Who Is Joe Papa?

The next chapter in the Valeant Pharmaceuticals Intl Inc VRX story began today when the company named Joseph Papa as its new CEO. Shareholders are hoping that Papa can right the ship after a whirlwind of controversy has driven Valeant’s share price down 63.1 percent so far in 2016.

Papa was formerly CEO of Perigo Company plc Ordinary Shares PRGO, company that makes store-brand versions of over-the-counter drugs like Sudafed and NyQuil.

For Valeant shareholders wondering what they can expect from Papa, the initial market reaction to the news could be a good first indication. Valeant’s stock is up 3.7 percent in early Monday trading, while Perigo’s stock has crashed 13.2 percent on news of Papa’s departure.

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Papa took over as CEO of Perigo in October of 2006. Since that time, the stock is up an incredible 595.6 percent, although it was down more than 30 percent in the past year prior to his departure. 

Prior to his time at Perigo, Papa served as President of Cardinal Health Inc CAH and Watson Pharmaceuticals, which is now owned by Teva Pharmaceutical Industries Ltd (ADR)TEVA. During Papa’s time at the company, Cardinal Health’s stock surged 22.8 percent, out-pacing the S&P 500 by more than 10 percent.

Valeant shareholders are hoping that Papa will have the Midas Touch with Valeant as well.

Disclosure: the author holds no position in the stocks mentioned.