Pharmaceutical firm Valeant’s stock continued its sell off Monday morning with the stock opening down over 5%.
The stock started falling on September 18, when lawmakers started taking action against companies that gouge the prices of prescription drugs. Since then, it’s lost a quarter of its value.
Washington’s interest was peaked when the world found out about Martin Shkreli, a hedge fund manager who purchased a prescription drug and jacked up the price 5,000%.
That started a conversation about pharmaceutical firms that engage in the same behaviour, and Valeant — a Wall Street darling with a connection to hedge fund manager Bill Ackman — was pinpointed as one of the worst offenders.
Last week, short selling firm Citron research released a note about Valeant with a table listing all the drugs the company purchased and their price increases: