Another day, another round of selling of Valeant stock, which tumbled at the open on a report that the US has announced criminal charges in connection to a Valeant probe and that the ex-CEO of Valeant's "secret pharmacy" Philidor, Andy Davenport as well as another executive, Greg Tanner, have been arrested "for engaging in a multi-million dollar fraud and kickback scheme.
"- EX-VALEANT EXECUTIVE GARY TANNER, EX-PHILIDOR CEO ANDREW DAVENPORT CHARGED IN COMPLAINT FILED IN MANHATTAN FEDERAL COURT
The stock is promptly down:
Federal prosecutors have been investigating whether the Canadian pharmaceutical defrauded insurers by shrouding its ties to a mail-order pharmacy that boosted sales of its drugs.
According to the Southern District of New York, there will be a press conference today to noon announce charges against Gary Tanner, a former executive at Valeant Pharmaceuticals International, Inc., and Andrew Davenport, the former Chief Executive Officer of Philidor Rx Services LLC, for engaging in a multi-million dollar fraud and kickback scheme.
More details from the SDNY here.
