Valeant Pharmaceuticals International Inc. announced plans to file its annual report on or before April 29. The company said it would restate some results from 2014 and 2015 after accounting issues were discovered on its books. It is just the latest matter in a turbulent year for the company, which included questions regarding its drug pricing, criticism by presidential candidates, and investigations by Congress.
The company said a special ad hoc board committee has found no additional accounting issues that would require more restatements. The committee was run by Robert Ingram, chairman of Valeant’s board of directors, and included directors Mason Morfit, president of ValueAct Capital, Norma Provencio, head of the board’s audit committee, and Colleen Goggins, a former Johnson & Johnson executive. The committee reportedly conducted more than 70 interviews and reviewed over 1 million documents related to the matter.
The ad hoc committee was originally formed to review Valeant’s now-terminated relationship with mail-order pharmacy Philidor Rx Services LLC. Last year, a short seller raised questions about whether Valeant was using Philidor to inflate sales. In October, it was reported that Philidor boosted reimbursements from health insurers for Valeant by submitting claims under different pharmacy identification numbers and altering the codes on some doctors’ orders.
Valeant set up the board committee on Oct. 26 to review the Philidor relationship. On Oct. 30, Valeant announced that it would end its relationship with Philidor and the pharmacy announced it was shutting down. Last month, it was announced that Chief Executive Officer Mike Pearson will leave Valeant when a successor is found. With the conclusion of its work, the committee will now be shut down and any remaining work handed over to the board.