Valeant Together With Its Captive Pharmacies: Roughly Questions

Some Questions for State Attorneys General too Boards of Pharmacy

• Is a pharmaceutical manufacturer allowed to ain or effectively command a chemist's inward your domicile state?
• If a 3rd political party obtains effective command over a chemist's licensed inward your state, is a novel registration filing required?
• If a chemist's possessor sells all or a portion of its economical involvement inward a chemist's inward your state, is it required to update its registration?
• Is it a violation of soil constabulary inward your soil to neglect to reveal the ultimate holder of command and/or economical involvement inward a pharmacy? That is, if Valeant exercises command or holds an economical involvement inward Philidor, too Philidor is a regulated possessor of a Pharmacy, has Philidor violated your soil registration laws past times failing to cite the ownership and/or command of Philidor past times Valeant?
• May 2 pharmacies “share” a National Provider Identifier when dispensing medications inward your state, every bit it has been alleged R&O too Philidor lead hold done?
• Does the constabulary inward your soil allow a chemist's to attempt reimbursement for prescriptions filled from authorities or private payers using an identifier such every bit an NPI#, NDPCP#, or NABP# non assigned to it? If not, what potential legal consequences too penalties would attach?
• For the California Attorney General: every bit Philidor Rx Services LLC is non licensed every bit a mail-order pharmacy, is it allowed to buy straight or indirectly, the equity of or an selection to buy the equity of a chemist's (R&O) that is registered inward California?
• For the California Attorney General: if nosotros interpose only about other entity into the prior question—Valeant owns too controls portion of Philidor that owns too controls portion of Isolani that owns too controls portion of R&O Pharmacy—has R&O complied with California licensing too disclosure laws, on penalization of perjury?
• For the Pennsylvania Attorney General: every bit Isolani LLC is non registered every bit a unusual corporation inward your soil but owns an involvement inward a chemist's (R&O) that is registered inward Pennsylvania, how is it able to operate based inward Hatboro, PA?

Some Questions for U.S. of A. Attorneys too Inspectors General of Medicare, HHS, too the VA

• May 2 pharmacies “share” a National Provider Identifier when introducing medications into interstate commerce, using the telephone too mail, every bit Philidor too R&O are alleged to lead hold done?
• Does federal constabulary allow a chemist's to attempt reimbursement for prescriptions filled from authorities or private payers using an identifier such every bit an NPI#, NDPCP#, or NABP# non assigned to it? If not, what potential legal consequences too penalties would attach? 
• It has been alleged inward documents filed with the courtroom inward a lawsuit past times Isolani against R&O Pharmacy that Philidor encouraged the possessor of R&O to falsely certify the results of a prescription audit past times i of its payer clients. It has also been alleged that Philidor used identifiers (such every bit NPI#, NCPDP#, too NABP#) belonging to other pharmacies to send invoices to payers for prescriptions filled.
• Will y'all investigate whether the actions of Philidor Rx Services to constitutes “health attention fraud” under 18 USC § 1347, which applies to world too private providers of wellness benefits too does non require actual noesis or specific intent?
• Similarly, if proven, testament y'all investigate what is alleged to live on a specific intent to deceive payers inward this vogue could potentially constitute post service or wire fraud, every bit defined inward the federal statutes?
• What steps are pharmaceutical manufacturers and/or their wholly-or-partially owned pharmacies required to bring to ensure that persons eligible for government-paid prescriptions are non offered waivers, coupons, or charity assistance, inward whole or inward part, for prescription co-payments?  Will y'all investigate whether such steps lead hold been taken past times Philidor too its affiliate pharmacies?

A Question for Senator Claire McCaskill

• Will your staff investigate too testament y'all convene a hearing of the Senate’s Permanent Subcommittee on Investigations to speak over these issues too others related to Valeant's occupation concern practices too their compliance with soil too federal laws?

Some Questions for Government too Private Payers

• Have y'all - every bit alleged inward only about meshing posts past times disgruntled employees - failed to reimburse drugs distributed past times Valeant but too so been shopped past times Valeant to other "seemingly independent" pharmacies. [Philidor it is alleged tried switching distributor codes to fool your controls.]
• Will y'all conk along to bring claims for payment from Philidor Rx Services LLC, R&O Pharmacy, West Wilshire Pharmacy, Safe Rx Pharmacy, Orbit Pharmacy?
• Will y'all undertake an audit (or re-open past times audits) of these pharmacies to determine their continued eligibility to attempt reimbursement from y'all for prescriptions dispensed?
• Will drugs manufactured or marketed past times Valeant inward the hereafter require to a greater extent than stringent pre-clearances or other restrictions?

