Costa Mesa-based Valeant Pharmaceuticals International got a debt rating boost from Standard & Poor’s on Thursday, marking another step in the drug maker’s transformation.
S & P; revised its outlook on Valeant to “stable” from “negative.” The agency also affirmed the company’s ratings, including a BB- corporate credit rating.
The ratings shift comes after years of restructuring at Valeant, which has been breaking with its past as ICN Pharmaceuticals since 2002. That’s when a group of dissident investors forced the ouster of founder and former chief executive Milan Panic.
Panic’s influence on what then was ICN was great. The Serbian native expanded in Eastern Europe and played a dominant role in other company decisions.
Valeant’s management, led by Chief Executive Tim Tyson, has spent the past few years streamlining the company, selling off far-flung operations and focusing on the U.S. and other key markets.
“The outlook change reflects Valeant’s significant progress over the past couple of years in restructuring its operations to cut costs and restore sales growth to its important North American specialty drug franchise,” S & P; credit analyst Arthur Wong said in a statement. “Valeant has also, through a combination of internal development and acquisitions, stocked its product portfolio with some promising prospects.”
