tv Whatd You Miss Bloomberg April 27, 2016 4:00pm-5:01pm EDT
♪ closing mostly higher. joe: the question is, "what'd you miss?" reserve did the federal leave it open for a june rate increase? joe: plus, this earnings season has not been kind to some tech stocks. can facebook defied the trends? druget: a hearing on trafficking. we begin with our market minutes. negative, treasury to extend their gains after the fed. other than that, a lot of people shrugged their shoulders. joe: the combo for the storm.
decision, and a massive selloff for apple. and still, pretty quiet. we are still waiting for market action. scarlet: let's see the full point share on what the fed actually did. they played down the first quarter weakness during they dropped the reference to risks from financial conditions, and officials expect the labor market to continue strengthening. they see inflation rising to the 2% target in the medium-term. let's see how the fixed income markets reacted today. selloffve been on a big for the race to the tenure going to 1.93%. we saw a significant drop their in yields. scarlet: and in stocks, we
mentioned the s&p. the big move today was over in europe very at the athens stock exchange, it dropped as much as 4.9%. greek stocks, among bailout talks, startling. they hammer out the details at the emergency summit, the credit rates that they rejected. we wonder if they will enter a crash market. joe: another greek drama, the after theove, inflation data out of australia came in much weaker than expected. you the dollar chart at the beginning, slammed. the aussie has been a bigger -- in emerging markets. we saw a significant sell out there on the aussie. justet: facebook earnings
crossing the wire here. beating 60 three cents. revenue for the first quarter, higher than anticipated. billion, versus $5.27 billion on average. this is the metric everyone looks at to see if their user growth is keeping pace. $1.65 billion for the first quarter, the estimate is usually at $1.62 billion. billion, versus $1.06 billion. plans on a new class of non-voting capital stock, and one time stock dividends. joe: it reminded me of what google did when they split into multiple categories.
you get a share dividend, which ultimately should not change, but this will be a non-, voting -- non-voting capital stock. see the markets reaction, up nearly 8%. this is getting pretty close to its all-time high. apple, whichnlike people were worried about, people do still love this. scarlet: and in contrast to google and yahoo!, facebook seems to be doing fairly well. mobile advertising revenue as a percentage, 82%. that is versus the consensus estimate of 73%. we will get you more details on that. but it shows an acceleration of mobile use. we have with us david kirkpatrick, bloombergs contributing editor, and ceo of techonomy media inc..
we also have cory johnson, editor at large. cory, which headline is most compelling to you? cory: user growth, of course. this company growing users at a time when twitter was a much smaller competitor, having trouble doing the same thing. like twitter, we are seeing revenue occur, and users increasing. there are getting more money per user, and more users. joe: david, what are you seeing as another awesome facebook order? what is the revenue? scarlet: higher than anticipated. joe: $5.4 billion. company has doubled in two years in terms of revenue, a gigantic profit machine that is it showing no signs of slowing down. it is interesting to me that it continues to keep his focus on
making the world more open and connected. zuckerberg only -- almost thinks sticka quasi-all to a entrepreneur. meanwhile, it delivers amazing financial results. apple is on the downturn, facebook will probably replace it as the main text. and if i look back just three years ago, 30% of the revenue is from mobile. this quarter, it is 82%. so not only is the company doing well at scale, they're going to a massive transformation of their business while at scale. is mostly international, not domestic. that was not true three years ago. they have made massive changes, and yet it is running better and bigger than ever. scarlet: that may be the case, but as we have seen from apples result, -- will this
affect facebook down the line? this: i don't think suggests people are using fewer smartphones, but the cycle is slowing. isregate smartphone use still steadily going up globally, with no sign it will change. facebook does not care if its -- does not care which platform its users are on. joe: nonvoting shares will dividend to shareholders. the whole idea, is to allow the company to maintain focus on mark's long-term vision, engagement a leadership role, mitigate succession rates, and minimize future voter dilution. it looks like it is all about keeping mark zuckerberg in control, keeping his vision of a long-term goal, preventing facebook from coming of the wings of the quarterly whims by
giving the public too much control. david: it is not like they are doing badly, but i found it surprising, considering the extraordinary control he are it he had. scarlet: is there any sense that perhaps his leadership is a threat? david: no. scarlet: is anyone impinging on his vision? david: nobody wants any changes to the company when he puts up changes like this. cory: a very good point. how important is video for facebook, it seems like their always loading it. either a live video or prerecorded video, not much monetization there. how will they be ready to turn that on and turn it into it a huge revenue driver for the company? cory: across the internet, video advertising is bringing in a lot of eyeballs in higher dollars.
