Valeant CEO Mike Pearson is stepping down, and activist investor Bill Ackman is joining the board. Fred Katayama reports.
Valeant's CEO, Mike Pearson, is stepping down, and activist investor, Bill Ackman, is joining the company's board. The embattled drug maker says Pearson is out because he failed to give enough oversight to the company's financial reports last year. Valeant said it would file its annual report on or before April 29. It had missed a filing deadline last week, opening the way for a potential default on its $30 billion in debt. The announcement drove Valeant's shares down fifty percent in one day. Caroline Humer covers the story for Reuters. (SOUNDBITE) CAROLINE HUMER, REUTERS CORRESPONDENT, (ENGLISH) SAYING: "They're saying that Pearson's, you know, performance-based focus for the company was the issue that led to these problems with the accounting that because they were so focused on driving this upward momentum in earnings, that they were doing these mergers and these acquisitions, that they were raising these drug prices. He got them into this situation that they're in now, and they don't see that he is the person to bring them out." On Monday, Valeant's stock jumped higher in New York trading. The company says it has started a search for a successor to Pearson.