Valeant Pharmaceuticals will pay down $5 billion of its debt over the next year and a half, CEO Joseph Papa told CNBC on Tuesday, in the company's latest effort to make a turnaround after a troubled year.
"(A) combination of asset sales — additional asset sales of our noncore assets — plus the operation results of our company. It's the combination of both of those that we think will get us that $5 billion over the next 18 months," Papa said on CNBC's "Halftime Report."
The Canadian drugmaker, which has been accused of fraud and price gouging, has recently been trying to sell off its noncore assets to reduce its acquired mass amounts of debt. Shares of the pharmaceutical company, down 80 percent in the past year, soared on Tuesday after it agreed sell three skin care products to L'Oréal for $1.3 billion.
"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," Papa said in a statement about the deal. "Our remaining consumer products business is well positioned for continued advancement within Valeant's portfolio."
Valeant will also sell its Dendreon Pharmaceuticals unit to China's Sanpower for about $820 million.