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viewValeant Pharmaceuticals Intl Inc

UPDATE-Valeant drops to 2-yr low after cutting ties with Philidor

Controversial pharmacy chain to shut down operations as soon as possible

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Valeant says it will continue to ensure patients’ access to treatments.

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Valeant Pharmaceuticals International (TSE:VRX) (NYSE:VRX) touched the lowest in more than two years after the Canadian drug maker said it will cut all ties with pharmacy business Philidor Rx Services.

The move follows criticism over the relationship between the two closely associated companies.

U.S.-listed shares of the Laval, Quebec-based company fell 12% to $98.14 at 12:11 p.m. in New York after reaching $96.46, the lowest intra-day price since August 2, 2013. The stock has lost two-thirds of its market value over the past month.

Philidor will shut down operations as soon as possible, Valeant said in a statement on Friday, and the drug maker will continue to ensure patients’ access to treatments.

“The newest allegations about activities at Philidor raise additional questions about the company’s business practices,” Michael Pearson, Valeant’s chief executive officer, said in the statement. “We have lost confidence in Philidor’s ability to continue to operate in a manner that is acceptable to Valeant and the patients and doctors we serve.”

The drug maker's move on Friday comes a day after the three top U.S. drug benefit managers, who administer prescription medicine supplies for health plans, said they had stopped working with the pharmacy.

Valeant said this week that it would set up an ad hoc committee to look into the allegations related to the company's association with Philidor.

Philidor accounted for 6.8% of Valeant’s total revenue in the third quarter and the drug maker said it intended to develop a plan to ensure minimal disruption to patients' access to drugs.

Express Scripts (NASDAQ:ESRX), CVS Health (NYSE:CVS) and UnitedHealth's (NYSE:UNH) OptumRx all said on Thursday that they would stop using drugs dispensed by Philidor due to concerns about its business conduct.

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