Valeant has new deal with U.S. drug store chain, will drop some prices

MONTREAL -- Valeant Pharmaceuticals plans to deliver up to US$600 million in annual savings to the U.S. health-care system starting next year after agreeing to cut the prices of several of its drugs as part of distribution agreements with the Walgreens retail chain.

See Full Article

The Quebec-based company said it will drop wholesale prices for branded prescription-based skin and eye-care products by 10 per cent.

The price reductions under the 20-year agreement with one of the largest U.S. drug chains will be introduced in six to nine months.

Walgreens will also distribute more than 30 of Valeant's branded products at comparable generic prices, starting in the second half of 2016. The average price decrease is expected to be more than 50 per cent, with reduced prices ranging between five and 95 per cent.

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.

Valeant's (TSX:VRX) pricing practices have been under investigation by U.S. authorities, including at the U.S. Congress, since the company dramatically increased prices for some specialty products this year.

The company has also come under fire as the result of a civil suit by a small U.S. pharmacy that shed new light on Valeant's distribution agreements and practices.

"We have listened to what the marketplace is saying and we've taken positive steps to respond," Valeant chairman and CEO Michael Pearson said in a news release on Tuesday, a day before he is scheduled to hold a conference call with industry analysts.

The new distribution agreement with Walgreen -- a chain of more than 8,000 retail outlets -- follows Valeant's decision to sever ties with mail-order pharmacy Philidor Rx Services. That relationship came to light as a result of a court battle between Valeant and another mail-order pharmacy.

Valeant says the Walgreens agreement will be used as a model for distribution deals with independent retail pharmacies.

"Our goal is to create a system that allows prescription medications to be dispensed and insurance claims adjudicated in an efficient manner while allowing physicians to focus their efforts on what matters most: patient care," Pearson added.

Patients with commercial insurance can benefit from lower out of pocket costs, while the program will also be available for patients without insurance coverage. However, reduced costs won't apply for those on government insurance.

Walgreens president Alex Gourlay said the new direct distribution model will increase efficiency and improve service for patients.



Advertisements

Latest Economic News

  • Environmental groups challenge Keystone XL pipeline approval

    Economic CBC News
    A coalition of environmental groups challenged the U.S. federal permit for the Keystone XL oil pipeline in court on Thursday because they say additional environmental scrutiny is needed. The Sierra Club, Natural Resources Defense Council and other groups say the initial environmental review completed in 2014 is inadequate and outdated, and that it underestimated how much the pipeline would encourage tar sands oil production in Canada. Source
  • Cenovus shares fall in wake of $17.7B oilsands purchase

    Economic CBC News
    Shares in Cenovus Energy were down 11 per cent shortly after markets opened Thursday following its announcement to acquire Canadian assets belonging to Houston-based ConocoPhillips.Cenovus Energy buying most of ConocoPhillips' Canadian assets for $17.7BUnder the $17.7 billion deal, the Calgary-based energy company would take over most of ConocoPhillips's investments in Canada in what is the latest mega oilsands sale by a major foreign oil and gas producer. Source
  • Is Toronto's housing market in a bubble? Not quite, analyst says

    Economic CTV News
    Despite a recent declaration by Bank of Montreal Chief Economist Douglas Porter that Toronto’s red-hot housing market is indeed in a “bubble,” other economists have been hesitant to use the controversial label to describe the city’s current real estate boom. Source
  • CIBC boosts takeover offer for PrivateBancorp to more than $6B

    Economic CBC News
    Shares of Canadian Imperial Bank of Commerce traded lower Thursday after the bank boosted its takeover bid for PrivateBancorp by 20 per cent. Under the terms of a new takeover agreement that has approved by the boards of directors of both firms, the deal values Chicago-based PrivateBancorp at approximately $6.6 billion Cdn, or $60.92 US per share, Source
  • Air Canada lawsuit accuses Airbus of negligence in Halifax crash landing

    Economic CTV News
    HALIFAX - Air Canada is claiming a French aircraft manufacturer's negligence contributed to a crash landing at Halifax Stanfield International Airport two years ago. The Canadian airline is suing Airbus SAS, saying the company failed to identify shortcomings of the Airbus 320. Source
  • Trump takes first step in NAFTA renegotiation

    Economic CTV News
    WASHINGTON -- The Trump administration has taken an early step in renegotiating the North American Free Trade Agreement, sending the U.S. Congress a draft list of priorities for the negotiation that expresses hope for change in a broad range of areas. Source
  • Vague NAFTA renegotiation plan after Trump's tough talk

    Economic CTV News
    WASHINGTON -- The Trump administration has submitted a vague set of guidelines to Congress for renegotiating the North American Free Agreement with Mexico and Canada, disappointing those who wanted a major overhaul of a decades-old trade deal that Trump described as "disaster" during the presidential campaign. Source
  • Cenovus Energy stock slides after $17.7B deal with ConocoPhillips

    Economic CTV News
    CALGARY -- Shares in Cenovus Energy were down 11 per cent shortly after markets opened Thursday following its announcement to acquire Canadian assets belonging to Houston-based ConocoPhillips. Under the C$17.7 billion deal, the Calgary-based energy company would take over most of ConocoPhillips's investments in Canada in what is the latest mega oilsands sale by a major foreign oil and gas producer. Source
  • TD Bank reviewing sales practices, CEO Bharat Masrani tells AGM

    Economic CBC News
    TD Bank says it is reviewing concerns about its sales practices in light of reports that some employees allegedly broke the law in order to meet sales targets and keep their jobs. CEO Bharat Masrani says the bank received "a few hundred complaints" last year regarding its sales practices that were escalated. Source
  • TD Bank reviewing sales practice concerns: CEO

    Economic CTV News
    TORONTO -- TD Bank says it is reviewing concerns about its sales practices in light of reports that some employees allegedly broke the law in order to meet sales targets and keep their jobs. "As we have done in the past with matters of such importance, we will be relying on our board as well as the objective advice from a leading professional services firm to make sure we really test ourselves," CEO Bharat Masrani said during the bank's annual shareholder meeting Thursday. Source