Valeant CEO Asked to Cooperate With US Senate

The US Senate’s Special Committee on Aging plans to decide on Apr. 13 whether or not to open contempt proceedings against Valeant Pharmaceuticals CEO Michael Pearson. Pearson, who is leaving the company, was served in March with a Subpoena and Deposition Notice compelling him to appear personally appear before the committee for a deposition on Apr. 6, prior to a scheduled hearing set for Apr.27.

Valeant’s board of directors has appealed to the CEO to appear, but reports say his lawyer has written to Congress asserting that he and his client have "serious concerns about the basic fairness of a sworn deposition at this stage.”

The Committee, which will hold its third hearing since December on soaring drug prices, potentially could ask Pearson about several documents, the lawyer said. Valeant, which is headquartered in Canada but managed from the US, faces three federal probes into its accounting and business practices.

In particular, the senators would like to question Pearson about the company’s practice of buying rights to older drugs and then hiking their prices.

Skyrocketing drug prices have become a central issue in the ongoing US presidential campaign. In response to this and other troubles, Valeant’s stock has plunged to record lows.