The U.S. Attorney’s Office alleges Valeant executive Gary Tanner and Mr. Davenport conspired to defraud insurers by hiding the close relationship between Philidor and Valeant. According to the complaint, Mr. Davenport allegedly paid Mr. Tanner $10 million in kickbacks in exchange for his promotion of Philidor’s business, including facilitating transactions to help Mr. Davenport gain more than $40 million in revenue and up to “tens of millions of dollars” from Valeant.
The complaint also alleges the two men worked to shutout other pharmacies from obtaining Valeant’s business, without other Valeant executives’ knowledge, and helped persuade Valeant to buy an option in Philidor, according to the article.
Valeant released a statement citing that the former CEO, CFO and other current executives had not been charged and that Mr. Tanner’s relationship with the company ended in September 2015. It also stated the company “continues to cooperate with all relevant authorities in this matter.”
Philidor was a mail-in pharmacy founded in 2013 and aided patients in fulfilling online prescriptions and obtaining insurance coverage for certain Valeant drugs, according to the article. By 2015, the company sold more than 50 Valeant drugs.
Valeant officials did not publicly discuss the company’s relationship with Philidor until 2015. According to a letter submitted on behalf of Philidor to a Senate committee, the company’s growth was overseen by a group of Valeant employees, including Mr. Tanner. The complaint filed by the U.S. Attorney’s Office alleges Mr. Tanner reported directly to Valeant’s former CEO, who left the company in May.
Philidor shuttered its business in 2015, according to CNN Money.
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