US House oversight panel Democrats urge vote to subpoena Valeant, Turing

By Sarah N. Lynch
WASHINGTON, Nov 4 (Reuters) - The Democratic members of a
U.S. House of Representatives investigative committee asked
Republicans on Wednesday to call a vote to subpoena Valeant
Pharmaceuticals VRX.TO and Turing Pharmaceuticals, amid
accusations the companies wrongfully hiked the prices of
lifesaving drugs.
In a letter, the panel's leading Democrat, Elijah Cummings,
and its 17 other Democratic members asked Republican committee
Chairman Jason Chaffetz to stop blocking their efforts to
investigate possible abuses by the companies.
They also accused Valeant Chief Executive Officer J. Michael
Pearson (L:PSON) and Turing CEO Martin Shkreli of stonewalling their
demands for documents. They requested a Nov. 17 meeting for a
vote on whether to subpoena the two executives to compel them to
produce records, and also called for the chairman to hold a
hearing so that Pearson and Shkreli can testify.
"When corporate executives like Mr. Pearson and Mr. Shkreli
engage in abusive business practices to enrich themselves and
their shareholders at the expense of patients, hospitals and
other healthcare providers, they should be held accountable for
their actions," the letter said.
The letter was released in conjunction with a news
conference on the steps of the U.S. Capitol, in which Cummings
and several other Democratic lawmakers planned to announce they
were forming a new drug pricing task force designed to "combat
the skyrocketing costs of pharmaceuticals."
The pressure from Democrats marked the latest challenge for
Canada-based Valeant and Turing, which are under investigation
in connection with drug pricing, among other things.
Last month, Valeant disclosed that it had received subpoenas
from federal prosecutors in New York and Massachusetts in
connection with a probe into their patient assistance programs,
drug pricing and distribution practices.
In addition, its share price took a hit later that month
after an influential short-seller accused the company of using
specialty pharmacies to pad its revenue, a charge Valeant has
vehemently denied.
The company has since cut ties with Philidor, the main
specialty pharmacy whose business dealings with Valeant are
under scrutiny. Valeant is investigating whether Philidor may
have broken any laws.
The company has also faced congressional scrutiny over its
decision to drastically raise the prices for heart drugs
Nitropress and Isuprel after it acquired the rights to sell
them.
Turing, meanwhile, is facing an investigation by the New
York state attorney general's office into whether it violated
antitrust rules in connection with price increases of Daraprim,
an anti-parasitic drug used to treat patients with weak immune
systems. The company is based, in Zug, Switzerland, with offices
in New York.
It was not the first time Democrats on the panel have asked
committee Chairman Chaffetz to allow them to investigate drug
companies and the price of prescription medications. A similar
request was made in September.
The Democrats on Wednesday accused Chaffetz of failing to
give them "the courtesy of a reply" to their initial request.