Tough times may be ahead for Valeant Pharmaceuticals, a leading drug company based in Laval, Quebec.
When the CEO of Valeant Pharmaceuticals International Inc. fell ill with pneumonia, panic began to spread throughout the company. Now, according to a report from Bloomberg, the chief executive’s current status is unknown and the company’s stock plummeted 57 percent from its high point due to a number of scandals.
J. Michael Pearson, aged 56, was admitted to the hospital on Christmas. A spokeswoman from the company, Laurie Little, revealed on Friday that the CEO was admitted and treated, but declined to provide more details about the boss’s illness. “We wish him a speedy recovery and look forward to him returning to work when he is feeling better,” Little said. “We will be respecting Mike and his family’s privacy during this time and will provide further details on his condition as appropriate.”
The company’s stock has dropped 57 percent from its high point in August, but Pearson remained optimistic as he spoke to investors about new products with high growth potential last week. He promised shareholders that data would be more transparent moving forward, but reports of the meeting revealed that the CEO’s tone was defiant and unapologetic about the company’s long term strategies.
Valeant has drawn criticism in recent months from legislators and shareholders for using mail-order pharmacies, increasing prices, and acquiring a number of businesses with the hopes of growing.
Pearson’s recent deal with Walgreens Boots Alliance Inc. to sell Valeant’s products in their pharmacies at a discount represents the company’s efforts to demonstrate sound practices to their investors, but the company’s stock paints a different picture altogether.
While Pearson is expected to make a full recovery, it remains unclear whether or not investors will regain confidence Valeant.
A press release from Valeant describing their current financial situation can be found here.