Valeant Pharmaceuticals Intl Inc’s Interim CEO, Howard Schiller, does not know when J. Michael Pearson will return from his medical leave. Schiller made the announcement at the ongoing JPMorgan Healthcare conference, in his public appearance since his appointment.
Pearson was hospitalized with severe pneumonia late last year forcing the embattled pharmaceutical giant to name Schiller as his replacement until he comes back. It is still unclear whether Pearson is still hospitalized.
“It truly wasn’t the script or the circumstance under which I would have ever wanted to come back to Valeant,” said Mr. Schiller,
Valeant Drug Pricing Woes
Valeant Pharmaceuticals Intl Inc has seen its prospects turn sour in the market in the wake of the drug pricing scandal. Sentiments have drastically changed for the once high-flying stock that shed more than 70% in market value last year.
The Canadian company has for some time been the subject of fierce scrutiny by Congress and Federal prosecutors over its distribution and pricing practices. Revelations about its relationship with controversial mail order pharmacy Philidor has all but dented its image in the business. It has since severed ties with the company having inked a distribution agreement with Walgreens Boots Alliance Inc.
Pursuing Organic Growth
Schiller has reaffirmed his commitment to steering the company from the current mess having reiterated the current team were not ‘caretakers.’ No major initiatives have been announced so far, but the interim executive says they are continuing the company’s course.
Paying down debt remains Valeant Pharmaceuticals Intl Inc big play this year away from the usual play of pursuing large acquisitions for growth. Schiller has also confirmed they are not planning any major price increases in drugs.
Valeant Pharmaceuticals Intl Inc has already reiterated its adjusted earnings for 2016 which it expects to come in at between $6.9 billion and $7.1 billion. The confirmation all but reaffirms the fact that the company is not altering its strategy in the absence of Mr. Pearson. The company is also pushing forward with the development of new drugs as it pursues organic growth.