Shares of Valeant Pharmaceuticals International Inc.
surged 5% in premarket trade Monday, after the drug maker said billionaire hedge fund manager John Paulson was elected to its board of directors. Paulson’s hedge fund, Paulson & Co. Inc., is Valeant’s largest shareholder with 19.4 million shares, or 5.6% of the shares outstanding as of the end of March, according to FactSet. “We are pleased to welcome John to Valeant’s board of directors,” said Valeant Chief Executive Joseph Papa. “With his significant business and financial expertise, John will be a strong addition to the board. His experience will be especially valuable as we continue to execute on our transformational strategy to turnaround Valeant.” Earlier this year, hedge fund manager and large shareholder Bill Ackman had resigned from Valeant’s board, and sold his 10% stake in the company amid mounting investment losses. The stock, on course to open at a four-month high, has tumbled 12.8% year to date through Friday, while the SPDR S&P Pharmaceutical ETF
has gained 5.6% and the S&P 500 [: spx] has climbed 8.7%.