Valeant announces CEO succession plan and changes to board of directors

Company's chairman of the board says he is confident that the company will be able to rebuild its reputation and thrive under new leadership.

Valeant has announced that the board has initiated a search to identify a candidate to succeed J. Michael Pearson as CEO. Mr Pearson will continue to serve as CEO and a director until his replacement is appointed.

Robert Ingram, chairman of the board, stated: "While the past few months have been difficult, Valeant has a collection of leading brands, valuable franchises and great people, and I am confident that the company will be able to rebuild its reputation and thrive under new leadership. We thank Mike for his dedicated service to Valeant and for agreeing to stay on until we conclude our search. As a colleague and a friend he will be missed, and we wish him the best for the future."

"It's been a privilege to lead Valeant for the past 8 years," said J. Michael Pearson, CEO. "While I regret the controversies that have adversely impacted our business over the past several months, I know that Valeant is a strong and resilient company, and I am committed to doing everything I can to ensure a smooth transition to new leadership."

Valeant has also announced that William A. Ackman, CEO of Pershing Square Capital Management, LP, will join its board of directors, effective immediately. Mr Ackman, whose firm has a 9.0% stake in Valeant, will join Pershing Square's Vice Chairman, Stephen Fraidin, on the board. As the maximum size of Valeant's board currently is fixed at 14 directors, Katharine B. Stevenson voluntarily resigned from the Board to create a vacancy to permit Mr Ackman's appointment. The Board requested that former CFO Howard Schiller tender his resignation as a director, but Mr Schiller has not done so.

Robert Ingram, chairman of the board said: "We look forward to Bill Ackman's perspective and contributions as a new member of our board and one of Valeant's largest shareholders. The Board thanks our valued colleague, Kate, for her service on our Board and for voluntarily offering to step down in order to allow Bill Ackman to join the Board."

William A. Ackman, CEO of Pershing Square, said: "I am looking forward to working with the board to identify new leadership for Valeant. The company's large-scale and dominant franchises in eye care, dermatology, GI, and other therapeutic areas coupled with its extraordinarily low valuation present a spectacular opportunity for a world-class health care executive. On behalf of all shareholders, we are extremely appreciative of Valeant employees' hard work and commitment during this challenging time for the company."