House Oversight Committee Democrats Request Subpoena of Valeant Pharma (VRX)

(Updated - September 28, 2015 1:14 PM EDT)

House oversight committee Democrats have requested a subpoena of Valeant Pharmaceuticals (NYSE: VRX) to turn over documents related to the price increases earlier this year of two heart drugs, Isuprel and Nitropress.

The action follows the recent New York Times article which discussed Valeant’s 525% and 212% price increases for the two heart drugs, respectively. The New York Times article was highlighted by Presidential hopeful Hillary Clinton last week, which led to a massive sell-off in the biotech and specialty pharmaceutical sector. "Price gouging like this in the specialty drug market is outrageous," Clinton said at that time.

In the letter, the Democrats accuse Valeant of using "precisely the same business model as Martin Shkreli, the 32-year old former hedge fund manger whose company recently pursued the live-saving drug Daraprim and increased the price from $13.50 to $750 per pill "overnight.""

Below is the letter to the Committee Chairman Related to Valeant Pharmaceuticals (NYSE: VRX).

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