Valeant Pharmaceuticals International Inc. is in talks to sell its Salix stomach-drug business to Japanese pharmaceutical company Takeda Pharmaceutical Co., according to people familiar with the matter.

The deal could potentially raise as much as $10 billion for the indebted drugmaker, the people said, asking not to be identified because the discussions are private.

There is no guarantee that the discussions will lead to a deal, they said.

Valeant is working with investment bank Morgan Stanley on the sale, they added. News of the talks was first reported by the Wall Street Journal.