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Valeant Terminates, Will Shut Down Scandal-Ridden Philidor After "Losing Confidence"
Yesterday, when we first reported that CVS had terminated Valeant's scandal-ridden Philidor specialty pharmacy whose sole customer just happens to be Valeant...
... from its Pharma Network, we predicted that "where CVS goes, others will promptly follow, not only leading to a prompt termination of any and all overinvoicing benefits Philidor provided to Valeant, but leading to a crack down on specialty pharma organizations everywhere, and likely finally inviting a federal inquiry into just what is going on, because for a pharmacy to admit that there was fire where until just now there was nothing but smoke, not even the Feds can ignore that."
Not even we had an idea just how fast the wind down would take place. Because shortly after the CVS news hit, virtually every other major pharmacy benefit manager proceeded to quickly sever all ties with Philidor.
But things really hit the fan when Bloomberg reported that "workers at the mail-order pharmacy, Philidor RX Services LLC, were given written instructions to change codes on prescriptions in some cases so it would appear that physicians required or patients desired Valeant’s brand-name drugs -- not less expensive generic versions -- be dispensed, the former employees said... Ex-employees who worked at Philidor in the last two years, and who asked that their names not be used discussing their former employer, confirmed that prescriptions were altered as the document details. They said the intent was to fill more prescriptions with Valeant products instead of generics."
Now this is criminal.
And this is also why, just 5 days after holding a call to "confirms appropriateness of accounting" vis-a-vis Philidor, Valeant has just confirmed all the negative press when moments ago it formally announced it was terminating its relationship with Philidor.
Valeant To Terminate Relationship With Philidor
Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) announced today that it is severing all ties with Philidor Rx Services, LLC, and that Philidor has informed Valeant that it will shut down operations as soon as possible, consistent with applicable laws.
"The newest allegations about activities at Philidor raise additional questions about the company's business practices," said J. Michael Pearson, Valeant's chairman and chief executive officer. "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."
"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 said. "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 intends to develop a plan to ensure patients' access to drugs is minimally disrupted. 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.
"We are committed to doing everything we can to provide important medicines to the patients and doctors who depend on them, and will continue to explore relationships with the full range of pharmacies to ensure patients have access to the drugs they need," Pearson said.
In the Third Quarter 2015, Philidor represented 6.8% of total Valeant revenue.
And about 7% of the bottom line.
However, this is bad news for Philidor, which not only confirmed that it had a rogue operation under its control, but perhaps what's worse, said operation was engaging in unpermitted, and as we now know unlawful, activities.
Whether the Fed will buy a defense that "see, they were bad, but we shut them down" is what is on every long's mind, and certainly on the mind of Bill Ackman who picked the worst possible day to hold his own press conference defending his stake in Valeant.
Good luck Bill, at least thanks to today's new what would otherwise be a 300 page slideshow just got cut by two-thirds when all the slides on Valeant had to be ripped out.
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Philidor in return throws Valeant under the bus in 3 2 1.......
by saying Valeant was with them every step of the way, and was doing as directed and instructed
I wonder if there are any good cases for using king and queen hoodies with this suggestion...
But they're largely the SAME PEOPLE running/owning both organizations. How do you get a divorce from yourself or claim you didn't know what was happening when you were on both sides of it?
These are the same guys who were using FAKE NAMES to allegedly "keep straight" which orgainization and which role they were filling at any given time because they were the SAME PEOPLE.
Behold the power of shell LLC's!
Shell LLCs!
Exactly. One must assume, that if Valeant is at least half way competent in its con, that Valeant would already have another shell LLC up, running and even approved for the organizations that Philidor got terminated from.
Of course, there is the possibility that Valeant is so messed up that they never considered the possibility (or prepared a contingency plan) that anyone would ever figure out the entire con/scam.
Perhaps more informed questioning might pursue:
I agree with what you have written, but you also forgot to mention:
1. The USA is one of the only countries in the modern world that do not price fix pharmaceuticals or medical treatments. The medical/pharma industry is a monopoly and must be treated as such... Which will never happen. Keep in mind that pharma is price fixed even in countries without single payer...
2. The average US propulation is a medical basketcase.
Dangerous combination...
they are legally separate but have control through an option to own, not the same people on paper
There are many people named Peter Parker. Including Spiderman.
