On Monday, the stock jumped almost 16% to $31.22 in NY trading.
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In a Monday statement, the board also announced that activist investor Bill Ackman is joining the board.
Valeant also said an internal committee review concluded that the company’s heavily performance-based focus may have affected compensation decisions for some top managers and contributed to the company’s improper recognition of revenues.
“The improper conduct of the company’s former Chief Financial Officer and former Corporate Controller, which resulted in the provision of incorrect information to the committee and the company’s auditors, contributed to the misstatement of results”, Valeant said.
While Schiller did not agree to step down, Katherine Stevenson voluntarily resigned from Valeant’s board because the panel’s current maximum size is fixed at 14 members, the company said.
Last week, the stock closed down more than 51 percent in one day when the company slashed its 2016 revenue forecast and said that a delay in filing its annual report could pose a debt default risk.
TheStreet Ratings rates this stock as a “hold” with a ratings score of C. The company’s strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. Since August, it has lost $80 billion in market value.
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William Ackman, founder and CEO of hedge fund Pershing Square Capital Management, speaks during the … However, following the issues the company has faced as of late, he will be stepping down. The company gave no guidance on how much of that debt it plans to pay down this year.
Valeant said in a release that its financial statements for the fourth quarter and full year of 2014, as well as financial statements through September 2015, should not be relied on and will be restated.
Valeant is now looking for a new CEO to lead the company, and Mr. Pearson would remain the incumbent CEO until the company finds his successor. Mr. Pearson said the drug maker was facing “a bit of a starting-over point” and that there was work to be done to regain investor credibility after months of investor confusion about Valeant’s financial reporting and operations. The company did not specify whether he is resigning or if he had been asked to leave.
Valeant is under investigation by both state and federal agencies, including the Securities and Exchange Commission. That strategy drew criticism from Congress when Valeant bought up existing drugs, including treatments for serious heart conditions, and then raised their prices aggressively.
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Hempton said Valeant is now guiding for $6 billion in earnings before interest, taxes, depreciation and amortization from just over $10 billion in revenue.
