Shares in Canadian drug giant Valeant have continued to climb today following yesterday's appointment of rival drug maker Zoetis' Paul Herendeen as its chief financial officer, replacing Robert Rosiello.
The move marks another step in Valeant's overhaul of its senior management team following its fall from grace almost 12 months ago, sparked by tweets from US presidential hopeful Hillary Clinton over price gouging in the industry and culminating with a close brush with defaulting on some terms of its debt, because it was late to file its annual report.
Valeant was also called before a US congressional hearing – alongside the infamous former Turning Pharmaceuticals' CEO Martin Shkreli – to defend its drug pricing policy.
Valeant stock is now worth just 10 per cent of its former value though sweeping changes over recent months have given investors – including billionaire activist Bill Ackman – hope for the recovery of the embattled company.
Joe Papa – who joined the struggling company in May as chief executive – has said he's open to selling off more of the firm to try and clear its mounting debt pile and would assess offers for any of its assets.
Papa took appointment of Herendeen as an opportunity to reiterate his plans for a "new" Valeant.
As we move forward, Paul and the other members of the executive management team will play vital roles in shaping the new Valeant.
Herendeen was named CFO at Zoetis in August 2014. Zoetis stock is up some 60 per cent since Herendeen took the job – a performance it can hopefully maintain longer than Valeant.
Earlier this month Valeant reported it had fallen far short of expectations in its second quarter.
Investors were cheered however by the company dodging another profit warning as it reconfirmed its guidance for full-year profits.