Big Pharma Buys Rivals to Gouge Patients

New ownership can mean big price jumps for important prescription drugs—even when the drugs are not improved at all by the change. Companies are buying drugs they believe are “undervalued”—ones they can get a higher price from—and raise the costs, knowing that they will stand to profit. A Wall Street Journal investigation found that drugs can increase in cost by as much as fivefold, as did a recent heart medication acquired by Valeant. Laurie Little, a Valeant spokeswoman, said the company’s main duty “is to our shareholders and to maximize” product value. “Sometimes pricing comes into it, sometimes volume comes into it,” she said.