Valeant shares fall again on subpoena calls

October 01 00:02 2015

What a difference calls for congressional subpoenas have made for Valeant Pharmaceuticals International investors. Shares of the Canada-based drugmaker fell for a second trading session Tuesday, closing down 5.06% at $158.08. The decline deepened the 16.5% plunge in the company’s stock to $166.50 on Monday following news that Democrats on the House oversight committee are pushing for subpoenas that could force Valeant to turn over documents related to large price hikes for two heart drugs.0528valeant

The company declined to provide the records earlier this month to Rep. Elijah Cummings, D.-Md. and Sen. Bernie Sanders, I.-Vt. Valeant instead contended records relating to the 525% and 212% price increases imposed the day it acquired rights to the medications were proprietary and confidential.

Cummings, the ranking minority member on the House Committee on Oversight and Reform, joined other Democrats on the panel Monday in asking committee chairman Rep. Jason Chaffetz, R-Utah to authorize a subpoena. They also asked Chaffetz to call a hearing that would include testimony from Valeant CEO Michael Pearson.

There’s been no official action on the requests. In the meantime, Valeant’s falling stock price has been bad news — at least temporarily — for major investors such as activist investor William Ackman’s Pershing Square Capital Management. The New York-based hedge fund holds more than 19 million shares of Valeant, roughly a 5.64% stake, according to investment research firm Morningstar.