Drugmaker Perrigo has decided to let Chief Executive Officer Joseph Papa join Valeant Pharmaceuticals International Inc as CEO and replace him with President John Hendrickson, according to people familiar with the matter.
Perrigo's board agreed on Monday to waive a non-compete restriction in Papa's employment contract that would have stopped him from joining Valeant, the people said, requesting anonymity because there has not yet been any official announcement.
Hendrickson, who has been with Perrigo for 27 years and previously led several of its operations, including its U.S. consumer healthcare business, will become CEO effective immediately, the people added.
Perrigo's board also decided to separate the roles of CEO and chairman, and it named one of its directors, Laurie Brlas, as its new chairman, the people said.
Perrigo declined to comment, while Valeant did not immediately respond to a request for comment.
(Reporting by Carl O'Donnell and Greg Roumeliotis in New York; Editing by Lisa Von Ahn)