It also said it stands by Andy Davenport, the CEO of Philidor. Citron claims that Valeant used the relationship to improperly hike revenues, sometimes bypassing insurers.
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But despite the new denials, Valeant shares sank again in morning trading.
What the heck is Philidor? Left said he has been sued by previous targets of his negative campaigns and that he’s never lost such a suit. Annabel Samimy, at Stifel, said Valeant has been “held to a much higher standard than any of its peers” and that “this public skewering is more of a crisis of confidence created by ill-informed parties rather than perpetrated fraud”. A replay will be available approximately two hours following the conclusion of the conference call to November 2, 2015, and can be accessed by dialing (855) 859-2056 or (404) 537-3406, confirmation code 67537440.
Senator Claire McCaskill (D-MO) is not done with Valeant Pharmaceuticals. It doesn’t actually present evidence that Valeant has done so; Citron executive editor Andrew Left doesn’t even attempt to guess how much these pharmacies may improperly inflate sales.
I’ve read the reactions of multiple analysts to last week’s exploding controversy over the role of specialty pharmacies in Valeant’s business model.
These people were employees of Valeant and not Philidor, the Journal reported.
Philidor now is licensed in 46 states and the District of Columbia, and also distributes drugs through affiliates in California, Florida, New Jersey, South Carolina and Texas.
“Valeant has consulted with experienced and knowledgeable regulatory counsel”.
Ingram said on the conference call Monday that he has “complete and total faith” in Pearson. The company added that its revenue recognition and accounting treatment is not set up in a way to “stuff the channel” – as was alleged against the company last week. Unsold product, it said, is recorded at cost.
Shares of Valeant rebounded somewhat on Friday after four days of steep losses. However, it did mention that it had a few variable interest entities (like Philidor) in prior disclosures.
However: “Because of the nature and volume of inquiries related to Philidor after the October 19 earnings call the audit has been delayed to revise scope accordingly”, it said.
The Wall Street Journal report described a Valeant employee named Bijal Patel, who worked in Philidor’s Phoenix offices, sending company emails from the pseudonym Peter Parker, otherwise known as Spider-Man.
Officials said Valeant had nurtured Philidor in its infancy when it sold only two Valeant acne drugs by mail order.
Valeant said it is considering all possibilities for its future relationship with Philidor, from acquiring the company outright to severing ties with it. The company said it still believes its specialty-pharmacy strategy is ” sound”. (R&O and Philidor have the same phone number, purportedly because Philidor provides backoffice services for R&O).
For its part, R&O’s 90% owner and pharmacist in charge, Russell Reitz, admits that he has withheld checks from Isolina/Philidor.
EvercoreValeant also did little to address concerns about questionable practices at Philidor on its call, only to say that it believed Philidor had done nothing wrong but that it would form a special ad hoc committee to investigate the matter.
Valeant gave listeners the option to ask questions.
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Pearson was among the Valeant executives and board members who spoke for almost an hour Monday before taking questions from analysts. He had originally served on Valeant’s board of directors from May 2007 to May 2014.
