Valeant Pharmaceuticals Names Howard Schiller as as Interim CEO

Pharmaceutical giant Valeant has named former CFO Howard Schiller as temporary chief executive while CEO Michael Pearson remains hospitalized with a critical case of pneumonia. Schiller will take over leadership of the corporation from a team of three other top executives who have been acting as temporary heads on behalf of Valeant.

Schiller, who was Valeant’s CFO from 2011 until his resignation in June of last year, has brought much investor confidence back to Valeant amid concerns about the direction and running of the company in Pearson’s absence. Pearson, who is still the CEO, has been on an indefinite medical leave since his hospitalization on December 25th. Due to the nature of his condition, no statements have yet been made on when he is expected to resume his duties as chief executive officer.

The Canadian drug producer has seen its share of volatility in past months. An incident involving major investor Bill Ackman’s lack of confidence in Pearson’s management of the company caused other investors to sell shares in 2015. On January 4th, Ackman sold off nearly 15 percent of his stake in Valeant. The company has also seen instability arising from the possibility of more intense US drug regulations and a generally unstable 2015 pharmaceutical and biotech market.

With the naming of Schiller as interim CEO, however, at least some of the damage caused by concerns over Pearson’s absence was repaired. An increase in share price of more than 2 percent by midday trading on Wednesday indicated an increase in investor confidence. Shares peaked at $105.84 on the NYSE from an opening point of $97.50. Afternoon trading saw a slight correction, with shares reaching $102.40 by 4PM.

Schiller is set to take over as chief executive immediately, and will remain in that position until Pearson has recovered. Bob Ingram, another executive leader of Valeant, will become the interim chairman of the board. Analysts believe that a return to business as usual is what most investors are hoping for from Valeant under Schiller. This is especially important because of the already reduced projections Valeant had earlier released for profits in the fourth quarter of 2015 and the entirety of 2016.