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The
move is a boon for Valeant, which is in need of a turnaround
after controversy about its relationship with a specialty
pharmacy and doubts over its acquisitive business model have
driven its shares down 86 percent since August.
The change in Perrigo's leadership comes just months after the
Dublin-based generic drugmaker rebuffed a $26 billion takeover
by Mylan NV <MYL.O>, in the largest-ever hostile bid decided by
a shareholder vote.
Perrigo's board agreed on Monday to waive a non-compete
restriction in Papa's employment contract that would have
stopped him from joining Valeant, the sources said, requesting
anonymity because there has not yet been any official
announcement.
Hendrickson, who has been with Perrigo for 27 years and
previously led several of its operations, including its U.S.
consumer healthcare business, will become CEO effective
immediately, the people added.
Perrigo's board also decided to separate the roles of CEO and
chairman, the sources said. It named one of its directors,
Laurie Brlas, as its new chairman, they added.
Perrigo declined to comment, while Valeant did not immediately
respond to a request for comment.
Laval, Quebec-based Valeant grew quickly under current CEO
Michael Pearson as it embarked on an acquisition spree, snapping
up other drugmakers and in many cases sharply raising prices of
their drugs.
But the company lost favor with investors last year as its
strategy came under scrutiny from regulators, the public and
politicians. Pearson returned to Valeant at the end of February,
after two months of medical leave while he was being treated for
pneumonia, and agreed in March to step down as soon as his
replacement is appointed.
Papa joined Perrigo in 2006 and was previously president and
chief operating officer of Watson Pharmaceuticals Inc. Perrigo
is scheduled to hold its annual general meeting of shareholders
on Tuesday.
Reuters reported earlier this month that Valeant had brought in
investment banks to review its options amid interest from buyout
firms and other companies in a number of its businesses.
In February, Perrigo reported earnings that missed market
estimates for the first time in five quarters, as sales in its
branded consumer healthcare business disappointed.
The company had bought Belgium's Omega Pharma NV for $3.1
billion last year to expand its over-the-counter products
portfolio. It also bought over-the-counter brands from
GlaxoSmithKline Plc <GSK.L> last year.
(Reporting by Carl O'Donnell and Greg Roumeliotis in New York;
Editing by Lisa Von Ahn)
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