Philidor Rx Services
Industry | Pharmaceutical industry specialty pharmacy |
---|---|
Founded | 2 January 2013[1] |
Headquarters | Hatboro, Pennsylvania[2] |
Key people | Andrew (Andy) Davenport CEO and founder Matthew Davenport Gretchen Wisehart, general counsel for Phillidor[1] Gregory W. Blaszczynski, CFA[3] |
Products | online specialty pharmacy |
Services | specialty pharmacy prescription-filling mail-order business |
Number of employees | 950 |
Website | Official website |
Philidor Rx Services is a Pennsylvania-licensed
BQ6 Media Group LLC
BQ6 Media Group LLC is a "privately held marketing firm specializing in pharmaceutical marketing, communications and promotion"
History
Philidor Rx Services was formed in 2013 by Matthew S. Davenport and Andrew (Andy) Davenport as an online pharmacy in Delaware[2] with an office in Horsham, Pennsylvania and in Hatboro,[2] a town of about 7,360 in Montgomery County, Pennsylvania.[14]
California is the "largest market for medicines" in the US[6] and Philidor and Valeant faced "hurdles in getting prescriptions filled there.[6] In August 2013 Philidor had requested an application for a California Non-Residency Pharmacy Permit but it was denied in May 2014 by State Attorney General Kamala Harris' staff because Philidor allegedly falsified information on its application, claiming that Matthew Davenport was registered as Philidor's principal when Andrew (Andrew) Davenport was the principal and did not disclose that Andrew owned 27% of Philidor. There were other "false statement of facts" on the application and Philidor was accused of unprofessional conduct.[6][15]
On December 1, 2014, 64-year-old pharmacist Russell Reitz sold his small three-year-old specialty pharmacy prescription-filling mail-order business — R&O Pharmacy — in Camarillo, in suburban Los Angeles for $350,000 to Isolani LLC. Reitz stayed on as manager.[6] Prior to the acquisition by Isolani, R&O Pharmacy had dispensed a modest number of prescription medications to patients and collected reimbursements from insurance companies. With the new owners, Isolani and Philidor, Reitz' store's name R&O Pharmacy, and his National Council for Prescription Drug Programs identification number were used to fill prescriptions nationwide at other pharmacies which amounted to $230 million a year. Reitz became concerned and in July he sent emails to Andy Davenport CEO of Philidor and Eric Rice of Isolani. In the emails Reitz, claimed that his personal "ID was used to bill for prescriptions" that were "filled by some other pharmacy (in some cases for drugs that R&O did not even stock)" or "filled and billed" before the R&O purchase agreement was finalized.[16]
Another pharmacy in the Philidor network is West Wilshire Pharmacy in Los Angeles.[6]
According to a
Specialty pharmacies
Most of the prescriptions filled by Philidor were for Valeant's expensive drugs like
By October 2015, a "bottle of 30 of Solodyn tablets can cost up to $1,040.41" and an "8-milliliter bottle of Jublia costs $1,075.72" according to "Truven Health Analytics, which publishes average wholesale prices."[21]
According to ProPublica,[22]
"Specialty pharmacies are seen as a reliable distribution channel for expensive drugs, offering patients convenience and lower costs while maximizing insurance reimbursements from those companies that cover the drug. Patients typically pay the same co-payments whether or not their insurers cover the drug."
— ProPublica 22 October 2015
According to Reuters, "Specialty pharmacies are designed to handle medicines that require complex storage or administration, often for serious conditions such as cancer or rheumatoid arthritis. Valeant has used Philidor to dispense a range of its medications, including conventional treatments for acne and toenail fungus."[23]
Valeant and Philidor
Tactics used by Philidor Rx Services were challenged in a 2015 investigation of Philidor's partner company,
According to "former employees and an internal document", Philidor who filled Valeant's prescriptions "altered doctors’ orders to wring more reimbursements out of insurers."[5]
Valeant employees who worked at Philidor in the early months of Philidor's operations, "set up separate Philidor email accounts, under "clearly distinguishable names," to keep “their internal Philidor communications separate from the Valeant communications, primarily to reduce the risk of incorrectly sharing either company’s proprietary information." One alleged practice entailed Valeant employees directly managing Philidor's business operations while posing as Philidor employees and with all written communication under fictitious names.[26] For example, Bijal Patel, a manager of access solutions at Valeant in Scottsdale, Arizona used the email name of Peter Parker, the alter ego of Spider-Man at Philidor where he tracked prescriptions.[2]
In October 2015, major
A major allegation is that, by controlling the pharmacy services offered by Philidor, Valeant steered Philidor's customers to expensive drugs sold by Valeant.[26]
On October 22, Alex Arfaei, an analyst with
Valeant responded that Citron Research group accusations that Valeant was the 'Pharmaceutical Enron' were "erroneous."[28]
On October 30, Valeant cut ties with Philidor.[4][5]
References
- ^ a b c Lopez, Linette (23 October 2015). "The secret firm at the heart of Valeant's crisis has an alleged history of shady behavior with customers". Business Insider. Retrieved 1 November 2015.
