<?xml version="1.0" encoding="UTF-8" standalone="yes"?><oembed><version><![CDATA[1.0]]></version><provider_name><![CDATA[Glenn Chan&#039;s Random Notes on Investing]]></provider_name><provider_url><![CDATA[https://glennchan.wordpress.com]]></provider_url><author_name><![CDATA[GlennC]]></author_name><author_url><![CDATA[https://glennchan.wordpress.com/author/glennchan/]]></author_url><title><![CDATA[What are Valeant&#8217;s (VPNA&#8217;s) credit&nbsp;terms?]]></title><type><![CDATA[link]]></type><html><![CDATA[<p>According to a VPNA (Valeant Pharmaceuticals North America) invoice to R&amp;O, invoices are due in <strong>30</strong> days.  See <a href="https://glennchan.files.wordpress.com/2015/11/invoice-from-vrx-to-ro.pdf">Exhibit E from VPNA&#8217;s counterclaim</a>*.<br />
According to the <strong>same</strong> counterclaim against R&amp;O, &#8220;[&#8230;] R&amp;O had <strong>45</strong> days in which to pay for the Valeant medications&#8221;.  See page 9 of &#8220;VRX Counterclaim.pdf&#8221; <a href="https://www.dropbox.com/sh/narnzjrbtfqk83p/AAC2QjCdPoIsr58s3NGkiBWCa?dl=0">available here</a>.</p>
<p>So is it 30 or 45?  If it is 30, then VPNA may lose a lot of credibility in court.  As well, the timing affects <a href="https://glennchan.wordpress.com/2015/11/01/valeant-shipping-drugs-knowing-that-you-probably-wont-be-paid/">the timeline of events</a>.  R&amp;O (or Philidor?) stopped sending out drugs on August 31, the same day that Russell Reitz&#8217;s lawyer wrote a scathing letter to Isolani.  From the VPNA version of events, August 31 is <strong>45</strong>+1 days after the last payment was received from R&amp;O.  If VPNA&#8217;s credit terms are 30 days, then it is curious that the company continued to send drugs to R&amp;O (or Philidor?) even after its credit terms were breached.  Recall that <em><strong>VPNA&#8217;s own Exhibit E states &#8220;TERMS: Due in 30 Days&#8221;.</strong></em></p>
<p><em>EDIT (11/4/2015): This post has been edited extensively because I didn&#8217;t realize that the example invoice from my original post was from VPNA&#8217;s own counterclaim.</em></p>
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<p><strong>Example invoice (Exhibit E from VPNA&#8217;s counterclaim):</strong></p>
<p><a href="https://glennchan.files.wordpress.com/2015/11/invoice-credit-terms.jpg"><img data-attachment-id="5675" data-permalink="https://glennchan.wordpress.com/2015/11/04/what-are-valeants-vpnas-credit-terms/invoice-credit-terms/" data-orig-file="https://glennchan.files.wordpress.com/2015/11/invoice-credit-terms.jpg" data-orig-size="899,325" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="invoice-credit-terms" data-image-description="" data-medium-file="https://glennchan.files.wordpress.com/2015/11/invoice-credit-terms.jpg?w=300" data-large-file="https://glennchan.files.wordpress.com/2015/11/invoice-credit-terms.jpg?w=899" class="alignnone size-large wp-image-5675" src="https://glennchan.files.wordpress.com/2015/11/invoice-credit-terms.jpg?w=1024&#038;h=371" alt="invoice-credit-terms" srcset="https://glennchan.files.wordpress.com/2015/11/invoice-credit-terms.jpg 899w, https://glennchan.files.wordpress.com/2015/11/invoice-credit-terms.jpg?w=150&amp;h=54 150w, https://glennchan.files.wordpress.com/2015/11/invoice-credit-terms.jpg?w=300&amp;h=108 300w, https://glennchan.files.wordpress.com/2015/11/invoice-credit-terms.jpg?w=768&amp;h=278 768w" sizes="(max-width: 899px) 100vw, 899px"   /></a></p>
<p>*The example invoice in this blog post is Exhibit E from VPNA&#8217;s counterclaim.  To view the original documents, sign up for PACER.  <a href="https://www.youtube.com/watch?v=g0HO3R-7exg">ICJI has a tutorial for using PACER</a>.  To reduce your PACER usage costs (you can pretty much get PACER access for free), use <a href="https://www.recapthelaw.org/">the Recap plugin for Firefox and Chrome</a>.  <a href="https://ecf.cacd.uscourts.gov/doc1/031022281380">Counterclaim exhibits are here</a> (login required).  <a href="https://ecf.cacd.uscourts.gov/cgi-bin/HistDocQry.pl?280052169582298-L_1_0-1">The history/documents listing is here</a> (again, login required).</p>
<p>**Sidenote: <a href="https://twitter.com/TheSkeptic21/status/661684534405148672">The Skeptic 21 on Twitter</a> points out that the customer numbers are different for R&amp;O in the &#8220;bill to&#8221; versus &#8220;ship to&#8221;.</p>
<p><strong>The counterclaim:</strong></p>
<p><a href="https://glennchan.files.wordpress.com/2015/11/counterclaim-credit-terms.gif"><img data-attachment-id="5676" data-permalink="https://glennchan.wordpress.com/2015/11/04/what-are-valeants-vpnas-credit-terms/counterclaim-credit-terms/" data-orig-file="https://glennchan.files.wordpress.com/2015/11/counterclaim-credit-terms.gif" data-orig-size="877,869" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="counterclaim-credit-terms" data-image-description="" data-medium-file="https://glennchan.files.wordpress.com/2015/11/counterclaim-credit-terms.gif?w=300" data-large-file="https://glennchan.files.wordpress.com/2015/11/counterclaim-credit-terms.gif?w=877" class="alignnone size-large wp-image-5676" src="https://glennchan.files.wordpress.com/2015/11/counterclaim-credit-terms.gif?w=1024&#038;h=1015" alt="counterclaim-credit-terms"   /></a></p>
<h3><strong>Disclaimer stuff</strong></h3>
<p>*Disclosure:  No position in VRX.</p>
<p>**It is possible that VPNA changed its credit terms after April 2015.</p>
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