Valeant Pharmaceuticals Intl Inc (NYSE:VRX) announced that it is severing all ties with Philidor Rx Services, LLC, and that Philidor has informed Valeant that it will shut down operations as soon as possible, consistent with applicable laws.

“The newest allegations about activities at Philidor raise additional questions about the company’s business practices,” said J. Michael Pearson, Valeant’s chairman and chief executive officer. “We have lost confidence in Philidor’s ability to continue to operate in a manner that is acceptable to Valeant and the patients and doctors we serve.”

“We understand that patients, doctors and business partners have been disturbed by the reports of improper behavior at Philidor, just as we have been,” Pearson said. “We know the allegations have also led them to question Valeant and our integrity, and for that I take complete responsibility. Operating honestly and ethically is our first priority, and you have my absolute commitment that we will make it right.”

Valeant intends to develop a plan to ensure patients’ access to drugs is minimally disrupted. Valeant has informed Philidor that to the extent that managed care plans will no longer reimburse prescriptions in process, Valeant will fill them at the company’s expense.

“We are committed to doing everything we can to provide important medicines to the patients and doctors who depend on them, and will continue to explore relationships with the full range of pharmacies to ensure patients have access to the drugs they need,” Pearson said.

In the Third Quarter 2015, Philidor represented 6.8% of total Valeant revenue. (Original Source)

Shares of Valeant Pharmaceuticals closed yesterday at $111.50. VRX has a 1-year high of $263.81 and a 1-year low of $88.50. The stock’s 50-day moving average is $177.01 and its 200-day moving average is $217.41.

On the ratings front, Valeant Pharmaceuticals has been the subject of a number of recent research reports. In a report issued on October 27, RBC analyst Douglas Miehm reiterated a Buy rating on VRX, with a price target of $231, which represents a potential upside of 107.2% from where the stock is currently trading. Separately, on the same day, Barclays’ Douglas Tsao reiterated a Buy rating on the stock and has a price target of $135.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Douglas Miehm and Douglas Tsao have a total average return of 1.1% and 19.2% respectively. Miehm has a success rate of 53.8% and is ranked #2244 out of 3808 analysts, while Tsao has a success rate of 66.0% and is ranked #219.

Overall, one research analyst has rated the stock with a Sell rating, 4 research analysts have assigned a Hold rating and 11 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $208.82 which is 87.3% above where the stock closed yesterday.

Valeant Pharmaceuticals International Inc is a specialty pharmaceutical and medical device company that develops, manufactures, and markets a range of generic and branded generic pharmaceuticals, over-the-counter products and medical devices.