Valeant Pharmaceuticals have cracked a deal of distributing its medicines at discount through Walgreen’s pharmacies. The deal has come went into effect after questionable business practices went on for six weeks.
Valeant agreed to cut ten percent of its prices for branded ophthalmology and dermatology products that are being distributed by Walgreen’s retail pharmacies. According to reports, Valeant also plans to exceed its model facility to other independent retail pharmacies. The extent of the deal covers an estimated 8,000 United States Walgreen’s pharmacies. Initially the deal will cover medicines such as acne products Solodyn, eye drop Alrex, Retin-A Micro, and a toenail fungus drug called Jublia. Also covering Valeant’s over-the-counter products, it will fall into the first quarter of the deal.
The drug maker, who increased the prices of old medicines stated an agreement with Walgreen’s includes distribution of more than 30 branded products at generic prices, along with minimizing prices from five to ninety-five percent. The reduction in drugs with generic competition is expected to come in action in the second half of next year. A cut of ten percent is to be implemented over the next six to nine months.
Valeant Chief Executive J. Michael Pearson reported they have listened to what the marketplace is saying and they have taken positive steps to respond. He went on to say the major goal here is to create such a system that allows prescription medicines to be dispensed. Physicians would be allowed to focus on what matters the most regarding patient’s care. Insurance claims would be dealt in a more efficient manner.
Valeant stock has sunk sixty percent in the previous three months because of its confrontation with federal investigations regarding the company’s pricing practices. Plus, its questionable accountability held at Philidor specialty pharmacy regarding a short-seller and other exposed questions about business practices, handling seven percent of its revenues.
Valeant also talked about terminating its relationship with Philidor, because of its imposed allegations about Valeant business. The Wall Street Journal reports Valeant staffers are working at Philidor under fake names. According to Bloomberg News, Valeant has been manipulating with its prescriptions to boost the reimbursement of its products.
Short seller Citron Research stated, comparing Valeant and Enron, it was Valeant who was using Philidor and other specialty pharmacies as medium to commit fraud in accounts. On the other hand, Valeant claims of its accounts to be appropriate with Philidor with no fraud. Valeant has also placed a committee over this issue to prove allegation as false. The outcome with UnitedHealth, Express Scripts, and CVS Health also announced to no longer work with Philidor anymore.
Multiple federal investigations have targeted Valeant for its drug prices practices. Valeant reported it has received a letter from Senator Claire McCaskill and subpoenas from the United States Attorney’s offices in Massachusetts and New York. And it has responded to both of them considering its pricing decisions and patient assistance programs.
Philidor was providing a service of copay assistance to Valeant for the patient’s benefit. But in the agreement with Walgreen’s, Valeant includes zero copay assistance for patients with commercial insurance; whereas patients allied with government insurance are not eligible for this criterion.