Valeant Pharmaceuticals International Inc has reached a deal to distribute its drugs through leading pharmacy chain Walgreens Boots Alliance Inc.

This merger has boosted Valeant's credibility with its investors and has seen its shares boost upwards by 17 per cent, according to Reuters UK.

Partnering up with Walgreens will replace sales the pharmaceutical company would have booked with specialty pharmacy Philidor, which is shutting down due to accusations of improper billing and had accounted for 7 per cent of Valeant sales for 2014 so far.

In terms of products, this means that Valeant will now be able to sell its skin and eye medications through Walgreens at a lower wholesale price.

Consumers are also set to enjoy lower costs for products, for example there will be reduced prices for those whose insurance doesn't cover the price of their pharmaceutical products.

Valeant expects for the deal with Walgreens to help save $600 million (£399.4 million) to the American healthcare system.