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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