This was a name on an e-mail. Not a name on legally binding documents, disclosures, etc.
I can say with 100% seriousness, I too use an alias on emails for all companies I do work for. Why? Who's right is it to know my name? The only person who needs to know my name is the person who signs my checks... not the dipshit hunting me down at 3am in the morning with tedious phone calls, Googling my name to find out my function, or general low level peon stuff in a company.
So, did this aspect of it bother me? No. Because I do the same thing.
This and many other things are utilized to keep the unwashed masses in check during takeovers, IPOs, etc. Loose lips sink ships and if Jane 9 to 5 with a massive problem of being a nosey cunt Googles, "John Meatcleaver" and sees that "John Meatcleaver" is a corporate hatchet man... she is going to kill morale by revealing this to everyone.
Hoody Doody was not a Puppet....who knew?
Surely the DOJ can put on it's cape & strap on it's sword for this one, it's not like they have hopelessly conflicting interests like in the cases of Lois Lerner or Jon Corzine or Fast & Furious...right? ;-)
with them every step of the way, my ass. I've been in this business 40 years, they were told what they had to do to keep the business. Some MBA (may break any law) for a bonus made sure if this wasn't done the employee was run out on a rail. There is no way their plausible deniability, which is what they will use, should ever be believed.
They probably own them thru' some nominee/offshore trust.
Some of my clients do it all the time,a lot of supposedly public companies are anything but, in reality.
DOJ Stands for... Dept. Of Just Us.
Assholes are like all the rest of gubmint agencies 100% corrupt!
Fuck them all!
Eric Holder was blatant about not prosecuting the too big to fail companies.
No outrage. It's how low the US has gone. Maybe a few steps above Mexico.
Just like Murdoch and "The News of the World".
There will be no prosecutions under the Injustice Department's, "It's far too complicated a case for a jury to understand so we can't pursue a prosecution in a court of law." denial fig leaf.
Yeah, we had to shut down our division of fraud perpetration because it was, you know, perpetrating fraud.
"Third party specialty pharmacies" sounds like words minted by some Goldman banker with a lawyer shoved up his ass.
Everyone is supposed to swallow all the stock pumping horseshit that goes along with this stuff until they get caught. Then no one had a clue...how could we have known...
I think this is just the tip of the iceberg in the health care industry.
I'll give you an example. In my small home town, of less than 20,000, which shall remain nameless, we have a hospital that admittedly serves a larger agrarian market than is reflected in its population, BUT it recently spent many millions of dollars to double the size of its facilities, while the economy of the area remains weak.
Believe me, without some form of massive fraud being perpetrated by the hospital system, drug companies, doctors and health insurers, to say nothing of corrupt government (Obamacare) there is NO WAY that this hospital could justify that type of expansion base on need or actual market-based financial performance.
The health care industry has degraded in this country to one massive fraud against the taxpayer. It has been completely insulated against price competition for almost 30 years, while manufacturing and the lifeblood of the real economy is drained. You do that to any industry for that long, and eventually it will become corrupt and collapse.
The criminal and unconstitutional Obamacare, through the confusion and misdirection that it has caused, has compounded the problem by providing a plausible deniability defense for any criminal that wants to take advantage of the disorder.
A Controlled Fraud - see Bill Black for chapter and verse
The bonds are sold to unsuspecting parties who need yield, the equity is a slide show that shows arrows to the right going up, the pricing for services a contrivance until the bonuses are paid and the letter stock comes out of lock up.
all Medicare, Medicaid, Obamacare, plans of all types are to be butt fucked in the fourth quarter of 2017 - watch the money being made in the interim
Crony capitalism is entirely rational when you are incapable of grasping how and why capitalism works and thus are merely extracting rents from an "evil" system.
"I personally am aghast and shocked to learn that my left hand plunged a knife into that woman 40 times. My left hand in no way reflects the morals and judgment of me as a whole."
It is still completely incomprehensible to me why any individual or collective shit is given about this affair. The whole system is corrupt to the core anyway, there must be myriad scams like this that are based on everything being billed to the insurance companies who then pass on the costs to the 0zer0DontCare insurees in the form of 40% increases in premiums, deductibles and copayments. This hysterical reaction remains total hypocrisy until the whole system is torn down root and branch and replaced.