A few days ago we laid out Valeant's "Enron" org chart, laying out the extensive, and previously undocumented and in fact, secret, relationships between Valeant and Philidor - the specialty pharmacy whose sole customer is Valeant. As a reminder, it was the revelation of Philidor's shady existence that was the reason for the rout that slashed the price of Valeant stock by more than half last week. And while both the company and its various shareholders, pardon the pun, valiantly defended the company and its exposure to and from Philidor - claiming there is nothing illegal in the troubling disclosures - moments ago VRX stock flash crashed... ... on the following news from Dow Jones: CVS TERMINATES PHILIDOR FROM CAREMARK PBM NETWORK, DJ SAYS CVS CITES 'NONCOMPLIANCE' W/ PROVIDER PACT ON PHILIDOR CVS MOVE BASED ON RECENT AUDITS OF PHILIDOR, DJ SAYS Recall that Philidor is a sizable 7% of Valeant's bottom line, as per its own slides: In Q3 2015, Philidor represented 6.8% of total Valeant revenue In Q3 2015, Philidor represented ~7% of Valeant EBITA And where CVS goes, others will promptly follow, not only leading to an promptly termination of any and all overinvoicing benefits Philidor provided to Valeant, but leading to a crack down on specialty pharma organizations everywhere, and likely finally inviting a federal inquiry into just what is going on, because for a pharmacy to admit that there was fire where until just now there was nothing but smoke, not even the Feds can ignore that. Perhaps in light of this news, VRX shareholder Sequoia will reassess its hardy defense of the company as disclosed earlier today in the following letter, which came just hours before the same fund also announced two of its members resigned as independent directors from Valeant.