Post-Shkreli, KaloBios Promises ‘Reasonable And Transparent’ Drug Pricing Model
The drugmaker's chief executive says he wants to "set the record straight" that the company is not following in the path of former CEO Martin Shkreli, who infamously increased the price of life-saving drugs.
The Wall Street Journal:
Kalobios Touts Transparent, No-Gouging Pricing Policy
KaloBios Pharmaceuticals, the drugmaker that was briefly taken over by former pharmaceuticals executive Martin Shkreli last year, said Monday it will charge cost plus a “reasonable and transparent profit margin” for any drugs it produces. Cameron Durrant, the physician who replaced Mr. Shkreli as KaloBios’s chief executive, said in an interview the new drug pricing policy is designed to “set the record straight” and end speculation that the company will follow the controversial price-setting path laid out by its former chief executive. (Brickley, 4/11)
The Wall Street Journal:
After Shkreli, KaloBios Sings New Drug Pricing Tune
For the second time in five months, tiny KaloBios Pharmaceuticals is in the news for drug-pricing practices. This time, there’s a twist. Back in November, KaloBios shares rose by nearly 2,000% in three trading days. That happened after controversial pharmaceutical entrepreneur Martin Shkreli acquired a controlling stake and installed himself as CEO. ... Now, KaloBios, trying to work its way out of Chapter 11 bankruptcy, is taking a very different tack. On Monday, it announced a new pricing model, saying it will publicly share “key elements that go into pricing of its drugs.” (Grant, 4/11)
In other pharmaceutical news, Valeant prods its outgoing CEO to cooperate with a congressional committee investigating price gouging —
The Wall Street Journal:
Valeant Asks CEO To Cooperate With Senate Committee
Valeant Pharmaceuticals International Inc. requested that Michael Pearson, its outgoing chief executive, cooperate with a Senate committee investigating increases in the prices of certain prescription drugs after he didn’t appear for his deposition last week. Valeant said in prepared remarks Monday, “The board understands that Mr. Pearson is in dialogue with the Senate Committee on Aging regarding his deposition and that those discussions are ongoing.” (Hufford, 4/11)
The Associated Press:
Valeant Has Told Outgoing CEO To Cooperate With Senate
Valeant Pharmaceuticals asked its CEO to cooperate with a Senate investigation into drug pricing after he failed to appear for a deposition. The Senate Special Committee on Aging said last week that it planned to start legal proceedings against J. Michael Pearson, who is leaving Valeant after months of turmoil for the drugmaker. Pearson is still under subpoena to appear before the committee for an April 27 hearing. (4/11)