Valeant Pharmaceuticals International Inc. may replace as many as five of its directors as soon as Friday, according to a person familiar with the matter, as the company overhauls its strategy and governance and plans for the arrival of its new chief executive officer.

From the 14-person board, Chairman Robert Ingram, Audit Committee Chairwoman Norma Ann Provencio, Theo Melas-Kyraizi, Ronald Farmer and Mason Morfit may all be replaced, said the person, who asked not to be identified because the matter was private.

Morfit is president of ValueAct Capital Management LLC, one of Valeant’s biggest holders.

Joe Papa, the former CEO of drugmaker Perrigo Co., is replacing outgoing CEO Mike Pearson and will also become chairman. The company announced in March that Pearson would step down after months of turmoil at the company.

Since its August peak, Valeant has lost more than 85 percent of its stock market value, failed to file its annual report, said it will restate some earnings from 2014 and 2015 and announced that it is being investigated by the U.S. Securities and Exchange Commission.

News about the board shakeup was first reported by the Wall Street Journal.

Instant Insights /

Valeant said to replace as many as five board members this week

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