Morning Briefing
Summaries of health policy coverage from major news organizations
Former Valeant Executive Found Guilty Of Using A Secret Kickback Arrangement To Defraud Drugmaker
The New York Times: Ex-Valeant Executive Is Convicted Of Bilking Drugmaker In Kickback Scheme
A former executive at Valeant Pharmaceuticals International and the onetime head of a small mail-order pharmacy were convicted on Tuesday of using a secret kickback arrangement to defraud the drugmaker. A federal jury in Manhattan found Gary Tanner, the former Valeant executive, and Andrew Davenport, at one time the chief executive of Philidor Rx Services, guilty on all charges, including wire fraud and conspiracy to commit money laundering. (Thomas, 5/22)
The Wall Street Journal: Jury Finds Former Valeant Exec Guilty On Charges Related To Kickback Scheme
The former Valeant executive, Gary Tanner, and his co-defendant, Andrew Davenport —the former chief executive of Philidor Rx Services, a specialty mail-order pharmacy involved in the scheme—were both convicted Tuesday on all four criminal counts they faced, including honest services wire fraud and money-laundering conspiracy. “We are of course disappointed in the verdict, but we look forward to addressing the many legal and evidentiary issues on appeal,” said Brendan McGuire, a lawyer for Mr. Tanner. (O'Brien, 5/22)
Stat: Former Valeant Executive Is Found Guilty In Kickback Scheme
The verdict comes nearly 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, 5/22)
Bloomberg: Ex-Valeant Executive Guilty Of Taking Pharmacy CEO’s Bribe
“We are, of course, disappointed in the verdict, but we look forward to addressing the many legal and evidentiary issues on appeal," Tanner’s lawyer, Howard Shapiro, said in a statement. Davenport and his lawyer, Jonathan Rosen, declined to comment. (Larson, 5/22)
