Valeant’s new chief executive has begun his job of trying to save the embattled drug maker
Joseph Papa has assumed his role as chief executive of troubled Canadian drug giant Valeant Pharmaceuticals, succeeding Michael Pearson who was ousted in March.
Valeant is currently wrestling with an investigation in its accounting practices and drug pricing strategy that has seen its share lose 85 per cent of their value of the last 12 months.
Shares climbed slightly higher in pre-market trade in New York after Papa's first day on the job.
Papa joins Valeant from over-the-counter drug maker Perrigo Company, where he was chief executive since 2006 and was appointed as chairman of the board in 2007.
Papa said:
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.
Last night billionaire hedge fund king pin Bill Ackman admitted he regretted buying a six per cent stake in the troubled drug maker.
Speaking on CNBC Ackman, founder and CEO of Pershing Square, said:
The company’s made some mistakes. No one wants to have an investment down 85 or 90 per cent.
In April Valeant was given an extension by its lenders to push back its deadline for filing its annual report by an extra month.
Valeant's lenders have granted the company an amendment and waiver to its credit facility, allowing the company until 31 May to fill its annual report.
It's also been given an extension for getting in its report for the quarter ended 31 March will be extended to 31 July.
Last month the big pharma firm's shares racked up their worst day on record, ditching 51 per cent of value after the company reported revenue down 12 per cent year on year and worsening outlook for 2016.