Valeant Gets Boost from Walgreens Endorsement

July 7, 2016

Last December, Walgreens partnered with Valeant to sell the drugmaker's dermatological and ophthalmological products in exchange for a 10% discount.

So far, the deal has not been lucrative for Valeant. In Valeant's recent quarterly conference call, newly appointed CEO Joseph Papa said that management is aware of the problems its facing with the deal.

During a conference call following Walgreens' quarterly earnings, Walgreens Co-COO Alexander Gourlay expressed confidence in Papa, as well as indicated a willingness to work with Valeant to make their distribution deal more successful. Said Gourlay, "So it's early days, a 20-year contract, and from our point of view we are pleased, and we want to help our partner to be more successful in the market."

Following the news, shares of Valeant went up $2.68 a share, just over 13%, at $22.63.

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