In the latest step to remake its reputation from a financial reporting standpoint, Valeant Pharmaceuticals (VRX) on Thursday announced the appointment of a new controller.
Sam Eldessouky, a former Tyco International (TYC) executive, will join the Laval, Québec, company as senior vice president and corporate controller on Tuesday.
Valeant shares were down 42 cents, or about 1.6%, to $26.70 on Thursday morning.
The announcement comes after Valeant's newly appointed chairman and CEO, Joseph Papa, said at the UBS Global Healthcare Conference earlier this week that a new controller had been hired as part of the company's intentions to centralize its finance department in the weeks ahead. Outside of its finance department, the remainder of the company will run well as a decentralized organization, he said.
Valeant in March pinned the blame for its misstatements of earnings on its former CFO and former controller, Howard Schiller.
Eldessouky most recently served as senior vice president, controller and chief accounting officer for Tyco beginning in 2011. During his stint at Tyco, the executive helped drive the redesign the controller's organization and the implementation of an "enterprise performance management framework," helping fuel the wholesale turnaround of the company's business, according to Thursday's announcement.
Before joining Tyco, where he also held various other positions, Eldessouky spent about a decade at PricewaterhouseCoopers. At the latter he held a number of roles including positions within PwC's national office providing technical accounting guidance on complex accounting matters, according to the Thursday announcement.
The company around the same time revealed plans to reshuffle its board, nominating three new independent directors that will stand for election at the 2016 annual meeting scheduled for June 14.
As the company looks to pare its roughly $30 billion debt load, Valeant will explore the potential divestiture of noncore assets, Papa told attendees of the UBS conference at the Grand Hyatt New York earlier this week.
Last week Valeant revealed it had received a notice of default from bondholders over the delayed filing of its first-quarter performance with the Securities and Exchange Commission, following a similar notice received from bondholders last month.