Led by short seller Andrew Left, Citron alleged Valeant uses specialty pharmacies – notably, Philidor Rx Services – to generate "phantom sales" by pushing more medicines through distribution channels. The bottom line, Citron wrote, is that "the whole thing is a fraud to create invoices to deceive the auditors and book revenue."
Valeant called the report "erroneous" and maintained its dealings with specialty pharmacies are proper. "We categorically deny the allegations made in the Citron Report," Valeant said in a statement.
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