Will A New CEO Turn Valeant Pharmaceuticals Around?

Wall Street seems to think so. Shares of the ailing company rallied sharply as soon as the new CEO Joseph Papa assumed office, replacing departing CEO Michael Pearson. I wouldn’t share Wall Street’s enthusiasm, for several reasons. First, Mr. Papa brings to Valeant Pharmaceuticals a mixed record. An early pro-shareholder record, when he helped the company grow quickly through an M&A; and a later pro-management record, when he fought against selling the company to Mylan at a hefty premium—P...