Valeant Pharmaceuticals has appointed Joseph C. Papa to the role of Chairman and Chief Executive Officer. Mr. Papa has succeeded J. Michael Pearson who will receive a severance payout of US$9 million and continue consulting to the company throughout 2017.
Mr. Papa has more than 35 years of experience in the pharmaceutical, healthcare services and specialty pharmaceutical industries. He was most recently with Perrigo Company, where he served as CEO since 2006 and was appointed as Chairman of the Board of Directors in 2007.
Mr. Papa’s appointment comes at a time of intense scrutiny into Valeant’s business practices and financial position that caused the stock to drop more than 80 per cent over the past year.
The company has been described by some as a hedge fund. Forbes magazine described Valeant’s activities as “buying competitors, jacking up drug prices, and cutting research and development”.
We have a lot of work to do, but I am confident we will succeed
According to Forbes, Valeant portrayed price increases on some drugs ranging from 800 per cent to 6,000 per cent, as “a small and regrettable part of its business”.
In moving forward, Mr. Papa said there was a lot of work to be done. “I am thrilled to begin working closely with the talented employees across Valeant as we begin an important new chapter. “We have a lot of work to do, but I am confident we will succeed in better serving our customers and realising the exceptional potential of the Company.”