Valeant Mail-Order Pharmacy Shuttered for Bad Behavior

A specialty mail-order pharmacy that filled prescriptions for Valeant has closed amid reports of improper behavior.

Philidor Rx Services LLC altered codes on some prescriptions to make it look like physicians asked for or patients requested Valeant’s brand-name drugs in lieu of less expensive generic versions, Bloomberg Business reported.

Former Philidor employees told Bloomberg that the company’s intent was to fill more prescriptions with Valeant medications instead of generics.

Meanwhile, Valeant announced today that it has cut ties with Philidor and that the mail-order pharmacy would shut down operations as soon as possible.

Valeant CEO and chairman J. Michael Pearson, said in a press release that the company lost confidence in Philidor’s ability to operate in an acceptable manner for its customers.

"We understand that patients, doctors, and business partners have been disturbed by the reports of improper behavior at Philidor, just as we have been," Pearson said. "We know the allegations have also led them to question Valeant and our integrity, and for that I take complete responsibility.”

Valeant said it was working on a plan to ensure that patient access to medications is not disrupted. If drug plans would no longer reimburse prescriptions in process, Valeant said it would fill them at its own expense.

"We are committed to doing everything we can to provide important medicines to the patients and doctors who depend on them and will continue to explore relationships with the full range of pharmacies to ensure patients have access to the drugs they need," Pearson said.

The news led Valeant’s shares to plummet on October 29, 2015, The Associated Press reported.

Philidor represented 6.8% of Valeant’ total revenue in the third quarter of 2015.

CVS, Express Scripts, and UnitedHealth’s Optum Rx all announced on October 29, 2015, that they would stop using drugs dispensed by Philidor.

CVS spokesperson Mike DeAngelis told Pharmacy Times that the CVS/caremark pharmacy benefit management business had been investigating Philidor’s practices for some time.

“In accordance with CVS/caremark’s standard auditing protocols, over the last several weeks we have been monitoring and reviewing the results of recent audits of Philidor’s practices,” DeAngelis told Pharmacy Times. “Based on the findings from those activities, we have terminated Philidor for noncompliance with the terms of its provider agreement.”

Express Scripts spokesman Brian Henry told Pharmacy Times that in addition to terminating the Philidor pharmacy from its network, Express Scripts was also evaluating other pharmacies that Valeant has a similar relationship with.

“We routinely monitor our network and take action when we see pharmacies trying to circumvent solutions, like formulary management, that protect payers and patients from wasteful drug spending,” Henry said.

The company is also investigating other pharmacies that derive the majority of their prescription revenue from 1 manufacturer or product.

Henry made a distinction between 2 pharmacy business models in his statement to Pharmacy Times.

“It is important to clarify the difference between niche pharmacies that are operated by manufacturers to push a particular product, and specialty pharmacies like Accredo that deliver a superior level of specialized care for patients living with complex, specialty conditions,” Henry said.