly Salix, which makes treatments irritable bowel syndrome and diarrhea

** Up to Tuesday’s close, company’s U.S. and Canadian shares had dropped 83 percent this year as steep drug price increases and unorthodox use of a specialty pharmacy under previous leadership drew scrutiny from politicians and regulators

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