Valeant Pharma makes significant investments in Canadian operations

Troubled Canadian drugmaker Valeant Pharmaceuticals International (TSX:VRX) says it is expanding its Canadian manufacturing and export capacity with investments totaling $27.5 million in its Steinbach, Manitoba and Laval, Quebec manufacturing facilities, making good on a pledge made more than a year ago to boost its presence in the country.

"Our investments reflect our ongoing commitment to growing our operational presence and export capacity in Canada," said Joseph Papa, chairman and chief executive. Mr Papa, who recently replaced Michael Pearson as head of the company, continued: "Over the past few days, I have had the opportunity to spend time with our employees in Steinbach and Laval, and am struck by the level of talent and innovation at these world-class manufacturing centers. These facilities play a critical role in advancing healthcare technology both in Canada, and around the globe, and we are proud to take on an even larger role in further bolstering Canada's life sciences economy."

Valeant will invest $15 million in its Steinbach, Manitoba, facility by the end of 2016, including $7 million in upgrades to product manufacturing technology and $8 million for the transfer of North American production of Xifaxan (rifaximin) and Apriso (mesalamine).  Xifaxan is prescribed to relieve symptoms of hepatic encephalopathy and irritable bowel syndrome and Apriso is used to treat ulcerative colitis. These investments will support the facility's growth and expand its role as a key exporter of leading healthcare products while ensuring robust security for products traveling through international distribution channels. Since 2012, Valeant has transferred 27 technologies to Steinbach for manufacturing.