Valeant Pharmaceuticals International Inc. (NYSE: VRX) watched its shares move lower in Monday’s trading session on a health scare from one of its top executives. Chief Executive Officer J. Michael Pearson, was hospitalized over the Christmas holiday with a severe case of pneumonia.
In response to this sudden occurrence, Valeant’s board of directors created an interim office for the CEO position, which includes Valeant General Counsel Robert Chai-Onn, Chairman Ari Kellen and Chief Financial Officer Robert Rosiello.
Also, a committee created to oversee and support this CEO office, which includes Lead Independent Director Robert A. Ingram, ValueAct Capital President G. Mason Morfit and former Valeant finance chief Howard B. Schiller.
Ingram commented:
The committee will be working closely with the entire management team to ensure that the company continues to operate normally while Mike focuses on his health. Out of respect, we will be honoring his family’s request for privacy and will not be commenting further on his condition at this time.
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Recently, Pearson made a promise to shareholders to provide more transparent data about Valeant’s business. In recent events, the company’s strategy has drawn scrutiny from lawmakers and investors for its use of mail-order pharmacies, price increases and acquisitions for growth.
This company has been a lightning rod for attention following a report from Citron Research, a short selling firm, regarding Valeant’s relationship with Philidor. Since this report, the company has broken ties with Philidor.
Shares of Valeant were trading down 9.5% at $103.33 Monday, with a consensus analyst price target of $161.10 and a 52-week trading range of $69.33 to $263.81.
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