Pershing Square Activist Presentation Deck
Timeline of Disclosure Regarding Philidor / R&O
Oct 22 Present:
Mainstream media begins to focus
on the relationship between
Valeant, Philidor, R&O, etc.
Negative details begin to emerge
on alleged Philidor business
practices
2012-2015: VRX discusses their evolving "alternate fulfillment"
strategy on 10 different occasions between 2012 and 2015
Sep 4, 2012: VRX
discusses for the first time
their newly acquired
"alternate fulfillment" / mail-
order strategy for
dermatology
2012
Dec 2012: VRX
completes the
acquisition of Medicis
Pharmaceutical Corp.
Legend
Valeant
Philidor Rx Services
R&O/ Russell Reitz
Oct
2015
Source: Valeant SEC filings.
Oct 20, 2014: Jefferies research
analyst David Steinberg asked
VRX on their Q3'2014 earnings call
for the ratio of Jublia scripts written
through VRX's "specialty pharmacy
Philidor;" Pearson discloses that
their specialty pharmacy channel is
comprised of "multiple specialty
pharmacies" which collectively
contribute ~40% of Jublia's volume
Oct 14, 2015: A blogger
tweets: "Does the word
Philidor mean anything?"
Isolani LLC
Other
Oct 21, 2015: Short seller
Citron Research accuses
Valeant of engaging in
fraud by using "phantom
captive pharmacies" to
engage in channel stuffing
Oct 19, 2015: In advance of VRX's
earnings, the Southern Investigative
Reporting Foundation publishes an
article describing Valeant's specialty
pharmacy channel strategy, bringing
Philidor and R&O into the spotlight
Oct 19, 2015: VRX discusses their
relationship and accounting practices
with respect to Philidor, the first time
VRX has discussed Philidor in detail
Oct 22, 2015: A blogger
writes a post critical of
Valeant's specialty
pharmacy strategy
Oct 21, 2015: VRX issues a press
release in response to Citron's report,
providing information on VRX's
relationship with Philidor and R&O
Oct 26, 2015: VRX holds conference
call to address investor concerns;
certain questions remain unanswered
Oct 26, 2015: VRX's Audit and Risk
Committee confirm VRX's accounting
treatment of Philidor is appropriate
Oct 26, 2015: VRX announces the
formation of an ad-hoc board
committee to review VRX's
relationship with Philidor
Oct 26, 2015: VRX releases its 10-Q,
including more detail on Philidor;
Philidor accounts for 5.9% of Valeant
net revenue YTD
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