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Valeant’s outgoing CEO subpoenaed by US congressional committee

Published on 29/03/16 at 12:13pm

The US Senate Aging Committee has announced the issuing of a subpoena to the outgoing CEO of Valeant Pharmaceuticals, Michael Pearson, to testify before a hearing on what they refer to as the “sudden, aggressive price spikes of decades-old Rx drugs” on Wednesday April 27th.

Michael Pearson already announced his decision to step down as CEO of Valeant Pharmaceuticals once a suitable replacement is found.

The troubled Canadian drugmaker has been the subject of much criticism recently, with many lining up to take aim at their recent controversies. Hilary Clinton referred to them by naming and vowed to put a stop to their “predatory pricing” in a recent campaign advert. Shares plunged following the announcement of their Q4 2015 results which were accompanied by gloomy forecasts for the year ahead.

This will be the third such hearing from the congressional committee, which they describe as a “bipartisan investigation” which has “focused on pharmaceutical companies that operate more like hedge funds than traditional pharmaceutical companies.”

Martin Shkreli, the infamous ex-head of Turing Pharmaceuticals, and Howard Schiller, who filled in for Pearson during a period of illness, appeared before the committee in recent times. With the price of Valeant shares falling again with the announcement of Pearson’s subpoena, all eyes will be watching on Wednesday April 27th.

Sean Murray

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