Some Questions for Valeant

• Are at that spot whatsoever other entities with whom Valeant has relationships similar Philidor Rx Services LLC or its affiliates that haven’t been disclosed yet? 
• Are at that spot whatsoever other entities for which Valeant holds an selection to acquire ownership that lead hold non nonetheless been disclosed?
• You lead hold stated that Philidor administers Valeant’s patient co-pay assistance programs. In the terminal conference call, Mr. Pearson indicated that spending on these programs has grown at a compounded charge per unit of measurement of 128% annually, rising from $53M inward 2012 to a projected total of over $1 billion inward 2016. (In your missive of the alphabet to Senator McCaskill, Mr. Pearson indicated that spending on such assistance programs totalled $544M inward 2014 too an estimated $630M for 2015.)
• What portion of these annual amounts does Philidor administer?
• What instructions lead hold y'all given Philidor inward administering these programs?
• What criteria lead hold y'all instructed Philidor to usage inward determining patient eligibility for these programs?
• How arrive at y'all monitor Philidor too other entities to ensure that patients run across the criteria y'all lead hold established?
• How arrive at y'all vantage (or punish) Philidor too other entities for adhering (or not) to these criteria?
• What controls arrive at y'all lead hold inward house to ensure that Philidor administers these programs legally? Systematically waiving co-pays for claims that would otherwise live on paid past times Medicare or other authorities programs is illegal.
• Have y'all ever, prior to the arrival of subpoenas from U.S. of A. Attorneys, disciplined Philidor or withheld or otherwise delayed payment because private staff of Philidor lead hold broken these laws? If so, what actions were taken? In what amounts, when too why? How lead hold y'all ensured that whatsoever such job has non recurred too testament non arrive at so over again inward the future?
• How many Valeant employees, contractors, or agents (whether total or part-time) are responsible, inward whole or inward part, for monitoring Philidor’s compliance with your guidelines too soil too federal law? How oftentimes arrive at y'all too your executive squad review Philidor’s adherence to your guidelines too to soil too federal constabulary regarding co-pay assistance?
• How is Philidor compensated for operating this computer program on your behalf? Is whatsoever portion of their compensation based on prescription book dispensed or revenue generated?
• In the conference telephone yell upwards Mr. Pearson stated that Valeant funds multiple exterior foundations that lead hold multiple donors. What are the names too locations of these foundations too what portion of its operating revenue arrive at Valeant donations represent? Who are the 5 largest donors to each?
• Presumably these foundations fund copays for medicare too other authorities sponsored pharmaceutical insurance. Which exterior institutions? How much money?
• How are these donations accounted for inward your GAAP accounts? Where arrive at these donations seem inward your audited financials reported on shape 10-K?  
• How arrive at y'all determine the amount of assistance to provide each year? How did y'all select the $1B projected total for 2016?
• How arrive at y'all assess whether y'all are getting value for coin for your charitable deductions?
• What controls arrive at y'all keep to ensure that shareholders have value for the $1B inward contributions? Have your auditors inspected those controls?
• Who (which private or grouping of individuals) determines which patients testament have co-pay assistance, too for which products? Are the individuals making such honor determinations employees of Valeant, Philidor, or a 3rd party? (If a 3rd party, who?) How are these individuals compensated?
• Of the billion dollars of patient assistance expense that y'all aspect inward 2016 how much is administered through Philidor too how much is through other parties? Who are the other parties too for what amounts of this expenditure arrive at y'all aspect each testament live on responsible?
• Can y'all provide a detailed breakdown of patient assistance costs past times production or occupation concern line? How much for illustration is neurology, dermatology, ophthalmology, etc.?
• It is our impression that Philidor is heavily focussed on dermatology. Is that correct?
• If so, who administers the patient assistance exterior dermatology too how arrive at y'all command them?
• What proportion of your dermatology products are sold with patient assistance?
• What proportion of your products (in dermatology or not) are sold to government-insured patients?
• What proportion of your products (in dermatology or not) are sold to government-insured patients with patient assistance programs?
• How is it the illustration that Philidor administers your co-pay assistance programs, nonetheless y'all indicated that Philidor is responsible for only sure enough of your products, most of which are dermatological inward nature?
• You bespeak that the shape of assistance ranges from capped co-pays to subsidized prescriptions to referrals to a foundation (for patients inward federal programs) to which y'all contribute. What was the total amount of assistance awarded for each category?
• Which foundations received such grants from Valeant, too inward what amounts, over the past times 3 years? How much did each of those foundations dispense every bit portion of the assistance programs for drugs produced too or marketed past times Valeant? What portion of each charity’s total funding does Valeant correspond inward each case?
• What portion of this too prior years’ “patient assistance” programs funding was used to reimburse prescriptions filled past times Philidor or other affiliated pharmacies? What portion went to non-Valeant affiliated “specialty pharmacies?” What portion went to non-Valeant affiliated “traditional” pharmacies?
• For each of the products that y'all bespeak is covered past times your patient assistance programs, how much assistance has been provided for each, inward what form, too past times whom?
• How arrive at y'all ensure that patients who have a reduced co-payment, inward whole or inward part, arrive at non afterwards submit reimbursement requests to government-paid programs for which they may live on eligible?
• Before y'all received the subpoenas from 2 U.S. of A. Attorneys had y'all been having ongoing dialogue with them or did the subpoenas come upwards exclusively past times surprise?
• I know that y'all are non disclosing the detailed questions inward these subpoenas but tin y'all respond i question: inward aggregate, how long are these document requests past times number of pages? Are they 5 pages, 50 pages or 5 hundred pages?
