Alexion's Shakeup Continues as Four Executives Exit -- 2nd Update
24 May 2017 - 3:30AM
Dow Jones News
By Bowdeya Tweh and Jonathan D. Rockoff
Alexion Pharmaceuticals Inc.'s new chief executive is reshaping
the top ranks of the organization following an internal
investigation into sales practices prompted by a former
employee.
Ludwig Hantson, who was named Alexion's chief executive in
March, will have a new chief financial officer because Dave
Anderson, who joined the company in December after more than a
decade as CFO at Honeywell International Inc., plans to leave in
August. Mr. Anderson had replaced Vikas Sinha, who abruptly
resigned last year along with CEO David Hallal during the sales
practices investigation.
Three other company executives -- Alexion's chief commercial
officer, its head of research and development, and its chief human
resources officer -- are also leaving, Alexion said Tuesday.
Mr. Hantson had replaced David Brennan, who had served as
interim CEO.
"Ludwig is a talented and capable CEO," a company spokesman said
Tuesday. "The company is recruiting a strong CFO to join with him
in the long term to drive growth and profitability."
Shares in Alexion fell 9.7% to $104.18 in midday trading.
Earlier this year, Alexion said it found senior management staff
had pressured employees to get customers to order its flagship drug
Soliris earlier than needed to meet financial targets. The
disclosure followed an investigation into allegations made by a
former employee.
Alexion, which produces treatments for rare disorders, generated
nearly $3.1 billion of revenue in 2016 and it has a market value of
$23.8 billion.
The executive overhaul suggests the new chief executive intends
to "make a complete break from the company's past leadership" and
install his own people to focus on Alexion's Soliris rare-disease
drug franchise and to revive the pipeline, according to Leerink
Partners analyst Geoffrey Porges. Wall Street has faulted previous
management for bad deals like the $8.4 billion Synageva BioPharma
acquisition, and Mr. Hantson himself has described the company's
pipeline as lacking.
"After these removals and replacements, none of the management
team that built the Soliris business, or presided over the
value-destroying Synageva deal in 2015, remain in place," Mr.
Porges said in a research note.
While investors might be surprised by the CFO's replacement, the
CFO wasn't expected to stay at the company more than a few years,
and his efforts to improve company accounting practices will likely
remain on track, Mr. Porges said.
Alexion said it had hired Brian Goff as its new chief commercial
officer, and that searches to replace other executives are under
way.
--Rheaa Rao contributed to this article.
Write to Bowdeya Tweh at Bowdeya.Tweh@wsj.com and Jonathan D.
Rockoff at Jonathan.Rockoff@wsj.com
(END) Dow Jones Newswires
May 23, 2017 13:15 ET (17:15 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Alexion Pharmaceuticals (NASDAQ:ALXN)
Historical Stock Chart
From Apr 2024 to May 2024
Alexion Pharmaceuticals (NASDAQ:ALXN)
Historical Stock Chart
From May 2023 to May 2024