'No Blatant Lies' Seen from Valeant (VRX) CEO/CFO Exchange and Philidor Scripts Were Not Just Smoke and Mirrors - Evercore ISI
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Evercore ISI analyst Umer Raffat offered some comments on Valeant Pharma (NYSE: VRX) in a video update related to his highly circulated note yesterday on the Oversight Committee memo on Valeant's pricing strategy, his interpretation of IMS data after the Walgreens deal, and his take the fate of CEO Mike Pearson.
On yesterday's note, which highlighted a discrepancy between the CEO and CFO remarks on if pricing or volume drove growth, he said he doesn't believe there was a "blatant lie", saying it was likely a case of an off the cuff remark being made without having all the data. Valeant followed up with hard data supporting volume-driven growth.
On the IMS data, which showed an uptick in scripts amid the Walgreens Boots Alliance (NASDAQ: WBA) deal, he notes skeptics have noted that prior scripts through specialty pharma Philidor were not counted by IMS, so of course you would see an uptick when moving to Walgreens. However, Raffat's biggest takeaway is that shorts have claimed that the Philidor scripts were not real. The new data therefore refutes these claims. "A vast majority of Philidor is actually transferring over to Walgreens, which is a very good sign" he said in the video update. He said he will be keenly tracking refill data.
On CEO Mike Pearson, Raffat still believes he will return.
He also highlighted comments from a recent Bill Ackman investor letter that claimed Valeant was close to a large deal in the Summer of last year.
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