Valeant Defends Its Activities And Forms Committee To Probe Pharmacy Relationships
Other Valeant news reporting focuses on a Federal Trade Commission investigation of the company's contact lens business as well as the specialty pharmacy, Philidor Rx Services, at the center of the allegations.
The New York Times:
Valeant Forms Committee To Investigate Ties With Pharmacy
Embattled Valeant Pharmaceuticals International said on Monday that its accounting related to its relationship with a specialty pharmacy was legal and appropriate, but added that its board was nonetheless forming a special committee to investigate the relationship. Valeant, based in Laval, Quebec, disclosed for the first time last week that it had acquired an option to buy the specialty pharmacy, Philidor Rx Services, which dispenses some of Valeant’s dermatology drugs. (Pollack, 10/26)
The Wall Street Journal:
Valeant Finds No Illegal Activity At Company
Valeant Pharmaceuticals International Inc. tried to reassure shareholders on Monday that its accounting and disclosures were sound. But not all investors were convinced, and the shares continued their slide. After a tumultuous week, which saw the stock plunge almost 35%, management convened a conference call with investors Monday morning, attempting to quell their anxiety. (Rapoport and Rockoff, 10/26)
ProPublica:
Federal Investigators Looking At Valeant's Contact Lens Dealings
The Federal Trade Commission is investigating whether Valeant Pharmaceuticals International has illegally cornered the market for a key component of rigid contact lenses, according to people familiar with the inquiry. Valeant, a large drug maker, has been under fire in recent months for steep price hikes on its heart medications. Its stock has sharply declined over the past week as investors questioned its convoluted relationship with a network of specialty pharmacies. (Ornstein, 10/27)
Bloomberg:
Valeant CEO Staunchly Defends Drugmaker's Accounting, Ethics
Valeant Pharmaceuticals International Inc. took its first major steps Monday to push back against charges of accounting and ethical irregularities, appointing a new director aimed at calming investor concerns. Yet Valeant’s shares continued to decline after their 35 percent slump last week. Chief Executive Officer J. Michael Pearson, four other executives and six board members took to a conference call to mount a defense of the company’s arrangement to sell medications through mail-order pharmacy Philidor RX Services, a practice that a short-seller last week said pumped up Valeant’s revenue. (Bloomfield and Mittleman, 10/26)
Reuters:
From Pilot To Profit-Maker, Valeant's Pharmacy Rose Quickly
The pharmacy at the centre of suspicions over Valeant Pharmaceuticals International Inc's business practices began as a small pilot project two years ago and quickly grew to account for 7 percent of the drugmaker's revenue. Valeant disclosed on Monday details of its relationship with Pennsylvania-based Philidor Rx Services, defending the pharmacy against allegations of illegal activity while pledging to review the business carefully. (10/26)
The Wall Street Journal:
Things To Know About Valeant Pharmaceuticals
A report issued Wednesday by short seller Andrew Left’s Citron Research accused Valeant Pharmaceuticals International Inc. of creating fraudulent invoices through a network of pharmacies it controls. The report compared Valeant to Enron, the energy-trading firm that collapsed in a 2001 accounting scandal. Shares of Valeant have fallen sharply since. The company said Monday that it properly accounted for its much-debated relationships with specialty pharmacies and found “no evidence whatsoever” of any illegal activity at the company. (Rockoff, 10/26)
