NEW YORK (TheStreet) -- Shares of Valeant Pharmaceuticals (VRX) are gaining by 5.56% to $25.25 in late-afternoon trading on Thursday, as the beleaguered drugmaker reportedly considers selling Amoun Pharmaceutical and as S&P analysts maintained Valeant's credit rating.
Valeant is weighing the sale of Egyptian drugmaker Amoun Pharmaceutical as it accelerates debt-reduction plans after reporting dismal first quarter earnings and full-year guidance on Tuesday, sources told Bloomberg. Amoun executives might also pursue a management buyout with help from financial investors.
Valeant acquired Amoun's holding company Mercury Holdings for roughly $800 million last year.
The drugmaker also is considering a sale of certain Latin American operations, Bloomberg notes.
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Additionally, S&P analysts decided against cutting Valeant's credit rating to triple-C, a rating that would cause many bond investors to sell,Barron's reports. The ratings agency maintained Valeant's double-B minus rating and didn't place it on Credit Watch for a downgrade.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Valeant's weaknesses include its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: VRX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.