Shares of Valeant Pharmaceuticals shot up Friday following reports that Valeant is close to luring the head of over-the-counter drugmaker Perrigo to become its next chief executive officer.

The Wall Street Journal reported Thursday that Valeant is finalizing a contract with Perrigo chairman and CEO

Joseph C. Papa and could announced the hire as early as next week.

Perrigo said Friday it is aware of the report but added that it would not comment on "speculation or

market rumour."

In the wake of the report, Valeant's stock gained $3.10, or more than seven per cent, to finish at $45.57 on the TSX. The stock got as high as $46.18 earlier in the session.

Valeant, which is under intense scrutiny in the U.S. for its strategy of buying small drugmakers, then raising prices sharply on older, off-patent drugs, said back in March that it would replace CEO Michael Pearson after its share price tumbled. The hit a high in August 2015 above $346, but has since retreated as pressure mounted on the company.