WSJ: Valeant To Oversee 'Sweeping Changes' To Its Board Of Directors

The Wall Street Journal reported Wednesday evening that Valeant Pharmaceuticals Intl Inc (NYSE: VRX) is set to implement "sweeping changes" to its board of directors.

The Wall Street Journal, citing "people familiar with the matter," stated that five of Valeant's long-standing directors have volunteered to dismiss themselves from the board to make space for new directors. The publication added that while the identity of most of the new directors are not yet known, they will bring relevant experience in the pharmaceutical industry.

Related Link: Bill Ackman Is The "Unofficial Leader Of A Thundering Herd" That Lost Billions

Joseph Papa, Valeant's newly named chief executive officer will join Valeant's board, and serve as its chairman.

The departing board members include Mason Morfit of ValueAct Capital, an investment fund that has held a stake in Valeant since 2006. Norma Provencio and Teho Melas-Kyriazi will also step down from the board.

Ronald Farmer and Chairman Robert Ingram are weighing their resignation and the board requested for a final decision by Thursday. In addition, Valeant's former chief financial officer, Howard Schiller won't be nominated for reappointment to the board.

"A lot of the board is going to turn over," the Wall Street Journal quoted Bill Ackman, an activist investor, major shareholder and board member as saying during a Senate Committee hearing on Wednesday.