Pershing Square Activist Presentation Deck
Valeant's Use of Specialty Pharmacies (cont'd)
Regulatory Risk:
Valeant and Philidor operate in a highly regulated industry
■ It is legal for a manufacturer to own a pharmacy and several have/do
■ While Valeant consolidates Philidor for accounting purposes, Valeant has
stated that they do not control Philidor
■ Philidor has been accused by a former contractor and debtor of illegal activity
■ Recent media reports indicate that Philidor may have engaged in fraudulent
activity
• Effective October 29th, 2015, CVS Caremark, Express Scripts and
UnitedHealth/Optum announced the termination of their relationship with
Philidor, comprising the vast majority of the PBM market
■ Government inquiries into potential legal and regulatory violations in the
pharmaceutical industry are pervasive and highly fact specific
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