Potential Buyers Reportedly Interested in Valeant's OIC Treatment

Valeant Pharmaceuticals is reportedly in early talks to sell Relistor, a tablet for treating opioid-induced constipation.

Talks are in the early stages, according to Bloomberg, but a sale of this drug could help the embattled Canadian company chip away at its staggering $30 billion in debt. Sources told the publication Relistor could be valued between $400 million and $500 million.

Valeant paid an initial $50 million to Progenics Pharmaceuticals last month after the FDA approved the drug to help patients taking an opioid regimen deal with chronic, non-cancer pain. Progenics, a drug-maker that partnered with Valeant on developing the tablet form of Relistor, is entitled to receive an estimated $200 million in milestone payments based on sales of this therapy.

Valeant is hoping that Relistor could pose a threat to AstraZeneca’s similar drug Movantik, reported FiercePharma. An FDA approval helped, but analysts felt that blockbuster revenues aren’t guaranteed. Progenics predicted over $1 billion in peak sales for the pill version of Relistor. Analyst estimates, however, fluctuated between $125 million and $750 million.

Sources explained to Bloomberg Valeant could still back out of this rumored deal although the other assets could also be sold including the firm’s dermatology and pharmaceutical units.