Valeant Pharmaceuticals International Inc. said Friday that it’s “severing all ties” with Philidor Rx Services, adding that Philidor has told Valeant that it will “shut down operations as soon as possible.” The announcement follows news on Thursday that the two largest pharmacy-benefit managers in the U.S. — CVS Health Corp. and Express Scripts Holding Co. — were ceasing work with Philidor, dealing another blow to Valeant. Valeant and Philidor have come under close scrutiny in part due to the aggressive tactics Philidor has used to ensure that PBMs and insurers pay for Valeant drugs. “The newest allegations about activities at Philidor raise additional questions about the company’s business practices,” said J. Michael Pearson, Valeant’s chairman and CEO, in a news release Friday. “We have lost confidence in Philidor’s ability to continue to operate in a manner that is acceptable to Valeant and the patients and doctors we serve.” Shares in Valeant were down 6% in premarket trading in New York on Friday. The stock is down 37.5% so far this month as of Thursday’s close.
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