Valeant Pharmaceuticals Intl Inc (NYSE:VRX) announced that the company’s Patient Access and Pricing Committee has made decisions regarding price changes of products in the company’s neurology, GI and urology portfolios.
These planned wholesale acquisition price changes, effective October 14th, range from 2.0% to 9.0%. The changes are aligned with the Committee’s commitment that the average annual price increase for Valeant’s prescription pharmaceutical products will be set at no greater than single digits and below the 5-year weighted average of the increases within the branded biopharmaceutical industry.
The company’s 2016 pricing actions across its U.S. branded Rx portfolio, represent an increase of less than 2.0% within the calendar 2016 year. On a forward looking annualized basis, 2016 price actions are in line with 2016 Consumer Price Index of 2.3%.
In 2016, net pricing of Valeant’s Dermatology and Ophthalmology products, after taking into account the impact of rebates and other adjustments, will have decreased by greater than 10% on average. There will be no pricing adjustments this year on Dermatology and Ophthalmology products.
“We are committed to ensuring that past decisions with respect to product pricing are not repeated and that the investments we make in our R&D pipeline continue to result in innovative products that improve people’s lives,” said Joseph C. Papa, chief executive officer. “In reviewing product pricing, the Committee considers overall market dynamics along with the impact of any price increase on patients, doctors, and our health care industry partners. We believe the actions announced today are consistent with our commitment to ensure that patients continue to have access to the medicines they need at an affordable price and demonstrate that we are taking our approach to responsible pricing seriously.”
Formed in May 2016, the Committee includes a multi-disciplinary team of Valeant employees, including doctors, scientists, and other executives and is overseen by the company’s Board of Directors. (Original Source)
Shares of Valeant are currently trading at $22.32, down $0.45 or -1.98%. VRX has a 1-year high of $179.83 and a 1-year low of $18.55. The stock’s 50-day moving average is $28.02 and its 200-day moving average is $27.12.
On the ratings front, Valeant has been the subject of a number of recent research reports. In a report released today, Deutsche Bank analyst Gregg Gilbert reiterated a Hold rating on VRX, with a price target of $29, which implies an upside of 27% from current levels. Separately, on October 12, RBC’s Douglas Miehm reiterated a Hold rating on the stock and has a price target of $35.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Gregg Gilbert and Douglas Miehm have a total average return of -0.7% and -14.6% respectively. Gilbert has a success rate of 45% and is ranked #3082 out of 4182 analysts, while Miehm has a success rate of 40% and is ranked #3870.
Overall, 2 research analysts have rated the stock with a Sell rating, 9 research analysts have assigned a Hold rating and 4 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 $38.90 which is 70.2% 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. The Developed Markets segment consists of (i) sales in the U.S. of pharmaceutical products, OTC products, and medical device products, as well as alliance and contract service revenues, in the areas of eye health, dermatology and podiatry, aesthetics and dentistry, (ii) sales in the U.S. of pharmaceutical products indicated for the treatment of neurological and other diseases, as well as alliance revenue from the licensing of various products it developed or acquired, and (iii) pharmaceutical products, OTC products, and medical device products sold in Canada, Australia, New Zealand, Western Europe and Japan. The Emerging Markets segment consists of branded generic pharmaceutical products and pharmaceuticals, OTC products, and medical device products. Products are sold primarily in Central and Eastern Europe (primarily Poland and Russia), Asia, Latin America (Mexico, Brazil, and Argentina and exports out of Mexico to other Latin American markets), Africa and the Middle East.