UPDATE 1-Valeant CEO agrees to be deposed by Senate committee

(Adds background, comments by the committee's top Republican
and Democrat, and spokesman for Pearson (LON:PSON))
By Sarah N. Lynch
April 13 (Reuters) - Valeant Pharmaceuticals (NYSE:VRX) International
Inc's VRX.N VRX.TO outgoing chief executive, Michael
Pearson, consented to be deposed by a U.S. Senate committee
later this month, after the panel threatened to hold him in
contempt for failing to comply with a subpoena.
The Senate Special Committee on Aging said on Wednesday that
Pearson will be deposed on April 18 ahead of an April 27
hearing that is part of its ongoing investigation into the
rising prices of off-patent drugs, including two of Valeant's
heart medications.
The deposition and hearing are coming at a critical time for
the company, which is facing an onslaught of federal
investigations into a wide variety of issues, from drug pricing
and antitrust matters to its accounting and disclosures.
The panel had been slated later on Wednesday to vote on
whether to initiate contempt proceedings against Pearson, after
he failed to show up last week for a deposition.
The committee said it postponed the meeting after Pearson
agreed to be interviewed under oath.
"We look forward to hearing Mr. Pearson's testimony," said
the panel's chairman, Susan Collins, and its ranking Democrat,
Claire McCaskill, in a joint statement.
"This deposition and investigation are about better
understanding the dramatic price increases we're seeing for
decades old prescription drugs and how those prices are
affecting consumers - and we're committed to being thorough in
that pursuit."
Pearson's attorney, Bruce Yannett of Debevoise & Plimpton,
had previously asked the committee not to require Pearson to be
deposed before the hearing, saying he was tied up handling the
company's financial problems and did not have adequate time to
prepare.
"Following discussions between the committee's staff and his
lawyers, Mr. Pearson looks forward to testifying at the
hearing," said Tom Orewyler, a spokesman for Debevoise &
Plimpton.
The company had to delay the filing of its annual report,
and it has also been on the verge of defaulting on its $30
billion of debt.
Last month, the company said Pearson would be departing as
CEO and that billionaire investor William Ackman would join the
board as it tries to clean up its accounting problems, which the
company says were caused by "improper conduct" by certain top
executives.