Since Joseph Papa took over as CEO of Valeant Pharmaceuticals, the company’s stock price has fallen by approximately 40 percent, the Wall Street Journal reports. The newspaper speculates one reason for the decrease may be Papa’s strategy while he ran Perrigo Co.
As Perrigo’s CEO, Papa raised prices on prescription drugs and grew the company through acquisitions and moving its headquarters abroad to lower its taxes. Under former CEO Michael Pearson, Valeant followed a similar path, significantly raising the prices of prescription drugs, cutting back spending on research and moving the headquarters to Canada.
For the past year, the federal government and elected officials have examined Valeant’s price increases, which has contributed to the stock falling by more than 90 percent.
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Executive Editor
Tim Casey joined TriMed Media Group in 2015 as Executive Editor. For the previous four years, he worked as an editor and writer for HMP Communications, primarily focused on covering managed care issues and reporting from medical and health care conferences. He was also a staff reporter at the Sacramento Bee for more than four years covering professional, college and high school sports. He earned his undergraduate degree in psychology from the University of Notre Dame and his MBA degree from Georgetown University.