Valeant Pharmaceuticals CEO Michael Pearson has been called to testifying in front of the Senate Committee on Aging on April 27.
That equals more bad news for the struggling RX company whose shares fell by almost 8% on the news.
The committee’s investigation into Valeant is a bipartisan effort led by Republican Senator Susan Collins of Maine and Democratic Senator Claire McCaskill of Missouri. The groups investigation into Valeant started in November.
Valeant is also being pursued by the House of Representatives, the Securities and Exchange Commission, and state attorney’s offices of Massachusetts and New York.
The aging committee is specifically looking into the following issues:
- Massive price increases on recently acquired off-patent drugs.
- Mergers and acquisitions within the industry that has led to increases in off-patent drug prices.
- The Food and Drug Administration’s role in the drug-approval process for generic drugs, the agency’s distribution protocols, and possibly its off-label regulatory regime.
“Some of the recent actions we’ve seen in the pharmaceutical industry — with corporate acquisitions followed by dramatic increases in the prices of preexisting drugs — have looked like little more than price gouging,” McCaskill said in a statement in November.
“We need to get to the bottom of why we’re seeing huge spikes in drug prices that seemingly have no relationship to research-and-development costs. I’m proud to help lead this bipartisan investigation so that we can find some answers the public wants and deserves.”
Pearson is preparing to depart the company and a new CEO will step into his place. The last time he left for medical reasons company CFO Howard Schiller stepped in to fill his shoes.
Valeant Pharmaceuticals is in the middle of a search for a new CEO.
Here’s Valeant’s anemic stock chart for the last 52-week period.