Valeant CEO Mike Pearson Will Step Down

The transcript discusses Valiant Pharmaceuticals' decision to replace CEO Mike Pearson and appoint Zachman to the board. It highlights issues during an earnings call, including communication problems and financial misstatements. The company faces internal control weaknesses and board dynamics challenges, with Howard Schiller refusing to step down. The impact on stock prices and future prospects, including potential divestitures, are also covered.

What major change did Valiant announce regarding its leadership?

• They replaced the CEO and named Zachman to the board.

• They merged with another pharmaceutical company.

• They expanded their board of directors.

• They appointed a new CFO.

What financial discrepancies were found in Valiant's reports?

• Overstated 2015 revenue by $100 million.

• Misstatements reduced 2014 net income by $33 million.

• Understated 2014 EPS by 9 cents.

• Overstated 2014 net income by $50 million.

Who are the key investors mentioned in relation to Valiant's management changes?

• Carl Icahn and George Soros

• Bill Ackman and Jeff Oven

• Peter Thiel and Elon Musk

• Warren Buffett and Charlie Munger

What was Howard Schiller's response to the board's request for him to step down?

• He was undecided about his decision.

• He agreed to step down after a month.

• He refused to step down.

• He immediately resigned.

What impact did the announcement of Mike Pearson's departure have on Valiant's stock?

• The stock price doubled.

• The stock was halted and then dropped by 5%.

• The stock price remained stable.

• The stock price increased by 10%.

What was one of the reasons analysts did not initially change their view on Valiant?

• They believed the company had strong future prospects.

• They were confident in the new CEO's abilities.

• They were unaware of the financial misstatements.

• They thought the management issues were resolved.

What is Valiant's plan regarding the search for a new CEO?

• They are not planning to replace the CEO.

• They are considering merging with another company instead.

• They are searching for a successor while Pearson stays on temporarily.

• They have already appointed a new CEO.