• Do y'all know if whatsoever of your independent administrators of your patient assistance programs lead hold received subpoenas? Has Philidor (or whatsoever of its affiliates) received subpoenas?
• How is Philidor compensated for the services it provides to you? Is whatsoever portion of Philidor’s compensation based on the book of prescriptions filled, revenues or co-pay assistance (of whatsoever type) awarded?
• You lead hold stated that Philidor testament dispense a drug inward advance of an insurer’s commitment to reimburse y'all for the cost of that drug, too that Valeant thus bears the opportunity that the insurer billed past times Philidor testament non pay.
• If a co-pay is waived, diminished via a coupon, or paid inward whole or inward portion past times a charity, how arrive at y'all ensure that prescriptions filled past times Philidor testament ultimately live on approved past times the insurance company?
• Are Philidor employees given whatsoever sort of incentive to ensure that the prescriptions are indeed reimbursable?
• What portion of insurance claims submitted past times Philidor over the past times several quarters were disputed or went unpaid?
• To your knowledge, has Philidor ever failed an audit past times a payer? If so, who, when, too why?
• How oftentimes arrive at senior staff members of Valeant run across with senior staff of Philidor?
• Will Valeant file copies of its contracts too agreements with Philidor Rx Services LLC, its owners/members, too its affiliates with the Securities too Exchange Commission?
• It has been reported online past times individuals purporting to live on old Philidor employees that Valeant had its ain employees on-site too that Philidor employees were instructed to deny whatsoever link to Valeant. To your knowledge:
• Do whatsoever Valeant employees, contractors or agents shortly operate full- or part-time inward whatsoever Philidor office? Have they previously?
• Has whatsoever employee of Philidor been instructed to deny or otherwise obfuscate the human relationship betwixt Valeant too Philidor? Has whatsoever Valeant employee, contractor, or agent so instructed whatsoever employee or fellow member of Philidor?
• In your human relationship with Philidor, past times too present, what was too what is the role of Gary Tanner?
• Why does Gary Tanner, upon belief an employee of Valeant until recently, lead hold an internal electronic mail at Philidor inward the holler of a “Super Hero?” Can y'all tell us which “Super Hero” Mr. Tanner uses for his “avatar?”
• Will the Board of Directors capable constabulary firm/forensic accounting theatre live on hired to independently assess the situation? When?
• When were members of the Board of Directors inaugural of all informed of your commercial, operational, and/or fiscal human relationship with Philidor, its owners, or its employees? What were they told? What such information lead hold they been provided since?
• When were your auditors, PriceWaterhouseCoopers LLP, inaugural of all informed of your commercial, operational, and/or fiscal human relationship with Philidor, its owners, or its employees? What were they told? What such information lead hold they been provided since?
• Had it non been for press reports regarding the human relationship with Philidor, the lawsuits betwixt y'all too R&O, too the lawsuit betwixt Isolani LLC too Russell Reitz, what plans did y'all lead hold to reveal your human relationship with Philidor too R&O? If y'all had no plans, why not?
• There are reports online of doctors suggesting that their patients fill upwards prescriptions at Philidor to salvage coin on co-payments.
• How arrive at doctors know nigh Philidor? Do y'all or your salespeople inform them? If not, how are the doctors finding out nigh Philidor?
• Are your sales representatives aware of your human relationship with Philidor? When were they so informed? Was Philidor or its affiliates mentioned every bit portion of your representative training?
• Are your sales representatives instructed to or inward whatsoever vogue compensated for informing the prescribers they see of Philidor’s existence or its mightiness to waive or diminish, inward whole or inward part, co-payments for products produced or marketed past times Valeant?
• Do your sales reps send literature of whatsoever sort that mentions Philidor?
• How does Philidor compensate Valeant for such referrals, if any?
• Alternatively, how are patients made aware of Philidor’s existence? If it is past times prescribers, why? Are whatsoever incentives or materials provided past times Valeant or Philidor or its employees or contractors to build patients aware of such pharmacies’ existence?
• You lead hold stated that Valeant takes reimbursement opportunity on prescriptions filled through Philidor, which is patient-dependent. To your knowledge, lead hold patients filled prescriptions for drugs other than those sold past times Valeant at Philidor pharmacies? [On belief this may hap if a Valeant prescription is written along with a prescription for a non-Valeant product. Does it hap when at that spot is no Valeant production on the script?]
• What is the total amount of revenue from Philidor that is consolidated on your fiscal statements that is derived from cash co-payments Philidor received for prescriptions it filled?
• You stated on your 3Q2015 conference telephone yell upwards that “[Philidor] does non bound prescriptions it fills to whatsoever exceptional manufacturer.” What portion of Philidor’s revenue that is consolidated on your fiscal statements is from sales of non-Valeant products?
• You also stated that “[Philidor] dispenses generic products every bit specified inward the patient's prescription or every bit requested past times the patient.”
• What portion of prescriptions filled past times Philidor are for non-branded generics? What portion of total prescriptions filled with non-branded generics were written on the prescription too what portion were requested past times the patient?
• If a patient does non asking a generic but a non-branded generic is available, testament the Philidor chemist propose such a generic?
• To your noesis has Philidor or Philidor staff ever written a dispense every bit written code on the script without beingness specifically directed to past times the MD or the patient?
• To your knowledge, are pharmacists at Philidor pharmacies allowed to propose generic alternatives when available?
• If not, why not? Who gave the pharmacists y'all employ such direction? And if not, what gives y'all legal comfort that the states inward which Philidor is licensed allow a non-pharmacist to give such education to a pharmacist?
