Morning Briefing
Summaries of health policy coverage from major news organizations
Joseph Papa Named As New Valeant CEO
Reuters: Valeant Names Papa CEO After He Resigns From Perrigo
Former Perrigo Co Plc head Joseph Papa was named Chief Executive Officer at Valeant Pharmaceuticals International on Monday, a role in which investors said he should focus on returning the company to growth. Papa will replace CEO Michael Pearson, whose years of frenzied dealmaking fueled double-digit profit increases at Valeant until scrutiny of its controversial relationship with a specialty pharmacy and history of sharp drug price increases hit its shares and sales last fall. (O'Donnell, Roumeliotis and Humer, 4/25)
The New York Times: Valeant Pharmaceuticals Picks Joseph Papa, Perrigo Chief, As C.E.O.
Mr. Papa, who will begin in May, takes over at a time of turmoil for Valeant, which has seen its stock tumble from once-dizzying heights after a series of investigations into its drug-pricing and accounting practices. Valeant is also struggling under more than $30 billion in debt and is facing default from its bondholders after failing to file its annual report on time. The company’s decision to appoint Mr. Papa, a seasoned pharmaceutical executive with more than 35 years of experience in the industry, represents a marked departure from the leadership of Mr. Pearson, a former consultant for McKinsey who had no history of leading a drug company before he became Valeant’s chief in 2008. (Thomas, 4/25)
The Wall Street Journal: Valeant Names Joseph Papa As New CEO
Valeant must overcome a number of hurdles ahead of Mr. Papa’s planned arrival. The Canada-based company said it planned to file its delayed 10-K annual report by Friday; people familiar with the company said the report could be released as early as Wednesday. If Valeant meets the filing deadline, it will no longer need waivers from bondholders, some of which have threatened to declare a default. Valeant carries roughly $30 billion in debt. (Steele, McNish and Benoit, 4/25)
The Wall Street Journal: As Its CEO Leaves For Valeant, Perrigo Continues To Struggle
Perrigo Co. investors swallowed a bitter pill Monday as Chief Executive Joseph Papa was tapped to lead Valeant Pharmaceuticals International Inc., leaving behind a struggling business months after he rallied the stockholders to fend off what now looks a favorable takeover offer. Shares of the company tumbled 18% in Monday trading to $99.40 as the maker of store-brand cold and allergy medicines slashed its guidance and announced Mr. Papa’s exit. (Steele, 4/25)
