Valeant Pharmaceuticals increased the price of its Calcium EDTA, a drug to treat lead poisoning, by more than 2,700 percent in one year, according to STAT.
Here are six insights:
1. Prior to Valeant acquiring the drug in 2013, the drug carried a list price of $950. However, in January 2014, Valeant increased the drug's price to $7,116.
2. The pharmaceutical company then increased the drug price again, raising its price to $26,927 by December 2014.
3. The drug's high price is inciting backlash from poison control specialists who claim there are few viable options on the market. Hospitals and providers alike are feeling frustrated by the drug's exorbitant price.
4. Valeant has a history of acquiring companies and then drastically increasing prices, STAT reported.
5. However, the company's stock has dropped significantly recently and is facing investigation after investigation by officials looking into the company's pricing strategy.
6. A Valeant spokesperson wrote to STAT, saying, "The list price increases over the past several years have enabled us to provide to the market consistent availability of a product with high carrying costs and very limited purchase volume of 200 to 300 units per year." Additionally, the spokesperson told STAT the company needs to buy ample supplies in advance, and these supplies can total nearly three to five times more than recent annual company sales.
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