• Have Valeant officers or employees, whether total or part-time too introduce or former, given whatsoever management to pharmacists employed, whether electrical flow or former, total or part-time, every bit to whether to propose commutation of generic drugs? To your knowledge, lead hold officers or senior staff at Philidor or its affiliates so instructed the licensed pharmacists they employ?
• What portion of the revenue from Philidor that y'all consolidate on your fiscal statements is derived from products non produced or marketed past times Valeant? What portion of such revenue is for generic substitutes for prescriptions written for brand-name products, too for which products?
• In its rejected filing inward California, Philidor indicated that its upstream wholesale supplier was Kinray, a segmentation of Cardinal Health.
• To your knowledge, is that correct? To your knowledge, has Philidor purchased your products from whatsoever other wholesalers? If so, whom? Do y'all now, or lead hold y'all previously, shipped products produced or marketed past times Valeant straight to Philidor?
• Do y'all include inventory held at Kinray or whatsoever other wholesaler used past times Philidor or its affiliates every bit portion of the consolidated inventory of Philidor held on your repose sheet?
• Were y'all aware that Philidor’s application for licensure every bit a mail-order chemist's had been rejected past times the soil of California? How were y'all so informed too when? What actions did y'all bring or communications did y'all lead hold with your employees, the management, or the owners of Philidor, if any, upon learning that information?
• To your knowledge, did Philidor ship whatsoever prescriptions to consumers inward California or other states inward which it was non licensed?
• If so, when were y'all so informed? What corrective activeness did y'all propose if any?
• If not, what deport upon did Philidor’s inability to legally fill upwards prescriptions inward California lead hold on its human relationship with y'all and/or the entries consolidated on your fiscal statements?
• What steps did y'all take, if any, to ensure that Philidor was licensed inward each of the states to which it shipped prescriptions for your products?
• Before y'all acquired an selection to buy Philidor, did your employees or agents perform whatsoever sort of audit or inspection of Philidor’s soil licensing status? Did they inquire every bit to whether Philidor had ever had a license denied or revoked, or if Philidor had improperly shipped production to states inward which it was non licensed?
• Were whatsoever Valeant officers, employees, agents, or contractors aware, every bit Philidor CEO Andy Davenport indicated inward an electronic mail to Russell Reitz too filed inward a courtroom proceeding, that Philidor had a practise of using an identifier (such every bit an NPI, NCPDP, or NABP number) belonging to only about other entity to neb payers for prescriptions it filled? Did y'all inquire nigh this inward your diligence physical care for every bit portion of the selection to acquire equity inward Philidor? If not, why not?
• Was whatsoever officer, employee, agent or contractor of Valeant involved inward the acquisition of R&O Pharmacy from Russell Reitz past times Isolani LLC?
• To your knowledge, every bit y'all consolidate its results, when was the terminal inventory audit at Philidor or its affiliate pharmacies?
• To your knowledge, every bit y'all consolidate its results, has a payer ever ceased accepting prescriptions from Philidor or so threatened? If so, who too when?
• Did y'all investigate Norma Provencio’s co-investment inward Recom/Signalife with Mitchell J. Stein earlier renewing her seat on the Audit Committee? If not, why not?
• According to online sources, several employees at Philidor Rx Services formerly worked at Unitek, a Blue Bell, PA, fellowship that was alleged to lead hold experienced a fraud. Before they were hired, did y'all determine that these employees were non inward whatsoever vogue involved inward the alleged fraud? Are these employees involved inward whatsoever accounting portion at Philidor? 
• You failed to inform shareholders of the nature or usage of KGA Fulfillment Services Inc., the entity that holds secured interests over the owners of Philidor. There are a few other such entities nigh which y'all lead hold mentioned little. For instance, y'all registered many Delaware entities, only about on roughly the same twenty-four hours inward 2012, past times the names of Audrey Enterprise LLC, Emma Z LP, Erin southward LP, Katie Z LP, Kika LP, Stephanie LP, too Tori LP.
• For what usage were these entities established?
• What is the nature of these partnerships too what assets arrive at they hold?
• Who likewise Valeant has or may potentially have an economical arrive at goodness from these entities? Is Valeant the sole fellow member or express partner?
• Prior to the lawsuit inward California Central District Court, had y'all or your employees had whatsoever direct communication with officers or employees of R&O Pharmacy?
• Why did Robert Chai-Onn identify $69 i G m at R&O every bit owed to Valeant? Is whatsoever coin owed to Valeant past times R&O additional to monies owed to Philidor - or is Philidor only an arm of Valeant. 
• Have y'all or whatsoever of your employees had direct communication with officers or employees of Brighton Way Pharmacy (d/b/a West Wilshire Pharmacy), Safe Rx Pharmacy, or RAAS Pharmacy (d/b/a Orbit Pharmacy)? If so, when too on what topic?
• Are the payers Philidor invoices for prescriptions filled aware that Valeant has the selection to acquire an equity stake inward Philidor? Are they aware that, every bit y'all stated, y'all deport the reimbursement opportunity on prescriptions filled past times Philidor too presumably past times these related pharmacies. 
• Several of your competitors lead hold indicated that they lead hold arms-length relationships with their specialty chemist's channel, too that they arrive at non ain whatsoever equity or equity-like stake inward such pharmacies. Yet y'all ain an selection to acquire Philidor, too when I called them, a Philidor representative said they bargain almost exclusively inward Valeant products. Why arrive at y'all believe your competitors non chosen to replicate your arrangements with Philidor (and its affiliates) with their ain semi-captive specialty pharmacies?
• Philidor was incorporated inward early on 2013. When did your human relationship (of whatsoever type) with Philidor begin? What was the inaugural of all quarter inward which Philidor was consolidated into your fiscal statements? Since that time:
• Has your accounting handling of Philidor on your ain fiscal statements changed? If so, how too when? If not, arrive at y'all believe the acquisition of an selection to acquire the equity of Philidor require a restatement of whatsoever prior year’s filing earlier the Securities too Exchange Commission? Why or why not?
