Valeant Pharmaceuticals Intl Inc (NYSE:VRX) announced that its Board of Directors has named Joseph C. Papa to become Valeant’s Chairman and Chief Executive Officer. Mr. Papa is expected to join Valeant by early May. Mr. Papa will join Valeant from Perrigo Company plc, a leading global healthcare supplier that develops, manufactures and distributes over-the-counter (OTC) and prescription (Rx) pharmaceuticals, where he served as Chairman and Chief Executive Officer. Mr. Papa, who will also join Valeant’s Board of Directors, will succeed J. Michael Pearson, who is expected to remain as CEO and a director until Mr. Papa arrives at Valeant.
Mr. Papa, 60, has more than 35 years of experience in the pharmaceutical, healthcare services and specialty pharmaceutical industries, including 20 years of branded prescription drug experience. Mr. Papa has been CEO of Perrigo since 2006 and was appointed as Chairman of the Board of Directors of Perrigo in 2007. During his tenure, he led dramatic and consistent growth across the company, building it into a global leader with net sales of more than $5 billion. Prior to Perrigo, Mr. Papa served from December 2004 to October 2006 as Chairman and Chief Executive Officer of the Pharmaceutical and Technologies Services segment of Cardinal Health, Inc. From 2001 to 2004, he served as President and Chief Operating Officer of Watson Pharmaceuticals, Inc. While at Novartis and Pharmacia /Searle, he was responsible for overseeing the successful launches of Diovan, Celebrex and Lotrel.
Robert Ingram, Chairman of the Board, stated, “The Board has conducted a thorough search process and believes that Joe is the ideal leader for Valeant at this time. He has a strong shareholder orientation, a background in science, and an unmatched track record of accomplishments, highlighted by his ability to lead companies through times of transition and drive excellence across commercial, manufacturing and R&D platforms. In addition, fostering an ethical culture and creating opportunities for professional development have always been high priorities for Joe, and we look forward to Joe’s arrival at Valeant.”
“I am excited to take on the challenge of leading Valeant and helping the company chart a new course,” said Mr. Papa. “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. We have an opportunity to move forward with a renewed focus on operating with integrity across all areas of the business and providing customers with safe and affordable products that improve their lives.”
Mr. Papa has held management positions at DuPont Pharmaceuticals, Pharmacia Corporation, G.D. Searle & Company and Novartis AG. Mr. Papa serves as a director of Smith & Nephew, a developer of advanced medical devices. He is a graduate of the University of Connecticut with a bachelor’s degree in pharmacy and he earned his MBA from Northwestern University’s Kellogg Graduate School of Management. (Original Source)
Shares of Valeant are currently trading at $36.92, up $0.94 or 2.61%. VRX has a 1-year high of $263.81 and a 1-year low of $25.27. The stock’s 50-day moving average is $37.58 and its 200-day moving average is $83.60.
On the ratings front, Valeant has been the subject of a number of recent research reports. In a report issued on April 22, BMO analyst Alex Arfaei reiterated a Buy rating on VRX, with a price target of $66, which represents a potential upside of 76.9% from where the stock is currently trading. Separately, on April 15, Mizuho’s Irina Rivkind Koffler reiterated a Sell rating on the stock and has a price target of $18.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Alex Arfaei and Irina Rivkind Koffler have a total average return of 5.2% and 27.2% respectively. Arfaei has a success rate of 63.4% and is ranked #682 out of 3828 analysts, while Koffler has a success rate of 54.2% and is ranked #16.
Overall, 4 research analysts have rated the stock with a Sell rating, 9 research analysts have assigned a Hold rating and 8 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $57.60 which is 54.4% above where the stock opened today.
Valeant Pharmaceuticals International, Inc. is a multinational specialty pharmaceutical company that develops manufactures and markets a broad range of pharmaceutical products primarily in the areas of dermatology, eye health, neurology, and branded generics. The company operates through two operating and reportable segments: (i) Developed Markets and (ii) Emerging Markets.