Valeant Interim CEO to Testify Before Congress
January 20 2016 - 06:30PM
Dow Jones News
Howard Schiller, interim CEO of Valeant Pharmaceuticals
International Inc., is planning to testify at a congressional
hearing next week that will explore drug-price increases, according
to a company spokeswoman.
Also in connection with the hearing, the House Committee on
Oversight and Government Reform has subpoenaed Martin Shkreli and
ordered him to testify, according to two people familiar with the
matter.
Valeant has been "providing information" to the House Oversight
committee, the company spokeswoman said Wednesday. "Mr. Schiller
looks forward to testifying and sharing with the committee how
Valeant works to make its drugs available to the millions of
patients who depend on them," she added.
The hearing scheduled for Tuesday is expected to explore how
Valeant and some other companies had bought the rights to
prescription drugs and then raised their prices, the subject of on
April article in The Wall Street Journal.
The Oversight Committee Chairman Rep. Jason Chaffetz (R-Utah)
and Ranking Member Rep. Elijah Cummings (D-Md.) sent a letter to
Valeant earlier this month requesting information about the price
increases for two of the drugs featured in the article: Isuprel and
Nitropress, whose prices rose 525% and 212% respectively.
Valeant is joining with Walgreens Boots Alliance Inc. pharmacies
to provide some of its drugs "at affordable prices for eligible
patients" as well as to "take costs out of the health-care system,"
Mr. Schiller told analysts and investors at the J.P. Morgan
Healthcare Conference last week.
Valeant recently raised the list prices of 21 drugs acquired as
part of the company's purchase last April of Salix Pharmaceuticals.
Valeant said it raised the price of irritable-bowel treatment
Xifaxan by 9%, while increasing the prices of the 20 other drugs by
9.9%.
"Valeant canceled virtually all planned price increases in the
fourth quarter, and the revised pricing is in line with recently
announced price increases by other pharmaceutical companies," the
Valeant spokeswoman said.
While Mr. Shkreli led Turing Pharmaceuticals AG last year, the
company bought the U.S. rights to an anti-parasitic drug called
Daraprim and raised its price more than 50-fold.
"I have been trying for the better part of a year to get
information from Martin Shkreli about his outrageous price
increases, and he has obstructed our investigation at every turn,"
Rep. Cummings said.
Mr. Shkreli stepped down as Turing CEO last month, after he was
arrested for allegedly misleading investors in his hedge funds and
raiding another public company to cover the losses. Mr. Shkreli
pleaded not guilty and has denied all charges. He didn't respond
immediately to an email requesting comment on the subpoena.
In an interview with The Wall Street Journal last month, Mr.
Shkreli said he had been targeted by authorities for his
much-criticized drug-price hikes and over-the-top public
persona.
Also expected to testify at the Oversight committee hearing,
according to a person familiar with the matter, are Janet Woodcock,
director of the Food and Drug Administration's drugs division;
Nancy Retzlaff, Turing's chief commercial officer; and Mark
Merritt, CEO of the Pharmaceutical Care Management Association.
Stephanie Armour contributed to this article.
Write to Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com
(END) Dow Jones Newswires
January 20, 2016 18:15 ET (23:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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