• By quarter, what was the total amount of your revenue (gross too net) for products that lead hold been dispensed past times Philidor?
• By quarter, how much inventory lead hold y'all had on your repose canvass on consignment with or related to Philidor? Is that inventory held at Valeant or at a distributor?
• By quarter, what was the total amount of receivables from payers generated from prescriptions filled past times Philidor (and its affiliates)?
• By quarter, what was the total amount of your provision for potentially uncollectible receivables from payers generated from prescriptions filled past times Philidor (and its affiliates)?
• How did your human relationship with Philidor develop? Who brought them to your attention?
• Were whatsoever Valeant or Medicis employees or agents, electrical flow or former, whether total or part-time, involved inward launching Philidor?
• How many days worth of R&O's revenue does the $69M y'all sought to recover represent? How many foursquare feet is R&O pharmacy? How does a pocket-size chemist's generate that substantial an amount of business?
• If Philidor holds an selection to acquire R&O or other pharmacies, are those pharmacies' results consolidated on your fiscal statements every bit well?
• Are Philidor owners, executives, or employees eligible to have whatsoever shape of monetary incentive from Valeant?  Have whatsoever such incentives been delivered? If so, inward what amounts? What are the criteria for receiving such compensation? Have such amounts been disclosed to the Board?
• Mr. Pearson, lead hold y'all ever met with or communicated with Philidor executives or employees? If so, how often? For what purpose?
• In add-on to Robert Chai-Onn, which other members of your executive squad were aware of the Valeant's human relationship with Philidor, R&O, too its other possibly-affiliated pharmacies, such every bit West Wilshire, Safe Rx, too Orbit Pharmacy?
• Which executive at Valeant has responsibleness for the human relationship with Philidor? Which executive has oversight too profit-and-loss responsibleness for Philidor's operations?
• What management lead hold y'all given your employees, contractors or agents with regard to discussions of the existence of Philidor too its human relationship with Valeant, if any?
• Why did y'all create upwards one's heed to buy an selection to acquire Philidor? What did y'all pay for that option? When did y'all buy it, too when does the selection expire?
• Before the most recent disclosures, was the Board of Directors aware of your commercial too fiscal human relationship with Philidor, its owners, too its affiliate pharmacies? Were these relationships discussed past times and/or approved past times the Board of Directors, the Audit Committee, too your external auditors?
• Did the Board of Directors approve the acquisition of an selection to acquire Philidor?  If so, when?  What due diligence did y'all perform on Philidor, too what was the investment illustration presented to the Board?
• Are the insurance companies whom you/Philidor invoice, too from whom y'all deport reimbursement risk, aware that patients lead hold been offered co-pay coupons, waivers, and/or charity assistance for the co-pay portion of the claims submitted?
• Regarding your auditor, PriceWaterhouseCoopers LLP:
• Are they aware of your human relationship with Philidor? What information did y'all provide to them nigh this relationship? When?
• To your knowledge, lead hold they audited Philidor, its operations, or its fiscal controls?
• To your knowledge, did they inspect Philidor to determine whether it maintains effective internal controls?
• Were at that spot whatsoever disagreements with PWC over how your human relationship with Philidor should live on disclosed inward your filings earlier the Securities too Exchange Commission?
• What portion of the operations of Philidor too its affiliates were included inward the audit orbit on which y'all too PWC agreed for your 2014 Annual Report?
• What evidence did y'all provide to your auditors to convince them that Philidor Rx Services constitutes a variable involvement entity that meets the tests for consolidation on your fiscal statements?
• Did y'all lead hold whatsoever discussions with your auditor regarding the need, if any, to reveal your human relationship with Philidor too its affiliates?
• Which products were fulfilled through Philidor (and its possible affiliates), too what has been the charge per unit of measurement of increment inward prescription book too revenue for those products?
• You lead hold stated that Valeant takes reimbursement opportunity for products fulfilled past times Philidor. Does this extend to Philidor's affiliates every bit well? So if an insurance fellowship inward California declines to comprehend a prescription shipped past times R&O or West Wilshire, who is out the coin for that prescription?
• Have y'all established a reserve for prescriptions dispensed past times Philidor for which the payer refuses to pay? If so, what is the introduce grade of that reserve too how has it changed over time?
• Is the inventory held at R&O too West Wilshire (and other Philidor affiliates) consolidated on your repose sheet?
• Why did y'all buy an "option to acquire" Philidor rather than the equity itself? At whatsoever dot inward your internal discussions of such a transaction did anyone, whether an employee or agent of Valeant or Philidor, bespeak that pursuing a transaction inward this shape would perhaps avoid the demand to file updated chemist's registration forms inward whatsoever soil inward which Philidor or its affiliates operate?
• How many of your old employees, contractors or agents operate at Philidor? What are their names too titles too what is the nature of their responsibilities?
• What was Valeant's role inward establishing Philidor or its affiliates, if any?
• As suggested online past times Probes Reporter:
• What communications, if any, has Valeant had with the SEC’s Division of Enforcement, the U.S. of A. Attorney/DOJ, or Canadian regulators, regarding whatsoever matter, inward the past times thirty days?
• If such communications exist, what was the usage too engagement of those communications?
• Last calendar week the fellowship said it received a subpoena from the U.S. Attorney's Office for the District of Massachusetts too a subpoena from the U.S. Attorney's Office for the Southern District of New York. Who they were sent to?
• Have y'all received whatsoever as-yet undisclosed subpoenas, requests for documents, or notices of the outset of investigations past times whatsoever other authorities entity since your prior disclosure?

