Valeant Pharmaceuticals International Inc. on Wednesday slashed its outlook for the current quarter and full year, and issued downbeat earnings guidance for 2016, as the drugmaker deals with the fallout from its relationship with specialty pharmacy Philidor Rx Services LLC.
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Valeant Pharmaceuticals Intl Inc (NYSE:VRX) shares traded up 16% on Tuesday, Marketbeat.com reports.
He said the 20-year-deal with Walgreens, to which it will directly supply its dermatology and ophthalmology medicines at a slight discount, “is going to change the industry and create tremendous value for both companies”.
“You’ll not see abnormally high price increases at all, this year or next”, Pearson said.
“We have been through a lot”, Pearson said Wednesday.
Valeant’s announcement on Tuesday of the distribution deal with Walgreens Boots Alliance Inc boosted shares, but investors questioned how Walgreens could drive sales if pharmacy benefit managers still refuse to cover Valeant drugs. Canaccord Genuity reaffirmed a “buy” rating and issued a $300.00 price target on shares of Valeant Pharmaceuticals Intl in a research note on Thursday, August 20th. Valeant jumped to a month and a half high.
Patient advocates, doctors and Congressional leaders have attacked Valeant and other drug companies like Turing Pharmaceuticals for aggressively increasing prices on some prescription drugs.
The move comes amid growing public outcry over Valeant’s pricing practices.
Valeant is lowering its per-share profit expectations for the year, reported in US currency, from between $11.67 and $11.87, to between $10.23 and $10.33.
Cummings requested that Pearson produce all of the documents by January 8, 2016, in order to prepare for the Oversight Committee’s upcoming hearing.
Valeant said its expecting that the agreements, when implemented fully, to save the healthcare system as much as $600 million annually and allow consumers to access its different products easily from over 8,999 locations of Walgreen across the USA, as well as participating retailers that are independent.
Valeant added that it will try and reduce debt by about $2.25 billion in 2016.
Democratic Congressman Elijah Cummings, a ranking member of the house Committee on Oversight and Government Reform, and Senator Bernie Sanders, a ranking member of the of the Subcommittee on Primary Health and Aging, Senate Committee on Health, Education, Labor and Pensions, are investigating the recent abrupt increases in drug prices.
Its release was timed to Valeant’s Investor Day on Wednesday, when it is to discuss with analysts and investors its business operations, research programs and other information about the company.
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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.