they are very mindful that snapchat is hitting a certain demographic of people, creating a lot of content, including a lot of the video content, like 10 billion video views yes, with a b. facebook is mindful of that, people are not creating as much content as just copying it and sharing it. video is one of those forces -- things they would like to see. what aboutvid kumal instagram? there are concerns about cannibalization there. some estimates, instagram is maybe $1.5 million this quarter. i don't think they reveal that? scarlet: why not? still think it is a business finding his footing, despite the fact it is doing well. amazing that its revenues are $1.5 billion.
it would be a $50 billion company if it was in the open market. joe: snapchat is not just theing quickly, it is not place to share personals, you might get videos or news, but facebook has expressed concerns that people are not posting as many updates about their lives to read long-term or medium-term, how significant is snapchat? companynapchat is the facebook is most concerned about as a potential threat. i don't think they are worried, but if we are looking at any company with some nervousness, that is the one, no question. snapchat is taking over this casual social interaction that they thought was their purview, now becoming a little bit more of a publishing medium, a little more twitter-like, in terms of news. everyone'sat, is surprise candidate as the next thing for young people. hand, facebook is
not just for young people, but snapchat is. scarlet: first quarter free cash flow, 1.85 billion dollars. this is pushed back to the idea that facebook could not monetize. they are a freak machine, that is what companies are supposed to do. they are supposed to grow and grow free cash flow. it is apple-like, google-like. i wanted to point out a number on facebook, i call a conversion rate of engagement. how many users are not just on the site monthly, but daily? ago, three or four years they had people every single day. the number keeps getting stronger. quarter, 66.1% of their users were on facebook every single day.
daily active users, compared to monthly active users, the biggest it has ever been. joe: the last few years we have heard about facebook not being cool anymore. are a lot ofere uncool people, like me, on facebook every day. thank you for breaking these numbers down as they came out. scarlet: interest rates unchanged, does it leave the door open for a june rate increase? cap analysis. and later we go live to washington with the senate packttee on drug pricing -- packages. we will bring comments as it happens. live on our website. ♪
mark: i am mark crumpton, let's get the first word news. presidential candidate ted cruz will name former candidate carly fiorina as his running mate. at a live shot from indianapolis, where that announcement is expected shortly. dropped out early and endorsed senator cruz, who delegates the 1237 needed to clinch the nomination, but he and governor john kasich have joined forces to prevent donald trump from getting the necessary delegates. let's go live to indianapolis on bloomberg television. [country music] >> god bless the great state of
indiana. [applause] elections are about choices. the republican party faces the choice today. america, i believe want to unite behind a positive, forward-looking, conservative campaign based on real policy solutions for the problems facing this country. and the american people deserve a real choice in november. [applause] a choice, and not an echo. , if wengful distinction
come to november, and the american people are given a choice between two big twornment liberals, washington insiders enmeshed in the corruption of washington, then we as a republican party will have failed the american people. you, when youl run for president, one of the most solemn choices you make, is the choice of selecting a vice presidential candidate. [applause] this is the choice that you are telling the american people, this is an individual who i trust.
