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J. Michael Pearson

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389:. The company had raised the price of Isuprel by almost six times and the price of Nitropress by over three times. Shortly after, Democratic members of Congress attempted to subpoena Valeant for this information. As CEO, Pearson's business strategy was to eliminate "risky and inefficient" Research and Development to the equivalent of "only 3 percent of its sales" whereas "traditional big drug companies spend 15 to 20 percent of sales on research and development". Instead, he acquired dozens of companies with existing drugs and saved money by laying off their employees. This model worked and Valeant's stock price rose by over 1000%. By 2013, under Pearson's tenure, Valeant became the largest pharmaceutical company in Canada. By 2015 Pearson had "nearly $ US 3 billion in stock and options" in Valeant, with "the potential to own hundreds of millions of dollars more." Since Pearson became CEO, Valeant shares "have returned more than 2,300 per cent" making Valeant the "most valuable" performer on the 150: 22: 958: 362:, Ontario. Pearson was named CEO of the new company and in March 2011 was appointed chairman of the board. The Biovail merger allowed the company to reduce its tax rate to approximately 5% by situating its headquarters in Canada. Later, Valeant would be called upon to testify before Congress, along with Burger King, about how its 472:
Many have accused Pearson's strategy at Valeant of being a roll-up dependent on acquisitions and aggressive accounting tactics while others claim it is not. As Valeant's debt reached roughly $ 30 billion by 2016, concerns continued to be raised about Valeant's accounting practices. Notable critics of
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When pharmaceutical pricing tactics became a topic for the press and politicians in 2015, Valeant's price increase history became a major focus, with investigations revealing that the company had applied substantial price increases on many products from 2013 through 2015, including two products that
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and Valeant as examples of companies with tax advantages in a July 2015 investigation of corporate taxation. The investigation primarily focused on the advantage that foreign companies have in acquiring American companies due to their low tax rates, and members of Congress suggested that many of the
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On February 29, 2016, Pearson returned to the company. On March 15, shares in the company dropped by 50 percent following a disastrous earnings call fronted by Pearson. On March 21, 2016, Valeant reported that CEO Pearson would be leaving the company, a decision that, as reported by CNBC, "was not
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article credits Pearson's "tough tactics" for the financial success of the "fast-growing" Valeant. The article also highlights the criticism that Valeant Pharmaceuticals' controversial strategy attracted patients who are finding themselves unable to afford drugs after price hikes by Valeant. This
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Before taking over as the CEO of Valeant Pharmaceuticals in 2008, Pearson worked for them as an outside consultant in 2007. In 2008, Pearson began implementing his strategy by selling off portions of Valeant's European business to Meda AB. In 2010, Valeant and the Canadian-headquartered company
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In a conference call with Valeant investors on October 19, Pearson announced changes in Valeant's business strategy: they were to spend "more on research and development and less on acquisitions of smaller drug makers" and that there would be "minimal price increases on its products" in 2016.
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On July 31, 2020 the SEC announced that they had determined that Pearson and others had "misstated revenue transactions and included erroneous revenue allocations." Pearson agreed to pay civil penalties of $ 250,000, and to reimburse Valeant $ 450,000, representing a portion of his incentive
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On April 13, 2016 it was announced that Pearson would be deposed from his position as CEO of Valeant on April 18, 2016. The removal was ordered by the Senate Special Committee on Aging who have been probing the soaring price of prescription drugs. Pearson initially fought the decision before
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Pearson was hospitalized on December 25 and treated for severe pneumonia. Valeant's board created an office of the Chief Executive Officer to immediately take over his duties and a supporting committee to oversee the office of the CEO. The committee included Robert Ingram, president of
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mutual". The company also reported that former CFO Howard Schiller was to blame for "improper conduct" and requested he resign from the board of directors, which Schiller declined to do. Piper Jaffray & Co analysts led by David Amsellem described it as a "circular firing squad".
