Valeant Pharmaceuticals Intl Inc (NYSE:VRX) shares have surged by 15% in morning trading after the company announced it has entered into a 10-year fulfillment agreement with Walgreens Boots Alliance Inc (NASDAQ:WBA) in which Walgreens will carry Valeant’s ophthalmology and OTC products in more than eight thousand of its stores in exchange for Valeant reducing its wholesale prices for some of its drugs by 10%. The price reductions could help Valeant buy some good will in Washington and the company hopes to extend its distribution to more independent retail pharmacies over the next few years. Bill Ackman’s Pershing Square is a big believer in Valeant Pharmaceuticals Intl Inc (NYSE:VRX), holding a 9.9% stake in the company.
Pacira Pharmaceuticals Inc (NASDAQ:PCRX) shareholders received some good news today after Pacira announced that it has resolved its lawsuit with the US Food and Drug Administration related to the company’s promotional practices of EXPAREL, a single-dose, non-opioid local anesthetic. The FDA originally had threatened the company with enforcement action with a warning letter, but later withdrew it. Less regulatory scrutiny is always a good thing, and shares of Pacira Pharmaceuticals Inc (NASDAQ:PCRX) are up 11% in morning trading so far. A total of 29 funds among those we follow amassed stakes equal to around 27% of the company’s float as of September 30.
Rising biotech and healthcare stocks seem to be a trend today, as shares of Intercept Pharmaceuticals Inc (NASDAQ:ICPT) are also 16% in green. Traders are buying the stock because of rumors that Shire PLC (ADR) (NASDAQ:SHPG) might be interested in acquiring the company. Intercept Pharmaceuticals Inc (NASDAQ:ICPT) has a promising pipeline of chronic liver and intestinal disease drugs that make it a potential takeover target. Jim Simons’ Renaissance Technologies owned 61,600 shares of Intercept at the end of September.