MONDAY: Keeping in view the ongoing *scrutiny over its drug cost strategizing, Valeant Pharmaceuticals International Inc. (NYSE: VRX) has announced to multiply its discount rates over a pair of two of its manufactured heart **drugs – namely Isuprel and Nitropress.
(*The Senate committee has been investigating dramatic price increases imposed by Valeant and other firms) (**both the drugs were purchased by Valeant in February 2015)
In accord with immediate compliance, hospitals are eligible for a rebate of at least 10% but up to 40% based on the volume of drugs bought during a Q. Hospitals will receive the 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 (source: official Press Release).
There would be no further prices increases for the products or cuts to the discounts in the rebate program, as per VRX’s internal body, The Patient Access and Pricing Committee.
INSIGHT: Past reports have shown how drug manufacturer raised costs of Isuprel and Nitropress by 525% and 212%, respectively – right after acquiring them.
“I 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. Discounts will be simplified and more accessible.” – Chief Executive Joseph Papa
As what Wall Street Journal reports:
He further added:
“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. We are committed to getting this right.”
Exclusive data obtained from Wall Street Journal cites (for readers’ concern):
|VRX shares gained approximately 1% during PREMARKET – settling at $26.15|
|Earlier the drug maker has lost worth 88% of its shares’ value on annual scale|