and even more importantly, this is an individual you can trust to lead this country, no matter what might happen. [applause] any responsible candidate for president would've spent much assessing possible candidates, thinking through the pros and cons, studying who these people are. , and examiningt the potential candidates. the things you look for in a vice president are the very things characteristic you look for in a president. [applause] first of all, knowledge. do they know enough to do the job?
do they know where jobs come why, do they understand manufacturing jobs are being driven overseas, do they leftstand why superior has michigan and gone to mexico, do they understand what is going on in the economy and the government? did they understand the constitution and bill of rights? are these words on a paper, or words that protect our fundamental liberties? [applause] mark: ted cruz speaking in indianapolis, indiana. he is expected to announce his vice presidential pick. multiple media reports say that pic will be carly fiorina, the 61-year-old former presidential candidate. let's go to washington now, and my colleagues john heilemann and mark halperin from "with all due respect."
mark let me begin with you. the map does not seem to add up. even if ted cruz does pick carly fiorina, why is he doing this? mark: he needs to change in the discussion, do something dramatic. his campaign sees the last primary rounds, and recognizes that the oregon -- unorthodox deal they struck with john kasich, and now this, naming carly fiorina for a vice presidential slot, is a way of changing the discussion. grabbing voters by the lapels, saying think about ted cruz. race, ted cruz will not likely get to pick a pet -- vice presidential running mate, at least not this year. john: she gives ted cruz a chance to change the subject from a pretty brutal shellacing
he received last night. down to indiana, which votes next tuesday. ted cruz needs to win there. it is trying to inject some life and energy into the campaign. there is a lot of research out there that shows putting an actual vice president or running mate on an actual ticket does not do very much, in terms of moving votes. the caseed is possibly that putting a hypothetical running mate on a hypothetical ticket is not going to do much for ted cruz, either. in the sense he has to change the subject, this will change the subject of the next few days. mean john, does this kasich will respond in kind? how hee has discussed might choose, before receiving a majority of votes -- i think donald trump has been remarkably reserved, saying he will not do anything about this until he secures the nomination.
kasich may do it, it does not really matter. in the short-term, the cruz campaign will live or die by what happens in indiana. in the next six days, carly more intenselyo what she has been doing for him, being a sarah get, creating a tableau that perhaps has some kind of alchemy. when bill clinton picked al gore, the power of the two, the sum is greater than the individual parts. people may look at that ticket and say, i might think now that that is a good combo, more powerful than just trumping. i don't know if kasich can do it, but i would not be surprised. john, donald trump has not made secret his disdain for senator cruz and ms. fiorina,
the only female and the republican field, at one point. and she was the subject of much ire andd trump's mocking. is there any chance that they would back mr. trump? john: it is an interesting thing, even in the nevertrump movement, of which ted cruz and carly fiorina are in the vanguard. they can say never, never, never, and when asked if they will support the republican nominee, they say they probably will. will they end up supporting him if he is the nominee? i would expect they probably will. and it will come across as hypocritical to many people, but a lot of these guys, have left themlves that opening, to themately be behind candidate. they want to be behind the republican party, in the end.
aside from the bad blood, they may be a fair amount of unity in the end, it donald trump is the candidate in the end. from washington, gentlemen, thank you again. heard, senatort ted cruz, that republican presidential candidate naming carly fiorina, the 61-year-old former head of hewlett-packard, as his running mate. charlie, joe, back to you. scarlet: the fed offered little new guidance. froming in dominic konstam the head of rates. -- monitoring inflation indicators and global development. was this a hawkish or dovish statement? dominic: we think it was dovish. the expectation was that they could set themselves up or height.
