The heat remained on biotech and pharmaceutical companies Monday as drug-pricing strategies remained under close scrutiny.
Valeant shares tumbled nearly 14 percent after Congressional Democrats pressed a Republican committee chairman to subpoena the drugmaker to turn over documents related to the pricing of Nitropress, a congestive heart failure treatment, and Isuprel, another heart drug. The company purchased the rights to both drugs and immediately hiked prices, the letter said.
Valeant is only the latest drugmaker being eyed over pricing practices. Turing Pharmaceuticals CEO Martin Shkreli was lambasted last week by medical groups, a presidential candidate and his own industry for raising the price of a 62-year-old drug by 5,000 percent.
He reversed course under pressure Tuesday night, but not before the national attention struck fear into the hearts of biotech investors over increased scrutiny of drug prices, sending stocks plummeting.
Turing may have been an egregious example, but it's not the only one raising eyebrows for skyrocketing price tags. Bernstein analyst Ronny Gal pointed out many companies ratchet up drug prices when the market presents an opportunity.