Valeant shares surge after report new CEO about to be hired

Shares of ValeantPharmaceuticalsshot up Friday following reports that Valeant is close to luring the head ofover-the-counter drugmaker Perrigoto become its next chief executive officer.

The Wall Street Journal reported Thursday thatValeant is finalizing a contract with Perrigo chairman and CEO
Joseph C. Papa and could announced the hire as early as next week.

Perrigo said Friday it is aware of the report but added that it would notcomment on "speculation or
market rumour."

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In the wake of the report, Valeant'sstock gained $3.10, or more than seven per cent, to finish at$45.57on the TSX. The stock got as high as $46.18 earlier in the session.

Valeant, which is under intensescrutiny in the U.S. for its strategy ofbuying small drugmakers, then raising prices sharply on older,off-patent drugs, said back in March that it wouldreplace CEO Michael Pearson after its share price tumbled. The hit a high in August 2015 above $346, but has since retreated as pressure mounted on the company.