Question: what ethical dilemmas did Valeant Pharma face in their operations? the
ID: 363690 • Letter: Q
Question
Question: what ethical dilemmas did Valeant Pharma face in their operations?
there are few points below that are related to above questions. I need more explanations on each point. research work is needed to answer this question. Also, pls add the articles links so I can use them for references.
article link: https://blog.volkovlaw.com/2016/04/demise-valeant-pharmaceuticals-case-study-rotten-culture-business-ethics/
-Revenue was increasing through acquisitions were not being reported fairly
-CEO was on leave, did not have a good replacement plan while on sick leave
-Investor only cared about profits
-Government wasn’t happy
-Consumers were the losers at the end who got affected the most
Explanation / Answer
Ethical dilemmas did Valeant Pharma face in their operations were as follows.
In March 2016, $58 million in revenues earned by its questionable relationship with Philidor Pharmaceuticals were incorrectly booked as announced by Valeant , a distributor of its products that is alleged to be under Valeant’s control as the real party in interest. In other words, they booked $58 million before Philidor sold the pharmaceuticals. And not even this but so-called sales to unrelated entities that were booked as sales but turn out to be Valeant controlled or related companies was another fraud with customers. Also, Valeant has long been accused of engaging in “channel stuffing” or giving large discounts to wholesalers and customers to incentivize them to increase purchases. All this shows how a company like Valeant is making schemes to gain more and more profits by breaking laws and cheating customers.
So, Consumers were the losers at the end who got affected the most.
Valeant’s disclosure about this issue contained interesting language indicating that there was more to the “accounting” issue than simply erroneous booking of $58 million for a company that annually earns $10 billion in revenues. Valeant noted “certain other accounting issues required review.”
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