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In 2017, Pearson sued Valeant Pharmaceuticals for $ 31 million as compensation for his alleged wrongful termination as CEO and chairman. In December 2017, a New Jersey judge ruled that Pearson should pursue his claim by arbitration rather than through the courts.
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stated that "Valeant does not take into account tax synergies in either identifying or pricing potential acquisition targets", but articles suggested this was in contrast to previous comments made by Pearson, including a comment made during Valeant's pursuit of
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Pearson was married to Christine Siegler with four children. However, in 2013, Christine sued her husband for a divorce. Pearson had appeared on a Florida magazine with another woman several years before as a "couple". His son,
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where he graduated in 1981. The $ 30 million contribution in 2014 placed the Pearsons as fourth on Duke Forward's list of largest contributors. To make this donation, Pearson had previously taken a $ 100 million loan from
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it acquired and then raised the price 525% and 212% the same day. In response to inquiries about these price increases, Valeant's company spokesperson said "Our duty is to our shareholders and to maximize value".
397:. However, by October of that same year, negative press surrounding its pricing tactics and a particularly negative analyst report from Citron Research dropped Valeant's stock to approximately $ CDN 78 billion. 991: 1016: 895: 834: 725: 50: 1945: 1893: 921: 774: 2127: 1102: 1072: 747: 2042: 438:
Valeant's conversion to a Canadian company via the Valeant/Biovail merger in 2010 allowed the company to reduce its corporate tax rate to approximately 5%. Congress used
2117: 1728: 700: 856: 1248:"Valeant CEO says drug price increases will be modest in 2016: Facing U.S. probe into pricing of drugs, Valeant CEO Michael Pearson says company strategy to shift" 1024: 514:“if products are sort of mispriced and there’s an opportunity, we will act appropriately in terms of doing what I assume our shareholders would like us to do.” 1197: 1477: 1127: 543:
in 1984. In honor of this gift, the school named their main facility the Christine Siegler Pearson Building. In 2014, he donated $ 30 million to Duke's
1701: 1452: 1504: 1299: 444: 410: 322: 1438: 1198:"CitronResearch.com – Andrew Left, Executive Editor » Citron Research Exposes the Information that Congress Will Find if it Subpoenas Valeant" 266: 674: 646: 2132: 54: 799: 1563: 1161: 518:
Pearson was the highest paid CEO in Canada in 2015; he received US $ 182.9 million during a period when Valeant's share price fell by 30%.
2071: 569:, won an Olympic silver medal in the triathlon mixed team relay when he anchored the United States team in the 2021 Tokyo Olympic Games. 452:
in a hostile takeover attempt when he was quoted as saying "no other potential acquirer of Allergan has the...tax synergies we have".
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to answer concerns over the repercussions for patients and the health care system whom are affected by Valeant's business model.
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deals by foreign companies, including Valeant, relied upon tax advantages to be completed. During the testimony, Valeant CFO
251: 219: 2142: 864: 1785: 1597: 83: 2137: 1675: 1648: 1277: 830: 726:"Valeant's former boss Michael Pearson is suing the pharma for not paying him 3 million shares promised when he left" 540: 536: 315: 203: 123: 149: 90: 1758: 393:. By July 2015, Valeant's market capitalization was $ CDN 113 billion, which is about $ 4 billion more than the 1997: 1413: 72: 1867: 2112: 2023: 1841: 552:, who later demanded repayment of the loan in April 2014. They had previously donated $ 7.5 million to the 1759:"AZ Value Investing: Valeant: A Detailed Look Inside a Dangerous Story Well Told – PARTS I, II & III" 1247: 381:
sent a letter to Valeant seeking justification for huge price increases it put on two life-saving drugs:
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and "helped design the phone lines in some of the small towns" and also worked at global consulting firm
1816: 1529: 46: 413:. According to Reuters, Valeant shares fell "10.5 percent to $ 102.14" after the announcement on the 1920: 701:"Valeant Pharmaceuticals' Business Model: the Repercussions for Patients and the Health Care System" 619: 1073:"Skin in the game: How Valeant is using low Canadian taxes to become a global dermatological power" 553: 35: 414: 347: 337:
in 1985 and worked as a consultant there for 23 years before rising to the position of director.
