Valeant Spikes 6%, WSJ Says Company Close To Hiring Perrigo's Chief As New CEO

Shares of Valeant Pharmaceuticals Intl Inc VRX spiked higher by more than 6 percent early Friday morning following reports the company is close to naming a new CEO.

According to The Wall Street Journal, Valeant is finalizing a contract with Perrigo Company plc PRGO's Chief Executive Joseph Papa as its next CEO. The publication, citing "people familiar with the matter," added that Valeant could announce Papa as its new CEO as early as next week.

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Valeant's ex-CEO, Michael Pearson, was said to have lost the support of the company's board of Ddrectors. Papa has the necessary experience in playing significant roles at major pharmaceutical companies, including Perrigo and Cardinal Health.

However, The Wall Street Journal noted that Perrigo's board of directors has indicated if it would allow Papa to void a non-compete clause as part of his contract with Perrigo. A discussion among board members was held on Thursday with no decision being reached.

Valeant considers the overlap between its own business and Perrigo's business to be limited and aren't considered to be direct competitors.

The search for a new CEO was spearheaded by a group of independent Valeant directors, including activist investor and major shareholder Bill Ackman.