Aug 10 (Reuters) - Federal prosecutors are investigating whether drugmaker Valeant Pharmaceuticals International Inc (NYSE:VRX) VRX.TO VRX.N defrauded insurers by hiding a relationship with pharmacy Philidor that boosted sales of its drugs, the Wall Street Journal reported, citing people familiar with the matter.
Lawyers in the U.S. attorney's office in Manhattan are pursuing a theory that Valeant and Philidor Rx Services LLC allegedly defrauded insurers by concealing their ties, the WSJ said.
It is expected to be the most serious investigation that Valeant currently faces, and could lead to criminal charges against former Philidor executives and Valeant as a company, the Journal added, citing one person. (http://on.wsj.com/2aMvQwS)
Valeant was not immediately available for comment.