Valeant Pharma (VRX) to Employ Drug Discounting Strategy in Effort to 'Protect Volume'
Valeant Pharma (NYSE: VRX) will be using an old business tactic as it looks to retain customers following recent controversial headlines surrounding the company: discounts.
Bloomberg noted that Valeant is cutting prices for Nitropress and Isuprel to hostpital customers. The two drugs have been at the center of a congressional investigation after the company raised prices 212 percent and 525 percent, respectively, after acquiring rights to them.
CEO Mike Pearson, during a conference call early Tuesday, said the goal was to "protect volume" as the company continues to navigate litiguous waters.
Valeant also started giving away determological drugs away for patients seeking to fill orders through its pharmacy partner Philidor.
While the average price of the drugs will drop as a result, Pearson noted that the hit is only expected to be short-term.
Specific drugs getting a price cut and by how much those drugs will be discounted weren't made readily available.
Shares of Valeant closed 2 percent lower Tuesday after dropping below the $100 level last week. Shares were trading around $260 as recently as July of this year.