October 26, 2015 / 4:58 PM / 3 years ago

Valeant gets DOJ subpoena over Bausch & Lomb payments

Oct 26 (Reuters) - Canadian drugmaker Valeant Pharmaceuticals International Inc said it was subpoenaed by the U. S. Department of Justice regarding Bausch & Lomb payments, adding to the company’s legal woes that began earlier this month.

Valeant received a subpoena on Sept. 15 inquiring about payments and agreements between Bausch & Lomb and medical professionals, the company said in a regulatory filing on Monday. (1.usa.gov/1jLtRL7)

The company also said it received a letter from the U.S. Federal Trade Commission on or about Oct. 16 seeking more information about Valeant’s recent acquisition of Paragon.

Valeant earlier in the month said it was subpoenaed by U.S. prosecutors seeking information on its pricing decisions, drug distribution and patient assistance programs.

The company has come under intense scrutiny for increasing drug prices, and after a New York Times report said Valeant and other drugmakers were using specialty drug distributors to circumvent barriers to raise prices.

Influential short-seller Citron Research said last week that Valeant used specialty pharmacies to inflate its revenue, an allegation that sent the company’s stock into a tail spin.

The company on Monday asked U.S. securities regulators to investigate Citron’s “completely untrue” allegations, hitting back at the short-seller in a conference call that laid out a detailed defense of its relationship with a little-known specialty pharmacy.

Valeant’s U.S.-listed shares, which have lost a little over a third of their value since the company was first subpoenaed, were down 1 percent at $114.98 in early afternoon on Monday. (Reporting by Vidya L Nathan in Bengaluru; Editing by Savio D’Souza)

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