Report: Valeant Rejected A Takeover Offer Prior To Hiring Papa As CEO

The Wall Street Journal reported late Thursday afternoon that prior to hiring Joseph Papa as CEO, Valeant Pharmaceuticals Intl Inc (NYSE: VRX) received an acquisition proposal from Japan's Takeda Pharmaceutical and private equity firm TPG.

The Wall Street Journal, citing "people familiar with the matter," noted that the takeout offer did not contain a firm price. Nevertheless, the fact that the company received interest as a takeout candidate signifies that some of its businesses still have value, especially for a strategic buyer that may pay a premium.

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The Wall Street Journal noted that Takeda sells gastrointestinal, oncology and central-nervous-system products, and acquiring Valeant would give it access to Salix's portfolio of complementary products.

Takeda was one of the bidders involved in Salix's sale, but ultimately lost to Valeant that paid around $11 billion to acquire the company.

Valeant's board of directors has given its new CEO hire "time to chart a course for the company," and it appears a complete sale of itself is off the table. However, Valeant acknowledged it would be open to selling individual assets or non-core business lines.

Shares of Valeant were trading higher by more than 5 percent ahead of Friday's market open.