|Valeant Pharmaceuticals International, Inc. - VRX.t is a diverse pharmaceutical company that is committed to focusing on our key stakeholders while delivering consistently high performance.|
The company offers a diverse product portfolio with focus on branded pharmaceuticals, branded generics and over-the-counter products.
Valeant Pharmaceuticals Responds To Erroneous "Citron" Report
Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today responded to recent accusations made regarding its financial reporting and operations.
•Philidor Rx Services is a pharmacy licensed in Pennsylvania and also provides back-end services, including call center, claims adjudication, IT and logistics support, as well as compliance/HIPPA regulation guidance, to other pharmacies, including R&O Pharmacy. This includes a common call center phone number serviced by Philidor for the Philidor network pharmacies.
•All shipments to Philidor and other pharmacies in the Philidor pharmacy network, including R&O, are not recorded in Valeant's consolidated net revenue. Sales are recorded only when the product is dispensed to the patient. All sales to Philidor and Philidor network pharmacies are accounted for as intercompany sales and are eliminated in consolidation. They are not included in the consolidated financial results that Valeant reports externally.
•Any inventory at pharmacies in the Philidor pharmacy network are included in Valeant's consolidated inventory balances – there is no sales benefit from any inventory held at these specialty pharmacies and inventory held at the Philidor network pharmacies is reflected in Valeant's reported inventory levels.
•The $69 million at wholesaler acquisition cost of products shipped by Valeant to R&O were not recorded as revenue to Valeant when shipped to R&O. When R&O dispensed those products Valeant recognized the net realized amount due from patients and payors (approximately $25 million) and reduced the associated inventory from Valeant's balance sheet. In this case, we estimate the net amount of revenue for the $69 million at WAC would be approximately $25 million.
•The timing of our revenue recognition by selling through the Philidor pharmacy network is actually delayed when compared to selling through the traditional wholesaler channel."
The Globe and Mail reports in its Tuesday edition shares of Valeant Pharmaceuticals fell on Monday after U.S. legislators targeted the company's drug price increases. The Globe's Tim Suffelt writes congressional Democrats are pushing for subpoenas to force Valeant to turn over documents related to recent price increases.
Valeant closed Monday at $221.81, down $43.20. In the past week alone, $35-billion in Valeant market value has vanished. "The problem with momentum plays is once they lose momentum, they can fall to the Earth rather quickly," said David Baskin at Baskin Wealth Management. "It's a roll-up story taking advantage of low interest rates. They buy tertiary companies and raise their drug prices," said Patrick Horan at Agilith Capital. Valeant was the single largest stock on the S&P/TSX composite index in July, its market capitalization peaking soon after at almost $120-billion. The stock's momentum almost single-handedly propped up the Canadian benchmark, driving two-thirds of the increase in value of the composite index over the two years up to mid-September. Democrats want Valeant to provide documents relating to price increases of 212 per cent and 525 per cent for two heart drugs.