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Valeant Pharmacy Fallout to Cut 2016 Profit by $500 Million

  • 2016 adjusted Ebitda will be $6.9 billion to $7.1 billion
  • Drugmaker hosting investor meeting in New Jersey on Wednesday
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Valeant Shares Climb on Lowered 2016 Earnings Call

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Valeant Pharmaceuticals International Inc. said that the fallout and remedies from its relationship with a controversial mail-order pharmacy, Philidor Rx Services, will slash hundreds of millions of dollars from the company’s earnings this quarter and next year.

The drugmaker said in October that it was ending its relationship with Philidor, which used aggressive business practices to push Valeant’s products. Lower prices for drugs, retention bonuses to keep workers at the company after disruptions to business, legal fees and a new patient access program will cut about $500 million next year from the company’s adjusted Ebitda, or earnings before interest, tax, depreciation and amortization, Valeant said in a presentation to investors Wednesday.