By Jonathan D. Rockoff
Two members of Congress investigating drug-price increases asked
Valeant Pharmaceuticals International Inc. on Friday for
information that would help explain why it raised the prices
earlier this year for two commonly-used heart drugs.
Valeant was sent a letter from Sen. Bernie Sanders (I., Vt.) and
Rep. Elijah Cummings (D., Md.) seeking information such as the cost
of ingredients and of manufacturing blood-pressure drug Nitropress
and heart-rhythm treatment Isuprel "in order to evaluate the
underlying causes" of their price increases earlier this year.
In the letter, the lawmakers also asked the Canadian company to
explain the factors involved in the price increases, expected
profits and the names of those involved in the decision.
On the day in February it bought the rights to the drugs,
Valeant raised the list price of a vial of Isuprel more than
sixfold to $1,346.62 and more than tripled Nitropress to
$805.61.
The increases were featured in a Wall Street Journal article in
April, cited in the congressional letter to Valeant, about how some
drug companies are using deal-making to acquire rights to certain
drugs and then increasing the prices. Hospitals, which buy the
drugs for use during heart procedures or emergency treatment,
complain the increases are hurting their budgets.
Since October, Sen. Sanders, who is seeking the Democratic
nomination for president, and Rep. Cummings have been sending
letters to pharmaceutical companies and generally investigating
significant price increases for certain drugs in an effort to
understand the reasons.
Sen. Sanders and Rep. Cummings also sent a letter on Friday to
Hospira Inc., which they said makes Isuprel and Nitropress for
Valeant, seeking documents and information about the costs of
making the two medicines, any "material changes" to the
manufacturing and the contracts with Valeant.
Valeant and Hospira didn't immediately respond to requests for
comment.
Write to Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com
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