Former Valeant executive guilty of taking pharmacy CEO’s bribe

Former Valeant Pharmaceuticals International executive Gary Tanner was found guilty of accepting a US$10 million bribe for manipulating the company’s takeover of a startup mail-order pharmacy in 2014.

Ex-Philidor Rx Services Chief Executive Officer Andrew Davenport, who paid the kickback, was also convicted Tuesday after a three-week trial. The jury verdict in Manhattan federal court is the latest fallout from a scandal that shook the drugmaker three years ago.

Neither man showed any emotion as the verdict in the fraud and money laundering case was read in court. Sentencing is scheduled for Sept. 19. They face as long as 20 years behind bars on four counts including wire fraud and conspiracy to commit money laundering.

“We are, of course, disappointed in the verdict, but we look forward to addressing the many legal and evidentiary issues on appeal,” Tanner’s lawyer, Howard Shapiro, said in a statement. Davenport declined to comment.

The case, filed in 2016, helped explain how Valeant became linked to Philidor, which the pharmaceutical giant secretly controlled and used to increase sales. Valeant disclosed the link in October 2015, beginning a long fall in the share price, sparking questions about its transparency and business model, and leading to the exit of top management.

Lainie Keller, a spokeswoman for Valeant, didn’t immediately return a call for comment.