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Pearson agreed to appear before a US Senate committee investigating the matter in April 2016.
334: 290: 1972:"Pharmaceutical Company and Former Executives Charged With Misleading Financial Disclosures" 984:"Valeant - Valeant Pharmaceuticals Completes Sale of Certain European Operations to Meda AB" 2102: 498: 394: 2043:"Valeant CEO Michael Pearson Lost $ 180 Million Yesterday, And $ 750 Million In Past Year" 922:"Valeant CEO Michael Pearson Lost $ 180 Million Yesterday, And $ 750 Million In Past Year" 8: 1702:"Why Is Warren Buffett's Right-Hand Man so Bearish on Valeant Pharmaceuticals Intl Inc.?" 190: 1361: 651: 254:
after being ousted in the aftermath of a report on pharmaceutical pricing published by
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agreed to merge; the resulting company was named Valeant and its headquarters are in
1786:"Bill Ackman: Who Are the Activist Investors? Why Are They Beneficial for Companies" 589: 406: 1971: 959:"Valeant's Drug Price Strategy Enriches It, but Infuriates Patients and Lawmakers" 1921:"Big Pharma CEO: 'We're in Business of Shareholder Profit, Not Helping The Sick'" 1706: 378: 307: 282: 255: 186: 166: 61: 1128:"Bernie Sanders, Elijah Cummings Question Valeant on Heart-Drug Price Increases" 1793: 566: 490: 482: 374: 368: 311: 2096: 1575: 1173: 1139: 549: 505: 363: 486: 386: 302: 501: 494: 439: 359: 286: 262: 474: 382: 366:
potentially gave it a competitive advantage over American companies. A
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pharmaceutical company executive. He is the former chairman and CEO of
1564:"Pharmaceutical Companies Buy Rivals' Drugs, Then Jack Up the Prices" 645:
Blackwell, Richard; Silcoff, Sean; Marotte, Bertrand (May 27, 2013).
1868:"Exclusive: ValueAct CEO says Valeant does not need to buy Allergan" 1414:"Valeant board ousted CEO Pearson after weekend phone calls: Source" 1222: 1304: 449: 827:"Mike Pearson's New Prescription for the Pharmaceuticals Industry" 748:"Ex-Valeant CEO must arbitrate case over unpaid stock: U.S. judge" 1894:"Valeant Fires Back at Critics Supported by Investor Bill Ackman" 956: 497:. Notable defenders of Valeant against these allegations include 355: 1300:"CEO of Embattled Drug Maker Valeant Takes Sudden Medical Leave" 926: 594: 2024:"Duke University School of Nursing Receives $ 15 Million Gift" 60:
from the article and its talk page, especially if potentially
1537: 1357:"Valeant Pharmaceuticals Confirms C.E.O. Is on Medical Leave" 1278:"Valeant selects trio to fill in for ailing CEO; shares dive" 1067: 1065: 478: 1530:"Valeant Prescription Drug Price Tracker | Price Monitoring" 1505:"Valeant Tells Congress a Different Tax Tale Than Investors" 1478:"Taxes Drove Valeant, Burger King Deals, Senate Report Says" 1453:"Valeant CEO Mike Pearson will step down - The Boston Globe" 1332:"Valeant Chief Says Timing of His Return to Work Is Unclear" 675:"Valeant Sets Incoming CEO Joe Papa's Pay at $ 67.4 Million" 1325: 1323: 1062: 775:"Valeant's Pearson builds global firm with Canadian roots" 693: 508:. Valeant defended itself against these allegations in an 310:, where he earned his BS and BSE; he was also a member of 1676:"Valeant Pharmaceuticals International: an extended look" 1390: 1386:"Valeant Says CEO J. Michael Pearson Is on Medical Leave" 1331: 1320: 800:"Valeant Pharmaceuticals Announces New CEO and Chairman" 340: 2128:
University of Virginia Darden School of Business alumni
1817:"Is Shareholder Activism the Cure for the Common Stock" 957:
Pollock, Andrew; Tavernise, Sabrina (October 4, 2015).
