BUZZ-Valeant Pharma: Erases gains after new documents on drug price hikes

Tue Feb 2, 2016 12:47pm EST
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** Valeant's U.S-listed shares reverse course to trade lower after newly released documents show profit-seeking behind the Canadian drugmaker's price hikes

** Stock was up as much as 6 pct earlier, but reversed course about 11 am ET when news of the documents was published

** Stock drops as much as 7 pct, before easing to trade down 2.7 pct at $93.05 in heavy trading

** Documents by U.S. congressional committee members suggests Valeant hiked prices of 20 drugs by over 200 pct between 2014 and 2015

** Valeant is already facing a federal probe for hiking prices of two heart medicines by 525 pct and 212 pct

** Document excerpts also showed efforts by Martin Shkreli and his staff at Turing Pharma to maximize profits through purchase of Daraprim, used for type of parasitic infection

** About 9.4 mln Valeant shares traded vs. 25-day moving avg of about 7 mln; volume spikes after documents released