Former Executives At Valeant And A Mail-Order Pharmacy Firm Sentenced To Prison
They were found found guilty of defrauding the pharmaceutical giant through a multimillion-dollar kickback scheme.
The Wall Street Journal:
Former Valeant Executive And Co-Defendant Sentenced To Prison
A former executive at Valeant Pharmaceuticals International Inc. was sentenced Tuesday to spend a year in prison after being found guilty of defrauding the pharmaceutical giant through a multimillion-dollar kickback scheme. Gary Tanner, and his co-defendant, Andrew Davenport, the former chief executive of specialty mail-order pharmacy Philidor Rx Services, were both sentenced to one year and a day in prison. ... The sentence from Senior U.S. District Judge Loretta Preska, who also presided over the defendants’ trial, also called for two years of supervised release and for the men to forfeit about $9.7 million each. (Thomas, 10/30)
Stat:
Former Valeant And Philidor Executives Are Sentenced To One Year In Prison
The sentencing comes three years after the drug maker became enmeshed in scandals over its pricing and accounting practices, which led to congressional hearings, a loss of confidence among investors, and a subsequent turnover in management and the board. The Philidor episode was particularly explosive, though, because Valeant failed to properly disclose its relationship with the pharmacy. (Silverman, 10/30)
Reuters:
Ex-Valeant, Philidor Executives Get Prison For Fraud
Tanner had managed Valeant’s relationship with Philidor as well as Valeant’s “alternative fulfillment” program, through which the drugmaker sought to increase prescriptions for its own drugs instead of cheaper generic substitutes. Prosecutors accused Tanner of steering Valeant business to Philidor, while concealing a $9.7 million kickback from Davenport that came from the roughly $50 million Davenport received when Valeant acquired the option to buy his company. (Stempel, 10/30)
In other news -
Stat:
Former Genentech Employees Are Arrested On Charges They Stole Trade Secrets
Three former Genentech employees were arrested for allegedly stealing trade secrets and funneling the confidential information to a company in Taiwan, marking the latest episode in which a drug maker in the U.S. has purportedly encountered sensitive data being shipped overseas. In this instance, a former principal scientist named Xanthe Lam, who worked for Genentech from 1986 through 2017, helped to siphon information about four drugs — the Avastin, Rituxan, and Herceptin cancer treatments, as well as the Pulmozyme cystic fibrosis medication — to JHL Biotech, which was founded by former Genentech employees to develop biosimilars, according to court documents. (Silverman, 10/30)
