Valeant names Joseph Papa its next CEO

Canadian drug company Valeant Pharmaceuticals International Inc. has looked to rival drug firm Perrigo for its new CEO, Joseph Papa.

Valeant made the announcement in a release Monday, saying Papa would be joining the company within the month. Prior to jumping to Valeant, Papa has been CEO and chairman of Perrigo for roughly a decade.

Perrigo resigned from those positions on Sunday.

Papa had been floated as a contender for the top job last week in published reports. The drug company has been looking for a CEO since it was announced that Michael Pearson was leaving after eight years with the company.

Once one of Canada's most valuable companies following years of acquisitions, Valeant has seen its shares plunge amid controversies over drug prices and its relationship with U.S. mail-order pharmacy Philidor.

Valeant said earlier this year that it had to restate its financial results for 2014 and 2015 after discovering that about $58 million US of sales were recognized at the wrong time.

It hopes to submit its restated financial statements for 2015 to regulators by Friday. If it misses that deadline, certain debt covenants would be broken and the company's many creditors would be legally entitled to take steps to retrieve their money, including pushing the company into bankruptcy.