Senate Demands To Hear From Valeant CEO

(RTTNews) - Michael Pearson, the outgoing Chief Executive of Valeant Pharmaceuticals International Inc. ((VRX, VRX.TO), has been subpoenaed by a Senate committee that is investigating sudden drug price hikes.

Pearson among several other witnesses are scheduled to appear before the Senate Special Committee on April 27. According to the committee, pharmaceutical companies operate like hedge funds and have raised prices of decades-old drugs.

"Valeant has been cooperating with the committee's investigation and Mr. Pearson looks forward to testifying at the hearing," said the company.

A memo issued by a House oversight committee conducting a review on Valeant shows that the company raised prices on heart medications Isuprel and Nitropress by 525% and 212%, respective, after acquiring them.