Valeant's Pearson returns from medical leave, resumes post as CEO
- Valeant CEO Michael Pearson returned from medical leave to resume his post as head of the Canada-based company, effective yesterday. Pearson had been on leave since December 28, 2015 after his hospitalization for severe pneumonia.
- Concurrently, the company announced it would delay a previously scheduled business update on its fourth quarter earnings and 2016 guidance.
- In the meantime, Valeant withdrew its prior financial guidance.
Valeant's troubles have not abated in Pearson's absence. The company has continued to endure criticism of its pricing strategies, most recently testifying in front of the House Oversight Committee on previous sharp increases for its drugs. The accounting scandal surrounding its relationship with the now defunct specialty pharmacy Philidor continues to be an issue, leading to its original announcement that it would restate earnings.
"I realize that recent events are disappointing to everyone and it is my responsibility to set the appropriate tone for the organization," Pearson said in a statement. He outlined several immediate goals, including improving the company's reporting and transparency.
Valeant postponed its planned business update on fourth quarter earnings to an unannounced date. The ad hoc committee, organized to assess Valeant's past relationship with Philidor, will continue its investigation into accounting practices.
Chairman of the Board Robert Ingram noted Valeant would work to further expand the senior team around Pearson. "Given the size and breadth of our company, succession planning and building out our senior team to provide additional resources and support for Mike are high priorities for the Board," he said.
The company also announced its subsidiary Salix Pharmaceuticals received a letter from Actavis informing it of Actavis' application to the FDA for approval of a generic version of Xifaxan 550 mg tablets. Recently, Valeant has heavily promoted Xifaxan, an irritable bowl syndrome med. An ad for Xifaxan was one of the few drug ads aired during Super Bowl 50.
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