The drug maker is optimistic that new CEO will bring back the company on the track of success
The appointment of Joseph Papa as a new Chairman and Chief Executive Officer (CEO) of Valeant Pharmaceutical Intl Inc (NYSE:VRX) is mainly to give a ray of hope to the investors along with increasing its credibility in the eyes of stakeholders. The company is in hot waters since August 2015 after a tweet from the presidential candidate Hillary Clinton in association with the price hike of the drugs.
Joseph Papa is a 56 years old pharmaceutical legend who has various credits to his name such as merger and acquisitions of multiple companies. Joseph has played a vital role in the development of multiple companies’ revenue generation with the introduction of strategic marketing and research and development plans. He led Perrigo for 10 years as CEO and with his efforts, the company generated revenue of $5 billion. He has ample experience in handling the Pharmacy Benefit Managers (PBM) and his appointment will definitely help Valeant to re-enter in new agreements with PBMs.
Valeant was aggressively looking to replace Mr. Pearson as his strategic policies pushed the company’s growth and stock on the sky, but in August 2015, the policies were hit by controversies. He also slashed heavily in the research and development (R&D) funding. Due to the Philidor scandal, the drugmaker has lost approximately $80 billion in its market capitalization.
This change in the leadership is expected to bring a big change in the company. There is no question about the assets of Valeant that can definitely aid in bringing back the drugmaker on the track of success.
Mr. Papa is very keen to pay off the huge debt of $31 billion on Valeant’s shoulders making the position of the company very problematic in the eyes of investors, but the recent approval from the Food and Drug Administration (FDA) of its gastrointestinal and dermatology drugs gives some sigh of relief to the investors. Both the drugs are expected to be the blockbusters in the near future – aiding in releasing the pressure of hefty debt from the company.
Joseph Papa is confident that he can turn the company back in the pharmaceutical arena due to its robust and competitive drug pipeline, which consists of novel investigational molecules. He said that the drug pipeline has 10 new drugs that are expected to be launched in a year and a half.
Valeant CEO Joseph Papa said: “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.”