- ^ a b c d e f g Rapoport, Michael (29 October 2015). "Valeant Countersues R&O Pharmacy Billing dispute draws attention to drug maker's work with specialty pharmacies". Retrieved 1 November 2015.
- ^ "Philidor". Better Business Bureau. 2014. Retrieved 1 November 2015.
- ^ a b Armstrong, Drew; Kitamura, Makiko (30 October 2015). "Valeant Says It's Cutting Ties With Troubled Pharmacy Philidor". Bloomberg. Retrieved 31 October 2015.
- ^ a b c "Valeant Pharmaceuticals International Inc cuts ties with Philidor as business practice controversy grows". Bloomberg News. 30 October 2015. Retrieved 1 November 2015.
- ^ a b c d e f Peterson, Melody; Pfeifer, Stuart (1 November 2015), "A Troubling RX", Los Angeles Times, retrieved 1 November 2015
- ^ "Overview". BQ6 Media Group. Philadelphia, PA. nd. Retrieved 2 November 2015.
- ^ "Introduction". BQ6 Media Group. Philadelphia, PA. nd. Retrieved 2 November 2015.
- ^ a b c Boyd, Roddy (19 October 2015). "The King's Gambit: Valeant's Big Secret". SIRF. Retrieved 4 November 2015.
- ^ a b "Game theory end game". BQ6 Media Group. Philadelphia, PA. nd. Retrieved 2 November 2015.
- ^ "What we do". BQ6 Media Group. Philadelphia, PA. nd. Retrieved 2 November 2015.
- ISBN 1-901983-53-6
- ^ a b Marotte, Bertrand (27 October 2015). "Valeant's sales network: Deciphering a complex web of companies". The Globe and Mail. Retrieved 4 November 2015.
- ^ "State & County QuickFacts". U.S. Department of Commerce. 2010. Archived from the original on 5 September 2015. Retrieved 1 November 2015.
- ^ "Philidor Statement Issues". Propublica. 18 December 2014. Retrieved 1 November 2015.
- ^ Van Praet, Nicolas (27 October 2015). "L.A. pharmacy's legal battle could have huge consequences for Valeant". The Globe and Mail. Montreal. Retrieved 1 November 2015.
- ^ Langreth, Robert; Deprez, Esmé E. (29 October 2015). "The Tiny Pharmacy at the Center of Valeant's Money Mystery". Bloomberg. Retrieved 1 November 2015.
- ^ Chelsey Dulaney (May 6, 2015). "Alexion to Buy Synageva for $8.4 Billion". The Wall Street Journal. Retrieved May 7, 2015.
- ^ a b c "Valeant Pharmaceuticals Announces FDA Approval Of Jublia® for the Treatment of Onychomycosis". Valeant Pharmaceuticals. Laval, Quebec. 9 June 2014. Archived from the original on 8 November 2015. Retrieved 1 November 2015.
- ^ a b "Valeant Pharmaceuticals Announces Approval of Retin-A Micro® Microsphere 0.08%". Valeant Pharmaceuticals. Laval, Quebec. 31 January 2014. Archived from the original on 15 February 2014. Retrieved 1 November 2015.
- ^ Rockoff, Jonathan D.; Whalen, Jeanne (28 October 2015). "Pharmacy's Sales Tactics Disclosed". Dow Jones News. Retrieved 1 November 2015.
- ^ Ornstein, Charles (22 October 2015). "Documents Raise New Questions About Valeant's Pharmacy Relationships in California". ProPublica. Retrieved 1 November 2015.
- ^ Ingram, David (25 October 2015). "Legal tangle in California may shed light on specialty pharmacies". New York: Reuters. Retrieved 1 November 2015.
- ^ a b Beasley, Deena (30 October 2015). "Exclusive: Beyond Valeant, U.S. payers scrutinize other drugmaker ties to pharmacies". Los Angeles: Reuters. Retrieved 1 November 2015.
- ^ a b c Armstrong, Drew (22 October 2015). "Valeant shares extend slide as long-time bull downgrades drug maker". The Globe and Mail. Retrieved 22 October 2015.
- ^ ISSN 0099-9660. Retrieved 1 November 2015.
- ^ "EXPRESS SCRIPTS HOLDING COMPANY FORM 10-K". Retrieved 2013-11-20.
- ^ van der Linde, Damon (22 October 2015). "Valeant stocks plunge, trading halted". Calgary Herald. Retrieved 22 October 2015.