Activist investor and hedge fund manager John Paulson has joined Valeant Pharmaceuticals board, as the embattled Canadian drugmaker is restructuring itself to repay debt.
Valeant’s U.S.-listed shares were up 5.9 percent at $13.40 in premarket trading on Monday.
Paulson’s hedge fund Paulson & Co had a 5.68 percent stake in Valeant as of March 31, making it the largest shareholder in the company, according to Reuters data.
Valeant was once a Wall Street darling. In addition to Paulson, it famously drew an investment from Bill Ackman — before regulatory and shareholder scrutiny of a secret pharmacy and the company’s marketing practices unraveled investors’ faith in the stock. The shares fell more than 90%, and Ackman eventually sold his stake in the company for a $3 billion loss.
Valeant Chief Executive Joseph Papa is working to narrow the company’s focus to its dermatology, gastrointestinal and eye care businesses by pruning other assets to repay its debt of nearly $30 billion.
Paulson’s addition increases the size of Valeant’s board to 11 members, 10 of whom are independent.
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