What happened
Shares of the specialty pharmaceutical company Bausch Health Companies (BHC 0.81%) are surging today in response to the news that Joseph Papa has resigned from the board of directors effective immediately. Specifically, the drugmaker's shares were up by a noteworthy 15.9% as of 10:56 a.m. ET Friday.
Over the past six years, Papa has been instrumental in lowering the company's sky-high debt and keeping it out of bankruptcy court. That said, Bausch's turnaround has hit multiple obstacles in 2022.
Image source: Getty Images.
So what
Bausch said in a statement Thursday evening that billionaire hedge fund manager John Paulson will fill the vacant board position. Paulson is currently an independent director of the company's newly spun-off Bausch + Lomb (BLCO 1.47%) eye-care business as well as the president and portfolio manager of his namesake investment management company, Paulson & Co.
Why are investors cheering this move? Bausch's shares were down an unsightly 73% year to date prior to today's uptick. Investors weren't particularly thrilled with the Bausch + Lomb spinoff or the company's now-suspended plan to spin off its aesthetic device unit, Solta Medical. Now they appear to be hoping that Paulson will help guide the drugmaker in a new, more profitable direction.
Now what
Is Bausch Health Companies stock worth buying on this shake-up in the board of directors? It's hard to say. The company has yet to announce any major change in direction in the wake of this news. So it might be best to take a wait-and-see approach for the time being.
