first hinted at Philidor I got several responses from readers that knew exactly what I was talking virtually - primarily because they had been Philidor customers. This is a typical response:
John, I savor your weblog really much. I happened to come across your cryptic message as well as I call upward I know what it is.
I'm no goodness on Valeant, but I but as well as then happened to receive got been prescribed 1 of their pharmaceuticals virtually 6 months ago. It was a pes cream to process athletes pes called Luzu. What was unusual was that the podiatrist suggested that the prescription endure ready alongside a "by mail" pharmacy, telling me that they would encompass the co-pay for the showtime prescription.
I went ahead as well as had the podiatrist sign me upward alongside Philidor as well as the prescription was delivered. A few weeks later, I got a telephone proper substantive upward from Philidor. They offered to encompass the co-pay for all of the remaining refills, which was maybe 3 to a greater extent than refills. What is of import is that this actually isn't the type of prescription that would commonly require constant refilling. I belike wouldn't receive got never ordered these refills if someone else hadn't offered to encompass my cash costs.
I found this to endure a pretty aggressive marketing tactic, which sure could endure used to endeavour to materials sales as well as bilk insurance companies. I produce sympathise that Philidor was either created past times or strongly associated alongside Valeant.
Well, non sure that is exactly what you lot were getting at alongside the cryptic message but that's what I got out of it.....
Cheers
I asked (and you lot volition come across why I asked later) who the insurance provider was as well as got this response:
The provider was Anthem, www.anthem.com
I'm non versed inwards the Healthcare basis but I but found it as well as then unusual as well as aggressive that it made me enquiry the efficacy of the practice. What was mayhap the most unusual was that the physician seemed to receive got been incentivized to steer me towards Philidor, as well as was at to the lowest degree somewhat aware of the human relationship betwixt Valeant as well as Philidor. It made me wonder what perks the physician may receive got been receiving to plug Philidor as well as Valeant drugs.
With all that said, I forthwith receive got a to the lowest degree a few years render of athletes pes cream, haha.
It is besides slow plenty to find complaints online (by erstwhile staff) virtually Philidor auto-refilling prescriptions without appropriate client approvals. [To produce this you lot apparently demand to waive copays.]
There are multiple reports online virtually Philidor robo-calling people as well as sending them prescriptions. Some reports state that the prescription arrives without approval.
Philidor it seems was established alongside a groovy bargain of assistance from Valeant sales people. Here is the citation on an honour Valeant gave to 1 of its drug reps. [The rep inwards enquiry is a erstwhile major league baseball game thespian - as well as a re-create of all the awards tin give the sack endure found here.]
It states clearly that the rep helped launch Philidor inwards 6 states. This is what is rewarded inwards sales at Valeant.
Efforts to observe out who actually owns Philidor
We made extensive efforts to operate out who owns as well as who facilitated Philidor. As nosotros noted the website gave no clue. As of 24 June 2014 (according to the Great State of California) at that topographic point was 1 private possessor as well as 1 corporate possessor alongside to a greater extent than than a 10 percent stake.
So nosotros dug as well as dug.
Philidor Rx Services LLC is a Delaware LLC that was formed inwards early on Jan 2013.
The caput purpose is inwards Pennsylvania, as well as it formed an LLC inwards Pennsylvania a few weeks later.
As Philidor operates inwards a number of states, it needs chemist's shop licenses as well as "foreign" incorporation inwards several of those states. One of them is North Carolina, where Philidor Rx Services registered equally a unusual LLC inwards tardily 2014.
Helpfully, North Carolina's registration lists some of the people involved inwards the LLC. (This is a chip nuanced, equally North Carolina constabulary indicates that all "members" aka owners of an LLC are automatically considered managers, unless the Articles of Formation land otherwise. So nosotros can't bear witness using this document that the people listed are definitely legally the owners, but it's a pretty rigid bet. Some of this is explained here:
Anyway you lot tin give the sack observe a listing of the "members" of Philidor here which for convenience I receive got cut-and pasted equally a picture.
In early on 2015, something changed, for reasons nosotros are don't quite understand. At that time, all on roughly the same day, each "manager" listed inwards the NC filings inwards a higher house had an identical UCC filing placed on their holdings inwards Philidor inwards their respective dwelling states of PA, NJ as well as NY. We call upward this corresponds to a mortgage or lien over the shares. There should endure a similar lien inwards Florida but nosotros receive got non found it yet.
The lien covers all equity interests of whatever type that the individuals would acquire. Here is 1 such filing.
You tin give the sack observe the master filing here.
