Sector News

Valeant appoints Tyco's Sam Eldessouky corporate controller

June 24, 2016
Life sciences

Valeant Pharmaceuticals International Inc appointed Tyco International Plc executive Sam Eldessouky as corporate controller as the Canadian drugmaker works to rebuild its reputation amid criticism of its accounting methods.

Valeant said in March that “improper conduct” by former Chief Financial Officer Howard Schiller and former Corporate Controller Tanya Carro had contributed to a misstatement of its financial results.

Eldessouky’s appointment follows the replacement of Michael Pearson as chief executive by Joseph Papa, former CEO of drugmaker Perrigo Co Plc, and the resignation of former Executive Vice President Deb Jorn.

Schiller stepped down as CFO in 2015 but stayed on as a member of the board. He will not stand for re-election.

Eldessouky joined Tyco in 2004, two years after senior managers including Chief Executive Dennis Kozlowski were charged with looting more than $150 million from the company. He leaves as controller and chief accounting officer of the security systems maker.

Valeant said Eldessouky would direct accounting and financial reporting activities to ensure accurate and timely compliance with all internal and external requirements. He starts on May 31.

The drugmaker, a former investor favorite, has lost about 60 percent of its value since March 14, the day before it said a delay in the filing of its annual report could put it at risk of a default on its borrowings.

Apart from the company’s financial problems, it has faced criticism for its practice of sharply increasing the prices of the drugs acquired through a slew of takeovers.

Valeant said on Tuesday it was reviewing its compensation policies for executives to reflect the current environment.

The company’s U.S.-listed shares, which traded as high as $263.81 in August, were down 1.7 percent at $26.64 at midday on Thursday. Its Toronto-listed shares were down 1.4 percent at C$34.55.

By Amrutha Penumudi

Source: Reuters

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