Some Questions for Philidor Rx Services LLC

• Who owns too has owned Philidor?
• Do y'all fill upwards prescriptions for patients living inward California? When nosotros phoned, your representative indicated that y'all ship to "all 50 states." How are y'all legally able to ship products to states such every bit California, where y'all are non licensed?
• What advice did y'all obtain, too from whom, that y'all could legally fill upwards prescriptions too post service them to customers inward California, a soil inward which y'all are non licensed?
• Why did you, every bit the California Pharmacy Board found, omit required information from your filing to conk licensed inward California?
• For what products (and from what manufacturers) arrive at y'all fill upwards prescriptions? What is your annual prescription book too revenue from each product?
• Has Philidor Rx Services ever submitted a claim for reimbursement to a payer, whether authorities or private, using an identifier (such every bit NPI, NCPDP, or NABP) assigned to R&O Pharmacy, West Wilshire Pharmacy, or whatsoever only about other entity?
• Your CEO said inward an electronic mail to Russell Reitz, filed inward a courtroom proceeding, that y'all no longer arrive at so. For how long did y'all arrive at so? From when to when?
• How many prescriptions were filled using only about other entity’s identifier? What was the total amount of revenue from these prescriptions, at wholesale cost too meshing to you?
• What advice did y'all obtain, when, too from whom, that made y'all comfortable, every bit your CEO Andy Davenport indicated, that such practices were legal too did non constitute insurance fraud or “health attention benefits fraud” every bit defined inward xviii USC § 1347? 
• Did y'all switch every bit was alleged for the purposes of reducing the scrutiny of insurance companies on your claims?
• What portion of your prescription book too revenue is for products sold past times Valeant too its subsidiaries?
• When did y'all inaugural of all shape a occupation concern human relationship with Valeant?  What has been the nature of your relationships (financial, legal, commercial) with Valeant over time? What is the nature of that human relationship today?
• Does Valeant provide your owners, officers, or employees with whatsoever incentive derived inward whole or inward portion on the volume, type, or toll of prescriptions filled?
• What are your responsibilities for administering Valeant’s prescription access programs? How are y'all compensated?
• What happens if an insurance claim for a prescription is denied? Does Valeant compensate y'all for the wholesale cost of the medication y'all dispensed?
• From which wholesalers arrive at y'all buy products? Are these products physically located inward too dispensed from premises owned past times or leased past times Philidor?
• What procedures arrive at y'all lead hold inward house to ensure that patients receiving co-pay waivers arrive at non afterwards submit claims for reimbursement to government-funded programs such every bit Medicare, Medicaid, TriCare, too the VA?  What portion of your customers (and what portion of your revenue) is from customers eligible for such government-funded programs?
• How much investment capital, working capital, or other funding has Philidor Rx Services LLC received since inception? Who provided that funding?
• Did Valeant or whatsoever of its subsidiaries, electrical flow or former, provide whatsoever equity, debt or other shape of financing to Philidor, at nowadays or inward the future?
• It has been reported past times several sources that patients lead hold received calls from Philidor to refill prescriptions, whether they requested such a refill or not. Do your employees or automated systems house outbound telephone calls to patients for the usage of or with the effect of generating refill requests? Have your employees offered to waive co-pays on prescription refills generated through outbound telephone calls? Were whatsoever of these calls made past times automated means, usually known every bit “robocalls?” If so, did y'all secure your customers’ prior permission to house such automated calls, every bit required past times the Telephone Consumer Protection Act?
• If such reminder calls are indeed placed, who is placing them? Are these persons licensed pharmacists, chemist's technicians, or chemist's interns?
• Do whatsoever of your employees lead hold quotas or other volume-based incentives, monetary or otherwise, for generating prescription refills from prior patients?
• Do whatsoever of your customers lead hold their prescriptions refilled automatically, whether requested or not?
• If a prescription that y'all post service is returned every bit undeliverable, is the claim cancelled too the payment refunded to the insurance company?
• Who are the largest customers for your services too how much revenue arrive at y'all generate from each?
• How are your employees compensated? Are whatsoever employees required to run across quotas inward price of numbers of prescriptions filled (or refilled), claims filed, or reimbursements obtained over a specified period? Are whatsoever employees rewarded through incentive compensation for exceeding such targets?
• What is the nature of your human relationship with BQ6 Media too its employees, who are members of Philidor Rx Services?
• Are whatsoever executives, employees, contractors, or agents, whether total or part-time, of Valeant or its subsidiaries, electrical flow or former, assigned to, resident in, or usually introduce inward your offices inward Pennsylvania or Arizona? Who? How much fourth dimension did they pass inward your office? What was the nature of their responsibility?
• How many of your employees, electrical flow or former, are or lead hold been employees of Valeant Pharmaceuticals too its subsidiaries, electrical flow or former?
• How many employees arrive at y'all have? How many handle soil licenses every bit pharmacists, chemist's technicians, or chemist's interns?
• Are whatsoever of your employees dependent to quotas or other incentives (positive or negative) for number of telephone calls or prescriptions filled over whatsoever period? If so, what are the price of the quotas and/or incentives too to whom arrive at they apply?
• How many prescriptions arrive at y'all dispense per day? What has that total been, per quarter, for the past times 3 years?
• Have whatsoever payers ceased to comprehend prescriptions filled past times Philidor Rx Services or its affiliates? If so, who, when, too why? 
• Did y'all solve this past times changing the chemist identification number to every bit pocket-size chemist that y'all had purchased for the somebody of diversifying the distributing pharmacy.
• Have y'all at whatsoever fourth dimension failed an audit past times a payer? If so, who, when, too why?
• Has whatsoever payer ceased to arrive at occupation concern with Philidor, including withholding payment for prescriptions filled? Has whatsoever payer so threatened? Who, when too why?
