August 23, 2018 - 9:24 AM
MONTREAL - Bausch Health Companies Inc. got a dose of hope Thursday as Moody's Investors Service raised the drugmaker's rating outlook to positive from stable.
Moody's vice-president Michael Levesque said the step up reflects an expectation Bausch Health will continue to chip away at its debt and operate smoothly after years of legal and debt troubles.
Formerly known as Valeant Pharmaceuticals, Bausch Health said last May it had completed more than a dozen divestitures and reduced its debt by more than 20 per cent or $6.9 billion in the preceding two years.
The Laval, Que.-based company says it continues to resolve legacy legal issues, with roughly 40 lawsuits or investigations wrapped up in the first half of this year.
Bausch Health has been working to turn itself around in recent years after facing political and regulatory scrutiny for its relationship with a mail order company and large increases to drug prices.
Its share price, which hit a week-long high of $30.42 in mid-morning trading, has for the past two-and-a-half years remained at roughly one-tenth of its five-year peak of $335.32 in summer 2015.
Once Canada's most valuable company by stock market value, the drugmaker's stock plunged by nearly 90 per cent that year amid various controversies.
Companies in the story: (TSX:BHC)
News from © The Canadian Press, 2018