UPDATE 1-Valeant says CEO Pearson to step down, names Ackman to board

(Adds details, background, stock price)
March 21 (Reuters) - Embattled Canadian drugmaker Valeant
Pharmaceuticals International Inc VRX.N VRX.TO said on Monday
that Chief Executive Michael Pearson (LON:PSON) will step down and that the
company appointed activist investor William Ackman to its
board.
Shares rose 3.8 percent to $28 in early trading.
Valeant, which has not filed audited fourth-quarter 2015
earnings, also said it is restating first-quarter 2015 results
and pledged to file its annual report on or before April 29.
The company said it had started a search for a successor to
Pearson, who used a deal-making strategy and drug price
increases to drive double-digit profit growth and push the stock
up to a peak of $263 last August.
Pearson's strategy ran into trouble last fall as two state
attorneys general opened investigations into its drug pricing.
Also, the company's profitable dermatology franchise faltered as
it walked away from distribution through pharmacy Philidor Rx
Services due to investor and media scrutiny.
"It's been a privilege to lead Valeant for the past eight
years," Pearson said in a statement. "While I regret the
controversies that have adversely impacted our business over the
past several months, I know that Valeant is a strong and
resilient company, and I am committed to doing everything I can
to ensure a smooth transition to new leadership."
Pearson, a former McKinsey consultant, was out on medical
leave for two months and returned to the company only a few
weeks ago. Howard Schiller, its former Chief Financial Officer
and a board member, took over as interim CEO.
On Monday the company said Schiller had been asked to leave
the board and refused to do so.
Ackman, who has lost billions of dollars on the shares since
he bought in early last year, said he would be more closely
involved and named a proxy to the board as it added three new
members two weeks ago.
Last week the company announced it would not hit 2016
earnings targets and would need to seek waivers from lenders
because of the delay in its annual report.
Shares fell sharply, causing Ackman more than $700 million
in losses in one day of Valeant trading.