Valeant's Stock Jumps After Adding New Directors, Including a Pershing Square Executive

Valeant Pharmaceuticals International Inc.'s stock surged 4.1% in premarket trade Wednesday, after the drug maker said it added three new independent directors to its board, including Stephen Fraidin, who is the vice chairman of activist investor Pershing Square Capital Management. Valeant said Anders Lonner has stepped down as a director. The other board members added were Fred Eshelman, a former chief executive of Pharmaceutical Product Development Inc. , and Thomas Ross, who served as president of University of North Carolina. Pershing Square, which is Valeant's third-largest shareholder, according to FactSet, is the hedge fund run by Bill Ackman. The Wall Street Journal had reported late Tuesday that Valeant was in discussions to add three new directors. Valeant's stock had tumbled 38% year to date through Tuesday, while the S&P 500 had slipped 3.2%.