Valeant released a statement on Monday announcing that an internal committee had been formed to review the allegations against the company, though assured that reviews conducted to date have found Valeant to be 'in compliance with applicable law'. This stance was reiterated by chief executive officer Mike Pearson on Monday afternoon, who stated that the company was 'committed to transparency' and legal compliance. Despite this, shares in Valeant initially tumbled more than 10 per cent in the aftermath of the announcement, before recovering during later trade.

The controversy currently engulfing Valeant centres on its relationship with specialty pharmacy Philidor Rx, after a Citron Research note released last week accused Valeant and other major drugmakers of using specialty drug distributors to side-step pricing regulations. Dubbing Valeant the 'pharmaceutical Enron', the note suggests that the company exerts its control over specialty mail-order pharmacies to prop-up sales of high-priced drugs and to prevent patients and insurance companies from switching to more affordable generic brands. Meanwhile, Valeant has added an eleventh-hour twist to the saga by confirming to investors that it has aquired an option to buy R&O Pharmacy, a California-based drugstore with links to Philidor which is currently suing Valeant over a disputed US$69m invoice.

Mr Morfit, who served on Valeant's board of directors between May 2007 and May 2014, is currently a partner at activist hedge fund ValueAct Capital, one of Valeant's largest shareholders. During his previous tenure on the Valeant board, Mr Morfit oversaw an acquisition campaign that dramatically expanded company revenues and boosted the value of Valeant shares by over 400 per cent.

'I am pleased to welcome Mason back to the Valeant Board of Directors,' said CEO Mike Pearson in a statement released on Monday, 'Although Mason has not officially been a part of the Valeant Board for more than a year, I have continued to value his vision and guidance, and I believe his insights will be invaluable during this time.' Sources: CNBC; Valeant; Forbes; Citron Research