Outgoing Valeant CEO to testify at drug pricing hearing

The Senate Aging Committee announced that outgoing Valeant Pharmaceuticals CEO Michael Pearson has received a subpoena and is expected to testify at an April 27 hearing on increasing medication costs.

Valeant announced on March 21 that Pearson would leave the company but to continue to serve as CEO and a director until the company hires his replacement.

Valeant has received criticism since last year for increasing the prices of medications it bought. For instance, the Wall Street Journal reported last April that Valeant purchased the rights to two heart drugs (Nitropress and Isuprel) and increased their list prices by 525 percent and 212 percent, respectively.

Valeant announced last week that it had wrongly booked $58 billion in revenue. The company also recently launched a website with rebuttals to allegations against the company.

The Senate Aging Committee also held hearings in December 2015 and in March 2016. The committee said in a news release that Americans would spend more than $328 billion on prescription medications this year, while the federal government will spend another $110 billion in payments through Medicare, Medicaid, Veteran Affairs and other programs.