Valeant’s Michael Pearson Admits Aggressive Drug-Price Increases Were a Mistake

The Wall Street Journal reports that Valeant Pharmaceuticals International Inc. was too aggressive in dramatically raising the prices of some of its drugs, the company’s outgoing chief executive told a Senate committee Wednesday, while its newest board member promised swift changes. Michael Pearson, who oversaw the rise and fall of Valeant, told the committee that Valeant’s strategy of buying and increasing prices on many drugs was a mistake. The testimony, under sharp questioning, highlighted Valeant’s stark fall from Wall Street darling to Washington punching bag, and showed how much it has at stake. Its stock is ​down more than 85% from its high last August. Drug-price increases have overshadowed the company’s broader work, and “we therefore need to work to regain the confidence of Congress, the public, doctors and patients,” Mr. Pearson told the Senate Special Committee on Aging.