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

  • Moody's cuts China rating over rising debt, slowing growth

    Economic CTV News
    BEIJING - China has criticized a decision by the Moody's rating agency to cut its rating for Chinese government debt and defended Beijing's finances and economic reforms. A finance ministry statement complained Moody's used "inappropriate methods" when it cut Beijing's credit rating and overestimated the scale of its economic difficulties. Source
  • Alberta government introduces bill to cap electricity rates to stop price spikes

    Economic CTV News
    EDMONTON -- Electricity rates in Alberta would be capped under legislation the provincial government introduced Tuesday, a move it says will protect customers from major price spikes. The government says the four-year cap of 6.8 cents per kilowatt hour is expected to be in place by June 1. Source
  • Toronto stock index climbs on banks, industrials

    Economic CBC News
    Canada's main stock index eked out a moderate gain Tuesday as financial stocks got a boost ahead of Canadian bank earnings this week. The Toronto Stock Exchange's S&P/TSX composite index climbed 18.48 points to 15,476.94, also helped by a rise in industrials and utilities stocks. Source
  • CFO of Soup Nazi-inspired company indicted on tax charges

    Economic CTV News
    NEW YORK -- The chief financial officer for a company licensing recipes from the real-life chef who inspired the "Soup Nazi" character on "Seinfeld" has been arrested on tax charges alleging he cheated the government out of a half million dollars. Source
  • Some diesel Dodge Ram pickups and Jeep Grand Cherokees cheat emissions tests, U.S. says

    Economic CBC News
    The U.S. government is suing Fiat Chrysler, alleging that some diesel pickup trucks and Jeep SUVs cheat on emissions tests. The lawsuit filed Tuesday by the Justice Department marks the second time the government has gone after an automaker alleging use of software on diesel engines that allows them to emit more pollution on the road than during Environmental Protection Agency lab testing. Source
  • US Justice Department files Chrysler emissions cheating lawsuit

    Economic Toronto Sun
    DETROIT — The U.S. government is suing Fiat Chrysler, alleging that some diesel pickup trucks and Jeep SUVs cheat on emissions tests. The lawsuit filed Tuesday by the Justice Department marks the second time the government has gone after an automaker alleging use of software on diesel engines that allows them to emit more pollution on the road than during Environmental Protection Agency lab testing. Source
  • OPEC set to prolong oil output cuts by nine months

    Economic CBC News
    OPEC is likely to extend production cuts for another nine months, ministers and delegates said on Tuesday as the oil producer group meets this week to debate how to tackle a global glut of crude. OPEC's top producer, Saudi Arabia, favours extending the output curbs by nine months rather than the initially planned six months, as it seeks to speed up market rebalancing and prevent oil prices from sliding back below $50 per barrel. Source
  • U.S. says Fiat Chrysler used software to beat emissions tests

    Economic CTV News
    DETROIT -- The U.S. government is suing Fiat Chrysler, alleging that some diesel pickup trucks and Jeep SUVs cheat on emissions tests. The lawsuit filed Tuesday by the Justice Department marks the second time the government has gone after an automaker alleging use of software on diesel engines that allows them to emit more pollution on the road than during Environmental Protection Agency lab testing. Source
  • Are 30-somethings earning more than their parents? StatsCan study says yes

    Economic CTV News
    OTTAWA -- A new study from Statistics Canada says that Canadian children have, on average, fared better financially than their parents. The research published today finds that of Canadians who turned 30 between 2000 and 2014, between 59 and 67 per cent -- depending on the year -- had a family income that was equal to, or greater than what their parents earned at the same age. Source
  • In Bombardier fight, Boeing sees ghost of Airbus ascent

    Economic CBC News
    Two words underpin Boeing's decision to launch a U.S. trade complaint against Bombardier, which plunged it into a row with Canada last week: "Never again". Allegations that the Canadian firm dumped newly designed CSeries passenger jets in the United States at a steep loss have threatened a sale of F/A-18 warplanes to Ottawa, sending Boeing scrambling to save the deal. Source