Valeant Pharmaceuticals Intl Inc (NYSE:VRX) announced that, pursuant to a recommendation by its Patient Access and Pricing Committee, the company will make available to all hospitals in the United States an enhanced rebate program to reduce the price of Nitropress and Isuprel.
Under the enhanced program, all hospitals are eligible for a rebate of at least 10%, with rebates totaling 20%, 30% or 40% based on volume purchased during a calendar quarter for hospitals that purchase large volumes of the relevant drug. Hospitals will receive these discounts primarily through their group purchasing organization (GPO). Hospitals that don’t buy drugs through a GPO can access the program by contacting Valeant customer service. The rebate program is effective immediately, with hospitals receiving rebates after the end of the quarter in which the purchases were made. The Patient Access and Pricing Committee also confirmed that there would be no further price increases for these products or reductions to the discount levels in the rebate program.
“Under this new program, the discounts we previously implemented for Nitropress and Isuprel will be simplified and more accessible,” said Joseph Papa, Chairman and Chief Executive Officer of Valeant. “I understand the concerns our partners in the health care community have had about the pricing of these drugs, and we want to ensure hospitals and patients can get the drugs they need.
“I also want to thank the Senate Committee on Aging and the House Committee on Oversight and Government Reform for the attention they have brought to this issue, and specifically to gaps they identified in the previous program,” Papa continued. “We are committed to getting this right.” (Original Source)
Shares of Valeant Pharmaceuticals are currently trading at $25.80, down $0.10 or -0.39%. VRX has a 1-year high of $263.81 and a 1-year low of $23.55. The stock’s 50-day moving average is $31.54 and its 200-day moving average is $70.90.
On the ratings front, Valeant Pharmaceuticals has been the subject of a number of recent research reports. In a report issued on May 13, RBC analyst Douglas Miehm maintained a Hold rating on VRX, with a price target of $65, which implies an upside of 151.0% from current levels. Separately, on May 2, Piper Jaffray’s David Amsellem reiterated a Sell rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Douglas Miehm and David Amsellem have a total average return of -12% and -11% respectively. Miehm has a success rate of 38.9% and is ranked #3446 out of 3833 analysts, while Amsellem has a success rate of 34.0% and is ranked #3708.
The street is mostly Neutral on VRX stock. Out of 21 analysts who cover the stock, 10 suggest a Hold rating , 7 suggest a Buy and 4 recommend to Sell the stock. The 12-month average price target assigned to the stock is $40.25, which represents a potential upside of 55.4% from where the stock is currently trading.
Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, eye health, neurology, and branded generics. The company operates through two operating and reportable segments: (i) Developed Markets and (ii) Emerging Markets.