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pricing controversy was originally raised when Senator
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Rockoff, Jonathan D.; Silverman, Ed (April 26, 2015).
1192: 1190: 1162:"Lawmakers Seek Answers on Valeant's Price Increases" 647:"Valeant Pharmaceuticals eyes China with Bausch deal" 2072:"Valeant Pharmaceuticals' Prescription For Disaster" 889: 887: 885: 883: 881: 640: 638: 1992: 1990: 1988: 1649:"Greenberg: Will Valeant Overdose on Acquisitions?" 1271: 1269: 1267: 1265: 896:"Valeant's $ 3-billion man: CEO's big bet pays off" 857:"Valeant Pharmaceuticals International Inc (VRX.N)" 2118:Duke University Pratt School of Engineering alumni 1615: 1215: 1187: 1598:"Valeant CEO Pearson Agrees to Senate Deposition" 1503:Armstrong, Drew; Rubin, Richard (July 30, 2015). 1275: 1011: 1009: 878: 635: 323:Darden Graduate School of Business Administration 2094: 1985: 1623:"Short-Seller Chanos Turns Attention to Valeant" 1561: 1412:Wapner, Christine Wang, Scott (March 21, 2016). 1262: 2018: 2016: 1842:"VRX: Ackman Cites Buffett In Attack On Chanos" 1329: 1240: 893: 705:United States Senate Special Committee on Aging 267:United States Senate Special Committee on Aging 1522: 1502: 1017:"Valeant - Valeant and Biovail Agree to Merge" 1006: 1097: 1095: 1093: 824: 766: 535:In 2011, Pearson donated $ 15 million to the 473:Valeant and its accounting practices include 2013: 1946:"The 10 highest-paid CEOs in Canada in 2015" 1699: 1437:: CS1 maint: multiple names: authors list ( 1377: 1349: 1292: 1223:"Valeant Pharmaceuticals International, Inc" 1383: 1160:Rockoff, Jonathan D. (September 28, 2015). 1153: 952: 950: 948: 946: 944: 584: 582: 512:filing in October 2015. Pearson has stated 276: 1557: 1555: 1090: 297:with his family when he was 12 years old. 148: 53:about living persons that is unsourced or 1814: 772: 614: 612: 545:Edmund T. Pratt Jr. School of Engineering 539:on behalf of his wife who graduated from 124:Learn how and when to remove this message 1918: 1886: 941: 579: 425:Valeant's board directed him to comply. 265:and Howard Schiller appeared before the 1673: 1595: 1552: 1276:Pierson, Ransdell (December 28, 2015). 1159: 849: 736:– via business.financialpost.com. 2095: 1411: 913: 773:Blackwell, Richard (October 9, 2011). 609: 2133:People from Morris County, New Jersey 2069: 2065: 2063: 2028:Duke Medicine News and Communications 1783: 1039: 919: 493:; Jim Grant; AZ Value Investing; and 467: 409:Mason Morfit, and former Valeant CFO 341:Valeant Pharmaceuticals International 252:Valeant Pharmaceuticals International 1330:Pollack, Andrew (January 25, 2016). 154:Pearson at US Senate hearing in 2016 15: 1999:Pearsons give $ 30 million to Pratt 1125: 825:Michael Peltz (September 3, 2014). 13: 2060: 1919:Delancer, Ron (October 17, 2016). 1815:Enginalev, Ertan (July 24, 2014). 1596:Hufford, Austen (April 13, 2016). 14: 2154: 2040: 1384:Tess Stynes (December 28, 2015). 894:Milstead, David (July 30, 2015). 541:Duke University School of Nursing 537:Duke University School of Nursing 521: 920:Scott, Bartie (March 16, 2016). 