The pharmaceutical firm has lost roughly half of its market value in just over two weeks.
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Pearson told investors this week that if Valeant chose to cut links to Philidor it “would slow our growth but not dramatically”.
Left, who runs Citron Research from Los Angeles, said he would update his Valeant allegations on Monday, pledging that the story would be “dirtier than anyone has reported”.
Philidor, said industry executives, operated unlike traditional and specialty pharmacies.
The controversy reached its peak last week with Valeant’s third-quarter 2015 earnings announcement. According to a report in the Southern Investigative Reporting Foundation, Valeant has been shipping products to R&O and subsequently claiming false revenues.
There are plenty of reasons investors should be wary of Canadian drug giant Valeant Pharmaceuticals global Inc.
A similar statement was also released by Express Scripts Holding Co., saying that it was ceasing work with Philidor.
Mr. Ackman said that the company has made numerous mistakes underinvesting in public relations.
Herbalife (HLF) threw a jab at Bill Ackman as the hedge fund manager and Valeant Pharmaceuticals (VRX) investor mounted a defense of the drug company.
In a letter to shareholders on Thursday, Sequoia Fund criticized Valeant’s handling of the situation and said it had “caused an extraordinary level of (investor) pain”, but said it was sticking by its investment.
Philidor represented 6.8 per cent of Valeant’s revenue in the third quarter, including large quantities of its toenail fungus medication Jublia.
This May 27, 2013 photo shows signage at Valeant…
ENERGY: Benchmark USA crude rose 8 cents, or 0.2 percent, to $46.14 a barrel on the New York Mercantile Exchange.
The announcement came after Citron Research, an influential short-seller, accused Valeant of creating a network of mail-order pharmacies to “stuff the channel” – a deceptive business practice involving inflating sales figures by sending retailers in its distribution channel more products than they are able to sell. However, details regarding Philidor’s violation of terms were not disclosed.
It wasn’t until last week that Valeant revealed it was close enough to Philidor to have an option to buy it. And Charles Ornstein at ProPublica, using documents from the board and the Delaware secretary of state’s office, described how Philidor “used a backdoor approach” to circumvent the board and continued to deliver Valeant’s drugs to the state. Philidor, whose sole client is Valeant, will be shutting down operations imminently.
Quebec-based Valeant makes a wide range of drugs, including the antidepressant Wellbutrin and antifungal Jublia.
“We understand that patients, doctors and business partners have been disturbed by the reports of improper behavior at Philidor, just as we have been”, Pearson added. That’s no longer the case. Valeant denied those allegations at the time.
A handful of other drugmakers operate their own pharmacies and ship drugs directly to patients. OptumRx, UnitedHealth Group Inc.’s pharmacy benefit management unit, did the same.
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On Friday, stocks were largely flat through much of the day, venturing into positive territory in the early afternoon before ending lower.
