The last couple of years have been tumultuous for the pharmaceutical industry. Companies who manufacture and sell drugs have been coming under fire from lawmakers for skyrocketing prices. One of them, Valeant Pharmaceuticals, drew heavy criticism for marking up the price of an antidepressant drug 11 times over a two-year period.
In the aftermath of senatorial scrutiny, the company’s stock took a hit and executives were left scrambling. Now, the company is selling off three of its skincare brands – CeraVe, AcneFree, and AMBI -- to L'Oréal for $1.3 billion.
“We are pleased to announce the progress we are making in reshaping our product portfolio and driving value for our shareholders. The success of these products, and today’s transaction, is a testament to the Valeant teams who have impressively grown these brands over the past several years,” said Valeant CEO Joseph C. Papa in a release.
“We believe these products will benefit even further from the resources and capabilities of a global beauty company like L'Oréal, which is well equipped to build on the success of these brands and expand into new global markets. Our remaining consumer products business is well positioned for continued advancement within Valeant’s portfolio,” he concluded.
The New York Times reports that the three brands generate around $168 million in annual revenue, and that the deal is likely to close sometime during the first quarter.