Morning Briefing
Summaries of health policy coverage from major news organizations
Another SEC Investigation Of Valeant Underway
The Wall Street Journal: Valeant Under Investigation By SEC
Valeant Pharmaceuticals International Inc. on Monday said it was under investigation by the Securities and Exchange Commission, and the Canadian drug company’s stock sank to the lowest level in three years. The SEC has requested information about Valeant’s now-terminated relationship with drug distributor Philidor Rx Services LLC, and Valeant has submitted emails, financial documents and other data to comply with the request, according to a person familiar with the matter. (McNish and Rapoport, 2/29)
STAT: Already Facing Investor Concerns, Valeant Hit With Another SEC Probe
Valeant Pharmaceuticals is being investigated by the US Securities and Exchange Commission in connection with a previously undisclosed probe, a company spokeswoman said. Further details are not known, but the investigation is not connected to another earlier SEC inquiry into possible securities law violations by Salix Pharmaceuticals, which Valeant acquired last year, concerning inventory accounting. (Silverman, 2/29)
The Wall Street Journal: Valeant’s ‘Entirely New Story’ Worries Investors
It’s a whole new ballgame at Valeant Pharmaceuticals International Inc. And investors aren’t a fan of the playbook. Valeant on Sunday night pulled its guidance, cancelled its fourth-quarter conference call and said that its chief executive, Michael Pearson, would return to the helm after months of medical leave, while a board member, Robert Ingram, would take over the role of chairman. Investors sent the stock down as much as 9.5% Monday morning on the flurry of news. And one analyst is warning that there’s no way to know what’s coming next. (Farrell, 2/29)
Bloomberg: Pearson's Uncertain Return To Valeant
Welcome back, Mike! Now fix everything. It’s been a long two months for Valeant CEO Mike Pearson and his company. He’s taking the reins back after a lengthy medical leave, the company announced Sunday night. Citing the timing of his return, Valeant withdrew its forward earnings guidance and delayed (again) its fourth-quarter earnings call. Valeant needs a command performance from Pearson to stem share losses, reduce uncertainty and convince investors Valeant can move beyond the debt-and-M&A-fueled model with which Pearson built the company. (Misen, 2/29)
The Associated Press: Valeant's Stock Plunges 18 Pct As Company's Headaches Mount
Valeant Pharmaceuticals' stock tanked Monday amid ongoing turmoil over the embattled drugmaker's delayed financial results, its leader's health and government probes into what has gone wrong at the Canadian company. Even news Sunday that CEO Michael Pearson is returning immediately after nine weeks recovering from pneumonia and unspecified complications failed to buoy Valeant shares. (2/29)
