Valeant’s Pearson Is Out, As Hunt Begins For A CEO To Right The Wrongs
This article was originally published in The Pink Sheet Daily
Valeant has begun the search for a new CEO, who will be charged with turning around the troubled company and likely divesting some assets. The company also calls out former CFO Howard Schiller for “improper conduct.”
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Six pharma deals announced thus far in 2016 carried up-front values of $1 billion or more, down considerably from the high-volume, high-value M&A industry experienced the prior two years. Pharma manufacturers appear to be recalibrating – digesting previous acquisitions, adjusting to new biotech valuations and taking stock of the political and macro-economic climate – but fundamentals suggest pharma dealmaking will pick up. Pfizer’s $14 billion offer for Medivation might represent a turning point.
The troubled drug maker received a notice of default from bondholders, while CEO Michael Pearson agreed to be deposed by the Senate’s Special Committee on Aging April 18.
As with its Medicis buyout in 2012, Valeant is acquiring another company to serve essentially as a therapeutic division within the specialty pharma the Canadian firm is cobbling together from relentless M&A activity. Buying B&L will increase Valeant’s eye care holdings substantially.