Canadian drugmaker Valeant announced today it would replace chief executive Michael Pearson as the firm weathers criticism over its pricing and accounting practices.
Valeant Pharmaceuticals International also announced that activist investor and major Valeant shareholder Bill Ackman would join the board and expressed confidence that it would meet a key deadline for submitting its annual report to US securities regulators.
But the drugmaker opened a new public spat with former chief financial officer Howard Schiller, accusing him of "improper conduct." Schiller, fighting an effort to be ousted from the board, denied the accusations.
In midday trading, Valeant shares jumped 8.4 percent to $29.25 on the New York Stock Exchange. Shares had plunged more than 50 percent on March 15 after Valeant slashed its earnings forecast and warned of a possible debt default due to potentially missing a deadline to file its annual report.
On Monday, Valeant said it intends to meet a April 29 deadline to file the report, but that it will seek a waiver from lenders "to be prudent."
Valeant faces numerous government probes over accusations it gouged customers over the price of its prescription drugs.
The company has also been under fire over its accounting, disclosing that it should not have included $58 million in revenue from the mail-order pharmacy Philidor in 2014 and that it would need to restate at least four quarters' worth of earnings and file its annual report for 2015 late.
Valeant said it had opened a search to replace Pearson, who will stay on until his replacement is appointed.
Pearson, 56, returned to the helm of the company last month following a lengthy absence on sick leave. He had been hospitalized in late December for "severe pneumonia and other complications."
The company asked Schiller, who had served as interim chief executive while Pearson was on medical leave, to resign from the board.
