Aliso Viejo-based Valeant Pharmaceuticals International is selling some of its European operations to Swedish drug company Meda AB for nearly $400 million as part of planned efforts to improve its profitability and shift its focus to North America.
Meda, which focuses on marketing and product development, will pay $392 million in cash for Valeant’s subsidiaries in Western and Eastern Europe including Russia and the United Kingdom as well as rights to products and licenses in the region.
The sale excludes Valeant’s Central European businesses in Poland, Hungary, Slovakia and the Czech Republic. The Central European operations are estimated to have combined revenues of $120 million.
Valeant’s businesses in Western and Eastern Europe counted an estimated 400 employees.
Valeant expects the sale to close subject to an anti-trust review.
Valeant recently shed about 1,250 jobs as part of a companywide restructuring. It continues to look for a buyer for its Polish operations.
“Our focus is the North American market and we believe that this transaction will enable Valeant to better focus on its key strategic markets and products,” Chief Executive Officer J. Michael Pearson said.
A former McKinsey & Co. director, Pearson was hired in February to turn around Valeant. The drug maker is set to release second-quarter results next week.
