Valeant to sell Obagi Medical Products business

"The sale of Obagi marks additional progress in our efforts to streamline our operations and reduce debt", said Joseph C. Papa, chairman and CEO of Valeant.

Shares of Valeant Pharmaceuticals International (VRX) are climbing Monday after the drug maker announced the $190 million sale of Obagi Medical Products to Shonghua Finance Acquisition Fund.

Valeant has been dismantling its business at a fraction of the pace that it built it.

Proceeds from the sale will be used to cut Valeant's debt as the company works to turn around the business following a troubled year.

The insurgent fund had been preparing to nominate a slate of dissident director candidates in 2013 to Obagi's board, in a move that came shortly before the company agreed to sell itself to Valeant.

The Obagi announcement arrives as much-needed good news for the company once considered to be a darling of Wall Street, especially as Valeant continues to repay its massive $30 billion debt load. The company has also announced the sell-off of iNova Pharmaceuticals for $930 million, its Dendreon assets for $820 million, and the CereVe, AcneFree and AMBI skincare brands for $1.3 billion. The deal is expected to be completed in the second half.

Obagi products are typically dispensed through plastic surgeons, dermatologists and medical spas, and include treatments for premature skin aging, skin damage, hyperpigmentation, acne and sun damage.