559: 428: 285:, Canada. His father worked for 20: 2034: 1964: 1938: 1912: 1860: 1834: 1808: 1777: 1751: 1721: 1693: 1674:Hempton, John (June 11, 2014). 1667: 1641: 1589: 1496: 1470: 1445: 1405: 1119: 976: 818: 530: 1700:Nelson Smith (April 2, 2015). 792: 740: 718: 689:– via www.bloomberg.com. 667: 1: 2123:McKinsey & Company people 2070:Vardi, Nathan; Gara, Antoin. 572: 1250:. CBC News. October 19, 2015 762:– via www.reuters.com. 477:, who predicted the fall of 261:On April 27, 2016, Pearson, 31:biography of a living person 7: 2143:Businesspeople from Ontario 433: 163:1959 (age 64–65) 58:must be removed immediately 10: 2159: 455: 2138:American chief executives 1848:. ValueWalk. June 9, 2014 621:About: Board of Directors 328: 233: 225: 210: 182: 174: 159: 147: 140: 554:Fuqua School of Business 277:Early life and education 1602:The Wall Street Journal 1048:Valeant Pharmaceuticals 415:New York Stock Exchange 348:Valeant Pharmaceuticals 220:Valeant Pharmaceuticals 1202:www.citronresearch.com 863:, n.d., archived from 831:Institutional Investor 391:Toronto Stock Exchange 335:McKinsey & Company 320:University of Virginia 300:In 1981, he graduated 291:McKinsey & Company 200:University of Virginia 45:Please help by adding 1126:Rockoff, Jonathan D. 314:. He then earned an 1784:de Ternay, Guerric. 804:www.businesswire.com 590:"J. Michael Pearson" 395:Royal Bank of Canada 281:Pearson was born in 73:"J. Michael Pearson" 51:Contentious material 2113:Former billionaires 1568:Wall Street Journal 1365:. December 29, 2015 1280:. New York: Reuters 1166:Wall Street Journal 1132:Wall Street Journal 994:on October 25, 2015 867:on February 5, 2015 754:. December 21, 2017 377:and Representative 293:. Pearson moved to 1950:The Globe and Mail 1763:AZ Value Investing 1733:Business in Canada 1655:. January 16, 2014 1540:on October 2, 2015 1534:valeantpricing.com 1362:The New York Times 1308:. Associated Press 900:The Globe and Mail 806:. February 4, 2008 779:The Globe and Mail 652:The Globe and Mail 499:activist investors 468:Accounting tactics 244:J. Michael Pearson 142:J. Michael Pearson 1900:. October 7, 2015 1874:. August 11, 2014 1765:. August 13, 2015 1739:on August 4, 2015 248:Canadian American 246:(born 1959) is a 241: 240: 229:Christine Pearson 134: 133: 126: 108: 34:needs additional 2150: 2087: 2086: 2084: 2082: 2067: 2058: 2057: 2055: 2053: 2038: 2032: 2031: 2020: 2011: 2010: 2009: 2007: 1994: 1983: 1982: 1980: 1978: 1968: 1962: 1961: 1959: 1957: 1942: 1936: 1935: 1933: 1931: 1916: 1910: 1909: 1907: 1905: 1898:www.biospace.com 1890: 1884: 1883: 1881: 1879: 1864: 1858: 1857: 1855: 1853: 1838: 1832: 1831: 1829: 1827: 1821:Carried Interest 1812: 1806: 1805: 1803: 1801: 1796:on June 18, 2014 1792:. Archived from 1781: 1775: 1774: 1772: 1770: 1755: 1749: 1748: 1746: 1744: 1735:. Archived from 1725: 1719: 1718: 1716: 1714: 1697: 1691: 1690: 1688: 1686: 1671: 1665: 1664: 1662: 1660: 1645: 1639: 1638: 1636: 1634: 1619: 1613: 1612: 1610: 1608: 1593: 1587: 1586: 1584: 1582: 1559: 1550: 1549: 1547: 1545: 1536:. 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