Valeant Pharmaceuticals Intl Inc (NYSE: VRX)
Valeant Pharmaceuticals is having an incredible day in the market today, and for good reason. Early this morning, the company announced a CEO change, something that investors have been looking for for some time. Today, we’ll talk about the CEO change, how the market is reacting to the news, and what we can expect to see from VRX moving forward.
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VRX Appoints A New CEO
For a few weeks now, Valeant Pharmaceuticals has been looking for a new CEO. After the company’s less than savory relationship with Philidor was unwrapped and out in the public, the stock had fallen dramatically. After all, VRX seemed to be using its relationship with Philidor to fluff the numbers, and investors hate being lied to. As a result of the issue, investors started to push for a new CEO. So, soon enough, J. Michael Pearson announced that he would be resigning and that the company was in a search for new leadership.
Early this morning, it was announced that VRX had found the new CEO it was searching for. His name is Joseph C. Papa. Recently, the Board of Directors at Valeant Pharmaceuticals named Papa Chairman and CEO of the company. In order to take the position, Joseph Papa will be resigning from Perrigo Company, a leader in healthcare that develops both OTC and prescription medications.
Mr. Papa is 60 years old. Throughout his life, he has worked mostly in the pharmaceutical, healthcare services, and specialty pharmaceuticals industry. He has held several leadership positions including his current job at Perrigo. All in all, Joseph Papa is well qualified for the position and ready to take VRX to the next level. In a statement, Mr. Papa had the following to offer:
“I am excited to take on the challenge of leading Valeant and helping the company chart a new course… 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 business and providing customers with safe and affordable products that improve their lives.”
How The Market Reacted To The News
As investors, one of the first things we learn is that the news moves the market. Any time there is news released with regard to a publicly-traded company, we can expect to see movement in the value of the stock associated with that company. In this particular case, investors have been excited for VRX to find a new CEO, and that job is now done. So today’s news is overwhelmingly positive news for the stock. As a result, we’re seeing strong gains in the market. Currently (9:48), VRX is trading at $37.30 per share after a gain of $1.32 per share or 3.67% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Valeant Pharmaceuticals. While the company has dealt with some big headaches, it seems to me that the issues are starting to be behind them with regard to the Philidor scandal. At the moment, I’m happy to see that the relationship between VRX and Walgreens seems to be working out. On top of that, I’m excited to see what the new management at the company, including both new members of the board as well as the new CEO of the company, bring to the table to better VRX. All in all, things are finally starting to look good for Valeant again.
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What Do You Think?
Where do you think VRX is headed moving forward and why? Let us know your opinion in the comments below!
[Image Courtesy of Wikimedia]