Valeant Pharmaceuticals International Inc (VRX): 'Female Viagra' Drug Barely Sells As Brand Takes Hit Among Doctors

UPDATE: 5:00 p.m. EST

Valeant ended the day down 4 percent, or $2.97, to $70.35, the stock's lowest close since March, 2013.

Original Story:

Valeant Pharmaceuticals can't catch a break. A month after controversies over drug pricing engulfed the Canadian drugmaker, it has been revealed that its much-heralded female libido drug Addyi has met a cool reception in the consumer marketplace.

In its first month on the market, Addyi sold 227 prescriptions, Bloomberg reports. Compare that to the 500,000-plus prescriptions men made for Viagra on its launch in 1998. Valeant purchased Sprout Phamaceuticals, the North Carolina company that makes Addyi, for $1 billion the same week the FDA approved the drug.

Meanwhile, the fallout from Valeant's specialty pharmacy imbroglio of the last month has damaged the company's brand in the eyes of dermatologists who prescribe some of Valeant's best-selling products. That's the conclusion of a small survey conducted by Deutsche Bank, reported to investors in a note Tuesday.

"The results certainly suggest that the Philidor controversy could have longer-lasting effects vs. just the short-term disruption that management has suggested," Deutsche Bank pharmaceuticals analyst Gregg Gilbert wrote. Two-thirds of doctors surveyed said they had decreased their Valeant prescriptions since the controversy became public.

Valeant's stock fell 1.7 percent, or $1.27, to $72.05 in early afternoon trading Tuesday. The stock was down 56 percent over the previous 30 days.

Valeant has faced tough questions from investors and regulators over its recently disclosed relationship with a specialty pharmacy called Philidor Rx Services, which handled patient orders and insurance company reimbursements for a number of Valeant's dermatological drugs. The company, which had close ties with Valeant, has been accused of misleading insurance companies and changing prescriptions without doctors' orders, accusations vigorously denied by Philidor.

Valeant paid $100 million for the right to acquire Philidor. It has since endeavored to cut all ties with Philidor after some of its biggest customers, including CVS, severed their own business relationships with the specialty pharmacy.

Executives have downplayed the effects of the Philidor affair on the company's bottom line, noting that just 7 percent of company revenues in the most recent quarter flowed through the specialty pharmacy. But it will be harder to explain away Addyi's abysmal sales.

Analysts have raised doubts about the viability of the drug, which costs nearly $800 a month and must be taken daily. Only 10 percent of women in trials reported any positive effects compared to a group that received placebos.