they clearly did not do that. i think the more subtle reading of it was that the committee was getting quite comfortable that they had underpinned the risk access recovery since the last meeting. so that is important. it, i thinkitoring because there are so happy and pleased with what they have achieved over the last few months. and they did not want to give that away. unlikely, itso should be banished from your mind. looking at the markets today, we saw a rally in the s&p afterward, but not strong either way. anything else in the announcement that struck you, or boring asexpected and most people thought it was going to be? there were a few things
on the defense. but the hidden thing and there is the real yields reacted. they had risen quite a bit, recently, and came down. a lot of focus on the doj. all, there could have been a terrible reaction, have they done the wrong thing. all, after the doj, people are more confident reacting to the fed. there is so much uncertainty around the doj. joe: let's go to that, we have the doj decision tonight, what do you expect? officially, i think deutsche bank does not expect too much. but they will do something. in terms of encouraging bank-lending, and they have an opportunity to do something quite dramatic. up it as much as $20
trillion, they could also spanned. they were rumored to have been during -- doing that earlier. more than double what they have committed to. if they do these other things, they could certainly promise to look at further things in the race. lot, setting do a up for more moves in the year. ofrlet: there was talk something maybe along the lines awe.ock and all -- scarlet: dominic konstam, you are staying with us. we will talk about a new debate around an old metaphor. ♪ live shot in
x1 makes it easy to find what blows you away. call or go online and switch to x1. only with xfinity. get the first word news this afternoon. itublican presidential 10 at ted cruz has named former candidate carly fiorina as his running mate. ted cruz is addressing a crowd right now in indianapolis. dropped out of the race earlier this year, and endorsed cruz. cruz and kasich of joint forces to prevent donald trump from getting the necessary delegates. to flint,trip michigan, since the water was
revealed to be tainted with lead. president obama will hear from flint residents. withas been charged evidence tampering, in the investigation. a serial child molester, how a named a man at his sentencing today. it was learned he was paying hush money for a man silence about his past. when he was a high school wrestling coach, he sexually abused at least for athletes. was month prison sentence imposed. he said he was deeply ashamed he mistreated some of the athletes. the united nations says a water shortage in north korea has triggered the first drop in food production in the company since 2010. the organization purporting 9% decline in production last year, compared to 2014.
the organization says the reclusive nation would need to import nearly 700,000 tons of food. global news 24 hours a day, powered by our 2400 journalists, in more than 150 news bureaus around the world. i am mark crumpton. joe, scarlet, back to you. of 8% inshares after-hours trading after the social media network report sales the top analysts' estimates. let's bring anger emily chang from san francisco. on a day when you beat estimates by every measure, that is a good day for mark zuckerberg to ask for a new boating class of shares. maintain founder control of the company, you still be able to make those bets on things like con activity, vr, ar, and give away a large part
of his fortune as part of the zuckerberg initiative to things like education and the environment or it i did ask dave toner, the ceo, why they had do this now. he said the board of directors is proposing a creation of a new class of publicly listed, non-capital voting stock, to make sure the company maintains a longer focus. we believe facebook's success has been due to mark'leadership. we have reported that personal sharing on facebook is down, while sharing of news articles and be it -- videos are up. people are sharing more on facebook, but how they are sharing is evolving. they want to share in different ways. we are continuing to monitor that and learn from that, and offer new features, depending on how people want to share.
you might have noticed, they are seeing more features pop up and facebook, like it is your anniversary, say hello to your husband. or, you became friends with so-and-so five years ago today, celebrate that. overall, there saying sharing is up. when it comes to instagram, we wanted some color on just how meaningfully their contribute into revenue at this point. he said instagram is making a contribution, but at the core, facebook is a still a big driver. we believe we have two of the moat -- more important mobile platforms out there. it is a still very early, and there are still a lot of opportunities in front of us here in there are analysts out there who believe instagram is contributing more than half $1 billion to quarterly revenues. but facebook has not given additional color to that.
additionally, we talked about how the video is powerfully driving ad revenue on facebook. it is a huge force of original content. live,ecifically, facebook their videos platform they have been pushing. he says they are really excited about their product, and that it is a prime, authentic way to share. we believe we have the best live platform out there. but of course, it is still early days. you do, we believe will come out with something similar. but this is an area in which facebook is investing heavily, and also a camera app to make it more seamless. thank you very much, "bloomberg west," anchor emily chang.
