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Former Valeant Executive, Philidor CEO Sentenced for Scheme to Defraud Drugmaker
Author: Joan McKenna
Former Valeant executive Gary Tanner and former Philidor Rx CEO Andrew Davenport were sentenced to one year in prison Oct. 30 after being convicted of defrauding Valeant in a multimillion dollar fraud and kickback scheme.
US District Judge Loretta Preska in Manhattan handed down the sentences.
Tanner, of Gilbert, Arizona, and Davenport, of Haverford, Pennsylvania, were also ordered to forfeit $9.7 million, representing the kickbacks.
Philidor, a specialty pharmacy in Pennsylvania, was founded in January 2013 with help from Canada-headquartered Valeant, now Bausch Health.
Tanner oversaw Valeant’s alternative fulfillment program, designed to get doctors and patients to choose Valeant-branded drugs over generic substitutes or alternatives by helping obtain insurance coverage for those drugs or providing other incentives.
FBI officials allege that Tanner and Davenport worked without other Valeant executives’ knowledge to prevent competing pharmacies from getting Valeant business and to persuade Valeant to buy an option in Philidor.
Philidor went on to handle more than 90 percent of Valeant-branded drugs before shutting down in 2016.