Valeant strikes distribution deal with Walgreens

Embattled drugmaker Valeant Pharmaceuticals has struck a deal with Walgreens to distribute some of its drugs at a 10% discount.  

Valeant will cut its prices for branded ophthalmology and dermatology products distributed by Walgreens retail pharmacies and plans to extend the model to independent retail pharmacies. Walgreens will also distribute more than 30 of Valeant’s branded products, where generics are available, at generic prices. The companies claim this arrangement will save the U.S. healthcare system an estimated $600 million per year.

This announcement comes 6 weeks after Valeant terminated its relationship with the mail-order pharmacy Philidor Rx, which was allegedly being used to inflate Valeant’s sales. This 20-year agreement with Walgreens is expected to take effect in the first quarter of 2016.