at 6:00 new york time, there will be more news. over 8% after hours. scarlet: the second panel of the senate committee is about to begin. you are seeing a live shot in washington. you can see bill ackman in the lower right-hand corner. we are monitoring this developing and will bring you comments.d ackman's droppingu miss?" cameras out of helicopters to spur investment. sachs, he wrote, not so fast. he wrote that monetary and fiscal policies are already reinforcing each other and providing morris daniel is great let's get some thoughts about helicoptert of money, direct financing of
consumers of the government, from central banks, with our guests, dominic konstam, from deutsche bank. what we need is money the next day, to break us out of the next song. a, how do you define helicopter money, and b, how do you define that in the near future? dominic: it is the combination of fiscal and monetary policy. it would not necessarily work. , a want targeted spending government that can target spending. a government can double wages for everyone in the public sector, and sell bonds directly principle, and there were be a lot of inflation to compete. that is the classic helicopter money idea.
coordinated, but there are variations you can think about. what the central banks have already bought, they could try to cancel them. that would be problematic, though. they don't necessarily have the tools to cancel the cash they have injected into the system. things, you other could make zero-coupon perpetual, a good form of helicopter money, for example. issue ishe biggest that it feels like the independence of central banks is going out the window. central banks do not like to talk about it. but you have entered the reading of negative rates. that does not look like it will change anytime soon. that will probably get worse, not better.
if you're not careful, take a great problems for other people. if you want to protect the bank, you have to protect the depositors. any historical precedents for helicopter money? dominic: yes, going back to when banks were independent, a lot of coordinated efforts to issue bonds, and having them plan their balance sheet. during wartime, a classic case. scarlet: did it work? sure, wartime inflation. if you look in the scheme of history, inflation has occurred during famines and wartime. if you want to free inflation, that is a way to do it. remember, the reason you don't becauseopter money is inflation does have some problems. it creates massive redistribution between different
sects. are retired and think you have a fixed income that is very safe, you will be very upset. it happens when you have a lot of aging populations around the world. and they think, when i have my money, i want to protect it. i want to go back to wiley college helicopter money. it sound like a joke, the idea of dropping out of helicopters and that the original description was that it would work if consumers thought is a permanent part of the landscape, permanently raising inflation expectations. if the government is going to spend more in the central bank will finance the, does that ultimately change the calculus that it is a one-time thing? does it need to be a permanent change, in order to have an effect? no, i don't get has to
be a permanent change. for example, if you do a one-time doubling of wages, for example, you could drop the money out of a helicopter, or pay wages. that could be a one off raising. beget anhat will ongoing process, you would have to come back and do more and more. but you can definitely have a one-off increase. then you have to remember why you try to achieve the inflation, and usually that is because there are debts that people are trying to pay down, and interest rates are too high. as long as it is a one-off, and the price goes up 10% or 20%, your debt burden has come down. joe: thank you very much, dominic konstam. scarlet: breaking news, live at the senate hearing committee on drug pricing. they're looking into the sudden and aggressive spikes of drug prices. right now, michael pearson, is
speaking. >> i am grateful for this opportunity to speak to correct this misinterpreted -- misinterpretation before the end of my time as a ceo at valeant. thank you for my time to speak, i would be happy to answer your questions. members of the special committee on aging, and you for calling me to testify. i am happy to be here today. in late 2011 at its -- as its chief financial officer, i sat down in june 2015 while remaining on the board of directors. was the interim cfo for approximately two months, at the beginning of 2016, as mike pearson was on medical leave. i am not currently a member of the management team, but remain on the board today. aware, in february i spoke about drug pricing
increases before the committee. i was deposed on similar issues by members of the staff of this committee. i spent the whole day with the staff. i hope i was able to provide information that was useful to this committee. because i previously had the opportunity to be heard, i will spare the committee a lengthy opening statement. i appreciate the chance to be here today and will answer any questions the committee has for me. >> mr. ackman. of theinguished members committee, thank you for the opportunity to testify and address your question today. i am the ceo of an investment firm a managing 2003. my investors include public and private investor plans, foundations and individuals. pershing square is a highly concentrated investor, with to 12 companies,
north american companies. we have a target-holding period of about 12 to 14 years. we become a shareholder, share ideas, and assist companies in making management, governance, and operational changes. while not every investment we made have been successful, the ones in which we play an active role have improved during our period of ownership. -- pershinghat square has been a valeant shareholder since february of 2015, a little more than one year ago. we purchased a stake in the country -- company. then we took a more proactive role with the company. a month ago, actively assisted -- assisting.
