Oct 30 (Reuters) - Valeant Pharmaceuticals (N:VRX) International
VRX.TO said it is terminating all ties with Philidor due to
allegations relating to the specialty pharmacy distributor's
business practices.
"We have lost confidence in Philidor's ability to continue
to operate in a manner that is acceptable to Valeant," Chief
Executive Michael Pearson (L:PSON) said. urn:newsml:reuters.com:*:nPn2XrdlQ
Earlier this week, Valeant said it would set up an ad hoc
committee to look into the allegations related to the company's
association with Philidor.
Influential short-seller Citron Research had accused the
drugmaker of using Philidor to create "phantom sales" of its
products or push more product through distribution channels than
sales would warrant, an allegation that Valeant has denied
outright. urn:newsml:reuters.com:*:nL1N12L19L
Valeant said it intends develop a plan to ensure patients'
access to drugs is minimally disrupted.
Valeant's link to Philidor and its option to buy the company
came under scrutiny after a New York Times report said Valeant
and other drugmakers were using specialty drug distributors to
circumvent barriers to raising prices.