Valeant conceded the company, which has been accused of price-gouging for some of its products, has altered its strategy to pursue volume growth by lowering prices and reducing costs.
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“We’ve ignored the external factors and we’re continuing to grow, grow, grow”.
On Wednesday, Pearson told investors that Philidor was behind them. Company officials declined to comment on the progress of that review.
It also announced on Tuesday that it will deliver up to US$600 million in annual savings to the USA health-care system starting next year after agreeing to cut prices as part of distribution agreements with the large Walgreens retail chain.
Valeant on Wednesday lowered its per-share profit expectations for 2015 to between $10.23 and $10.33 from between $11.67 and $11.87. The specialty pharmaceutical company reported $2.74 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $2.68 by $0.06. Equities analysts expect that Valeant Pharmaceuticals Intl will post $2.89 earnings per share for the current fiscal year.
As a result, adjusted earnings will be US$6.9 billion to $7.1 billion next year, down from the $7.5 billion that the drugmaker predicted on October 29. Instead of expected revenues of $11 billion to $11.2 billion in 2015, Valeant now expects $10.4 billion to $10.5 billion.
“You’ll not see abnormally high price increases at all, this year or next”, Pearson said.
The price cuts don’t apply in Canada where Valeant doesn’t have similar distribution agreements with pharmacy retailers such as Shopper’s Drug Mart, Jean Coutu or the Rexall Group.
Since this past summer, though, the business has been hit with questions regarding its drug pricing, accounting, disclosures and overall business practices.
Pearson noted the company was the first to do a tax inversion, moving its official tax headquarters from the U.S.to Laval, Quebec, to reduce its tax rate, and that it now has the pharmaceutical industry’s lowest tax rate. The company said Tuesday, Dec. 15, 2015 that the agreement will help to lower the prices of its branded prescription-based dermatological and ophthalmological products by 10 percent.(Ryan Remiorz/The Canadian Press via AP, File) MANDATORY CREDITTRENTON, N.J.
Approximately six weeks ago, Valeant’s board formed an ad hoc committee to investigate the recent allegations made against Philidor, including claims that Valeant management was involved in the alleged wrongdoing at Philidor.
The downbeat projections, issued just ahead of a presentation to investors and financial analysts, reflected fallout from the company’s recently scrapped partnership with Philidor Rx Services, the specialty pharmacy that helped Valeant sell its medications through a network of pharmacies and win insurance reimbursements on the prescriptions.
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The CEO of Valeant Pharmaceuticals International Inc. on Wednesday presented investors with a company that is cutting earnings and sales forecasts, abandoning price increases, focusing on paying down debt and promoting its high R&D spending.
