Valeant’s Ties to Pharmacy Scrutinized - WSJ
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`https://www.wsj.com/articles/valeants-ties-to-pharmacy-scrutinized-144...
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`http://www.wsj.com/articles/valeants-ties-to-pharmacy-scrutinized-1445817449
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`Valeant will host an investor conference call to explain its relationship with Philidor and its network of
`pharmacies. PHOTO: CHRISTINNE MUSCHI/REUTERS
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`ACRUX DDS PTY LTD. et al.
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`EXHIBIT 1527
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`IPR Petition for
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`U.S. Patent No. 7,214,506
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`Valeant’s Ties to Pharmacy Scrutinized - WSJ
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`https://www.wsj.com/articles/valeants-ties-to-pharmacy-scrutinized-144...
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`Valeant’s Ties to Pharmacy Scrutinized - WSJ
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`https://www.wsj.com/articles/valeants-ties-to-pharmacy-scrutinized-144...
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`name of a member of the Beach Boys, the former employees say.
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`The Philidor spokeswoman said the Valeant employees' "real identities were
`well known to the other Philidor employees."'
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`Mr. Patel sent regular emails to Philidor employees detailing how many
`prescriptions Philidorwas filling, which drugs were most popular and what
`doctors were the biggest prescribers, according to two of the people.
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`Nearly all of the prescriptions Philidor filled were for Valeant drugs like acne
`medicine Solodyn and toenail fungus treatment Jublia.. the employees said. A
`½
`month's supply ofSolodyn on Drugs. com costs $1,112.69, about 2
`times more
`than generic versions, which have slightly different dosages.
`
`Valeanthas said Philidor doesn't restrict the prescriptions it fills to Valeant.
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`Doctors who have prescribed Valeant medicines say the company made them
`well aware of the services provided by Philidor, including financial support
`available to patients. Three doctors said Valeant sales representatives dropped
`off brochures and coupons offering help paying for drug copays, and these
`materials directed patients to call a number for Philidor. The doctors would
`send prescriptions forValeant drugs electronically to Philidor.
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`Once Philidor received the prescription, the pharmacy then called the patients
`to collect their credit-card number and a mailing address to ship the drug,
`according to the three former employees. Patients who have a coupon get zero
`copay. Otherwise the capay is fairly low.
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`Todd Gribble, a dermatology patient in North Carolina, said he had a coupon for
`zero copayfor his first Valeant prescription. Philidor told him that if he fills it
`again he'll have a $40 copay, but it will be more reasonable than the $400 he had
`to pay when using a different pharmacy for a similar drug, he said.
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`A separate deparbnent at Philidor would seek insurance coverage. If the insurer
`asked a doctor to explain why the patient needed a costlier Valeant drug rather
`than a less-expensive alternative, Philidor employees would sometimes fill out
`the paperwork for the doctor, two of the employees said.
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`Valeanthas said Philidor dispenses generics "as specified inpatient's
`prescription or as requested by patient."'
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`Philidor sought to ship drugs so patients got them within days prescriptions
`were filed, even if the health insurer hadn't yet agreed to pay, the three former
`employees said. Sometimes, insurers would never pay, and Valeant would pick
`up the tab, the employees said.
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`Valeanthas said Philidor and other specialty pharmacies it uses "dispense
`Valeant medications before adjudication of the reimbursement may be finalized.
`Patients get their medicines more quickly and Valeant takes the risk for
`nonreimbursement."'
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`In August 2013, Philidor applied for a permit to operate as a pharmacy in
`California. California's Board of Pharmacy denied the application in May 2014,
`sayingPhilidor and the chief executive named in the documents, MatthewS.
`Davenport, had made "false statements,"' including some that concealed
`Philidor's true owners and beneficiaries, according to documents from the
`pharmacy board.
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`Three months later, a newly incorporated firm-Lucena Holdings LLC(cid:173)
`acquired a 10% stake in California's West Wllshire Pharmacy, which also does
`business as Brighton Way Pharmacy Inc., according to documents from the
`pharmacy board, which were first reported by ProPublica.
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`Delaware corporate records list MatthewS. Davenport as LucenaHoldings'
`"authorized person."
`
`The California pharmacy board documents list Sherri Diane Leon as Lucena
`Holdings' CEO, and provide her pharmacist license number in Pennsylvania. A
`Linkedln profile lists a Sherri Leon as director of pharmacy operations at
`Philidor Rx Services in Pennsylvania from 2013 to the present. Ms. Leon didn't
`return phone calls or emails seeking comment.
`
`Two of the employees said that Philidor makes sure patients in California are
`shipped drugs from partner pharmacies like West Wilshire because the state
`board of pharmacy rejected Philidor's license application.
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`Valeant’s Ties to Pharmacy Scrutinized - WSJ
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`https://www.wsj.com/articles/valeants-ties-to-pharmacy-scrutinized-144...
`
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