Valeant Pharmaceuticals Intl Inc (NYSE: VRX)
Valeant Pharmaceuticals has come across some hard times as of late. Between the claims of the company being the Enron of the pharmaceutical industry, investigations, and their relationship with a less than reputable pharmacy, the stock has fallen. Now, even more bad news has hit the company. The CEO, J. Michael Pearson, is incredibly ill. At first, we heard that Pearson was going on a leave of absence. Now, it seems as though things may get even more grim. Early this morning, it was announced that VRX had appointed an interim CEO. Today, we’ll talk about the health struggles that Pearson is facing, who the appointed interim CEO is, and what we can expect to see from VRX moving forward.
J. Michael Pearson Is Very Sick At The Moment
J. Michael Pearson, the CEO of Valeant Pharmaceuticals, has been in the hospital for some time now. While the family has requested that his condition remain private, we do know that he is suffering from a severe case of pneumonia and that he has been for quite some time. In fact, more than a week ago, VRX investors learned that Pearson was on a medical leave of absence. While the details of his condition are being held under wraps, it seems as though things are going from bad to worse. VRX announced today that they have appointed an interim CEO, insinuating that, at the very least, Pearson will be on an extended medical leave.
Valeant Appoints Howard B. Schiller As Interim CEO
Howard B. Schiller has now taken on the role as interim CEO at Valeant. While this may be a cause for concern for investors, Schiller is no newbie when it comes to running a company the size of VRX. In fact, he has been the CEO at Valeant in the past. From December 2011 through June of 2015, Schiller acted as the CEO of the massive pharmaceutical company. Even after his stint as CEO of the company, Howard B. Schiller served on the company’s Board of Directors. In a statement, Robert Ingram, Lead Independent Director and interim chairman of the Board of Directors, had the following to say:
“As Mike’s medical leave continues, and the timing of his recovery and return remains uncertain, Howard will now step in as CEO on an interim basis. Howard’s performance as Valeant’s CFO, as well as deep understanding of Valeant’s operations, are excellent and we are grateful that he has agreed to take on this role. The Board will continue to work closely with Howard and the other members of the senior management team to implement Valeant’s strategy successfully in Mike’s absence.
We appreciate the expressions of support and concern for Mike’s health that we have received from Valeant’s investors, employees, business partners and other stakeholders. While Mike’s illness was sudden and unexpected, our strong management team has stepped in to keep our businesses on track and thriving. We particularly appreciate the leadership of Rob Chai-Onn, Ari Kellen and Rob Rosiello at this important time.”
What We Can Expect To See Moving Forward
First and foremost, today isn’t likely to be a strong day for VRX. Unfortunately, when bad news is produced with regard to a company, we tend to see a negative reaction in the market. However, the declines we’re likely to see in the short run can be considered a door opening to opportunity. The reality is that VRX has bounced back from recent struggles in a big way. They have gotten the press under control and even signed an agreement with Walgreens that is likely to increase their sales. All in all, things are looking great for the long term outlook at Valeant Pharmaceuticals.
What Do You Think?
Where do you think VRX is headed and why? Let us know your opinion in the comments below!
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