Canada-based, US-run drugmaker Valeant has agreed to sell its iNova Pharmaceuticals subsidiary for $930 million in cash to a company jointly owned by funds advised and managed by Pacific Equity Partners and The Carlyle Group.

Valeant acquired Nova from Australian private equity firms Archer Capital and Ironbridge in 2011.

The sale of iNova is expected to close in the second half this year, subject to customary closing conditions, including regulatory approvals. The troubled drugmaker said it will use proceeds from the sale to permanently repay term loan debt under its Senior Secured Credit Facility.

Since last year, Valeant has been in danger of debt default, reports say. The situation is generally chalked up to the aggressive M&A strategy pursued by former CEO Michael Pearson. The CEO was forced to step down last year amid multiple investigations into the company’s pricing policies and pharmacy relationships, along with poor sales of key products – all of which led share prices to plunge.

iNova markets a diversified portfolio of prescription and over-the-counter products for applications such as weight management, pain management, cardiology and cough and cold. It is active in more than 15 countries worldwide and claims leading market positions in Australia and South Africa. The company also has an established platform in Asia.

Despite the divestment, Valeant said it will “maintain a strong footprint “in those countries primarily through its Bausch & Lomb franchise. A recent report by the news agency Bloomberg said the drugmaker is in talks to sell its Bausch & Lomb unit’s surgical products business to German medical technology maker Carl Zeiss Meditec. The assets are estimated to be worth valued about $2 billion in a sale.

"The sale of iNova is part of the company's ongoing efforts to both simplify our operating model and strengthen our balance sheet," Valeant’s current chairman and CEO, Joseph C. Papa, said in a statement, adding: "We will continue to evaluate opportunities that will enable us to deliver on our commitments and unlock value for shareholders."