Valeant facing criminal probe

Controversial pharmaceutical company Valeant is facing its most serious investigation yet, with news that the US authorities have launched a criminal probe into potential fraud.

US federal prosecutors are investigating whether Valeant defrauded insurers by concealing its links with mail-order pharmacy Philidor, ties which are said to have helped boost sales of its drugs.

The probe is the most serious Valeant currently faces, and could lead to criminal charges against former Philidor executives and Valeant as a company.

The news emerged just one day after Valeant’s new chief executive Joseph Papa presented figures which showed sales had declined 11% in the second quarter.

However it has reconfirming its full year 2016 guidance, with total revenue expected to be in the range of $9.9 - $10.1 billion.

Papa is looking at restructuring the company, including selling off non-core assets to help pay off debts.

Valeant has identified its Bausch + Lomb eye care division, dermatology, Salix gastrointestinal and consumer over-the-counter businesses as its core.

Papa declined to say if Valeant received enquiries from prospective buyers for its eye care division, but stressed that it was one of its most valuable assets.

Commenting on the new investigation, the company confirmed that was been co-operating with the ongoing Southern District of New York investigation.