Valeant ends controversial litigation with R&O Pharmacy
pharmafile | March 10, 2016 | News story | | Litigation, Philidor, Valeant, controversy, r&o pharmacy, scandal
Valeant has announced that, in conjunction with R&O Pharmacy, its has jointly requested that the Court dismiss the litigation between them pursuant to a confidential settlement between the two parties. Valeant has rejected any suggestion of wrongdoing on its part.
This dispute is heavily tied up with the Philidor controversy that emerged towards the end of last year that employees of the pharmacy were alleged to have received written instructions to alter prescription codes from doctors to specify Valeant-branded drugs over generics.
Forbes reported that the court case itself rested on the issue of ownership and monies owed between Valeant, Philidor and R&O Pharmacy. Valeant is further tied up in the issue with their previous right to purchase Philidor, which they chose not to exercise when the “price gouging” allegations came to light.
Valeant chose to countersue R&O in October in relation to the billing dispute, which it previously said owed the Canadian drugmaker more than $69 million.
It seems, however, the two parties have come together and resolved the issue out of court. The statement from Valeant labels the terms of the settlement as confidential, but indicated that the resolution included a payment by R&O to Valeant.
This latest news comes on the back of three new appointments to the company’s board of director. Last week, its group chairman and executive vice president, Deb Jorn, resigned her position. The board, however, has now added Dr Fred Eshelman, Stephen Fraidin and Thomas W. Ross Snr as independent directors.
Of great interest to all will be the delayed conference call and live webcast of the company’s Q4 2015 results amid the recent controversies, which will be held March 15.
Sean Murray
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