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Valeant has named Joseph Papa as its new chairman and CEO.
Papa comes to the embattled drugmaker from Perrigo, a competitor. He resigned on Sunday.
Reuters earlier reported that Perrigo was naming a new CEO to allow Papa to join Valeant, waiving a noncompete agreement that would have prevented him from joining a rival.
Papa is expected to take over for Valeant CEO Michael Pearson in early May.
Valeant announced that Pearson was stepping down back in March, right after the company failed to file its annual report on time.
“I am excited to take on the challenge of leading Valeant and helping the company chart a new course,” Papa said in a statement.
Papa joins Valeant at a very tough time. The company is at risk of defaulting on $30 billion in debt if it misses the April 29 deadline to file its annual report. On Friday, Valeant said it got more notices of default from its bondholders because it had delayed its annual report.
And there’s still the overhang of the company’s questionable accounting practices and pricing.
The Wall Street Journal reported that Bill Ackman of Pershing Square Management, which owns a stake in Valeant, had led the search for a new CEO.
Valeant shares rose by as much as 2% in premarket trading.
Perrigo sank 13%. The company named John Hendrickson as CEO on Monday after Papa resigned.