Former executives at Valeant and Philidor found guilty in multimillion-dollar kickback scheme  

valeant
A former Valeant executive and a former executive of its mail order division Philidor were found guilty of defrauding the drugmaker out of millions of dollars. (Valeant)

A jury in New York on Tuesday found a former executive of mail order pharmacy Philidor Rx Services and a former Valeant Pharmaceuticals executive guilty of defrauding the drugmaker in a multimillion-dollar scheme, for once putting the New Jersey drug company in the unusual role of a victim of dirty dealings.

Gary Tanner, a former senior director at Valeant, and Andrew Davenport, the former head of the now-defunct Philidor, were convicted of fraud and conspiracy, Reuters reported.

Attorneys for the men told Reuters they would appeal.

Free Webinar

Striving for Zero in Quality & Manufacturing

Pharmaceutical and medical device manufacturers strive towards a culture of zero – zero hazards, zero defects, and zero waste. This webinar will discuss the role that content management plays in pharmaceutical manufacturing to help companies reach the goal of zero in Quality and Manufacturing.

Valeant has often found itself defending its sales and pricing tactics to investigators and congressmen. In fact, the once-high-flying Valeant ran into scrutiny in the fall of 2015 after short seller Citron Research detailed the drugmaker's relationship to Philidor. But during the two-week-long trial, federal prosecutors painted Valeant as the victim of a fraud.

RELATED: Feds hit former Valeant, Philidor execs with multimillion-dollar fraud and kickback charges

They presented evidence showing that Valent’s Tanner passed inside information to Davenport to inflate Philidor’s business as the drugmaker's primary pharmacy partner. For his role, Davenport kicked back $9.7 million to Tanner when Valeant decided to buy Philidor. Davenport reaped $40 million for himself.

Philidor is now shut down and Valeant is working to move past its problems. Part of that effort involves changing its name in July to Bausch Health Companies, leaning on the goodwill of its Bausch & Lomb contact opticals business.

Suggested Articles

It's taken years for Amarin's Vascepa to prove itself as a game-changing treatment for CV disease. An FDA committee may have just punched its pass.

Continuing its expansion efforts, Japan’s Fujifilm will make a major investment in its U.S. gene therapy operation in Texas.

With a potential approval next year in the up-and-coming NASH field, Intercept is staffing up its sales team and starting talks with payers.