• What portion of your revenues from drugs sold past times or produced past times Valeant Pharmaceuticals too its subsidiaries?
• What was the total amount of co-payments collected, past times quarter, for the past times 3 years? What was the median, average, too total co-payment amount collected, past times drug?
• Are the operations of whatsoever other entity consolidated on the fiscal statements of Philidor Rx Services LLC?
• At whatsoever dot was the operate or performance of whatsoever electrical flow or old employee, whether full- or part-time, or fellow member of Philidor Rx Services dependent to management or review past times whatsoever other somebody or entity currently or formerly employed or retained past times Valeant Pharmaceuticals too its subsidiaries, electrical flow or former?
• Has Philidor Rx Services LLC or whatsoever entity other entity inward which it owns an economical involvement or exercises operational command received an audit from a PCAOB-registered accounting firm? If so, whom?
• How oftentimes did y'all run across with executives, employees, or agents of Valeant Pharmaceuticals or its subsidiaries, electrical flow or former?
• Did Valeant’s auditors, PriceWaterhouseCoopers LLP, demeanour an audit of your operations too fiscal results earlier your operations were consolidated into Valeant’s fiscal statements? If not, why not?
• When did Valeant buy an selection to acquire an equity involvement from the members of Philidor Rx Services LLC? What did they pay for that option? What were the price of the agreement? Why did y'all lead to sell an selection rather than your membership interests directly?
• When your members sold an selection to Valeant to acquire your interests, did y'all update your registration with whatsoever soil or federal authorities, such every bit Boards of Pharmacy, the DEA, VA, DOD/TriCare, HHS, or CMS? If not, why not?
• You stated inward your press loose that “Philidor does non currently lead hold a direct equity ownership inward R&O Pharmacy or the affiliated pharmacies, but does lead hold a contractual right to acquire the pharmacies at nowadays or inward the hereafter dependent to regulatory approval.” As courtroom documents filed past times Isolani LLC bespeak that it is Isolani LLC that would ain 90% of R&O upon consummation of the transaction with Mr. Reitz, how is it that y'all came to ain an selection to acquire R&O?
• Do y'all believe that an entity that has been denied a license to operate a mail-order chemist's inward California tin purchase—either straight or through an selection to acquire—a licensed chemist's inward California?
• What is the nature of your human relationship (commercial, legal, financial, operating) with R&O Pharmacy at nowadays too over the past times 3 years?
• What is your role inward R&O’s chemist's operations?
• Why did y'all send invoices, every bit filed with the court, from Philidor to buy products from Valeant Pharmaceuticals, to the attending of the R&O Pharmacy finance department?
• Why did your employee send emails suggesting to Russell Reitz
• Why did y'all usage too and so discontinue the usage of, every bit the electronic mail from your CEO Andrew Davenport filed with the LA County courtroom past times R&O Pharmacy indicates, the diverse identifiers (NPI, NCPDP, NABP) assigned to R&O Pharmacy?
• As y'all are licensed inward many states, why did y'all wish to usage such identifiers assigned to R&O Pharmacy?
• As the acquisition understanding filed with the LA County Court indicates that such identifiers were to live on assigned to Isolani LLC every bit portion of the buy of R&O, how did Philidor Rx Services obtain the right to usage such identifiers itself?
• To your knowledge, lead hold whatsoever of your employees—including licensed pharmacists or chemist's technicians—resigned due to reservations nigh the demeanour they observed and/or inward which they were asked to participate? What did y'all do, if anything, to larn of those concerns and/or improve those of which y'all were informed?
• What information did Russell Reitz provide y'all that made y'all concord to halt using identifiers such every bit NPI#, NCPDP# or NABP# belonging to R&O Pharmacy?
• Are y'all aware that this document - that y'all filed inward State Court inward California contains a putative listing of products distributed past times R&O but inward fact fulfilled past times you. Moreover are y'all aware that the identification numbers inward that document correspond to UPS tracking numbers too thence y'all lead hold provided evidence that production was shipped to areas where y'all or R&O were non licensed?
• Are y'all aware that changing the chemist identification number for the usage of deceiving the payer is wire fraud against a fiscal institution? Are y'all aware that the fine is $1 i G m per illustration too the instances are cumulative?
• What is the nature of your human relationship (commercial, legal, financial, operating) with Isolani LLC? What services does Philidor provide, if any, to Isolani LLC?
• Is Eric Rice an employee or has Eric Rice ever been an employee, contractor or agent of Philidor or its affiliates? If so, what are/were his responsibilities? What are/were his dates of employment, title, too assigned business office location?
• What is the nature of your human relationship (commercial, legal, financial, operating) with Lucena Holdings LLC? Are its operations reported on Philidor’s fiscal statements? How?
• What is the nature of your human relationship (commercial, legal, financial, operating) with Brighton Way Pharmacy (d/b/a West Wilshire Pharmacy) at nowadays too over the past times 3 years? Why was such a human relationship formed? What was the genesis of such a human relationship too what benefits did it provide to you? Are Bright Way Pharmacy’s operations reported on Philidor’s fiscal statements? How?
• What is the breakdown of prescriptions filled past times Philidor (and its affiliates) past times dispensing code? Where no DAW code has been supplied, arrive at pharmacists inward your employ (whether total or part-time) offering a generic alternative to the patient when available?
• Does Philidor study information on the prescriptions it fills to IMS Health or other third-party render chain reporting services?
• What reports does Philidor provide to Valeant management too on what schedule?
• Why are all the entities related to Philidor (BQ6, Isolini, Lucena, Philidor itself, KGA) named for chess moves?
• What other chemist's relationships does Philidor lead hold that lead hold non nonetheless been disclosed? What is the nature of those relationships?
• Why did a fellow member of Philidor, Fabien Forrester-Charles, register a instant domain holler for R&O Pharmacy? Similarly, why were domain names created for West Wilshire Pharmacy, Orbit Pharmacy, Safe Rx Pharmacy, too dandapharmacy.com?
• What precisely is your human relationship with West Wilshire Pharmacy today too over time?
• Why is Sherri Leon, a chemist y'all employ, listed every bit the Registered Agent inward CA soil filings for Brighton Way Pharmacy, the legal holler of West Wilshire Pharmacy?

