The board of troubled Valeant Pharmaceuticals, led by veteran Triangle life science executive and investor Bob Iingram, is looking for a new chief executive officer.
Stock in Canada-based Valeant (NYSE: VRX) collapsed last week due to continuing financial woes. Shares rallied some 15 percent on news of the changes.
Last year, Valeant acquired both Sprout Pharmaceuticals and Salix Pharmaceuticals in Raleigh.
Accounting woes at Salix are under investigation.
Current CEO J. Michael Person will serve as CEO until a replacement is found. Person recently returned to the job after medical issues.
“While the past few months have been difficult, Valeant has a collection of leading brands, valuable franchises and great people, and I am confident that the company will be able to rebuild its reputation and thrive under new leadership.,” Ingram said in a statement issued early Monday.
“We thank Mike for his dedicated service to Valeant and for agreeing to stay on until we conclude our search. As a colleague and a friend he will be missed, and we wish him the best for the future.”
Valeant also appointed investor William Ackman to its board and said it is continuing to review :certain accounting and financial reporting matters.”
Valeant Pharmaceuticals International, Inc. (NYSE: VRX) announced that it has initiated a search for a new chief executive officer, appointed William A. Ackman to its board of directors, and provided an update on certain accounting and financial reporting matters.
“It’s been a privilege to lead Valeant for the past eight years,” Pearson said in a statement. “While I regret the controversies that have adversely impacted our business over the past several months, I know that Valeant is a strong and resilient company, and I am committed to doing everything I can to ensure a smooth transition to new leadership.”
A statement from the company did say that Valeant’s board has asked director Howard Schiller to tender his resignation, but Schiller has not done so. Schiller is the company’s former chief financial officer, and he served as interim CEO during Pearson’s medical leave.
Valeant’s stock soared last year as it carried out its strategy of growing mainly by buying older drugs and then hiking their prices. But the company has been swamped in recent months with a host of problems including massive debt, three ongoing federal probes of its accounting and pricing practices, and shareholder lawsuits in the U.S. and Canada.
Pearson told investors earlier this month that Valeant won’t be able to file its annual financial report with the Securities and Exchange Commission until sometime in April at the earliest, due to an internal probe of its 2014 financial reporting.
He also said Valeant is in confidential discussions with partners on selling some noncore assets and hopes to use that and other money this year to pay off $1.7 billion of its debt, accumulated from a spree of acquisitions in recent years.
Valeant Pharmaceuticals International Inc. also said Ackman is joining its board immediately. His Pershing Square Capital Management holds a 9 percent stake in the drug company and already has another executive, Stephen Fraidin, on Valeant’s board.
Ackman had recently sent his hedge fund investors a note stating that Pershing will “take a much more proactive role at the company to protect” its investment.
