Valeant says Goldman Sachs sold 1.3 million shares backing loan to CEO
NEW YORK Nov 6 (Reuters) - Valeant Pharmaceuticals International said on Friday that Goldman Sachs sold 1.3 million shares of Valeant on Nov 5 that were securing loans made to its CEO Michael Pearson.
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." (Reporting by Caroline Humer; Editing by Chizu Nomiyama)
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