Valeant Pharmaceuticals International Inc. finally responded to the investor's queries. The company claimed on Thursday that the Executive Vice President, Deb Jorn, had not been asked to leave, reiterating that she had resigned because of personal reasons.
The Executive Vice President allegedly oversaw the Canadian drugmaker's U.S. dermatology business, which had ties with Philidor Rx Services. The specialty pharmacy came under fire for using aggressive tactics to bolster insurer reimbursement, mostly for dermatology drugs.
According to Reuters, in October, Valeant already severed its connection with Philidor, which has since stopped the shop. But the Pharmaceutical company's ties with Philidor is the focus of enquiry by the U.S. Securities and Exchange Commission.
A Valeant board committee is also making its probe on the company's relationship with Philidor. The drugmaker explained, on Thursday, that the Exec Vice President's decision of departure "is not the result of an action taken by the Ad Hoc of the Board of Directors."
A Valeant board committee is also investigating the company's ties with Philidor, and the drugmaker on Thursday said Jorn's departure "is not the result of an action taken by the Ad Hoc Committee of the Board of Directors". Wells Fargo analyst David Maris, who has an "underperform" rating on the stock, stated, "This unexpected change is yet another setback and comes at an especially inopportune time, as Valeant is dealing with a number of issues on several fronts."
The change in the company was made effective immediately. It comes after three days after the return of the Chief Executive Michael Pearson from his two months of medical leave, as reported by the Irish Times.
Jorn was in charge of all the major U.S. product launches and was also portraying the roles of the general manager of the U.S. dermatology business. "She's a leader for two of their most important segments, so at a minimum, the optics of the resignation certainly do not look good," said David Amsellem, an analyst at Piper Jaffray, which has a neutral rating on the stock.
Yahoo! Finance reported that Valeant's troubles began last year. The Pharmaceuticals draw too much staunch criticism for its pricing strategy and accounting methods.
Meanwhile, Jorn's resignation was formally announced by Valeant. After the executive's resignation, the company decided to delay releasing its fourth-quarter results and to withdraw its financial forecast for the year, which allegedly only adds to the uncertainty of the investors.
