NEW YORK, Nov 6 (Reuters) - Valeant Pharmaceuticals (N:VRX)
International said on Friday that Goldman Sachs (N:GS) sold 1.3 million
shares of Valeant on Nov 5 that were securing loans made to its
CEO Michael Pearson (L:PSON).
Valeant shares on Thursday closed at $78.77 after having
fallen as much as 20 percent during the session. The company has
been under pressure over scrutiny of its high price markups and
accusations it used a pharmacy Philidor Rx Services, to inflate
revenue.
Valeant said that Pearson had pledged about 2 million shares
as collateral for loans of about $100 million that he used for,
among other things, financing charitable contributions,
purchasing Valeant shares, and meeting tax obligations related
to vesting and payment of Valeant equity awards.
Goldman Sachs required repayment of the loans and sold the
shares in order to be able to repay them in full, the company
said.
"It was not my desire that shares be sold now," Pearson
said. "I have the complete confidence in Valeant's ability to
move forward."