Morning Briefing
Summaries of health policy coverage from major news organizations
Valeant Plans To Dispute Negative Report As Woes Drag Down Pharma Market
Valeant Pharmaceuticals International Inc. said it plans to hold a conference call at 8 a.m. EDT on Monday to address recent criticism of its business practices that has sent its stock price tumbling this week. Valeant said it would 鈥渓ay out the facts鈥 regarding allegations brought by short-seller Citron Research in a note on Wednesday. The report fanned concerns about Valeant鈥檚 accounting, raising questions about its use of certain pharmacies to supply its drugs and its accounting for the dispensing. (Dulaney, 10/22)
US secondary loan prices for pharmaceutical companies are falling with slumping equity levels as growing political and regulatory pressure on drug pricing threatens the growth model that underpins lending to the sector. Valeant Pharmaceutical Inc's secondary loan price on its D, E and F term loans fell in volatile trading on Wednesday and continued to fall to 92.25-92.75% of face value on Thursday, according to traders. (Lee, 10/22)
Health-care stocks were poised for a fall even before they were shaken yesterday by a short seller鈥檚 fraud accusation against Valeant Pharmaceuticals International Inc., according to Lori Calvasina, chief U.S. equity strategist at Credit Suisse Group AG. Calvasina recommended last week that investors reduce holdings of drug and biotechnology companies, as well as providers of health-care equipment and services. The groups suffer from 鈥渆xtremely expensive valuations,鈥 the New York-based strategist wrote in an Oct. 15 report. (Wilson, 10/22)
Also, more news on prescription drug pricing and the generics market -
Turing Pharmaceutical's controversial move to boost the price it charges for Daraprim from $13.50 a pill to $750 has at least one competitor pledging to offer an equivalent compound that treats a rare parasitic disease -- for just $1 a dose. (Hennelly, 10/23)
Pharmacist Narender Dhallan winces as he looks at a computer screen in his drugstore on a recent morning. For the second time in two hours, he has to decide whether to fill a prescription and lose money or send his customer away. This time it's for a generic antifungal cream that cost him $180 wholesale. The customer's insurance, however, will pay Dhallan only $60 to fill it. (Kodjak, 10/22)
