IT'S OFFICIAL: Valeant has a new CEO

Valeant has named Joseph Papa as its new CEO and chairman.

Papa comes to the embattled drugmaker from Perrigo, a competitor. Reuters earlier reported that Perrigo was naming a new CEO to allow Papa join Valeant, and waived a contract agreement that would have prevented him from joining a rival company.

Papa is expected to take over from current CEO Michael Pearson in early May.

Valeant announced in March that Michael Pearson was stepping down right after the company failed to file its annual report on time.

"I am excited to take on the challenge of leading Valeant and helping the company chart a new course," Papa said in a statement.

Of course, Papa joins Valeant at a controversial time, as it scrambles to meet its debt obligations. Earlier in April, Valeant said an internal investigation found no additional financial consequences from its former ties to the specialty pharma Philidor.

The Wall Street Journal reported that Bill Ackman of Pershing Square Management, which owns a stake in Valeant, had led the search for a new CEO.

Valeant shares rose by as much as 2% in pre-market trading.

More to come ...