LAVAL, Que. -- Valeant Pharmaceuticals hit a short-lived high for the year early Thursday after the company completed the sale of its Dendreon subsidiary for US$819.9 million cash.

The Quebec-based drugmaker (VRX.TO) traded as high as $23.75 after markets opened, about six per cent above where it closed Wednesday, but later gave up its gains amid a broad-based decline on the Toronto and New York stock markets.

Its shares were briefly below Wednesday's closing price of $22.41 at midday, while the S&P/TSX composite index was down more than 100 points.

The stock has been climbing since April 21 when Valeant closed at $11.45, as investors have gained confidence in the company's ability to reduce its debt.

Proceeds from the sale of Dendreon Pharmaceuticals to China-based Sanpower Group will be used to repay a term loan.

Valeant's shares remain far below their value two year ago, when they traded for more than $300 per share for several weeks before they plunged amid questions about the sales it generated through online pharmacy Philidor Rx Services.