House panel wants to speak to former Valeant exec by -ELJAH CUMMINGS, DEMOCRATIC CONGRESSMAN OF MARYLAND | NOV. 17, 2015
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The letter noted that although Valeant purchased an option to buy Philidor for $100 million last year, it did not disclose "its connections to this 'phantom captive pharmacy' until last month," after media accounts reported the links.
Valeant soon afterward said it would sever ties to Philidor, following a move by three major pharmacy benefits providers to no longer do business with Philidor on the grounds that the company was not in compliance with provider agreements.
"Troubling new allegations suggest that a group of Valeant employees helped launch Philidor's business in 2013, and have remained involved in its daily operations," Cummings wrote Pearson. "These allegations suggest that Valeant employees may have been personally involved in questionable billing practices that led Valeant to cut ties with Philidor last month."
The letter cites claims that Valeant employees Patel and Tanner received an email in November 2014 that provided "guidance on ways to re-submit rejected insurance claims to insurance companies in order to obtain higher reimbursement amounts," and also reports that Tanner "has been identified by former Philidor employees as 'a key figure in the pharmacy's operations.'"
"These former employees also report being directed to alter physician-written prescriptions so pharmacies would have to dispense Valeant drugs instead of cheaper generic versions to maximize Valeant's profits," Cummings wrote. "Valeant employees reportedly attempted to mask their connections to Valeant by creating fake email identities to conduct their internal Philidor correspondence."
In response to Cummings' letter, Valeant spokeswoman Laurie Little said, "We are reviewing the congressman's letter and will respond as appropriate."
"As we have said previously, Valeant's board of directors has formed an ad hoc committee to review allegations related to the company's business relationship with Philidor and related matters," Little said.