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Philidor to shutter as drug partnerships dissolve

Philidor, a specialty pharmacy facing backlash from accusations about its relationship with Valeant Pharmaceuticals, announced Monday it would close after losing the drugmaker's business.

Last week, some pharmacy benefit managers, and then Valeant, cut ties with Philidor, which short-seller Citron Research claimed had been used to prop up sales of Valeant drugs. Philidor said it would start to shut down principal operations after losing Valeant, its main client.

"We remain steadfast that Philidor has adhered not only to all applicable laws but to the highest standards of ethical business practice. Despite Philidor's best efforts to communicate this, Philidor's principal client, Valeant, has decided to end its relationship with Philidor," the company said in a statement.

Valeant has repeatedly denied accusations about its business model made by Citron. Last week, it set up an ad hoc committee to look into allegations about its association with Philidor before cutting off its relationship.

"We have lost confidence in Philidor's ability to continue to operate in a manner that is acceptable to Valeant," Valeant CEO Michael Pearson said last week.

It followed CVS dropping Philidor from its network for "noncompliance" with its provider agreement. Express Scripts also said it had started the process of dropping Philidor.

In the coming months, Philidor will continue to fill prescriptions while helping patients transfer medications to other pharmacies.