Bausch Health Cos. is selling its Amoun Pharmaceutical Co. unit in Egypt to Abu Dhabi-based holding company ADQ for US$740 million, part of the Canadian company’s effort to pare down debt.

Amoun makes branded generic drugs for human and animal health, Bausch said in a statement Wednesday. The sale, which Bausch expects to close in the first half of 2021, comes ahead of the planned separation of the company’s Bausch & Lomb eye-care division.

“The sale of Amoun marks significant progress in our efforts to reduce overall Bausch Health debt as we continue to pursue all opportunities to drive value for our shareholders, including preparing for the spinoff of Bausch & Lomb,” Chief Executive Officer Joseph C. Papa said in the statement.

In a note published Wednesday before the sale announcement, Bloomberg Intelligence analyst Ann-Hunter van Kirk said the solo Bausch & Lomb could be worth US$20 billion to US$30 billion, considerably more than Bausch Health’s market capitalization of about US$11 billion. “An independent Bausch & Lomb unit could have more room and focus to expand its global market share, but leverage reduction may still be a priority after its spinoff,” she said.