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Actionable news in VRX: VALEANT PHARMACEUTICALS INTERNATIONAL,

Valeant Defends Business Practices, Investors Take Sides

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Valeant Pharmaceuticals (VRX - Get Report) says all of its accounting practices and financial dealings with specialty mail-order pharmacy Philidor Rx Services are legal and appropriate. However, Valeant's board of directors is forming a special committee to review allegations made against the company about its business arrangement with Philidor, the company said.

These allegations include Valeant employees working at Philidor using fake names, as reported by the Wall Street Journal.

Armed with 90 Powerpoint slides on a long, Monday morning conference call, Valeant executives and board members tried to convince investors and analysts there was nothing improper or unusual about its relationship with Philidor. Valeant also insisted its roll-up business model -- acquire smaller drug companies, strip out excess costs and raise the prices of the remaining drugs -- can still generate significant growth. There's no need to significantly invest in drug research or development, the company said.

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