Trading in Valeant Pharmaceuticals (NYSE:VRX) was halted earlier this morning pending news. Mr. Pearson's exit could be imminent. Shares are +2.3% on robust volume.
Update: CNBC reports that the company is searching for a new CEO. Pershing Square's Bill Ackman appointed to the board. Pearson to remain until successor named. Board also wants the scalp of interim CEO Schiller.
Update: In a statement, the company announces that it has initiated the search for Mr. Pearson's replacement. Chairman Robert Ingram says, "While the past few months have been difficult, Valeant has a collection of leading brands, valuable franchises and great people, and I am confident that the company will be able to rebuild its reputation and thrive under new leadership. We thank Mike for his dedicated service to Valeant and for agreeing to stay on until we conclude our search. As a colleague and friend he will be missed. We wish him the best for the future." Mr. Pearson say, "It's been a privilege to lead Valeant for the past eight years. While I regret the controversies that have adversely impacted our business over the past several months, I know that Valeant is a strong and resilient company and I am committed to doing everything I can to ensure a smooth transition to new leadership." Board member Katherine Stevenson voluntarily resigned in order to make room for Mr. Ackman.
The company intends to restate its 2014 10-K and its 10-Q for the quarter ended March 31, 2015 related to the recognition of Philidor revenue. Accordingly, its financial statements for the six-month period ended June 30, 2015 and nine-month period ended September 30, 2015 can no longer be relied upon. The updated financial reports will be submitted to American and Canadian securities regulators no later than April 29.
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