Valeant to Slash Prices at Walgreens

A day ahead of an investor call, Valeant Pharmaceuticals announced that it will reduce by 10 percent the prices of its skin and eye products distributed at more than 8,000 Walgreens retail outlets.

The 20-year agreement will permit Walgreens to sell branded versions of Valeant drugs that face generic competition at competitive prices. Valeant says the expected average price decrease for these products will be more than 50 percent.

The pricing plan for prescription and over-the-counter products will be phased in over the next six to nine months. Valent estimates that the price reductions are expected to add $600 million in savings to the healthcare system. The drugmaker adds that it plans to extend the reduced cost distribution model to other participating retail pharmacies.

The agreement comes in the wake of recent criticism over Valeant’s relationship with specialty pharmacy Philidor RX Services. Valeant severed its relationship with Philidor amid allegations that the specialty pharmacy was improperly changing prescriptions for cheap generics to Valeant’s more expensive branded drugs.