The lien was filed 24 Feb 2015 as well as is inwards favour of KGA Fulfilment Services.
KGA Fulfilment Services was slow to find. They Jublia coupon page. Jublia is an ointment alongside an 18 percent run a peril of reducing toe-nail fungus as well as a toll of over $8,000 per class of treatment:
The relevant text is this: "This offering is non valid for prescriptions reimbursed inwards whole or inwards constituent past times Medicaid, Medicare, federal, or land programs (including whatever land prescription drug programs)."
We receive got found similar text on every Valeant coupon page.
Drug companies all the same are a creative lot. They receive got found a way of ensuring that many Medicare patients are non out-of-pocket on chemist's shop purchases. They fund "copay charities". The charities (and you lot promise they are genuine charities) tend to endure funded past times many pharmaceutical companies as well as volition construct copayments on branded drugs patch of study to way tests. They are - for obvious reasons - non allowed to endure specific to 1 company's drugs.
Mr Pearson inwards the conference telephone proper substantive upward was keen to quest that Valeant was compliant alongside the constabulary regarding copays. After all this is what the the US Attorneys are looking at. To quote:
Valeant's patient assistant programs are administered past times a reputable 3rd party, as well as nosotros fund exterior foundations that receive got multiple donors. Eligibility is determined past times the independent foundations. It is besides of import to annotation that eligibility for our in-house commercial access programs is express to patients non covered past times regime programs. Looking at history, our commitment to patient assistant programs has grown at an annual chemical compound charge per unit of measurement of 128% from $53 1000000 inwards 2012 to some $1 billion nosotros await to pass inwards 2016.
He specifically says that the "in-house commercial access programs is express to patients non covered past times regime programs" as well as that they utilization exterior foundations alongside "multiple donors". These programs volition of class endure the patch of study of some inquiries past times the the US Attorneys.
There is a nestling contradiction inwards the statements past times Mr Pearson on the call. Earlier inwards the telephone proper substantive upward he stated that Philidor provides "administrative services for our copay cards" as well as nosotros forthwith know that Philidor is consolidated as well as non a "third party".
--
The enquiry of class is whether these lofty standards are upheld inwards practice. That volition endure the patch of study of the the US Attorney's inquiries. And at that topographic point is a work - nosotros receive got identified serious issues at Philidor as well as Philidor provides administrative services for Valeant's copay cards. We receive got no thought how this volition operate out - but nosotros suspect at that topographic point may endure some difficulties.
The size of Valeant's "patient assistance" programs as well as what it says virtually Valeant's draw organisation model
In the inwards a higher house quote Valeant states that their patient assistance programs are growing at 128 percent per annum. They volition pass some $1 billion inwards 2016. This volition endure a high single-digit percent of revenue as well as it looks like almost all of their products volition receive got patient assistance for most of their sales.
This is extraordinary. Valeant has long said that they receive got avoided products which are subject on reimbursement. If you lot google the phrase "significant cash pay component" you observe literally dozens of Valeant presentations that harp on that equally beingness an payoff of the draw organisation model.
That seems to receive got been a smokescreen. Valeant plans to pass a billion dollars inwards 2016 so that patients produce non receive got to cash pay for most of their products.
The relaxation of the call
I could wander through Valeant's numbers inwards some detail. They are ever moderately funky. This fourth dimension for event they touted their GAAP lucre all the same did non dot out that they had pre-tax losses as well as their lucre was exclusively from a sharply negative taxation rate. As commons they did non provide a residual canvass anyway - as well as then that is unusually hard to to on the twenty-four threescore minutes stream results are released. However after the
(a) demonstration that the CEO is non on top of the copay programme [for event he falsely denied that the companionship offers patient assistance on Salix products],
(b) the demonstration that their gist distributor (Philidor) has (according to the Great State of California) perjured themselves
(c) the demonstration that they went to extraordinary levels to enshroud their funding as well as afterward effective ownership of Philidor
(d) the likelihood that people at Philidor receive got been involved inwards defrauding Valeant past times impersonating R&O pharmacy
(e) the demonstration that Philidor sells drugs inwards California despite beingness pointedly denied a license to produce so
(f) the likelihood that that fraud extends to the programs that are the patch of study of investigation past times 2 the US attorneys and
(f) the demonstration that the companionship has been misleading virtually its draw organisation model ("significant cash pay") for years
anything I volition say virtually the numbers volition endure churlish.
I am curt this stock. The the US Attorneys are actively involved as well as somehow I call upward that is bearish.
John
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