- More details are emerging from the federal complaint against former Valeant Pharmaceuticals (VRX +0.4%) Philidor liaison Gary Tanner. Philidor, through CEO Andrew Davenport, paid Mr. Tanner up to $10M to promote Philidor's interests in Valeant including convincing management to purchase an option to acquire the specialty pharmacy.
- According to the complaint, Mr. Tanner was in charge of "alternative fulfillment" which was the practice of using mail-order pharmacies to funnel prescriptions for branded drugs instead of generics.
- The alleged kickbacks ensured that Mr. Tanner resisted efforts by Valeant management to establish relationships with Philidor competitors. He was also instrumental in persuading management to enter into the December 2014 purchase-option agreement.
- Philidor grew from a tiny start-up to a 450-employee-strong operation due almost entirely to Valeant, which accounted for at least 90% of its dispensing volume before collapsing.
- Both men were arrested this morning.
Original article