Pershing Square Activist Presentation Deck
Philidor, R&O and Reitz: Timeline of Events
Aug 2015:
Valeant ceases
Nov 2014: Isolani negotiates a
purchase agreement to acquire R&O
for $350,000. 10% of the
consideration is paid upfront ahead of
regulatory approvals. Isolani, R&O
and Russell Reitz enter into a
Management Services Agreement
(the "MSA") transferring control of
R&O's operations to Isolani - Reitz
remains the "pharmacist-in-charge"
Jan 2, 2013: Philidor
Rx Services LLC is
created in Delaware
2012
Aug 2013: Philidor
applies for a
nonresident pharmacy
license in California
Legend
N
July 2012: R&O
created as an LLC in
California; receives
CA license on July
11, 2013
2014
May 2014: California
Board of Pharmacy
rejects Philidor's
license application
July 2014: California Board
of Pharmacy acknowledges
Philidor's request for an
appeal; refers the request
to the state AG
Valeant
Philidor Rx Services
Isolani LLC
Other
Jan
2015
Oct 2014: Isolani LLC is
created for the purpose
of acquiring ownership
of R&O. Philidor holds
an unexercised option
to acquire Isolani.
R&O / Russell Reitz
Source: CA licensing documents and court filings in Isolani/R&O litigations.
(1) Valeant company presentation. October 26, 2015.
shipments to
R&O
2015: R&O's sales meaningfu
accelerate as Valeant (via Philidor/
Isolani) begins shipping to R&O.
From March 2015-July 2015, R&O
made payments of $18.4 million
directly to Valeant for Valeant
products (75 shipments)(1)
May 2015: Reitz withholds
necessary regulatory sign-off
needed to execute the purchase
agreement. Reitz begins
confiscating checks owed to R&O
(and by derivation Isolani / Philidor)
breaching the terms of the MSA
July 30, 2015: Isolani counsel
demands payment of withheld
checks and the resignation of Reitz
as pharmacist-in-charge
Aug
2015
Sep 8, 2015: Isolani initiates
litigation against Russell Reitz
and R&O in the Superior Court of
California for breach of contract;
Isolani is seeking emergency
relief to protect its funds
Oct 6, 2015: R&O sues VRX,
claiming Valeant and R&O are
parties to a fraud perpetrated by
Isolani / Philidor
Sep 4, 2015: VRX
provides written
notice to R&O
demanding payment
for outstanding
invoices
Aug 31, 2015: Reitz's lawyers
notify Isolani of their decision to
unilaterally terminate the
purchase agreement / MSA,
claiming improper use of
R&O's NCPDP number,
amongst other allegations.
Reit'z counsel notes his clients
intention to "retain any and all
funds in R&O's possession"
Oct 29, 2015: VRX
files counterclaim,
detailing Reitz'
knowledge of Valeant
and Philidor
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