Philidor closure will particularly hit dermatology business, says Valeant CEO

Michael Pearson, chief executive of Valeant Pharmaceutical International (NYSE: VRX), warned that the company’s decision to cut ties with its pharmacy partner Philidor would have a negative impact on its dermatology business.

He said that Valeant, which garners almost a fifth of its revenue from dermatology, is working on better relationships with insurers and to establish patient access. Mr Pearson said: "The past few weeks have been a painful learning experience for me personally, and I know it has been painful for many of you as well.”

Last month Citron Research alleged that Valeant was using Philidor to record phantom drug sales to boost revenue, which the company denied but shares plunged none the less. Mr Pearson said: "One of the consequences of such rapid growth is that you don't always take the time to listen to what the broader world outside your company is saying... This has been a mistake on our part as a company and on my part as its leader.” He said in a panel last month to investigate allegations against the company and Philidor that he was unaware of wrongdoing by Valeant.