Valeant Pharmaceuticals CEO stepping down as Ackman joins the board

Valeant Pharmaceuticals

Valeant Pharmaceuticals announced on Monday that its chief executive officer Michael Pearson will step down. At the same time, activist investor William Ackman was appointed to its board.

The company also revealed that its financial reports from 2015 lacked the necessary oversight needed to properly report. The company blamed its CFO and controller and the company’s performance-based environment.

The pharmaceutical giant promised to file its annual report by April 29, after missing its deadline last week.

That missed deadline led to fears of a default on its $30 billion in debt and drove its shares down 50% in a single day.

On Monday, the stock jumped nearly 16% to $31.22.

The company has already started to search for a replacement for Pearson. Before the company’s collapse he had pushed its stock price to a record high of $263 in August 2015.

The company has come under fire by two state attorney generals who opened investigations into its drug pricing. The company’s very profitable dermatology franchise also took a big hit after it walked away from a distribution through pharmacy Philidor Rx Services.

Following the collapse of Philidor, the company’s board uncovered revenue recognition and other accounting problems, the company said.

“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,” Pearson said in a statement.