Dashing Its Hopes To Return To Normalcy, Bedeviled Valeant Posts First-Quarter Loss
The pharmaceutical company, which has been dogged by government investigations into its business and accounting practices, saw its shares fall 14 percent before opening bell.
The Associated Press:
Valeant Reports 1Q Loss
Valeant Pharmaceuticals International Inc. (VRX) on Tuesday reported a first-quarter loss of $373.7 million, after reporting a profit in the same period a year earlier. The Laval, Quebec-based company said it had a loss of $1.08 per share. Earnings, adjusted for one-time gains and costs, were $1.27 per share. (6/7)
Bloomberg:
Valeant Cuts Forecast Under New CEO, Key Drug Sales Plunge
Valeant Pharmaceuticals International Inc.’s real problem isn’t its critics or drama with its leadership, but the company’s underlying business. The shares plummeted in early trading Tuesday as new Chief Executive Officer Joseph Papa cut 2016 earnings forecasts, marking a major reset point as the once high-flying company tries to get back on its feet. (Bloomfield, 6/7)
In other pharmaceutical news —
Reuters:
Genentech, OSI to Pay $67 Million Over Drug Claims: U.S. Justice Dept
Pharmaceutical companies Genentech and OSI Pharmaceuticals LLC will pay $67 million to resolve allegations they made misleading statements about the effectiveness of lung cancer drug Tarceva, the U.S. Justice Department said on Monday. The claims alleged that between 2006 and 2011, the companies misrepresented the effectiveness of Tarceva to physicians and other healthcare providers to treat certain patients with non-small cell lung cancer, the department said in a statement. (Beech and Medhor, 6/6)
The Wall Street Journal:
Alexion Drug Misses Goal In Neuromuscular Disease Study
A late-stage study of Alexion Pharmaceuticals Inc.’s Soliris drug to treat a rare neuromuscular disease didn’t meet its primary goal, the company said. In the study of patients with refractory generalized myasthenia gravis, which causes muscle weakness throughout the body, the primary endpoint was related to a patient-reported assessment of activities of daily living. Alexion said that as of week 26, any improvement seen in the assessment wasn’t statistically significant. (Beckerman, 6/6)
The Wall Street Journal:
Sarepta Shares Climb As FDA Requests Additional Information On Experimental Drug
Shares of Sarepta Therapeutics Inc. rose sharply late Monday after the drugmaker said the U.S. Food and Drug Administration had requested additional information on the company’s experimental treatment for muscular dystrophy. Shares jumped 31% after hours to $21.05. Last month, the FDA, the government agency charged with approving new medicines, said it was delaying its decision on the drug, eteplirsen, stirring expectations that the agency could approve the treatment despite the recommendation by an advisory panel that the treatment be rejected. (Minaya, 6/6)
Charlotte Observer:
Alka-Seltzer Can Cause ‘Serious Bleeding,’ FDA Warns
The FDA said Monday that over-the-counter antacid products, commonly taken for heartburn and upset stomach, that contain aspirin can cause “serious bleeding.” It said that although such cases are rare, there have been eight new cases of serious bleeding since the FDA issued a warning in 2009. (Welsh, 6/6)
And Martin Shkreli pleads not guilty to a new conspiracy charge —
The Associated Press:
Pharma Exec Shkreli Pleads Not Guilty To Securities Fraud
A pharmaceutical executive who came under fire for jacking up the price of a lifesaving malaria medication has pleaded not guilty to new charges in his securities fraud case. Martin Shkreli appeared Monday in federal court in New York City. He declined to speak to reporters as he left the courthouse. A revised indictment filed last week alleged Shkreli and his former attorney Evan Greebel schemed to defrauded potential investors of his former drug company Retrophin Inc., based in San Diego. Greebel also pleaded not guilty Monday. (6/6)
The Wall Street Journal:
Martin Shkreli Pleads Not Guilty To New Conspiracy Charge
Former pharmaceutical executive Martin Shkreli pleaded not guilty Monday to a new conspiracy charge filed by Brooklyn federal prosecutors. Last week, prosecutors added an eighth criminal count against Mr. Shkreli, who was arrested last December and accused of plotting with his former lawyer to defraud pharmaceutical company Retrophin Inc., in an attempt to cover losses suffered by investors in Mr. Shkreli’s hedge funds. At the time, Mr. Shkreli was the chief executive at Retrophin. (Hong, 6/6)