`
`CVS Caremark Cuts Coverage For Valeant Fungal Drug Jublia
`
`CVS Just Made Valeant's Day Even Worse
`
`Photograph by Victor J. Blue — Bloomberg via Getty Images
`
`No love lost between the two companies.
`
`By Phil Wahba February 22, 2016
`
`It was already a terrible day for Valeant Pharmaceuticals (VRX, +0.00%) when news
`came that CVS Health (CVS, -0.81%) was dealing the company a new blow: it will
`restrict the use of Jublia, the drugmaker’s toenail fungus treatment.
`
`Valeant shares, down 10% on Monday after a Wells Fargo research note said its board
`and management “have made decisions that may have put Valeant at signi(cid:230)cant
`business and reputational risk,” took another hit when Bloomberg News reported
`CVS’s decision.
`
`CVS, which operates pharmacy bene(cid:230)ts manager Caremark, the second largest PBM
`after Express Scripts (ESRX, -1.29%) , is launching a new program in April that will
`among other things limit the use of Jublia, CVS Chief Medical Of(cid:230)cer Troyen
`Brennan told Bloomberg. The news agency reported Jublia goes for $1,000 for an 8-
`ml bottle. Caremark members will have to try to treat their condition with other, less
`
`http://fortune.com/2016/02/22/cvs-valeant/
`
`1/2
`
`Page 1 of 2
`
`ACRUX DDS PTY LTD. et al.
`
`EXHIBIT 1632
`
`IPR Petition for
`
`U.S. Patent No. 7,214,506
`
`
`
`10/31/2017
`
`CVS Caremark Cuts Coverage For Valeant Fungal Drug Jublia
`
`CVS Just Made Valeant's Day Even Worse
`
`Photograph by Victor J. Blue — Bloomberg via Getty Images
`
`No love lost between the two companies.
`
`By Phil Wahba February 22, 2016
`
`It was already a terrible day for Valeant Pharmaceuticals (VRX, +0.00%) when news
`came that CVS Health (CVS, -0.81%) was dealing the company a new blow: it will
`restrict the use of Jublia, the drugmaker’s toenail fungus treatment.
`
`Valeant shares, down 10% on Monday after a Wells Fargo research note said its board
`and management “have made decisions that may have put Valeant at signi(cid:230)cant
`business and reputational risk,” took another hit when Bloomberg News reported
`CVS’s decision.
`
`CVS, which operates pharmacy bene(cid:230)ts manager Caremark, the second largest PBM
`after Express Scripts (ESRX, -1.29%) , is launching a new program in April that will
`among other things limit the use of Jublia, CVS Chief Medical Of(cid:230)cer Troyen
`Brennan told Bloomberg. The news agency reported Jublia goes for $1,000 for an 8-
`ml bottle. Caremark members will have to try to treat their condition with other, less
`
`http://fortune.com/2016/02/22/cvs-valeant/
`
`1/2
`
`Page 1 of 2
`
`
`
`10/31/2017
`
`CVS Caremark Cuts Coverage For Valeant Fungal Drug Jublia
`expensive toenail fungus drugs, according to Bloomberg. The program will be
`optional for health insurance and employer clients. A CVS spokesman con(cid:230)rmed
`Brennan’s comments.
`
`Brennan told Bloomberg it was part of CVS’ broader efforts to reduce the use of
`costly dermatology drugs.
`
`There is no love lost between CVS and Valeant. CVS, which also operates a massive
`drugstore chain, in December slammed Valeant for striking a drug pricing and
`distribution deal with arch-rival Walgreens. (WBA, +2.76%) The pact calls for
`Walgreens, the largest U.S. drugstore chain, to sell Valeant’s signature skin and eye
`drugs at a 10% discount under a 20-year agreement. Under the deal, Walgreens won’t
`take ownership of the Valeant drugs but instead hold them on consignment until
`delivery, a move that could marginalize pharmacy bene(cid:230)ts managers such as CVS’
`Caremark unit.
`
`Two months ago, CVS Health Larry Merlo said 90% of Valeant’s programs are either
`excluded from Caremark’s formulary or have non-preferred status. In October, CVS
`dropped one of Valeant’s former partners from Caremark’s network. CVS said at the
`time that it was terminating Philidor, a specialty pharmacy facing scrutiny after an
`internal audit found evidence of “noncompliance with the terms of its provider
`agreement.”
`
`
`
`Valeant was pummeled late last year when questions about its business and
`accounting practices spooked investors, with the stock ending 2015 down about 70%
`from a high hit in August.
`
`http://fortune.com/2016/02/22/cvs-valeant/
`
`2/2
`
`Page 2 of 2
`
`
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