Moreover, the U.S. Senate also criticized Valeant for drastically hiking the prices of generic drugs that it had recently acquired.
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The deal applies to Valeant’s branded dermatology and opthalmology prescription drugs, including the high-selling Jublia treatment for toe fungus.
The 20-year deal is the latest by Valeant to allay shareholder concerns following federal investigations and criticism from the company’s top stakeholders. Pharmacy benefit managers like Express Scripts Holdings Corp and CVS Health do not have agreements to pay for numerous drugs Valeant sells because they prefer that patients use typically less costly generic versions.
The letter was released as Valeant holds an investor day Wednesday to discuss its operations.
So investors will want to know: What happens if Walgreens can’t sell the volume of drugs Valeant needs it to?
On Wednesday, the ranking Democrat on the House Committee on Oversight and Government Reform demanded Valeant supply previously requested and additional documents on its price hikes and its dealings with Philidor.
Everyone expected Valeant to revise its fourth-quarter projections, because the split with Philidor means lost revenue.
According to Zacks Investment Research, “Valeant Pharmaceuticals International, Inc.is a pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics”. Under the new accord, Valeant will drop prices of its branded dermatological and ophthalmological products-including its OTC meds-by 10%, with the new list prices phasing in over the next 6 to 9 months.
Valeant Pharmaceuticals says it’s on the road to recovery after taking big financial and PR hits from its association with a controversial USA mail-order pharmacy.
“The analyst is also bullish on the deal because it allows Valeant to “[bypass] the traditional distribution system” and save costs for Valeant and patients alike.
Walgreens has more than 8,000 pharmacy locations across the USA, and the new prices will be available from independent retailers as well.
However, since the summer, Valeant has faced questions about its drug pricing, business practices, and accounting and disclosures. The move is being seen as an attempt by Valeant to restore its reputation and provide the much-needed boost for its stock price.
“Investors were looking for a definitive track forward for Valeant (in a post-Philidor world) with its pharmacy and distribution strategy-and we got a very clear answer today”, he wrote in a note to clients.
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Following an announcement that the FDA accepted the Investigational New Drug application for ZX008 in Dravet Syndrome, Difei Yang of Brean Capital reiterated his Buy rating on the biotech company with a $28 price target.
