Morning Briefing
Summaries of health policy coverage from major news organizations
Documents From Senate Hearing Reveal The Driving Force Behind Valeant's Price Hikes
The Wall Street Journal: Valeant’s CEO Was Key Force On Pricing
In early 2015, when Valeant Pharmaceuticals International Inc.’s top brass met to set prices on a soon-to-be-acquired cardiac drug, some executives suggested slow, staggered price increases. Chief Executive Michael Pearson disagreed. To reach Valeant’s internal profit targets, Mr. Pearson lobbied for a single, sharp increase. ... The day it completed its February 2015 purchase of the drug, called Nitropress, Valeant tripled the cost. The exchange, recounted in a document reviewed by The Wall Street Journal, shows in greater detail than was previously known how Valeant and its now-outgoing CEO Mr. Pearson pursued quick, aggressive price increases on acquired drugs in recent years—a strategy that sparked widespread backlash and landed Mr. Pearson in front of a Senate investigative panel last week. (McNish and Hoffman, 5/1)
The New York Times: Valeant’s New Skipper Is On The Same Tack
When a deeply troubled company replaces its chief executive, it makes sense to expect the new C.E.O. to bring a fresh take to its operations. A clean sweep, so to speak. But if shareholders in Valeant Pharmaceuticals International envisage a vastly different approach by Joseph C. Papa, the company’s incoming chief executive, they may be disappointed. That’s because in the almost 10 years that Mr. Papa headed Perrigo, a maker and distributor of over-the-counter and generic prescription drugs, the company pursued a series of strategies that were very Valeant-esque. (Morgenson, 4/29)
And the company has filed its long-overdue financial report —
The Wall Street Journal: Valeant Files Overdue Annual Report, Shakes Up Its Board
Valeant Pharmaceuticals International Inc. filed its long-delayed annual report and further reshaped its board Friday, defusing the danger of a debt default and positioning the company for a fresh start after months of concern over its accounting and business practices. But the Canadian drugmaker also disclosed new and broadened regulatory investigations—in addition to the Securities and Exchange Commission probe it already faces—indicating it isn’t out of the woods yet. (Rapoport and McNish, 4/29)
STAT: Board Overhaul, New Probes Disclosed In Valeant Annual Report
After weeks of delay, Valeant Pharmaceuticals on Friday filed its 2015 annual report with regulators, a significant move that will help the beleaguered drug maker avoid default on more than $30 billion in debt. At the same time, the company overhauled its board, shrinking it to 11 members from 14. (Silverman, 4/29)
The Associated Press: Valeant Files Overdue Financial Report, Ending Debt Default
Valeant Pharmaceuticals resolved its default on some of its $30 billion in debt by finally filing its long-overdue U.S. financial report for 2015 on Friday. The badly tarnished Canadian drugmaker also announced a slate of mostly new nominees for elections to its board in June. The moves briefly nudged up Valeant's battered shares, but they quickly headed south amid a broader market sell-off and the realization that the former Wall Street darling's future is still in question. (4/29)
