Valeant’s commitment to low drug prices questioned

Valeant Pharmaceuticals International said it wouldn’t increase prices of its eye and skin drugs this year. But Wells Fargo Securities said Valeant raised the price of 3 eye drugs in September, each by 9.9%.

“We do not know how to reconcile this statement with Valeant’s price,” Wells Fargo analyst David Maris said in a research note. Maris said Valeant confirmed the 9.9% increases.

In April, Chief Executive Joseph Papa pledged to act more responsibly and established a committee to review pricing and consider the impact on patients, doctors and payers. Last week, that committee, the Patient Access and Pricing Committee, released a report announcing that the company would raise the prices of its stomach, neurology and urology drugs from 2% to 9%, effective immediately. Additionally, the report says that after rebates and other adjustments, prices on its eye and skin drugs would fall by more than 10% on average this year.

"We are committed to ensuring that past decisions with respect to product pricing are not repeated and that the investments we make in our R&D pipeline continue to result in innovative products that improve people's lives," Papa said. "In reviewing product pricing, the Committee considers overall market dynamics along with the impact of any price increase on patients, doctors, and our health care industry partners. We believe the actions announced today are consistent with our commitment to ensure that patients continue to have access to the medicines they need at an affordable price and demonstrate that we are taking our approach to responsible pricing seriously."

The Canadian company’s stock has fallen more than 90% since its peak in July 2015.