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

  • Asian stocks rise as investors look ahead to U.S. earnings

    Economic CTV News
    BEIJING - Asian stock markets were mostly higher Tuesday following a holiday for U.S. markets as investors look ahead to American corporate earnings. KEEPING SCORE: The Shanghai Composite Index rose 0.4 per cent to 3,425.03 and Tokyo's Nikkei 225 added 0.7 per cent to 23,882.23. Source
  • China's GAC to scrap 'Trumpchi' brand for U.S. car market

    Economic CTV News
    DETROIT -- Chinese automaker GAC Motor will scrap the brand name it uses in China when it enters the U.S. market next year because it could be confused with U.S. President Donald Trump's surname. For the past eight years, GAC has sold cars and SUVs under the brand Trumpchi in its home market, but is now researching new names before the company's expected U.S. Source
  • 6 Canadian banks manipulated an interest rate benchmark, U.S. lawsuit alleges

    Economic CTV News
    WHITE PLANES, N.Y. -- A class-action lawsuit filed in a U.S. court alleges six Canadian banks and three others conspired to increase the profitability of their derivatives trading business by manipulating an interest rate benchmark for about seven years. Source
  • National Bank lowers revenue growth expectations for Cineplex, cuts price target

    Economic CBC News
    Even the recent release of Star Wars: The Last Jedi couldn't keep Cineplex Inc. shares from tumbling nearly four per cent Monday after an analyst forecasted a rocky 2018 for the company. The fall came after the National Bank of Canada cut its price target for the entertainment company's shares as the bank lowered expectations for box office revenues and concession sales on Monday. Source
  • Survey finds 1/3 of Canadians can't pay monthly bills as rates set to rise

    Economic CTV News
    CALGARY -- A new survey suggests a third of Canadians can't pay their monthly bills, including debt repayments, against a backdrop of rising interest rates. The quarterly MNP consumer debt index survey finds the number of Canadians who can't cover their fixed monthly expenses is up eight points since September. Source
  • BlackBerry unveils new security tool at debut appearance at Detroit auto show

    Economic CTV News
    DETROIT -- BlackBerry Ltd. (TSX:BB) is launching a new security tool for automobile manufacturers, one of the company's major areas of growth. Executive chairman John Chen says the new BlackBerry Jarvis will scan all software components in a vehicle within minutes to predict and fix vulnerabilities. Source
  • Tahoe Resources cutting 250 jobs at Guatemala silver mine amid legal fight

    Economic CBC News
    Tahoe Resources Inc. says it has cut 250 jobs at its Escobal silver mine in Guatemala as a legal battle to reopen the mine drags on. The company says it was forced to suspend operations at the mine last July after the Supreme Court of Guatemala issued a provisional decision that the country's ministry of mines did not properly consult with the Xinca Indigenous people before granting the Escobal licence. Source
  • Aphria buying Broken Coast Cannabis for $230M in stock and cash

    Economic CBC News
    Licensed marijuana producer Aphria Inc. has signed a deal to buy Broken Coast Cannabis Inc., a cannabis producer on Vancouver Island, in a transaction it valued at $230 million in cash and stock. Under the agreement, Aphria will pay up to $10 million in cash with the remainder in shares based on a deemed price of $15.09 per share. Source
  • FCA CEO hints at new product for Windsor, says commitment to plant is 'unwavering'

    Economic CBC News
    Fiat Chrysler Automobiles' commitment to its Windsor Assembly Plant is "unwavering," said CEO Sergio Marchionne, before hinting at the possibility of a new product.NAIAS 2018 |Meet the 15-year-old car buff covering the Detroit auto show for CBC?NAIAS 2018 | Honda Accord, Volvo XC60 and Lincoln Navigator named vehicles of the year at Detroit auto showMarchionne made the statements during a news conference at the North American International Auto Show at the Cobo Centre in downtown Detroit. Source
  • Aphria buying Broken Coast Cannabis for $230 million in stock and cash

    Economic CTV News
    LEAMINGTON, Ont. -- Licensed marijuana producer Aphria Inc. has signed a deal to buy Broken Coast Cannabis Inc., a cannabis producer on Vancouver Island, in a transaction it valued at $230 million in cash and stock. Source