We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alexion Slips to 52-Week Low as CEO, CFO Quit amid Probe
Read MoreHide Full Article
Alexion Pharmaceuticals, Inc. announced that its board of directors has appointed an interim Chief Executive Officer (CEO) and a new Chief Financial Officer (CFO) after the former CEO and CFO resigned unexpectedly during an internal investigation into the sales practices related to its key drug, Soliris.
Shares of the company plunged approximately 13% on the news and touched a 52-week low of $115.08 on Dec 12. Alexion’s year-to-date share price movement shows that the stock has underperformed the Zacks classified Medical-Biomedical/Genetics industry. Specifically, Alexion has tumbled 39.6% so far in 2016, while the industry lost 25.9%.
In the press release, Alexion stated that David Brennan replaced David Hallal, erstwhile CEO and director of the company, immediately after the latter resigned from his position for personal reasons. Brennan will act as the interim CEO until a permanent CEO is appointed.
Brennan is currently a member of the Alexion’s board. He has previously served as the CEO and Executive Director of AstraZeneca plc (AZN - Free Report) .
Meanwhile, David J. Anderson has been named as the CFO of the company after Vikas Sinha stepped down from his position to seek other opportunities. Anderson has formerly served as the Senior Vice President and CFO of Honeywell International Inc. (HON - Free Report) .
We note that last month, Alexion had disclosed that the company’s Audit and Finance Committee was investigating into allegations made by a former employee regarding the sales practices involving Soliris. Particularly, the committee is investigating into whether company personnel have engaged in sales practices that were inconsistent with its policies and procedures, and the related disclosure and other considerations raised by such practices. This sales probe delayed the filing of the company’s Form 10-Q for the period ended Sep 30, 2016.
Alexion said that with the investigation close to completion, the committee has not found any reason that would require the company to update its previously reported historical results. The company continues to evaluate these matters from an accounting, disclosure and internal controls perspective, and expects to file the 10-Q in Jan 2017 or earlier.
We note that Soliris is approved for the treatment of two life-threatening ultra-rare disorders – paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome. The drug raked in sales of $2.1 billion in the first nine months of 2016. The company expects Soliris revenues in the range of $2.835–$2.875 billion in 2016.
Though still unclear, if reports are to be believed, the two executives had lost the confidence of the company’s board. However, Alexion has refrained from commenting on the sudden departure of its key executives in the press release. We believe that the company should shed some light on the sales issues related to Soliris and executive departures going ahead, which could otherwise prove to be an overhang on the stock.
Vanda’s loss estimates narrowed from 62 cents to 52 cents for 2016, while its earnings estimates increased from 13 cents to 22 cents for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 56.65%. Its share price has surged almost 72% year to date.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Alexion Slips to 52-Week Low as CEO, CFO Quit amid Probe
Alexion Pharmaceuticals, Inc. announced that its board of directors has appointed an interim Chief Executive Officer (CEO) and a new Chief Financial Officer (CFO) after the former CEO and CFO resigned unexpectedly during an internal investigation into the sales practices related to its key drug, Soliris.
Shares of the company plunged approximately 13% on the news and touched a 52-week low of $115.08 on Dec 12. Alexion’s year-to-date share price movement shows that the stock has underperformed the Zacks classified Medical-Biomedical/Genetics industry. Specifically, Alexion has tumbled 39.6% so far in 2016, while the industry lost 25.9%.
In the press release, Alexion stated that David Brennan replaced David Hallal, erstwhile CEO and director of the company, immediately after the latter resigned from his position for personal reasons. Brennan will act as the interim CEO until a permanent CEO is appointed.
Brennan is currently a member of the Alexion’s board. He has previously served as the CEO and Executive Director of AstraZeneca plc (AZN - Free Report) .
Meanwhile, David J. Anderson has been named as the CFO of the company after Vikas Sinha stepped down from his position to seek other opportunities. Anderson has formerly served as the Senior Vice President and CFO of Honeywell International Inc. (HON - Free Report) .
We note that last month, Alexion had disclosed that the company’s Audit and Finance Committee was investigating into allegations made by a former employee regarding the sales practices involving Soliris. Particularly, the committee is investigating into whether company personnel have engaged in sales practices that were inconsistent with its policies and procedures, and the related disclosure and other considerations raised by such practices. This sales probe delayed the filing of the company’s Form 10-Q for the period ended Sep 30, 2016.
Alexion said that with the investigation close to completion, the committee has not found any reason that would require the company to update its previously reported historical results. The company continues to evaluate these matters from an accounting, disclosure and internal controls perspective, and expects to file the 10-Q in Jan 2017 or earlier.
We note that Soliris is approved for the treatment of two life-threatening ultra-rare disorders – paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome. The drug raked in sales of $2.1 billion in the first nine months of 2016. The company expects Soliris revenues in the range of $2.835–$2.875 billion in 2016.
Though still unclear, if reports are to be believed, the two executives had lost the confidence of the company’s board. However, Alexion has refrained from commenting on the sudden departure of its key executives in the press release. We believe that the company should shed some light on the sales issues related to Soliris and executive departures going ahead, which could otherwise prove to be an overhang on the stock.
ALEXION PHARMA Price and Consensus
ALEXION PHARMA Price and Consensus | ALEXION PHARMA Quote
Alexion carries a Zacks Rank #5 (Strong Sell).
A Key Pick in the Sector
Vanda Pharmaceuticals, Inc. (VNDA - Free Report) is a better-ranked stock in the health care sector sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vanda’s loss estimates narrowed from 62 cents to 52 cents for 2016, while its earnings estimates increased from 13 cents to 22 cents for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 56.65%. Its share price has surged almost 72% year to date.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>