Valeant Pharmaceuticals International Inc. disclosed more details about its financial relationship with specialty pharmacy network Philidor RX Services. Valeant has also announced another change to elements of its strategy, and does not plan to divest its Neuro business in the near term or to permanently slow its pace of acquisitions. This is the second announced strategic change in two weeks. We view the Philidor relationship and marketing strategy as unconventional and very aggressive, and we expect payers to increasingly push back on reimbursement, potentially reducing the viability of this channel. In our view, the negative attention the company has attracted due to drug price increases and its aggressive marketing tactic increase potential legal, regulatory, and reputational risks to the company.
