Valeant CEO Michael Pearson goes on medical leave after pneumonia bout

Valeant Pharmaceuticals CEO J. Michael Pearson is taking a medical leave of absence after he was hospitalized with pneumonia.

Valeantsays three executives will take over for Pearson:

• RobertChai-Onn, general counsel.
• AriKellen, company group chairman.
• RobertRosiello, chief financial officer.

Shares of the troubled Montreal-basedpharmaceutical company fell 10per cent in in New York on Monday in reaction to the newsabout Pearson's medical leave. No timeline was given for his return.

"Out of respect, we will be honouring his family's request for privacy and will not be commenting further on his condition at this time," the company said in a release.

• Valeant shares plunge to 2-year low as Congress probes drug pricing

Pearson's leave comes two weeks afterValeantPharmaceuticals International Inc. slashed its fourth-quarter financial predictions and issued a profit outlook for 2016 that was short of Wall Street's estimate.

The company's sales have been hurt after ending a distribution arrangement with mail-order pharmacy Philidor, following scrutiny from Congress and the media over drug pricing.

Valeant was briefly the most valuable company in Canada during the spring of 2015 before the series of negative stories knocked the company's value from almost $350 per share to under $100.