As more details emerge chronicling the lengths some pharmaceutical firms have gone to to set a premium price on their products, stakeholders are split on whether the government will act on the crisis.
Drug companies have remained in the spotlight since Turing Pharmaceuticals and its CEO, Martin Shkreli, first announced and then backed away from plans to raise the price of Daraprim. The generic drug, which treats toxoplasmosis, rocketed from $13.50 to $750 a pill shortly after Turing acquired the rights to market the medication in August.
Then last week came reports that federal prosecutors were investigating Canadian drugmaker Valeant Pharmaceuticals International over its drug pricing and distribution policies. In February, Valeant raised the price of two heart drugs, Nitropress and Isuprel, by 525% and 212%, respectively, shortly after acquiring the rights to sell them.
Most recently, Valeant's stock took a 30% hit after short-seller Andrew Left's website Citron Research published a report accusing the company of colluding with specialty pharmacies Philidor Rx Services and R&O Pharmacy in a plan to generate phony sales.