Valeant has more explaining to do about its ties to pharmacies
In a fact-filled conference call this morning, executives at Valeant Pharmaceuticals tried to clarify the company’s convoluted ties to a mail-order pharmacy known as Philidor Rx Services. A bevy of murky details surrounding the relationship has called into question whether Valeant properly disclosed its business practices and fueled further skepticism about its growth prospects.
But whether the hour-long effort today had the intended affect is uncertain, at best. Valeant insisted its accounting practices are legal and reviewed arrangements between the companies. And to reassure Wall Street, Valeant formed an ad hoc board committee to review the relationship. But Valeant stock barely budged today, suggesting investors are unconvinced the drug maker has fully explained the extent to which Philidor is important to its operations.