Pershing Square Activist Presentation Deck slide image

Pershing Square Activist Presentation Deck

Valeant and Philidor Rx: Corporate Timeline Dec 2012: VRX acquires Medicis Pharmaceutical Corp. 2012 | N Legend Jan 2, 2013: Philidor Rx Services LLC is created in Delaware;(¹) Andy Davenport is believed to be the majority shareholder. (2) A common thread amongst owners appears to be a relationship to BQ6 Media Group- a pharmaceutical consultancy which lists VRX as a client (amongst many others) 2013 March 2012: Medicis launches their "Alternate Fulfillment Program" (prior to the acquisition of Medicis by Valeant). The pilot is focused on Solodyn and Ziana in select states. Some current Philidor employees previously consulted for Medicis Jan 2013: VRX signs a services agreement with Philidor 2014 Q4'2014: Philidor's business is growing rapidly; VRX recognizes the strategic nature of the Philidor commercial arrangement Dec YTD 2014: Philidor contributes $111mm (~1%) to VRX's total sales Late 2013: Based on the success of the pilot program, Valeant expands its relationship with Philidor to include additional products and more states. Valeant frequently discusses it's "alternative fulfillment" program in dermatology but never explicitly mentions Philidor 2015 2015 YTD: VRX's specialty pharmacy channel comprises 7.2% of VRX's sales; Philidor is 5.9% Dec 2014: VRX pays $100mm (incl. additional earn-outs of up to $133mm) for the right to acquire Philidor for $0 (incl. certain governance rights). Philidor remains a separate limited liability entity. KGA Fulfillment Services - a wholly- owned subsidiary of VRX - owns the option to acquire Philidor. Hogan Lovells advised VRX on the structure and Philidor diligence Valeant Philidor Rx Services Isolani LLC R&O/ Russell Reitz Other Source: Valeant public disclosure, Medicis public disclosure, various California state court proceedings between Isolani LLC, R&O Pharmacy, Russell Reitz and Valeant. (1): State of Delaware, Division of Corporations. File #: 5268955. (https://icis.corp.delaware.gov/Ecorp/EntitySearch/Name Search.aspx) (2): Based on a June 18, 2013 license application with the Pennsylvania State Board of Pharmacy. Other owners are believed to be: Matthew Davenport, David Wing, Edward John Carne III, Gregory Blaszczynski, End Game Partnership LP, David Cowen, Elizabeth Kardos, Nick (Nicholas) Spuhler, David Ostrow, Jeffrey Gottesman, Gina Milner, Fabien Forrester-Charles, Francis Jennings, Michael Ostrow, Paula and Timothy Schuler and Gretchen Sprigg Wisehart. 2014 10-K: Valeant determines Philidor is a variable interest entity ("VIE") and begins consolidating Philidor's and its pharmacy network for accounting purposes 13
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