he'll tell us what has him so excited and allergen ceo brent saunders is sounding the alarm on drug pricing and how he plans to keep prices low and stay above the competition. more "fast money" right after this. the launch window.

let's take a closer look with brent saunders. he's the president and ceo of allergan. brent, welcome back to "mad money." >> thank you. >> we got to get right to it. on the conference call this why are you overpaying for these things? and i need you to tell our viewers because your stock's been getting hit when you make these acquisitions. >> i think criticism is always helpful. we love the feedback. i love to get the feedback from shareholders, but i don't think we overpaid. i think we paid a competitive price for tobira. >> competitive with who? >> i think we got a home run on vitae. >> were there really other companies bidding for this thing and you had to -- there were? >> there were other companies and when you see the regulatory filings come out from tobira, i think the picture will be clearer and you'll be able to understand it better. but put that aside. $595 million for a potentially phase three ready asset in one of the largest unmet medical

>> last night he had an interview with brent saunders of allergan, so we'll talk about what they're doing and play some of that cramer interview, too. >> if jim wears yoga pants tonight, i'll wear them another day. >> then i hope he does not. >> when we come back, michelle girard will talk all things fed. back in a couple minutes.

tomorrow again the ceo of allergen, brent saunders two huge interviews you do not want to miss. dow in a tight range down about 18. we're back in a minute. ♪ mapping the oceans. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job? my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fueling the global economy. and you thought we just made the gas. ♪ energy lives here. ♪ guyhey nicole, happening here? this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore.

allergan ceo brent saunders promising to limit the price of drug hikes.today, cnbc commentator, mike santoli. cnbc contributor, ylan mui, and tim seymore. welcome, everybody. and mike, this -- i mean, the worst performer in the dow today was actually apple, although nike was in there, too. and overall it felt like we were casting for direction. >> we were churning around today. it's been the trend as we're going sideways with the broad market, that there's some other market that makes a move. and part to the u.s. stock market adjust to it. today, it was oil getting that nice pop. energy stocks leading the way. and bond stocks around the world lifting after that ecb decision on no new real news. and i think that had a lot of people saying, does this finally mean we're breaking out of the range of lower rates in the dividend trade and all of that? it didn't really have a pronounced effect, but we have seen, as we've talked about, a move into some of those big growth stocks in the last week or so. that paused today, ads well. i really do feel that we're bein

our very own meg tirrel sat down with brent saunders of allergen and joins us now from boston.reporter: covered a lot of topics and had to start with this pledge that brent saunders put out earlier this week not to take what he calls egregious price increases that he says we've seen across the drug industry. we asked him, of course, about hillary clinton's plan that came out on friday. he said, well, it's a populist issue and a good campaign promise. this isn't something government can solved. we asked him. pledging to take only less than 10% price increases no more than once per year in his products. should your peers take this pledge as well? here's what he said. >> i think everybody should -- should take a look in the mirror and examine the practices that they are taking in this arena and say does it hold up to the social contract we have with patients? those companies all invest in r & d and we applaud that. looking for cure and treatment on the medical needs. we applaud that, but are they taking price increases solely to drive their business to make up for shortfalls in ot

brent saunders, ceo of allergan. our social contract with patients is available on the blog and it's something i think you must read because versus the testimony you heard this afternoon, it's very different and much more positive. "mad money" is back after the break. it's not just a car... it's your daily retreat. go ahead, spoil yourself. the es and es hybrid. this is the pursuit of perfection. head to madmoney.cnbc.com. >> announcer: lightning round is sponsored by td ameritrade. >>> it is time! it's time for the lightning round! when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." john in florida, john. >> caller: hey, jim, how are you doing? this is john from indian pass, florida. >> i don't know that area but it sounds beautiful. what's happening? >> caller: right. thank you. my stock is gin wirtz financial. >> too risky for me. come on, i'm a guy who likes travelers. i'm a travelers guy and then a chubb

. >> now, what makes this is brent saunders -- hold your ears for one second. on july 25th, this company, the stock tanked. why? because they did not meet their primary end point of a two-point reduction in the activity score although it did demonstrate a clinically significant improvement. it didn't meet the end point. what price would brent saunders have paid if it met the end point? >> i don't know. apparently -- >> i think it would have been the price of maybe three or four nfl teams. cowboys, bears, maybe giants. >> add them all together. this was a highly competitive auction. >> with who? >> i'm going to find out. >> how are you going to find that out? >> i'll talk to a banker who will tell me. this is big market because of obesity and diabetes. people talk about it could be as big as oncology in a few years in terms of scientific impact. and their main drug, they believe at allergen it seems could be a cornerstone product. >> let's put this into allergen framer. it's just a fourth acquisition that's basic research where there can be things that happen th

brent saunders will join meg at that conference, 4:15 p.m. eastern time today on "the closing bell." >>> still ahead, meet the newest met. more on tim tebow's big career change. remember him? but first, we are talking tractor trouble. online bidding and bleach. the good, the bad, and the ugly in today's trade, when "power lunch" continues. ♪ usg 60,0oints om my chase ink card bought all the fruit.. veggies. om my chase ink card and herbs need to create a pop-upppick-yrr in the middlof the city, so now everye knows... weave so of the fresstjuice i. see what the powerf points can door yr business. learn more achase.com/ink >>> welcome back to "power lunch." time now for the good, the bad, and the ugly. first to the good. e-bay hitting an all-time high for the second day in a row, shaking off the weakness we see in the rest of the market. on to the bad, clorox. that stock tumbling down another 1.6%. about to wipe out all of this year's gains. we've seen interest rates perk up a little bit today and that may be hitting some of those big dividend

