On Friday morning, Alexion Pharmaceuticals Inc. shares increased by 1.4% to $101.57 after announcing that its new executives will start on June 5, Monday.
Management Shake-up Back in May
Last May 23, reports came out that the shares of Alexion Pharmaceuticals Inc. (ALXN) fell by 9.2% to $104.89 after the company made an announcement about the departure of several executives.
ALXN’s chief commercial officer, chief financial officer and two executive vice presidents were set to leave the company. There was none of the pioneers of the Soliris business who chose to remain in position.
It was also noted that for the last three months the shares of ALXN have significantly plunged by 19.8%.
New Management of ALXN
CCO Carsten Thiel was replaced by Brian Goff with more than 25 years of experience in Biopharmaceuticals and was from Johnson & Johnson and Baxter. The CFO, Dave Anderson, will leave the company in August and the Executive Vice President and Head of Research & Development, Martin Mackay, will have his retirement before the year ends.
The other executives joining Alexion would be the following: John Orloff who was previously the Executive Vice President at Novelion Therapeutics Inc and he would be the Head of Research and Development of Alexion; Anne-Marie Law who was the former Chief Human Resources Officer at Hyatt Hotels Corporation would be the new Chief Human Resources Officer of the company; the last name announced by Alexion was Indrani Lall Franchini who was the past Chief Compliance Officer at Hess Corporation. Franchini would be Alexion’s new Chief Compliance Officer.
Alexion’s Soliris Issue
The company has recently faced a scandal last December about accusations of indecorous sales practices. Its CEO-that-time (David Hallal) and CFO-back-then (Vikas Sinha) decided to resign amid the allegations.
The resignations happened after a month when the company opted to delay its third quarter 10-Q to scrutinize the claims of having deceitful sales practices of its top selling Soliris drug.
The company had only filed its Q3 2016 10-Q on the first week of January of this year.
Alexion and the Rest of the Competition
Comparing Alexion’s total revenue for Q1 of 2017, it was found to have increased by 24.1% year-on-year among its known competitors. The recorded sales growth was significantly high compared to the company’s average revenue growth (for the same quarter) of its competitors which is 4.5%.
As of June 2, 2017 the recorded market capitalization of ALXN is USD $22, 862, 336. Moreover, its highest trade today, June 5, 2017 was USD $104.61, while its market capitalization increased to USD $23.15 billion.
Analysts are positive about Alexion’s move with regard to the selected new executives. Experts believe that as investors are fully concerned about the recent departures of Alexion’s executives. However, the picked replacements are trusted to be individuals who came from positions of major and weighty responsibilities and this should give investors somewhat assurance that the company is still in good management. Though, the current trend of Alexion’s stocks reveals that the company is still struggling for stability this time.
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