Some Questions for Eric Rice, Sole Member of Isolani LLC

• Is Philidor Rx Services LLC your full-time employer, every bit indicated on your LinkedIn profile? If not, who is?
• Did y'all shape Isolani LLC of your ain volition, or were y'all directed to arrive at so past times only about other party? If so, whom? If not, why did y'all personally create upwards one's heed to acquire a chemist's inward California?
• By holler too amount, who has ownership of, or the right to acquire ownership of, an economical involvement inward Isolani LLC?
• How many employees does Isolani LLC lead hold too what are their names, titles, too dates of employment? Are whatsoever of them now, or lead hold whatsoever of them been, employees of Philidor Rx Services LLC or Valeant Pharmaceuticals (and its subsidiaries, electrical flow or former)?
• Were y'all the sole provider of initial start-up upper-case missive of the alphabet for Isolani LLC? If not, what other somebody or entity provided capital? Were Philidor, Valeant, or their subsidiaries (current or former), or employees (current or former) amid those who provided capital?
• Did y'all personally provide the $350,000 to buy R&O Pharmacy from Russell Reitz, every bit outlined inward the buy understanding y'all filed with the courtroom inward your lawsuit against R&O? If not, who did? Did Philidor, Valeant, their subsidiaries, or their employees provide whatsoever upper-case missive of the alphabet to y'all personally or to Isolani LLC to facilitate this purchase?
• As Isolani LLC is entitled to all of the profits too losses of the operations of R&O Pharmacy according to the buy understanding y'all filed with the Court, arrive at y'all personally have such profits too deport such losses?  If not, who does? Are whatsoever of the persons who are entitled to have such profits or deport such losses electrical flow or old employees or entities currently or formerly associated with Philidor Rx Services LLC or Valeant Pharmaceuticals inward whatsoever respect?
• Have y'all signed whatsoever understanding governing the operations of Isolani LLC or the assignment of its profits too losses to whatsoever other entity, including Philidor Rx Services LLC, Valeant Pharmaceuticals, their subsidiaries (current or former), or their employees (current or former)?
• Who is providing the funds to pay attorneys too other expenses inward your lawsuit against R&O Pharmacy inward California? Are whatsoever of these funds provided past times Philidor Rx Services LLC, Valeant Pharmaceuticals, their subsidiaries, or their employees?
• Why was Isolani LLC formed to buy a 90% stake inward R&O Pharmacy rather than having Philidor Rx Services LLC or Valeant (or its subsidiaries) buy it directly?
• Why did y'all request, every bit portion of the buy understanding y'all filed with the LA County Court inward your lawsuit against R&O Pharmacy, that Russell Reitz transfer, at your request, his NABP/NCPDP too NPI numbers into Isolani LLC’s name? In using such identifiers, arrive at y'all believe that Isolani LLC, itself non a registered chemist's inward whatsoever soil or with the federal government, live on inward compliance with chemist's registration requirements?
• Are y'all based inward Pennsylvania, from whence y'all direct the operations of Isolani LLC? If so, why are y'all non registered every bit a unusual corporation inward Pennsylvania?
• Why, according to emails filed with the court, did a controller for Philidor Rx Services LLC undertake to aid R&O Pharmacy with its compliance audits past times a payer customer, when the 90% possessor of R&O is Isolani LLC?
• Philidor Rx Services indicated inward a press loose that they ain an selection to acquire R&O Pharmacy, of which Isolani LLC owns 90%. What are the price of this option? When did Philidor acquire this selection too for what compensation? Did y'all have whatsoever proceeds from this sale personally? If not, every bit y'all were the sole fellow member of Isolani LLC, why not?

Some Questions for Brighton Way Pharmacy, Inc., d/b/a West Wilshire Pharmacy?

• Have y'all mailed whatsoever prescriptions to patients exterior of California, the only soil where y'all are licensed?
• What is the nature of your human relationship (commercial, legal, financial, operational) with Philidor Rx Services at introduce too historically?
• To your knowledge, has anyone non a direct employee of Brighton Way Pharmacy caused whatsoever identifier assigned to Brighton Way Pharmacy (such every bit an NPI, NCPDP, or NABP number) to invoice a payer for a prescription or other services?
• What is the nature of your human relationship with Lucena Holdings, a Delaware LLC?
• Have whatsoever employees, contractors or agents of Valeant or its subsidiaries, electrical flow or former, been physically introduce on your premises inward Los Angeles? For what purpose?
• Have whatsoever employees, contractors or agents of Philidor Rx Services or its subsidiaries, electrical flow or former, been physically introduce on your premises inward Los Angeles? For what purpose?
• How many persons arrive at y'all employ? How many are licensed pharmacists, chemist's technicians, or chemist's interns?
• How long has Aisan Zagarian been licensed every bit a chemist inward California? Is West Wilshire Pharmacy her inaugural of all employer every bit a registered pharmacist? How many prescriptions has she filled inward the fourth dimension she's been employed at West Wilshire?
• For what products arrive at y'all fulfill prescriptions? Do y'all fill upwards prescriptions for whatsoever products non manufactured or marketed past times Valeant Pharmaceuticals or its subsidiaries, electrical flow or former?

A Question for Fabien Forrester-Charles

• You know it's ever the guy named “Fab” who gets blamed for the whole mess, right?