Hoping for rebound, Valeant adds three new members to board
- Embattled drugmaker Valeant on Wednesday added three new members to its board of directors, as it works to rebound from a troubled month.
- Stephen Fraidin from Pershing Square Capital, former University of North Carolina President Thomas Ross, and Fred Eshelman, the former CEO of Pharmaceutical Product Development, all joined the now 14-member board.
- At the same time, Valeant said Dr. Anders Lonner stepped down as director due to "other priorities and personal commitments."
Since CEO Michael Pearson returned from medical leave, news broke of a new SEC investigation into Valeant's now-severed relationship with Philidor, a senior exec for its dermatology unit quit, and presidential candidate Hillary Clinton specifically targeted the company for its pricing strategy.
However, after making a number of calls to Wall Street analysts, Pearson appears to have stabilized market sentiment. The company rescheduled an update on its 2016 financial guidance and Q4 results to March 15, after previously delaying it in late February.
Also outstanding is the firm's 10-K filing to the SEC, which should reveal the results of an investigation by an ad hoc committee of the board into Valeant's accounting practices. It previously announced filing would be delayed until after the investigation concludes.
In announcing the additions, Valeant's chairman of the board Robert Ingram highlighted the new members' diverse experience. "We are strongly committed to strengthening the management team through a careful succession planning process for all of our key positions and will consider further enhancing the Board with additional candidates who have complementary perspectives and expertise," he said.
- Wall Street Journal Valeant Adds Three Board Members
Follow Ned Pagliarulo on Twitter