BUZZ-Valeant Pharmaceuticals: NYT article highlights pricing strategy

Mon Oct 5, 2015 11:08am EDT
 
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** Canadian drugmaker's U.S.-listed shares down about 8 pct at $167.32

** New York Times article on Monday likens Valeant's pricing strategy to that of Martin Shkreli, the controversial CEO of tiny Turing Pharmaceuticals, after the small company raised the cost of an old anti-infective drug by more than 5,000 pct (nyti.ms/1Q0MEvS)

** Democratic lawmakers last Monday urged their chairman to subpoena Valeant and force it to provide documents relating to price increases of two heart drugs

** For example, after Valeant acquired Salix Pharmaceuticals this year, it raised the price of one Salix drug, the diabetes pill Glumetza, by about 800 percent, the report noted

** Big pharmaceutical companies like Pfizer Inc and Merck & Co raised list prices an average of 13 pct in 2014 and 8 pct so far this year, Deutsche Bank estimates

** Valeant said its growth in the United States and other developed markets "was driven primarily by price" not by increased volume, NYT said

** Up to Friday's close, Valeant's stock has lost about a quarter of its value since Sept. 18, the Friday preceding Hillary Clinton's tweet about pharmaceutical price gouging