Wednesday, October 28, 2015

FTC and DOJ Investigate Valeant's Eye Care Business

"Valeant Pharmaceuticals, which has been under the gun over its relationship with specialty pharmacies and price hikes on its heart medications, is facing new legal challenges as U.S. investigators look into the embattled company's growing eye care business," reports CTV. "Valeant disclosed Monday that it is subject to separate investigations launched by the Federal Trade Commission and Justice Department. The FTC has requested information and documentation related to its "non-public investigation" of Valeant's acquisition of Paragon Vision Sciences in May, the Laval, QB-based company said in a regulatory filing about its third-quarter results. Valeant also said the Justice Department has issued it a subpoena as part of a criminal investigation into Bausch & Lomb's payment to medical professionals related to its surgical products Crystalens IOL and Victus femtosecond laser platform. Valeant said it is co-operating with the investigation into possible violations of federal health-care laws." Read more.

Reuters News Service offered more about the company. "Valeant entered the contact lens business with its purchase of Bausch and Lomb in 2013 for $8.7 billion. At the time of the acquisition, Bausch and Lomb manufactured about 75% of the basic components of rigid gas permeable lenses, known as “buttons,” said Kurtis Brown, who worked for Bausch and Lomb prior to Valeant’s purchase. After manufacture, buttons are customized for individual patients, typically by laboratories specializing in that process. With the acquisition of Paragon Vision Sciences in May for an undisclosed sum, Valeant and Bausch and Lomb further consolidated their grip on the market, gaining control of more than 80% percent of the gas permeable button market, according to one of the sources familiar with Valeant’s operations and the representative of an industry group. Rigid lenses comprise only about 10% of the contact lens market." Read more.

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