Health and Science

Valeant CEO looks to boost performance with seven key products

Key Points
  • Valeant CEO Joseph Papa has put innovation at the forefront of a campaign to help the drug maker recover from debt and $700 million in losses from drug competition.
  • The keys to success, Papa says, are a portfolio of lucrative drugs, anticipated to bring in more than $1 billion in the next five years.
Valeant CEO: We took an appropriate response to pricing with recent increase

Valeant CEO Joseph Papa projects that a $1 billion portfolio of key products will help the drug maker fight debt and exclusivity challenges.

"We received an approval for, really, what we think are seven fabulous products," Papa said on CNBC's "Power Lunch." "If all of these products get approved, we think it is going to be an over $1 billion opportunity."

Papa took the reins of an embattled Valeant in 2016, amid accusations of fraud and  price gouging in the company.

Since then, he said he's put innovation at the forefront of a campaign to calm the tide of media attention and raise revenue in the face of mounting debt and the estimated $700 million lost from drug competition.

"When I started, it was about was 18 months ago, it was all about putting together a plan for multiple years. And what we said is we have to come out with new innovation," Papa said. "We have been fortunate to do that to offset and some of the declines of loss of exclusivity that were going to happen." 

Papa is expected to discuss Valeant's recent performance and future Wednesday at the J.P. Morgan Healthcare Conference. A copy of Papa's presentation, published in advance online, identified seven significant products as Vyzulta, Lumify, and Ultra for Bausch + Lomb; Siliq, Duobrii and Jemdel from Ortho Dermatologics; and Relistor for Salix Pharmaceuticals. They are projected to raise more than $1 billion over the next five years

Papa also said he anticipates the company will continue with price hikes, but with added awareness of its former reputation as a price gouger. Just last week, Valeant increased pricing on a number of drugs about 9 percent, an amount Papa called "appropriate."

"We took a very appropriate response for what we needed to for pricing," Papa said, referring to the hike. "We will continue with our patient access and pricing committee's stay to what we would refer to as a a single digit pricing increase."