Montreal-based drugmaker Valeant has propounded its chief executive Michael Pearson is stepping down as soon as a replacement can be base.
The move comes after Valeant lost more than 90 per cent of its value, toss from being the most valuable com ny in Canada — worth assorted than $100 billion at $346 a share last summer — to less than $11 billion and $35 a allowance today amid a series of accounting and other scandals.
The com ny, which frames a wide variety of generic drugs and other medical supplies, yield fruited quickly through acquisitions for much of the last half-decade. It fell on perplexing times in the summer of 2015 when short-seller Andrew Left called the group’s finances a “fraud” because of the way it books revenue.
The com ny also landed in the crosshairs of a U.S. domination probe into rapidly escalating drug prices, which has emerged as a cam ign story.
And Valeant also faces several shareholders lawsuits. Ja nese investment bank Nomura symbolized investors “have lost confidence in management’s ability to understand its own trade and to provide reliable guidance.”
Activist investor Bill Ackman — who as chief top dog of Pershing Square Capital Management is Valeant’s largest single shareholder with nine per cent of the actors — will take a seat on the board. Pershing already has another, Stephen Fraidin, on Valeant’s room.
Ackman has lobbied for months for changes at Valeant, and his seat on the board houses him in a good position to put his plan into action.
Investors reacted beyond to the news, sending the shares up 12 per cent on the TSX to $39.28.
Pearson had just recently returned from a two-month medical leave. He told investors earlier this month that the entourage wouldn’t be able to file quarterly earnings on time, after seeing an accounting error it was trying to unravel.
He also said Valeant is in intimate discussions with rtners on selling some non-core assets and convictions to use that and other money this year to y off its debt load, which is as large-hearted as $30 billion, all told, to be id in the coming years.
Director Howard Schiller was also about a invited to tender his resignation, but Schiller has not done so. Schiller is the com ny’s former chief fiscal officer, and he served as interim CEO during Pearson’s medical leave.