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One important note that was just uncovered that Valeant was abusing the DAW designation. Doctors can write "Dispense As Written" on a prescription to imply that

One important note that was just uncovered that Valeant was abusing the DAW designation. Doctors can write "Dispense As Written" on a prescription to imply that they want the Brand Name drug rather than the generic one. IE, a doctor will often write something like "Tylenol 500mg" but they don't really care if the patient gets any random acetaminophen. If they write "Tylenol 500mg DAW" that means they want the patient to get the brand name Tylenol. It's looking more and more likely according to internal documents that Philidor was changing doctors' prescriptions by writing DAW on them so that the patients would get the much more expensive Valeant option instead of the cheap generic version -- this is highly illegal, people will definitely be going to jail for that. Edit to add a source: http://www.bloomberg.com/news/articles/2015-10-29/philidor-said-to-modify-prescriptions-to-boost-valeant-sales http://www.bloomberg.com/news/articles/2015-10-29/philidor-s...

refurb 11y ago
WOW. I hadn't read that. Some else posted this link a few days ago. http://azvalue.blogspot.com/2015/08/valeant-detailed-look-inside-dangerous_27.html http://azvalue.blogspot.com/2015/08/valeant-detailed-look-in... I think the cash flow analysis is pretty damning. Valeant says they are pulling in a lot of cash from all of their acquisitions, but if you calculate what the cash flow would need to be for that to be true, it's over 200% of what Valeant actually has on it's 10-Ks!
PhantomGremlin 11y ago
Philidor was changing doctors' prescriptions by writing DAW on them ... this is highly illegal, people will definitely be going to jail for that. Oh, boy, this could get exciting quite quickly. Valeant owns an option that lets them buy Philidor for $0 (plus possible incentive payments).[0] Yes, that's not a typo. This was submitted to HN a few days ago but didn't generate any comments. The executives still (at least nominally) running Philidor must be shitting in their pants right about now. It looks like Valeant is out to make them look like bagmen. But why would they go down without a fight? The internecine warfare is about to get very interesting, or in more colloquial terms, the shit is really about to hit the fan. [0] http://www.bloombergview.com/articles/2015-10-26/valeant-s-pharmacy-relationships-were-complicated http://www.bloombergview.com/articles/2015-10-26/valeant-s-p...
- kenesom1 11y ago
  "SIRF reporting reveals that Valeant has been closely involved with Philidor at every stage of its life-cycle, controlling it in all but name, since day one." http://sirf-online.org/2015/10/19/hidden-in-plain-sight-valeants-big-crazy-sort-of-secret-story/ http://sirf-online.org/2015/10/19/hidden-in-plain-sight-vale...
  - PhantomGremlin 11y ago
    The key is "all but name". If I'm Andy Davenport, Philidor's CEO, I immediately get together with my brother Matthew Davenport, also mentioned in your link, to get my story straight. Because it is their name on all the documents. Sarbox has put a damper on the Sgt. Schultz defense of "I hear nothing, I see nothing, I know nothing!". CEOs can go to jail even if they claim they were just ignorant figureheads. So if I'm the Davenports I immediately go to the Federales and cut a deal. I rat out Mike Pearson (Valeant's CEO) and claim that he put them up to it. Note that its in the Davenport brothers interest to lie and make up shit if they have to, because that's probably their best way they avoid Club Fed (or worse). Like I said, this could get interesting pretty quickly.

refurb 11y ago

WOW. I hadn't read that. Some else posted this link a few days ago. http://azvalue.blogspot.com/2015/08/valeant-detailed-look-inside-dangerous_27.html http://azvalue.blogspot.com/2015/08/valeant-detailed-look-in... I think the cash flow analysis is pretty damning. Valeant says they are pulling in a lot of cash from all of their acquisitions, but if you calculate what the cash flow would need to be for that to be true, it's over 200% of what Valeant actually has on it's 10-Ks!

PhantomGremlin 11y ago

Philidor was changing doctors' prescriptions by writing DAW on them ... this is highly illegal, people will definitely be going to jail for that. Oh, boy, this could get exciting quite quickly. Valeant owns an option that lets them buy Philidor for $0 (plus possible incentive payments).[0] Yes, that's not a typo. This was submitted to HN a few days ago but didn't generate any comments. The executives still (at least nominally) running Philidor must be shitting in their pants right about now. It looks like Valeant is out to make them look like bagmen. But why would they go down without a fight? The internecine warfare is about to get very interesting, or in more colloquial terms, the shit is really about to hit the fan. [0] http://www.bloombergview.com/articles/2015-10-26/valeant-s-pharmacy-relationships-were-complicated http://www.bloombergview.com/articles/2015-10-26/valeant-s-p...

kenesom1 11y ago
"SIRF reporting reveals that Valeant has been closely involved with Philidor at every stage of its life-cycle, controlling it in all but name, since day one." http://sirf-online.org/2015/10/19/hidden-in-plain-sight-valeants-big-crazy-sort-of-secret-story/ http://sirf-online.org/2015/10/19/hidden-in-plain-sight-vale...
- PhantomGremlin 11y ago
  The key is "all but name". If I'm Andy Davenport, Philidor's CEO, I immediately get together with my brother Matthew Davenport, also mentioned in your link, to get my story straight. Because it is their name on all the documents. Sarbox has put a damper on the Sgt. Schultz defense of "I hear nothing, I see nothing, I know nothing!". CEOs can go to jail even if they claim they were just ignorant figureheads. So if I'm the Davenports I immediately go to the Federales and cut a deal. I rat out Mike Pearson (Valeant's CEO) and claim that he put them up to it. Note that its in the Davenport brothers interest to lie and make up shit if they have to, because that's probably their best way they avoid Club Fed (or worse). Like I said, this could get interesting pretty quickly.