The House of Representatives wants to bring certain price-gouging pharma CEOs in for a chat.
In a letter to Valeant Pharmaceuticals CEO J. Michael Pearson, Rep. Elijah Cummings (D-MD) said the Committee on Oversight and Government Reform has agreed to hold a hearing in early 2016 to discuss drug pricing.
Cummings sent the letter, dated December 15, just ahead of Valeant’s investor day Wednesday.
The Republican majority in the oversight committee plan to invite Turing Pharmaceuticals CEO Martin Shkreli to testify, and the Democratic minority plans to invite Pearson, a Democratic staffer told Business Insider via email.
That doesn’t necessarily mean the two have to attend and defend their pricing strategies, but if they don’t right away, Congress has the power to issue a subpoena for them to testify. Valeant doesn’t have to provide the documents Cummings requested in his letter either, but if it refuses, Congress can also issue a subpoena.
In particular, Cummings wants more information from Valeant regarding its relationship with Philidor, a specialty pharmacy. So far, Valeant hasn’t provided any documents Cummings has asked for, according to the letter. Some of the documents Cummings and the oversight committee want to see include an update on the ad hoc committee that was formed by Valeant to investigate its relationship with Philidor.
Pearson has until January 8, 2016 to respond to the committee, according to Cummings’ letter.
Cummings also wants to see documents related to Valeant and Philidor’s agreement, which has since ended.
Valeant’s stock was up Tuesday after it announced a new partnership with Walgreens.
Business Insider Emails & Alerts
Site highlights each day to your inbox.