- Most of Valeant's drugs have cheap generic options, so most insurance company's say "no" when a pharmacy tries to fill it, hence it's hard as hell for Valeant to sell their drugs
- Valeant forms a cushy relationship with Philidor. Unlike most pharmacies, Philidor puts a LOT of effort into getting the insurance companies to say yes (they just give the drug to the patient before getting paid; if the drug gets denied, they try many others ways to get paid)
- Philidor was starting to get shutdown by payers, basically, any request from Philidor was red flagged by the payers to double check to see if something fishy was going on
- Philidor also tried to get a pharmacy license in California, but the authorities said no because they lied on who actually owned what (apparently getting a "no" to a license is really bad)
- Philidor then decides to buy R&O to get their licenses and their payer contracts. Basically it's a run around, the insurance company will see the script coming from R&O and basically think "ahh.. at least it's not Philidor"
- However, Philidor starts playing loose and fast with R&O license even before they closed the deal. Philidor would bill an insurance company using R&O's pharmacy ID, which is a HUGE no-no
- R&O sees what's up and says "screw this crap, I'm not going to give Valeant any of the insurance money I have until I get some goddamn answers as to what they are doing"
- Valeant (in all it's wisdom) sues R&O for non-payment and R&O says "I never got a invoice from you" and all hell breaks loose as the story unwinds