Valeant under investigation for drug pricing

Zacks upgraded Valeant Pharmaceuticals Intl from a hold rating to a buy rating and set a $288.00 target price on the stock in a report on Tuesday, July 28th. GPM is preparing a lawsuit to recover damages on behalf of Valeant investors. Valeant have faced scrutiny from a few members of Congress for the acquisition of 2 old heart drugs, Isuprel and Nitropress, in February and instantly hiking their prices by over 500% and 200%. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

The company’s stock, which is traded in Toronto and New York, was down 10 per cent in premarket trading Thursday.

Meanwhile, analysts at Sector & Sovereign Research LLC said in a research note on Wednesday that Valeant has raised drug prices at a compounded annual rate of 48% since 2007, while net prescription drug sales have only increased 32% during the time.

“We remain committed to assisting eligible patients who need our products, and we will be working with the appropriate groups to submit the requested documents and plan to cooperate with the inquiries”, Pearson said in a statement.

Valeant has said that it is reviewing the subpoenas and intends to cooperate with the investigations.

The Quebec-based company said most of the materials requested by the subpoenas relate to the company’s patient assistance programs, including financial support provided for patients and pricing decisions.

US prosecutors subpoenaed Valeant Pharmaceuticals global (NYSE: VRX), reinvigorating the drug pricing drama.

In the letter to McCaskill, Pearson said Valeant has made substantial investments in manufacturing in the United States. The pharmaceutical giant has also bolstered its earnings in the recent past with a series of price hikes on lead drugs having also cut its spending on research.

Interestingly, under federal law, companies can’t provide such assistance to patients insured by Medicare or other government insurance programs, because the help is considered an illegal kickback. Claire McCaskill (D-Mo.) about two of Valeant’s drugs. One potential outcome is for VRX to settle the claims (for a fraction of the amount) within 2 to 3 years. In 2014, Valeant spent $544 million on patient assistance, and expects to spend $630 million this year, according to a letter Valeant sent to Sen. The U.S. AG in Boston has also been very active in going after pharmaceutical companies for a variety of things in the past. Shares of VRX plunged as much as 12% early Thursday in response to the federal review.