Valeant launches new pricing policy

The company has launched an internal committee to oversee its pricing decisions following a nine-hour Senate interrogation of former chief executive officer, Mr Michael Pearson, who has been replaced by Mr Joe Papa.Valeant’s Patient Access and Pricing Committee, led by Mr Papa, will comprise a team of ployees including doctors, scientists and executives. Committee mbers will look specifically at pricing for its drug products. Valeant has made mistakes in how it priced its drugs in the past, and we are committed to ensuring those mistakes are not repeated, Mr Papa said in a company statent. This new committee will take a disciplined approach to reviewing the company’s pricing of drugs, and will consider the impact on patients, doctors and our healthcare industry partners. Valeant’s senior executives were criticised at a Senate hearing on drug pricing. Mbers of the Senate’s Special Committee on Aging lambasted the company for its dramatic price hikes, which included increases of 525 per cent and 212 per cent, respectively, for two drugs.Instead of arguing with legislators at the hearing, Mr Pearson admitted, Valeant was too aggressive. And I, as a leader, was too aggressive. During the hearing, Mr Bill Ackman, Valeant’s largest shareholder and a new board mber, added that the company should turn to socially-responsible pricing for medicines.Since the hearing, the company has also reached out to hospitals to address complaints that they did not receive expected discounts on two of its products, saying in a statent that Valeant will continue to work with hospitals to ensure they have access to the two drugs .Over the past few weeks, Valeant has reconstituted its board and filed its overdue annual accounts. I am pleased that Valeant is making good progress toward restoring the public’s confidence and that the company has hired a great leader with an impressive track record of achievents and an impeccable reputation, company chairman Mr Robert Ingram said in a statent.