Valeant may be raising prices on several of its drugs--but the benefits it reaps from some of those pricing moves are small, it insists.
Valeant may be in the spotlight for hiking prices on Isuprel and Nitropress, a pair of meds it acquired this year from Marathon Pharmaceuticals. But they're hardly alone: The Canadian drugmaker has jacked up prices on 54 other meds so far this year, increasing them by an average of 65.6%, according to a Deutsche Bank analysis.
Last week, Valeant CEO J. Michael Pearson wrote a letter to worried employees explaining that Isuprel and Nitropress--two meds that have drawn the company into the drug-pricing spotlight because of recent price hikes--don't contribute to its growth plans. What he didn't mention: The company has jacked up prices on 54 other meds this year alone by an average of 65.6%.
Valeant's stock has been slipping on drug-pricing worries, and one-time deal partner and company enthusiast Bill Ackman has certainly taken note. His hedge fund, Pershing Square Holding, recorded a 12.5% loss last month, Reuters reports, with news that lawmakers are looking into Valeant price hikes on a pair of older meds spooking investors.
After the outpouring of rage that greeted Turing Pharmaceuticals last week when it decided to hike the price on an older med by 5000%-plus, its CEO, Martin Shkreli, is one of the last people any pharma chief would want to be compared with right now. But that's the position Valeant skipper J. Michael Pearson found himself in Monday afternoon.
Sure, Valeant has raised prices--and a lot, on some drugs. But employees shouldn't worry about it, despite the recent price-hike backlash plaguing the industry and its stock prices. That's the read from CEO J. Michael Pearson, who issued a letter on Monday to Valeant workers explaining that revenues from Isuprel and Nitropress--two products that saw their prices soar after his company picked them up--aren't part of the Canadian pharma's growth stats.
India's Business Standard, citing brokerage reports, said the domestic drug company Lupin has raised the price for diabetes drug Fortamet in the U.S. by 200%, though that still puts it below rival Valeant Pharmaceuticals.
The red carpet may have finally seen it all. Toenail fungus and its nemesis, Big J, the animated big toe in a purple hat character showed up post-Emmy Awards on a fictional red carpet--but with real preshow co-host Mario Lopez.
Valeant is famous for wringing cost savings out of its buyouts, and its tax-advantaged Canadian domicile helps on that front. Now, it's leveraging another address to pare down Salix's tax bill by more than $560 million. But how?
A Canadian drugmaker with quite the track record for buyouts has struck a far-reaching deal that it says will enhance its M&A strategy. No, it's not serial dealmaker Valeant--but it may have Valeant worried.