team,t met the team in 24 when they pursued a merger between valeant and elegant -- allegant. a takeover battle ensued. in the course of our joint ,fforts pursuing the merger when it did not occur, we became a valeant shareholder. we believe and still believe that valeant is a good company. strong drawn to its portfolio, management team, operating model, and its way of acquiring other pharmaceutical products and companies. also focused on later stage, higher probability drug development, and the acquisition and licensing of new drugs. most pharmaceutical companies have been unsuccessful and
cost-effectively coming up with new drugs. once pershing square became a shareholder, we had less interactions with management. we did not expect to play a in that.- big role as a result of public scrutiny hearteart -- pricing of drugs, the company declined precipitously. they lost more than 85% of their value since august. i recognize our investment was an implicit endorsement of their strategy, including aspects of their strategy that we did not approve. in order to protect our investment, we elected to take a much more active role at valeant . we have a new board of
directors, and i join the board, in order to help stabilize the company and assist in a management transition. i work with the board to recruit new management. this monday, valeant announced pa will become the ceo. he has a repetition for forthrightness and integrity, and expertise in all aspects of the pharmaceutical industry. i am looking forward to working with him to make valeant a leader in the community it serves. we should have focused on more drug pricing issues at valeant. this provides a critical role in the health care system, providing life-saving medications to patients. affected patients, and valeant's reputation. i take seriously the
responsibility that comes with my role, and want them to implement the best actresses with respect to drug pricing and maintaining their social contract with the patients and doctors they serve. thank you for having me today, i will be happy to answer your questions. a thank you, we will now have seven minute round of questions. mr. pearson, you testified today that you regret pursuing transactions where the central premise was a plan to increase the prices of the medicine. mr. schiller, and your deposition, you said you wish you had opposed the decision to hike the price is so quickly and dollar once. -- and all at once. you said it was too aggressive, and valeant had made mistakes. mr. ackman, in your written testimony, you said the written criticism of valeant's pricing
appropriate, and maintain your commitment to ensuring this approach is never repeated. mr. pearson and mr. ackman, in light of your regret that you have expressed, what specific actions are you taking? are you going to lower the drugs andthese four other you have acquired, where the price has been hiked, so that they become mr. -- more affordable? mr. pearson, i will start with you. yes, we have been too aggressive on price increases. that is why we took the step of offering the discounts. we have not raised prices at all this year, in terms of neurology and other business that we have, -- our mostproducts important divisions, which are
dermatology and bausch & lomb, we're reducing drug prices through walgreens. these are consumer products, so people pick those up at retailers. we do have a fair amount of investments that we make commitments to. rochester,ng jobs in where we are investing over $500 million of capital and creating a lot of jobs in st. louis. we have expansions in greenville, south carolina. we make expansions to people and capital. $4 million spent on research and development. so we have to make trade-offs, and the balance between investments and research and development, and manufacturing, which were not making money today. we have to consider further price decreases. >> i am talking about the four drugs we particularly focused on
today. is there any plan to reduce the prices of those drugs? four we have reduced through our programs. >> available to hospitals? we have yet to find any hospital that has received those discounts. -- there areciate none i can find in maine, says no, iscension would ask that we be provided with them. >> we would be happy to. my understanding from the lawyers is that the committee has the contract, we will provide them again. >> mr. ackman, you are going to continue on the board, you're a major investor. what specifically would you soommend for policy changes,
