Published Date : Oct 16, 2015
Valeant Pharmaceuticals, the global pharmacy giant renowned for its extensive drug portfolio of branded, generic, over-the-counter drugs, and medical devices, has recently been under the scrutiny related to practices considered price gouging. Following the comment of Democratic Presidential candidate Hilary Clinton about the rising prices of specialty medicines, which brought turmoil in the overall biotech sector, Valeant’s shares also observed a steep decline in the month of September.
The price hike of two drugs by the company led to the start of controversy. Notably, the prices of the two said drugs saw an unprecedented rise in the class of hundreds of percent as compared to the earlier prices of the two highly popular drugs: Isuprel (525% rise), which is used for abnormal heart rhythm, and Nitropress (212% rise), which is used for hypertension episodes and congestive heart failure. The price hike came soon after the drugs were acquired by the company from the company Marathon Pharmaceuticals at the start of the year.
Following the price hike, Valeant announced on this Wednesday that it had received subpoenas from the U.S. Attorney’s Office for Southern New York District and Massachusetts District regarding the pricing of drugs, patient assistance program, and drug distribution.
However, Valeant is not the only pharmaceutical company to follow the price-hike module. In August this year, Turing Pharmaceuticals increased the price of the drug Daraprim, used for indications such as toxoplasmosis, chemoprophylaxis of malaria, and acute malaria, from $13.50 to $750 per tablet in a single go, as soon as the drug was acquired by the company from Impax Laboratories.
As of now, the market is focusing on the bigger company from the two – Valeant, and is eager to see how Valeant will act to counter the negative sentiments of investors in its decision to increase prices of its popular drugs