OCT 30, 2015
Valeant Pharmaceuticals today announced that it is cutting all ties with Philidor Rx, its consolidated specialty pharmacy business.
The announcement came after CVS, Express Scripts and UnitedHealth Group announced that they would cease working with Philidor Rx. Valeant said Philidor was a small part of its business, representing some 5.9% of year-to-date revenue, and that it is not legally responsible for the division.
The relationship between Valeant and Philidor Rx came under scrutiny after Citron Research issued a report accusing Valeant of using the mail-order pharmacy to inflate sales. Bloomberg released its own report yesterday corroborating Citron’s, alleging Philidor trained employees on how to modify doctor’s prescription orders to overcharge for insurance reimbursements and bolster Valeant’s overall sales.
"We understand that patients, doctors and business partners have been disturbed by the reports of improper behavior at Philidor, just as we have been," said J. Michael Pearson, Valeant's chairman and chief executive officer. "We know the allegations have also led them to question Valeant and our integrity, and for that I take complete responsibility. Operating honestly and ethically is our first priority, and you have my absolute commitment that we will make it right."