Embattled Canadian drug company Valeant Pharmaceuticals said that it will hold another conference call on Tuesday in the wake of its stock’s plunge.
The first call had been criticised by hedge fund manager Bill Ackman for being too “scripted.”
The conference call will be held Tuesday, November 10 at 8:00 a.m. ET.
The call will provide an “overview of current plans and priorities, including the transition plan from Philidor, and an update on the Company’s operations,” the company said.
There will be also questions after.
Shares of Valeant have plunged after Citron Research, a short-selling firm led by Andrew Left, issued a report on October 21 suggesting the company was running an Enron-like fraud. The company has denied any wrongdoing. Before that, the company had been scrutinised for drug-price increases, which has become a hot-button issue in Washington.
The stock has fallen more than 44% since the Citron report came out.
The company hosted its initial all-hands call addressing Citron’s allegations on Monday, October 26.
The following day, hedge fund manager Bill Ackman, the third largest shareholder of Valeant, sent a strongly worded email to Valeant CEO J. Michael Pearson.
“Your reputation is at grave risk. Valeant has become toxic. Even we are very concerned,” Ackman wrote in an email sent at 6:52 a.m., according to The Wall Street Journal’s Monica Langely.
That same morning, Pershing Square sent out a press release that it would be hosting a call of its own with investors to discuss its investment in Valeant.
After sending that email, Ackman called into Valeant’s board meeting telling its members they needed to “come clean” and host another conference call that day, the Journal report said.
That didn’t happen.
“If Mike hides in his bunker on this, he can’t be CEO,” Ackman told the company’s lead director, Robert Ingram of Hatteras Venture Partners.
His point was that Pearson shouldn’t hide. Instead, he should get out there and answer everything, unscripted.
On his own call last week, Ackman said he would have “appreciated more colour” from Valeant’s management as opposed to a “scripted” conference call. He also noted that his fund strove to be transparent and that he wanted Valeant to do the same. He felt as if Valeant failed to adequately address some key questions on its call.
Here’s the release from today:
Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) announced that the Company will provide a business update for investors on a conference call to be held Tuesday, November 10, 2015 at 8:00 a.m. ET.
J. Michael Pearson, Chairman and Chief Executive Officer, together with Robert Rosiello, Chief Financial Officer, Dr. Ari Kellen,Company Group Chairman, Deb Jorn, Company Group Chairman and Tanya Carro, Corporate Controller, will conduct the call.
The conference call on November 10 will consist of an overview of current plans and priorities, including the transition plan from Philidor, and an update on the Company’s operations. Immediately thereafter, there will be a question and answer segment for investors and analysts.
Valeant intends to host an Investor Day and update its annual and quarterly financial guidance prior to the end of 2015.
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