Valeant could have new CEO ‘in a matter of weeks’, investor says
Valeant Pharmaceuticals International Inc.’s search for a new chief executive officer could be done sooner rather than later, said board member and investor Bill Ackman, whose Pershing Square Capital Management LP is one of the drugmaker’s biggest holders.
“We’re cautiously optimistic it’s a matter of weeks and not months in terms of identifying new management for the company,” Ackman said on a Pershing Square investor conference call Wednesday. “There is not a list for 100 candidates for the job, there’s probably a handful of top candidates. Because of all the M&A activity in pharma, there are lots of candidates who are available, and there are also people in other businesses that find this opportunity extremely attractive.”
Valeant’s shares lost more than 90 per cent of their value from their peak in August after the company was questioned over its drug prices, criticized by presidential candidates, investigated by U.S. Congress, and cut ties with mail-order pharmacy Philidor Rx Services. The company said last month CEO Mike Pearson will leave when a successor is found, after the drugmaker reported weak fourth-quarter results.
“The best time to be CEO is when expectations are extremely low and the starting valuation is extremely low, and Valeant certainly offers that,” Ackman said on the call. “We can restore value here very, very quickly.”
A spokeswoman for Valeant didn’t immediately respond to a request for comment.