NEW YORK (TheStreet) -- Valeant Pharmaceuticals  (VRX) stock is advancing 6.31% to $28.64 in pre-market trading on Friday after the pharmaceutical company reportedly rejected a takeover bid from Takeda Pharmaceutical (TKPYY), a Japan-based pharmaceutical business, and private equity firm TPG

The offer was received about two months ago and did not include a set price, sources told the Wall Street Journal.

The bid came just before Valeant appointed Joseph Papa as CEO to lead the Canadian pharmaceutical company through accounting errors and concerns over its debt.

Valeant has been exploring the sale of some assets, but Takeda and TPG's offer shows that a sale of the entire company could be possible, the Journal added.

Takeda would have acquired most of Salix Pharmaceuticals, a maker of stomach disorder treatments that Valeant acquired last year for about $11 billion, while TPG would have kept the remaining businesses, according to the Journal.

Separately, Valeant Pharmaceuticals has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing stock performance.

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.

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