Valeant Bulls Get Some Relief With 3 New Independent Directors

Valeant Pharmaceuticals Intl Inc VRX has been in the news a lot lately. Among the potentially unsavory news is the surprise return of CEO Mike Pearson after an extended sick leave, a cancelled conference call followed by one-on-one calls to certain bullish analysts, which then raised questions regarding proper and improper disclosure of information.

This most recent situation came shortly after news of mixed physician sentiments who attended the AAD conference where Valeant was said to have a "very strong presence" and ongoing controversies surrounding Valeant's employee departure numbers.

Besides the personal complications that have arisen for the company over the last year, Valeant also received some bad news regarding its Xifaxan 550mg when news began circulating that the FDA had received a PIV certification stating generic firm Actavis wishes to develop a generic for the drug.

While Valeant remains confident of its adequate patent protection over Xifaxan, "the recent news added fuel to the negative investor sentiment on the stock," according to a previous Benzinga report.

To add fuel to the fire, Probes Reporter penned a letter detailing an undisclosed SEC investigation into the pharmaceutical giant.

Related Link: Valeant Has Risk Of New Undisclosed SEC Probe, Report Says

Some Good News Long Time Coming

However, the tides may be turning, according to a recent Reuters article.

Citing "people familiar with the matter," Reuters announced that Valeant is to appoint three new board members.

One of the seats is designated for a Pershing Square Capital Management representative, rumored to be Stephen Fraidin.

Another seat is assumed to be filled by Fredric Eshelman, who has an extended history as an executive within the pharmaceutical sector.

No speculations regarding the third seat were provided at this time.

Reuters commented, "The move comes after a particularly rocky few weeks in which Valeant said it would restate its earnings, its chief executive officer returned from a lengthy sick leave, it postponed its scheduled earnings statement and acknowledged that the country's top securities regulator is investigating the company."

Stock Responds Positively

Investors seem pleased with the news of new board members, as Valeant was seen up 3.37 percent on Wednesday, trading at $65.28.