Valeant Pharmaceuticals International Inc. (VRX) named Mr. Joseph Papa as its new CEO on Monday. Mr Papa was the former CEO for drug manufacturer Perrigo Co. plc (PRGO) as he resigned from the company the day before this announcement.
Following the resignation and departure of Mr. Papa, Perrigo announced that effective immediately, John T. Hendrickson will be the company’s new Chief Executive Officer.
Perrigo Chairman Laurie Brlas commented on the appointment, “Aligned with our succession planning process, the Board of Directors has elevated John to Chief Executive Officer from President, where he led global operations and had responsibility for almost 70% of our employee base.
Ms. Brlas continued, “John is an exceptional leader who is passionate about our mission, committed to our core values, and with his breadth of experience, is uniquely qualified to successfully lead Perrigo into the future.”
Mr. Papa commented on taking over as CEO for Valeant, “I am excited to take on the challenge of leading Valeant and helping the company chart a new course. Valeant has world-class franchises, important treatments for patients across numerous therapeutic areas and a very talented and dynamic workforce, and I am confident that the company has a bright future ahead.”
Mr. Papa has more than 35 years of experience in the pharmaceutical, healthcare services and specialty pharmaceutical industries, including 20 years of branded prescription drug experience. During his tenure at Perrigo, he led dramatic and consistent growth across the company, increasing its net sales of more than $5 billion. Prior to Perrigo, Mr. Papa served from December 2004 to October 2006 as Chairman and CEO of the Pharmaceutical and Technologies Services segment of Cardinal Health, Inc (CAH).
Valeant Pharmaceuticals is hoping for Mr. Papa to turn things around for the company as it has been through some notable rough times for the past few months. Shares of VRX are down over roughly 68% since mid-December 2015.
Valeant has also been dealing with an SEC investigation pertaining to the company’s purchase of Salix Pharmaceuticals Ltd. as well as potential Democratic presidential nominee Hilary Clinton has accused Valeant for “predatory pricing” of some of their products. Furthermore, Valeant Pharmaceuticals announced last week that it has received a notice of default from its debtors.
Shares of Perrigo are down big Monday during afternoon trading in relation to the news, whereas shares of Valeant have only marginally increased. As of 12:52 PM ET, Perrigo stock is down 15.65% while Valeant stock is up 0.92%.
Perrigo has a Zacks Rank #4 (Sell) and Valeant Pharmaceuticals has a Zacks Rank #5 (Strong Sell).
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