Former Drug & Pharmacy Executives Charged in Kickback Scheme

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http://www.nytimes.com/2016/11/18/business/valeant-philidor-fraud-kickback-scheme.html

>Federal prosecutors in New York announced on Thursday that they had arrested a former Valeant executive and the former chief executive of the mail-order pharmacy Philidor in what the prosecutors described as a multimillion dollar fraud and kickback scheme aimed at personally enriching both executives.

>According to the federal complaint, the former Valeant executive, Gary Tanner, entered into a secret relationship with Philidor’s chief executive, Andrew Davenport. Under the arrangement, Mr. Tanner was secretly paid millions of dollars to promote the pharmacy’s interests inside Valeant, including persuading Valeant to buy an option to acquire Philidor, then a little-known mail-order pharmacy based in Hatboro, Penn.

>Mr. Tanner and Mr. Davenport could not immediately be reached for comment.

>Valeant’s relationship to Philidor has come under intense scrutiny since last fall, when the previously undisclosed connection between the two companies was revealed. In the weeks that followed, there were several media reports on a host of tactics Valeant was said to have used to funnel its products through Philidor and increase sales, including altering prescriptions to specify that Valeant’s brand-name drug, and not a cheaper generic, be dispensed. It cut ties to Philidor in October of last year.
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