Valeant Pharmaceuticals CEO returns after medical leave of absence

Valeant Pharmaceuticals International announced in a press release that J. Michael Pearson has returned as its CEO after taking medical leave of absence for severe pneumonia and other complications.

In a separate announcement on its website, Valeant released a statement on an ongoing SEC investigation.

“In response to media inquiries, Valeant confirmed that it has several ongoing investigations, including investigations by the US Attorney’s Offices for Massachusetts and the Southern District of New York, the SEC, and Congress,” according to the statement. “With respect to the SEC investigation the company confirmed that it received a subpoena from the SEC in the fourth quarter of 2015 and, in the normal course, would have included this disclosure in its 2015 10-K. We do not have further detail to provide at this time."

Regarding management, Howard B. Schiller, who had been named Valeant’s interim CEO, will continue as a member of Valeant’s board of directors while transitioning out of his current duties, according to the release. Robert A. Ingram has been named chairman of the board, with Valeant separating the roles of chairman and CEO, the news release reported.

“I want to express my sincere gratitude to Howard for his willingness to step in and lead the company through a challenging period,” Pearson stated in the release. “I realize that recent event are disappointing to everyone and it is my responsibility to set the appropriate tone for the organization. My immediate priority will be to build stronger partners, regulators and government representatives, while improving Valeant’s reporting procedures, internal controls and transparency.”

“On behalf of the board of directors, I want to thank Howard and other members of the Valeant team for their dedication and hard work in Mike’s absence,” Ingram stated in the release. “Our hope is that the Ad Hoc Committee will be able to conclude its efforts soon with regards to financial reporting and internal control matters, so we can all focus on building the best company we can.”

Valeant announced it will reschedule its previously announced call to discuss preliminary fourth quarter 2015 results and provide updated guidance for 2016.

Valeant develops, manufactures and found markets pharmaceutical products primarily in areas of dermatology, gastrointestinal disorder, eye health, neurology and branded generics, according to the release.

Editor’s note: This article has been updated to include additional information from Valeant Pharmaceuticals International.

Reference: www.valeant.com