Morning Briefing
Summaries of health policy coverage from major news organizations
Valeant Accused Of Engaging In 'Fraudulent Scheme' Involving Deceptive Pricing
The Wall Street Journal: T. Rowe Price Sues Valeant, Alleging ‘Fraudulent Scheme’
Mutual-fund giant T. Rowe Price Group Inc. has filed suit against Valeant Pharmaceuticals International Inc., alleging the Canadian drug company engaged in “a fraudulent scheme” that cost T. Rowe Price and other Valeant investors billions of dollars. Valeant used mail-order pharmacy Philidor Rx Services LLC, deceptive pricing and reimbursement practices and “fictitious accounting” to artificially inflate its results and shield its drugs from competition, T. Rowe Price and Alleghany Cos., another Valeant shareholder, alleged in the lawsuit filed earlier this week in federal court in New Jersey that became publicly available Thursday. (Rapoport, 8/18)
Bloomberg: Valeant Accused In Suit Of Secretly Refilling Prescriptions
Valeant Pharmaceuticals International Inc. refilled patients’ prescriptions without their permission and steered them to more expensive drugs in order to boost sales and profits, according to a lawsuit that sheds new light on the drug company’s secret operations. T. Rowe Price Group Inc. sued Valeant and its top executives, using information from former employees to back its claims that the mutual fund giant was a victim of fraud. The former Valeant workers expand on previous disclosures about the Laval, Quebec-based company that has been the subject of criminal, congressional and regulatory investigations of how it shielded branded drugs from generic competition to inflate revenue and profit. (Dolmetsch and Voreacos, 8/18)
Bloomberg: Why T. Rowe Price Is Suing Valeant Now
T. Rowe Price sued Valeant alleging top executives used a secret network of pharmacies, deceptive pricing, reimbursement practices and accounting tricks to hide its branded drugs from generic competition and artificially inflate revenue and profit. (Koons and Nisen, 8/18)
In other news about the beleaguered pharmaceutical company —
The Wall Street Journal: Valeant Again Able To Loosen Debt Terms
Valeant Pharmaceuticals International Inc. has again reached a deal with its loan holders to amend its debt terms, giving it more breathing room as it continues to dig out from a year of business and accounting distress. The amendment announced Thursday makes it easier for the Canadian drugmaker to meet a key debt-covenant requirement. It also gives Valeant more flexibility to sell assets and borrow more, as it aims to pare its $31 billion debt load. (Steele and Rapoport, 8/18)
Stat: Valeant Gets Poor Grades For Its Addyi Female Libido Pill
Amid controversy and fanfare, regulators last year approved a pill called Addyi, which became the first medicine for combating female sexual dysfunction. The endorsement came despite lingering questions about safety and effectiveness, but also followed a high-stakes pressure campaign in which the manufacturer accused the Food and Drug Administration of gender bias, since several pills were already approved for men with sexual problems. Although some had great expectations for the drug, Addyi has, so far, been a bust. Not only have sales been meager, but the pill and its manufacturer — Valeant Pharmaceuticals — rate poorly on several measures that should be of concern to women and doctors, according to an advocacy group that on Thursday released a report card for the drug’s one-year anniversary. (Silverman, 8/18)
