Valeant Pharmaceuticals (VRX) has drawn a lot of controversy over its ties to the specialty pharmacy Philidor. An October 21, 2015 report by Citron Research was provocatively titled: “Valeant: Could this be the Pharmaceutical Enron?”. Making note of the report’s impact on Valeant securities, a Bloomberg news article remarked:
The company’s bonds erased more than a billion dollars in market value after the Citron report was published.
While it would be difficult for anybody to determine whether or not Valeant is a “Pharmaceutical Enron”, it is possible to verify the claim made in the very first sentence of the report:
Just four days ago in the world of Valeant, no one had ever heard of Philidor RX.
With Sentieo, investors can quickly look through the company’s SEC filings and conference call transcripts to find the first mention of Philidor: the Q3 2014 conference call on October 20, 2014. This is roughly a year before the publication of the Citron Research report (October 21, 2015).
On the call, David Steinberg of Jeffries asked management about the rough breakout between traditional pharmacies and Valeant’s specialty pharmacy Philidor (“your specialty pharmacy Philidor”). Interestingly enough, the use of the word “your” suggests that the analyst did not see Philidor as being truly independent of Valeant. At the time, Valeant had not yet disclosed its option to buy 100% of Philidor for $0.
With Sentieo, it takes just 17 seconds to find the first mention of Philidor
With a single search, Sentieo can look through:
- Valeant/VRX EDGAR filings since 2005
- Earnings call transcripts
- Investor presentations
The video below shows Sentieo in action:
[vimeo 146454381 w=500 h=281]
The bottom line is that Sentieo can greatly speed up the process of checking facts and digging up obscure tidbits of information.
See it for yourself
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