Valeant Defended Business Relationship With Specialty Pharmacy

Valeant Pharmaceuticals defended its business relationship with specialty pharmacy Philidor RX Services against allegations Valeant used it to inflate financial results.

CEO J. Michael Pearson said Valeant created a committee to review claims by Citron Research that it falsely propped up drug prices through Philidor. Pearson said Citron’s claims are false, but the investigation is necessary to protect shareholders.

The conference call last week followed an earnings call where Pearson said Valeant is reviewing subpoenas by federal prosecutors in Massachusetts and New York following criticism from Democratic lawmakers in September over the company’s massive price increases for two heart disease drugs. The company increased heart drugs Isuprel (isoproterenol) and Nitropress (sodium nitroprusside) after purchasing them from Marathon Pharmaceuticals in February. — John Bechtel