VRX Bausch Health Cos

By Austen Hufford 

Michael Pearson, the head of Valeant Pharmaceuticals International Inc. who is out on medical leave, said he is "on the road to recovery" in a statement issued Monday by the drugmaker.

Mr. Pearson was hospitalized around Christmas for pneumonia. The company initially appointed a three-man office of the chief executive to lead the company during Mr. Pearson's medical leave but earlier this month named Howard B. Schiller as interim chief executive.

In a memo to employees, Mr. Pearson didn't say when he would return to work, other than he looks "forward to being back at work when able." He said "some unexpected complications resulted in a longer hospital stay than anticipated."

Mr. Pearson, 56 years old, has been the architect of Valeant's business strategy, which focused on buying and selling existing drugs--often with steep price increases--over the traditional drug-industry model of investing in research. He also was leading the company's response to recent controversy about the approach.

This week, Mr. Schiller is expected to testify at a congressional hearing that will explore drug-price increases.

"While the past few months have been difficult, I am convinced we will emerge stronger than ever," Mr. Pearson said Monday.

Before Mr. Pearson was hospitalized, Valeant announced a long-term distribution agreement with Walgreens Boots Alliance Inc. that was aimed at boosting sales. The move came after Valeant cut ties with a mail-order pharmacy that it had counted on for sales growth.

Separately, Valeant said the U.S. Food and Drug Administration has accepted for review the application for brodalumab injection, a treatment for patients with moderate-to-severe plaque psoriasis. Valeant is developing the treatment with AstraZeneca PLC.

The FDA has agreed to make a decision on the treatment by Nov. 16.

Shares of Valeant, down 24% over the past three months, rose 2.7% to $91 in premarket trading.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

January 25, 2016 08:33 ET (13:33 GMT)

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