that we can stop this kind of abuse of behavior in the future? >> just to be specific, i texted our board share and suggested we meet tomorrow to discuss the drugs that are the subject of this hearing. i suggest we reduce the prices i think we can make it easy by giving a 30% blanket price reduction, and that way we don't have to individually negotiate deals with hospitals. it would be my recommendation. >> thank you. i would like to put up exhibit one, because mr. pearson, you mentioned financial information, and that you have some units that are not doing so well. this is information that was cfo.ded by valeant's new i believe we passed out the
exhibit to you. it showsok at row h, balanced profits on cooper mean, exclusive of tax and other interest expenses, the fact is that valiant a very impressive returns on it. $25 million in the fourth of 2015, and $7.5 million in february alone. in comparison during the same period, valiant had paid very little. spent onlye it $180,000 in the fourth quarter on making the medicine. it does not appear that the cost of manufacturing went up, and indeed, when we checked when the manufacturers, that is not a factor. turning again to exhibit one,
made morey, valeant than $70 million in net income on that one drug alone. how do you justify that pricing? >> your figures are correct from thanks margin standpoint, you for providing the information. we look at prices, cost of substitutes, cost of alternatives, we look at the supply and demand. i agree that the price increases were too aggressive, but in terms of the analysis done by the company, it is looking to make sure there are alternatives. we also invest heavily in
patient assistant programs. i was quite upset to hear, i listened to the first panel, i was quite upset to hear that mrs. haman had the experience that she had. hope that is an isolated experience. we track and monitor all customer inquiries. and we provide all those documents to your staff. pretty goodave a track record, in terms of patient assistant programs. we spent over $1 billion of our total revenue for patient assistance this year. >> i can tell you, from the committee's work, that your patient assistant -- assistance program does not have a good track record, and is viewed as being very difficult to navigate. it is a means of keeping our gotomers so that they don't off their medicines, so you can still get the payments primarily
from commercial insurers, which dwarfs the amount that you are giving customer assistance. i would also make the point before yielding to the ranking members, that you are dealing with a captive audience here. these patients do not have alternatives. these hospitals, the gold conditionsr the treated by these medications, the gold standard are those two drugs. that is the whole point. they are monopoly drugs, there are no easy substitutions. senator mccaskill. >> thank you. according to your sec filings mr. pearson, at the beginning of the first quarter of 2013,
through the third quarter of 2015, you state in your filing, that your revenue changes have been driven primarily by price. not by growth. in fact, in only one quarter, between 2013 and 2015, did you report that growth was driven by volume. increases have in fact been the entree for your business, correct? profitsit has driven more than volume, though that has changed over time. 2015,the first quarter of as you, mr. ackman, own at least 10% of this company. >> a little bit less, 9%. >> your first quarter 16 on ims
data, the average price in the first quarter, keep in mind the 9,arly inflation is . according to wells fargo report yesterday, the average price of your top 30 products is up 78% over last year. thatyou cannot attribute to research and development because you do not spend that much on it. you spend only 3%? we spent 8% of our pharmaceutical revenue. scarlet: you're are listening and watching the senate committee on drug pricing. you can watch more on our live web stream. we can tell you that bill ackman in his first active questions as he has recommended valeant reduce prices of drugs that are under scrutiny. joe: and that is all for "what'd you miss?"
john: i'm john heilemann. mark: and i mark halperin. and with all respect to etiquette, that escalated quickly. ♪ mark: hello from washington, d.c. on this very amusing wednesday after donald trump's five state conquest. he and ted cruz trying to get media domination. rally,ng that up with a featuring chair-throwing basketball coach bobby knight. today,