Papa to become its new CEO, replacing J. Michael Pearson.
Advertisement
Perrigo’s board agreed on Monday to waive a non-compete restriction in Papa’s employment contract that would have stopped him from joining Valeant, the sources said, requesting anonymity because there has not yet been any official announcement.
But the company lost favor with investors past year as its strategy came under scrutiny from regulators, the public and politicians.
Perrigo has announced that Joseph C. Papa resigned as Chief Executive Officer yesterday April 25, 2016.
Perrigo’s board also will separate the roles of CEO and chairman.
Last month, Valeant Pharmaceuticals International announced Pearson would step down once a successor was identified. Since then, the drugmaker has dealt with shareholder litigation and headaches like rising debt levels and federal probes into its accounting and business practices.
Once one of Canada’s most valuable companies following years of acquisitions, Valeant has seen its shares plunge amid controversies over drug prices and its relationship with USA mail-order pharmacy Philidor.
Valeant said earlier this year that it had to restate its financial results for 2014 and 2015 after discovering that about US$58 million of sales were recognized at the wrong time.
Pearson, who started the year on a two-month medical leave, is scheduled to testify later this week before a Senate committee investigating the causes of soaring prescription medicine prices.
Advertisement
As had been widely rumored, drugmaker Perrigo (PRGO) lost its CEO to Valeant Pharmaceuticals (VRX) Monday and also reported preliminary Q1 earnings and guidance that missed expectations. Valeant shares were up 2.1% in pre-market trade.