. >> last night he had an interview with brent saunders of allergan, so we'll talk about what they're play some of that cramer interview, too. >> if jim wears yoga pants tonight, i'll wear them another day. >> then i hope he does not. >> when we come back, michelle girard will talk all things fed. back in a couple minutes. now that fedex has helped us simplify our e-commerce, we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything. thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment. i just wanted to say, you guys are doing a great job. what that supposed to mean? fedex. helping small business simplify e-commerce. >>> our top global story is making sense of the fed. what did we learn as far as the fed's path from here? >> we l

. >> let's take a listen to what brent saunders told you last night on mad. >> they're going to pay therice unfortunately. this issue is not going away. the american people deserve to be angry. and only we through self-police and self-regulation can fix it. a government takeover of health care is not what we need. we need discipline. we need responsibility. we need companies to do the right thing. >> wow. i mean, he said it. this is something that he put it in his blog, which was very reasonable the social contract that drug companies should have with the people. and he put it out there. seemed like a very reasonable thing, and not a single drug executive joined him. >> really? >> not one. not one was willing to sign-off on his pledge. >> on his thing -- >> for reasonable increases. i thought that was the -- of the two components of this there's the mylan, valeant, teva, you know, allegedly slashing r & d and raising prices. and then there's brent saunders who a lot of people felt at one point an average domicile kind of thing -- >> first of all, valeant is key for slashing r & d, mylan

that is what brent saunders pledged to do, not raise more than 10%. >> 9.996. >> that would be a sourceere pricing would go. that is one complication in trying to set very specific bright lines and also making somewhat subjective evaluations. >> heather brash will be heading to the hill next week. see what she has to say in defense of her decisions. >>> up next, cbs delaying launch of "star trek" tv show until may. ys, at's happening here? hey nico, this is w alert syem but thinkorswim aly lets youe m. create custom alerts for l the ings that are important to u. altsn not on tt,l? you nw, i g g we don'need the k with jt ontap t from the al. cuom alerton thinkorim. ly at td ameritre. i'm just guy whoan to buy that trk. weand sustainability goals asool one of our top priorities.mental i definitely rely on pg&e to be an energy advisor. anything from rebates, to how can we be more efficient? pg&e has a number of programs, to help schools save on energy. when i see a program that fits them, then i bring it to them. with the help of pg&e we've been able to save a tremendous amount of energy a

brent saunders is going to explain how you pay -- talk about pricing.cquisitions not very oriented to the way a mylan, tevo or valeant would work. >> good. i have some reporting i didn't get to on that. >> jim, see you tonight at 6:00 p.m. when we come back, sarah's interview with european competition commissioner margreth vestager from the boj to the apple tax penalty. dow up 85. ♪ this is going to be the best day of my life ♪ ♪ . >>> good wednesday morning. welcome back to "squawk on the street." i'm carl quintanilla with david faber at post nine of the new york stock exchange. sarah eisen will join us shortly. it is fed day. s&p is moved less than a point for the past two days, but today a little more action. s&p up about 11 points. dow's up 90. >>> well, our road map this morning starts with central banks in pfocus as the bank of japan announces a policy overhaul and the fed gets ready to release its own decision. >>> drug price outrage as the ceo of mylan heads to capitol hill ready to face a grilling over that epipen price hike. we've got details.

allergan ceo brent saunders is weighing in on the recent debate of price hikes for drugs.t he said the firm will raise prices on its products only once a year and that those increases will be limited to the single digit percentage range. interesting. especially given some of the hikes we've seen recently. but this is allergan kind of stepping out and trying to make sure it's taking this head on. it's something that picked up in politics. it's been an election year issue as well. programming note for you, we will hear more about the drug pricing debate when meg tirrell speaks to another name in the pharma space. she's sitting down with joseph papa. that's coming up at 4:30 p.m. later today. >>> under armour has enjoyed huge growth since the founding two decades ago. now the apparel company looking to take its name internationally. we are joined now from taiwan this morning. good morning. >> reporter: good morning. good evening from taipei, andrew. we traveled to hong kong and then taiwan with steph curry and under armour. and the battle for consumers isn't playing out on th

and then you have brent saunders coming out pledging not to raise by more than 10% a year.you still hear companies doing these just eyebrow raises increases. >> on the fda to streamline regulatory policies to get more competition. that can cut into some of these. they're able to corner the market on a drug where there is no other potential the competitor in sight. >> yeah. and we'll hear from the fda today. one hopes we'll get more insight into what's going on to make sure the generic process is getting streamlined. that maybe there's prioritization. when you have mylan's ceo in the room like that, it's hard to think the fda will get as many questions. >> thank you. we will continue to follow through the day. again, meg's there in washington and will be keeping us updated on the story as it progresses. >>> news just in from target. the company announcing a new $5 billion share repurchase program. the retailer is in the process of completing a $10 billion share repurchase. they also declared a regular dividend of 60 cents. the stock is up by 1.25%. >> since then the stock is

. >> i thought you had a great interview last night with brent saunders.p to this trying to lead the industry away. i don't know why none of the other drug ceos seem to be getting the message. >> happy birthday, did you ever raise the right question? >> yeah. >> that's exactly what bothered me, what bothered brent frankly. where are these guys who are all saying, hey, listen, we're not mylan, we're not teva, we're not valeant. why didn't they sign? they should sign. it's quite embarrassing these other guys didn't sign on. because this is a social contract they have with the country. >> right. >> and i think these drug companies that are good guys ought to stand up and admit that they're the good guys, or maybe they're not. >> jim, talking good guys and bad guys, i don't know if you want to weigh in before we go, leon cooperman, guest of this show often and guest on cnbc frequent lir. >> i'll say two things. lee is a friend. going to put that right up there. he's inspirational from what i got in the business he was the research director at goldman. and the