Valeant ends relationship with Philidor

Valeant Pharmaceuticals International announced in a press release that is terminating its relationship with Philidor Rx Services LLC, and that Philidor will shut down operations as soon as possible.

“The newest allegations about activities at Philidor raise additional questions about the company’s business practices,” J. Michael Pearson, Valeant’s chairman and CEO, said in the release. “We have lost confidence in Philidor’s ability to continue to operate in a manner that is acceptable to Valeant and the patients and doctors we serve.”

Philidor represented 6.8% of total Valeant revenue in the third quarter of 2015, according to the release.

“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 stated. “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.”

Valeant reported it is developing a plan to ensure minimal disruption to patients’ access to drugs. “Valeant has informed Philidor that to the extent that managed care plans will no longer reimburse prescriptions in process, Valeant will fill them at the company’s expense,” the company stated in the release

“We … will continue to explore relationships with the full range of pharmacies to ensure patients have access to the drugs they need,” Pearson stated in the release.

Valeant announced in a separate release that the ad hoc committee appointed by its board of directors has appointed Mark Filip, former Deputy Attorney General of the United States, now with Kirkland & Ellis LLP, to advise the committee in a review of allegations related to Valeant’s business relations with Philidor.

Valeant develops, manufactures and markets pharmaceutical products in the areas of dermatology, gastrointestinal disorder, eye health, neurology and branded generics.

Reference: www.valeant.com