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Matt Levine

Valeant Sold Some Drugs Twice

Double counting usually isn't a great idea.

The crazy news out of Valeant continued this morning with a wild press release announcing, among other things, that Chief Executive Officer J. Michael Pearson is going to leave, but not yet, and that the board asked former Chief Financial Officer Howard Schiller to resign from the board, "but Mr. Schiller has not done so." 

What is it about Valeant that has this effect on people? Every Valeant catastrophe seems to cause Bill Ackman  to increase his ties to the company; today's press release also mentioned that Ackman is joining the board himself.  Pearson got so sick last year that he "was learning to walk again" when he came back to the company a few weeks ago, but he plans to stick it out as CEO until his successor is appointed. And the board asked Schiller to leave after finding that he engaged in "improper conduct" as CFO, but Schiller denies it, and so has "respectfully declined the request from the company’s board to resign from the board." (Those will be some fun board meetings!) No matter how bad things get, Valeant can't get rid of anybody. The rats are fleeing toward the ship.