After weeks of delay, Valeant Pharmaceuticals on Friday filed its 2015 annual report with regulators, a significant move that will help the beleaguered drug maker avoid default on more than $30 billion in debt. At the same time, the company overhauled its board, shrinking it to 11 members from 14.
The steps come following withering scrutiny during a Senate hearing earlier this week in which both Michael Pearson, the outgoing Valeant chief executive, and Bill Ackman, the hedge fund investor and Valeant board member, admitted that jacking up the prices of drugs to sky-high amounts was a mistake. And during that session, Ackman promised that leadership, as well as pricing changes, are planned.
As expected, Pearson is stepping down from the board. His replacement, former Perrigo Chief Executive Joe Papa, begins work next week and was nominated to join the board, along with seven existing board members. This group includes Ackman, who heads Pershing Square Capital Management. The company also plans to bulk up its governance committee by adding three independent board members.
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