Actionable news
All posts from Actionable news

Senator Calls Out Bill Ackman, Questions His Senate Hearing Comments On Drug Pricing

Invest with Confidence. Are you a financial professional? Stay on top of your portfolio with Benzinga Pro's real-time newsfeed and alerts and never miss a headline again.
Don't miss the chance to try it FREE today.

Valeant Pharmaceuticals International, Inc. NYSE:VRX - Senator Calls Out Bill Ackman, Questions His Senate Hearing Comments On Drug Pricing

Senator Susan Collins (R-Maine) was a guest on Bloomberg Markets to discuss Valeant Pharmaceuticals Intl Inc VRX 6.38% senate hearings into its drug pricing policies.

The Bloomberg hosts pointed out that Bill Ackman, a major Valeant shareholder and board member, has an impressive track record of investments. However, the hedge fund manager told the Senate committee that he didn't perform sufficient due diligence when it came to how the company pricing drugs.

"How believable is that to you for someone that has had such a storied career? Does that strike you as odd?" the hosts asked the Senator.

"It does strike me as very odd," the Senator answer. "I was very surprised when he said that."

Related Link: Bill Ackman Is The 'Unofficial Leader Of A Thundering Herd' That Lost Billions Of Dollars

The Senator added it was "very clear" that Valeant adapted a strategy of acquiring decade-old drugs of which there is no generic version and then send the prices "skyrocketing."

"It seems difficult to believe that an investor who is known to be an activist investor, not a passive investor, would not know that that is a core part of the pricing strategy of a company he has invested so heavily in," she added.

Collins also pointed out that when she, along with other members of the committee, interviewed Ackman and other Valeant stakeholders in private, they showed "no expressions of regret." However, following this week's public hearing, their attitude has now changed and are now conceding that the company's "outrageous" price hikes were not justified.

Collins concluded by stating that it is "hard to conclude anything other than pure greed being at work here."

© 2016 Benzinga does not provide investment advice. All rights reserved.