Valeant CEO to take medical leave after being hospitalized with pneumonia

LAVAL, Que. -- Embattled pharmaceutical firm Valeant International says its chief executive is taking a medical leave of absence.

The Quebec-based company previously revealed that Michael Pearson was hospitalized last week with what it described as a severe case of pneumonia.

See Full Article

Valeant (TSX:VRX) did not offer updates on Pearson's condition, but says his leave of absence takes effect immediately.

Valeant says Pearson's duties will be shared on an interim basis between General Council Robert Chai-Onn, Company Group Chairman Ari Kellen, and Chief Financial Officer Robert Rosiello.

Valeant has been facing a series of scandals that have slashed its stock price by more than half since record highs posted in August.

The company is facing a congressional investigation in the U.S. over its pricing practices and has been forced to revise its 2016 outlook after ending a drug distribution agreement with the controversial Philidor mail-order pharmacy.

Pearson himself had been facing criticism for Valeant's share price collapse and recently struck a defiant tone after calls for his dismissal surfaced.

"If the board wants to fire me they are welcome to fire me, but until they do we're going to get through this thing," Pearson told investors during a Dec. 16 webcast.

Valeant said the October split from specialty pharmaceutical partner Philidor Rx Services caused a big short-term disruption to its business that would reduce its expectations for the fourth quarter and 2015 as a whole.

But Pearson had also indicated that a new distribution agreement with major U.S. drug store chain Walgreens had set the company back on the road to recovery.

Pearson, 56, joined Valeant in 2008 after a 23-year career with the consulting firm McKinsey & Co., for which he served as head of its global pharmaceutical practice.

He used a string of acquisitions to turn a relatively small business that made generic drugs and chronic illness treatments into a major pharmaceutical company. Valeant, formerly based in California, combined with Wellbutrin XL maker Biovail in 2010 to form Laval, Quebec-based Valeant Pharmaceuticals International Inc. Its sales climbed from US$2.46 billion in 2011 to an expected US$10.4 billion to US$10.5 billion for this year.

Valeant shares closed at $157.68 on Thursday, the most recent day on which the Toronto Stock Exchange was open for trading.

That figure was well up from a 52-week low of $92.65 but well shy of a historic high of $347.84 in August.



Advertisements

Latest Economic News

  • NAFTA, Round 1: U.S. opens talks by insisting on major changes to pact

    Economic CTV News
    WASHINGTON -- NAFTA negotiations are underway -- and the United States says it wants major changes to the agreement, not mere tweaks. U.S. trade czar Robert Lighthizer welcomed his Canadian and Mexican counterparts to Washington, D.C. Source
  • U.S. opens NAFTA talks insisting on major changes

    Economic CTV News
    WASHINGTON -- NAFTA negotiations are underway -- and the United States says it wants major changes to the agreement, not mere tweaks. U.S. trade czar Robert Lighthizer welcomed his Canadian and Mexican counterparts to Washington, D.C. Source
  • CIBC takes over banking business from PC Financial, renames bank Simplii

    Economic CBC News
    President's Choice is getting out of the banking business, selling its PC Financial unit to CIBC, which will rebrand the bank as Simplii. The two companies announced the end of their 20-year collaboration on Wednesday, as Loblaw says it will retain its loyalty point program and credit card offering, while handing over all daily chequing, savings, lending and other banking services to CIBC. Source
  • U.S. President Trump goes after Amazon, again

    Economic CTV News
    WASHINGTON -- U.S. President Donald Trump is renewing his attacks on e-commerce giant Amazon, and he says the company is "doing great damage to tax paying retailers." Trump tweets that "towns, cities and states throughout the U.S. Source
  • Trump renews Twitter criticism of Amazon

    Economic CTV News
    WASHINGTON -- U.S. President Donald Trump is renewing his attacks on e-commerce giant Amazon, and he says the company is "doing great damage to tax paying retailers." Trump tweets that "towns, cities and states throughout the U.S. Source
  • Fiat-Chrysler and BMW team up with Intel to develop self-driving system

    Economic CBC News
    Fiat Chrysler is teaming up with BMW and Intel to develop an autonomous-driving system. The companies say the system will be used by automakers worldwide to run self-driving vehicles. It will be flexible so automakers can keep their unique brand identities. Source
  • Quebec consumers group reaches deal with Pharmaprix over Optimum points lawsuit

    Economic CTV News
    MONTREAL -- A Quebec consumers' rights group has come to an agreement that could settle a long-standing class action over the Optimum points program offered through Pharmaprix, part of Loblaw's pharmacy business. Option consommateurs says in a statement that Pharmaprix, the name under which Shoppers Drug Mart chain operates in Quebec, has agreed to pay pay 2,354,032,174 Optimum points worth $4,350,102 under their deal. Source
  • CIBC to launch Simplii direct banking brand, integrate PC Financial accounts

    Economic CTV News
    TORONTO -- CIBC is launching a new direct banking brand that will also absorb accounts currently with Loblaw-owned President's Choice Financial. The bank says its new Simplii Financial brand will provide no-fee daily banking through online, mobile and telephone channels in much the same way that that PC Financial already offers its roughly two million clients. Source
  • US$1.1 billion tower lifts San Francisco skyline to new heights

    Economic CTV News
    SAN FRANCISCO -- More than 60 storeys above the ground, construction workers climb makeshift stairs and cross narrow steel planks to put the finishing touches on Salesforce Tower, now San Francisco's tallest building. The US$1.1 billion skyscraper has already changed the city's iconic skyline, towering over old favourites like Coit Tower and the Transamerica Pyramid. Source
  • $1B tower lifts San Francisco skyline to new heights

    Economic CTV News
    SAN FRANCISCO -- More than 60 stories above the ground, construction workers climb makeshift stairs and cross narrow steel planks to put the finishing touches on Salesforce Tower, now San Francisco's tallest building. The $1.1 billion skyscraper has already changed the city's iconic skyline, towering over old favourites like Coit Tower and the Transamerica Pyramid. Source