Federal prosecutors are investigating Valeant Pharmaceuticals over its decision to charge high prices for older generic drugs.
The drug maker said Wednesday that it received subpoenas from the U.S. Attorney’s Office in New York and in Massachusetts. Officials wanted documents on what type of financial support the company provides to patients and on its pricing decisions.
Valeant has been in hot water after Rep. Elijah Cummings, D-Md., and Sen. Bernie Sanders, I-Vt., questioned why it raised the price of two generic heart drugs Nitropress and Isuprel by up to 200 percent.
The Canadian drug maker also said it responded to a letter from Sen. Claire McCaskill, D-Mo., asking about the pricing decisions.
Valeant said it is reaching out to hospitals where the impact of the price change was particularly high. However, it did not say that it would lower the price of the drugs.
The company said in its letter to McCaskill that the two drugs are used in hospitals and not by consumers. It added that hospitals get rebates for the drugs, which helps mitigate the cost.
Valeant also argues that the prices of the two drugs have been rising steadily, even before they were acquired by the drug maker.
Drug prices have become a top concern for Americans, according to several polls. Presidential candidates Hillary Clinton and Sanders have sought to address the issue, with Clinton offering a plan and Sanders introducing legislation in the Senate.
Valeant is the latest generic maker to receive criticism for its prices. Turing Pharmaceuticals recently sparked a public outcry after it raised the price of a decades-old anti-parasite treatment called Daraprim by about 5,000 percent.
The price hikes represent a growing trend in the generic drug industry, in which companies acquire a drug that has been on the market for a while and has no other generic competition. It then raises the price of that drug, experts have said.
