Valeant and Philidor Controversy Comes to a Head
Valeant Pharmaceuticals, Inc. has had quite the year - they have been under scrutiny since October 2015. However, in November 2016, one former Valeant executive and one former Philidor executive, were arrested and charged with criminal complaints. This article outlines those complaints, and the actions the individuals allegedly took to be criminally charged.
It all started back in October 2015, when a short seller alleged that there was something inappropriate with the relationship between Valeant Pharmaceuticals and its closely linked specialty pharmacy, Philidor. Members of Wall Street – among others – thought that Valeant’s CEO Michael Pearson had a new plan: to create a drug company that focuses on distribution, and let someone else do the research. While controversial, the plan seemed to work for some time, as Valeant’s stock rose to an all-time high of $260.00 per share. What a difference a year makes. Now Valeant stock is trading around $14.00 per share.