Valeant Pharmaceuticals Intl Inc (NYSE:VRX) seeks to clarify statements made in a media report today. Pursuant to a recommendation from our Patient Access and Pricing Committee, Valeant announced in May 2016 that an enhanced discount and rebate program for Nitropress and Isuprel would be made available to all hospitals in the United States. 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 receive these discounts primarily through their group purchasing organization (GPO), and Valeant has communicated to individual hospitals that we are working with GPOs to administer the program. As of today, Valeant has contracted with 13 of the 14 GPOs representing a diverse range of hospitals, health plans and long-term care facilities. Valeant is working diligently to finalize the remaining GPO. At that point, we expect over 90% hospital groups will be covered under the discount and rebate program.
Under the program, GPOs may provide hospital members with upfront discounts and/or volume based rebates after the end of the quarter in which the purchases were made. Hospital representatives who were quoted in press reports that they are “paying the same high price” are likely not taking end of quarter rebates into account.
Joseph Papa, Valeant CEO, stated “We have taken the concerns of the healthcare community very seriously and we are committed to working with hospital groups to ensure that purchasers of Nitropress and Isuprel have access to the enhanced discount and rebate program. We are pleased that we have successfully negotiated contracts with many of the purchasers to date and expect to have virtually all covered in the near future.”
Mr. Papa added: “Our customer service representatives are fielding calls from individual hospitals and are available to answer questions about the enhanced rebate program. We have also contacted hospital administrators who have said that their calls were not returned. At this time, Valeant Customer Service is unaware of any inbound inquiries by phone or email that have yet to receive a response. (Original Source)
Shares of Valeant Pharmaceuticals closed today at $27.28, down $0.09 or 0.33%. VRX has a 1-year high of $245.82 and a 1-year low of $18.55. The stock’s 50-day moving average is $27.24 and its 200-day moving average is $30.48.
On the ratings front, VRX stock has been the subject of a number of recent research reports. In a report issued on September 6, Jefferies analyst David Steinberg reiterated a Buy rating on VRX. Separately, on August 25, Morgan Stanley’s David Risinger reiterated a Buy rating on the stock and has a price target of $42.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Steinberg and David Risinger have a total average return of 1.2% and -1.4% respectively. Steinberg has a success rate of 52% and is ranked #1592 out of 4158 analysts, while Risinger has a success rate of 49.5% and is ranked #3139.
Overall, 2 research analysts have rated the stock with a Sell rating, 8 research analysts have assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $35.00 which is 28.3% above where the stock opened today.
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.