Valeant Pharmaceuticals Strikes Distribution Deal With Walgreens
The drug company, which has been in the hot seat recently because of its high drug prices and its troubled relationships with some mail-order pharmacies, hopes the Walgreens agreement will lead to new distribution pathways for its products and help regain some credibility among investors. However, Valeant issued a downbeat earning guidance for 2016.
The New York Times:
Valeant Makes Distribution Deal With Walgreens
Valeant Pharmaceuticals International has agreed to distribute many of its drugs through Walgreens stores in a new way and, in some cases, for lower prices, the companies announced on Tuesday. The agreement appeared to be part of Valeant’s strategy to replace its reliance on Philidor Rx Services. Philidor, a mail-order pharmacy, had played a big role in keeping insurers and corner drugstores from substituting less expensive alternatives for Valeant’s high-priced dermatology drugs. (Pollack, 12/15)
The Associated Press:
Valeant In New Distribution Deal With Walgreens
Valeant Pharmaceuticals regained some credibility with upset investors thanks to its announcement Tuesday of a new distribution deal with Walgreens and plans to line up more pharmacies to sell its products after a scandal forced it to cut ties with a key distributor, Philidor. (Johnson and Murphy, 12/15)
Chicago Tribune:
Under Fire For High Prices, Valeant To Sell Some Drugs For Less At Walgreens
Stung by criticism that it jacked up the price of lifesaving medicines, Valeant Pharmaceuticals said Tuesday it will lower some prices though an agreement with Deerfield-based Walgreens, the nation's largest pharmacy retailer. Valeant said its "fulfillment agreement" will cut prices by 10 percent on all skin and eye medicines, and by more than 50 percent on some other branded drugs that that have generics available. The lower prices will be phased in over the next six to nine months, said Valeant, based in Laval, Quebec. (Russell, 12/15)
Bloomberg:
Valeant Surges On Drug Distribution Agreement With Walgreens
Valeant shares surged 12 percent to $105.76 at 11:25 a.m. in New York. They climbed as much as $109.25 earlier, the highest price since Oct. 29. The company has been under pressure over how it prices drugs and its relationship with mail-order pharmacies such as Philidor Rx Services, which specialized in helping doctors and patients get access to Valeant drugs even when insurers declined to cover them. The stock has plummeted from an all-time high of $262.52 on Aug. 5. (Torsoli and Chen, 12/15)
The Wall Street Journal:
Valeant Pharmaceuticals Slashes Revenue, Earnings Guidance
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 a controversial mail-order pharmacy. Shares in Valeant, down 53% over the past three months through Tuesday’s close, fell 4.2% in premarket trading. (Beilfuss, 12/16)
The Associated Press:
Valeant's Outlook For The Quarter, Year And 2016 Grows Grim
Embattled Valeant Pharmaceuticals has slashed its expectations for the fourth quarter and all of 2015, with about two weeks left in both, and issued a guarded outlook for next year as well. But shares of the Canadian drug company jumped more than 3 percent in premarket trading Wednesday, continuing a rally that started Tuesday after Valeant announced a new distribution deal with Walgreens and plans to line up more pharmacies to sell its products. (12/16)
News outlets also report on Bayer's search for takeover targets -
Reuters:
Bayer Consumer Health Still Looking To Bulk Up After Merck Deal
Bayer will keep looking for takeover targets in the consumer health market even as it digests the $14 billion purchase of Merck & Co businesses, to stay at least among the top three players in the industry. "I'm always interested in acquisitions," the German drugmaker's divisional head Erica Mann told journalists at an event in Basel, Switzerland. (12/16)
In addition, hepatitis C and other specialty drug costs impact public program budgets -
NPR:
Hepatitis Drug Among The Most Costly For Medicaid
A drug that can cure hepatitis C was one of the top pharmaceutical costs in most states' Medicaid budgets in 2014. All told, 33 states spent more than $1 billion to treat the disease with Gilead Sciences' Sovaldi. (Kodjak, 12/15)
Los Angeles Times:
Specialty Drug Costs Soar 32% To $438 Million At CalPERS Amid Uproar Over Prices
One of the nation's biggest health care buyers, the California Public Employees' Retirement System, said its specialty drug costs soared 32% last year to $438 million. Despite being less than 1% of all prescriptions, specialty drugs accounted for nearly a quarter of the pension fund's $1.8 billion in total drug costs, according to a new report by the agency. (Terhune, 12/15)
