Controversial drug company CEO is hospitalized with pneumonia

Has Valeant Pharmaceuticals Lost Both Its Unwavering Pillars- Pearson and Ackman

On the eve of Christmas season when everyone was enjoying with their family members dining together and doing fun, J. Michael Pearson was struggling for the severe case of pneumonia in hospital. 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", said Little. They presently have a $175.00 price objective on the specialty pharmaceutical company's stock.

Valeant has been absolutely hammered lately by accusations of artificially pumping up sales, causing its stock to plunge 57 percent since August - but what exactly do people say the drugmaker has been doing, and what could be the future consequences?

Vetr downgraded shares of Valeant Pharmaceuticals Intl Inc. (NYSE: VRX) from a strong-buy rating to a buy rating in a research note issued to investors on Tuesday, Analyst Ratings Net reports.

Pearson and Valeant have staunchly denied the claims. The stock has a market cap of $39.15 billion and a price-to-earnings ratio of 65.54. Most notably, William Ackman's Pershing Square Capital Management hedge fund lost over 17 percent through November.

Pearson has promised to increase the transparency of the company's business data as well as to release the figures for the top 30 drugs in its portfolio. However, rather than being apologetic, his tone was more defiant while talking about the business strategies of the company.

Controversial drug company CEO is hospitalized with pneumonia
Controversial drug company CEO is hospitalized with pneumonia

The goal of this deal is to replace the controversial mail-order pharmacy program that was run by Philidor Rx on behalf of Valeant. Still, Valeant's price hikes are the subject of investigations by the U.S. Congress and federal prosecutors in NY and MA.

A former consultant at McKinsey & Co., Pearson became Valeant's chief executive in 2008 and oversaw a period of rapid growth and a meteoric rise in the company's stock price.

Valeant earlier this month cut its expectations for the fourth quarter and all of 2015 and issued a guarded outlook for 2016 mainly due to lower sales.

 

In addition, the company, which is now facing scrutiny over its allegedly questionable business practices, has been accused of running a secret network of pharmacies as well as fraud, Fortune reported.

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