Valeant Pharmaceuticals Intl Inc VRX reacted Thursday to the recent stock transactions made by its former CEO Michael Pearson. The pharmaceutical firm still believes Pearson remained a significant shareholder with more than 3.5 million shares. The ex-CEO is required to retain one million shares for two years after the termination of his employment.
According to the company, Pearson exercised and sold options representing about 4.4 million shares. The company indicated those options would expire within the next 12 months.
After falling Wednesday afternoon, shares traded recently at $22.49, up 4 percent on the day.
Valeant also said Pearson sold about 411,000 shares in June and July to meet tax obligations in respect of the last year margin sale conducted by Goldman Sachs, and for additional liquidity.
The company's chairman and CEO, Joseph Papa, said, "Mike's personal stock transactions are not a reflection of the ongoing viability of Valeant. I joined Valeant in May because of the opportunity to lead a company with a highly diversified portfolio of leading global brands, a durable consumer franchise, and a strong new product pipeline. While I knew there would be challenges, I am confident that we are taking the right steps to stabilize the company and deliver stakeholder value to patients, prescribers and shareholders."
Pearson commented, "I continue to believe in Valeant, Joe and the rest of the management team. While I trimmed my ownership position for personal reasons, I plan on holding my remaining shares until the company recovers and returns to being traded on fundamentals."
Papa indicated its R&D team expects three significant regulatory events next week in respect of brodalumab, latanoprostene bunod and Relistor Oral.
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