Controversial drug company Valeant Pharmaceuticals, which has been under fire for drug-pricing practices, has added new board members as part of an effort to reassure investors. Bobbi Rebell reports.
Controversial Canadian drug company Valeant pushing forward in a comeback drive. It appointed three new board members to help just-returned CEO Mike Pearson plan the next moves for the troubled company. The stock rose on the news. Pearson was on a two-month medical leave. Valeant's problems are extensive. Its stock is down 75 percent since August, and it has $30 billion in debt. Valeant is under investigation for drug pricing practices, and its relationship with Philidor RX Services, which sold its products and has been dissolved. Valeant also delayed its earnings release and is restating financials. One of the new board seats went to Pershing Square. That hedge fund is run by activist investor Bill Ackman, whose stake in the company has lost two-thirds of its value since he bought in last year. S&P Investment Advisory Services' Jeffrey Loo: (SOUNDBITE) JEFFREY LOO, EQUITY ANALYST, S&P INVESTMENT ADVISORY SERVICES (ENGLISH) SAYING: "He would take, you know, a very sizable loss if he did leave right now. But, time and time again, he has stated that he believes in Valeant. He believes it's a highly valuable asset for him, and he believes that it, at its current price, it is highly attractive." Loo adds that Ackman has talked about a possible break up or sale of the company, which they say could make sense. The company grew through aggressive and often expensive acquisitions. Valeant is now scheduled to release its fourth quarter earnings and hold a conference call on March 15th.