Valeant Announces Withdraws Prior Guidance, Announces CEO Mike Pearson Will Return To Work Immediately Following Pneumonia Scare

Shares of Valeant Pharmaceuticals Intl Inc VRX plunged more than 8 percent early Monday morning after the company issued a business update over the weekend. Valeant confirmed that Michael Pearson will resume his role as CEO, effective immediately. The executive was hospitalized following a pneumonia scare but has since fully recovered. Valeant also announced that it will reschedule a previously announced conference call to discuss its preliminary fourth quarter results, deliver a business review, and provide updated guidance for 2016. The company cited the "timing of Mr. Pearson's return" and added that it is also withdrawing its prior guidance. Valeant continued that it will provide preliminary fourth quarter commentary and 2016 guidance "in the near term" and will also delay the filing of its 2015 10-K pending "completion of the review of certain accounting matters by the Ad Hoc Committee." Finally, Valeant confirmed that its fully owned subsidiary, Salix Pharmaceuticals, received a notice from Actavis which stated that the U.S. Food and Drug Administration (FDA) received Actavis' Abbreviated New Drug Application (ANDA) containing a patent certification seeking approval to market a generic version of Salix's Xifaxan. Valeant noted that it is "highly confident" in its property rights relating to Xifaxan and will "vigorously enforce such rights in all applicable venues."