Valeant Forms Committee to Determine Drug Prices
May 05 2016 - 6:10PM
Dow Jones News
Valeant Pharmaceuticals International Inc., which has come under
heavy fire from politicians because of dramatic price increases for
its drugs, said it had formed a committee that will be responsible
for those prices going forward.
"Valeant has made mistakes in how it priced its drugs in the
past, and we are committed to ensuring those mistakes are not
repeated," said new Valeant Chief Executive Joseph Papa, who took
the reins of the company from Michael Pearson.
The company said its new committee will be led by Mr. Papa and
will include Valeant employees including doctors, scientists and
other executives. Valeant said the committee will review its drug
prices and "will consider the impact on patients, doctors and our
healthcare-industry partners."
Last week, Mr. Pearson and other Valeant brass faced sharp
questions from a Senate committee that criticized Valeant's drug
pricing and distribution practices.
The Senate committee has been investigating dramatic price
increases imposed by Valeant and other firms, including those for
cardiac-care drugs Isuprel and Nitropress. Valeant acquired Isuprel
and Nitropress in 2015 and quickly raised their prices by 525% and
212%, respectively. The prices of 16 Valeant drugs have been raised
this year, Sen. Claire McCaskill (D., Mo.) said. Under questioning,
Mr. Pearson was unable to name a U.S. drug that Valeant had
acquired without subsequently raising its price.
Valeant director and major shareholder William Ackman testified
before the committee that the company would lower its drug prices.
Mr. Pearson, who oversaw the rise and fall of Valeant, told the
committee Valeant's strategy of buying and increasing prices on
many drugs was a mistake.
Shares of Valeant declined 1.4% to $34 in after-hours trading.
They have fallen by two-thirds so far this year
Write to Nathan Becker at nathan.becker@wsj.com
(END) Dow Jones Newswires
May 05, 2016 17:55 ET (21:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Citigroup (NYSE:C)
Historical Stock Chart
From Aug 2024 to Sep 2024
Citigroup (NYSE:C)
Historical Stock Chart
From Sep 2023 to Sep 2024