Valeant plans to appoint interim CEO as Pearson remains hospitalized

The drugmaker announced that Pearson was taking a medical leave of absence starting on December 28 and that the company would be run by a team of three executives, including General Counsel Robert Chai-Onn, Executive Vice President Ari Kellen and CFO Rosiello. The company’s board members Mason Morfit, Schiller and Robert Ingram were named to oversee the executives. The new distribution agreement is set to kick off this month, with or without Pearson.

Valeant share price has plunged about 60 percent since August previous year amid questions from investors, Congress and consumers about how it prices and sells medicines. Prior to joining Valeant, Schiller worked at Goldman Sachs where he served as chief operating officer for the company’s investment banking division.

The appointment of Pearson’s replacement is meant, at least initially, to be temporary, the person said.

The company last week said a group of company executives will immediately take over for its chief executive until he returns from medical leave.

Mr. Ingram has been serving on Valeant’s Board since September 2010, and was the Chairman of the Board from December 2010 to March 2011. Shares of Valeant plummeted more than 6 percent in the pre-market session on Wednesday following the news.

Pearson, 56, joined Valeant in 2008 after a 23-year career with the consulting firm McKinsey & Co., for which he served as head of its global pharmaceutical practice.

Valeant has recently come under scrutiny for its drug pricing policies, as well as its relationship with the mail-order pharmacy Philidor. When Schiller announced his resignation in April to pursue opportunities “in a private-company setting”, the stock sank; Valeant’s critics saw Schiller’s move as another blow against Valeant’s accounting credibility.