Market Overview

C-Suite Shake Up: How Paul Clancy Jumping Ship Affects Alexion, Biogen

Share:
C-Suite Shake Up: How Paul Clancy Jumping Ship Affects Alexion, Biogen
Related ALXN
5 Biotech Companies To Keep On Your M&A Watchlist For 2019
The Week Ahead In Biotech: ASH Presentations Pick Up Pace, PDUFA Dates, Clinical Trials And IPOs
Related BIIB
Jim Cramer Weighs In On Biogen, Colgate-Palmolive And More
These Are The Biggest Stocks Reporting Earnings This Week, And Their Recent Track Records

Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) announced Wednesday the appointment of Paul Clancy as its chief financial officer, effective July 31, though he is expected to join the company on July 10.

Previously, Clancy served as the CFO of biotech firm Biogen Inc (NASDAQ: BIIB) for a decade.

Clancy's Appointment — Stock Positive

Commenting on the appointment, Credit Suisse said it expects the stock to trade up on the news, given that Clancy, being a biopharma veteran, is a strong hire. Predictably, Alexion stock has been up over 7 percent but Biogen is retreating by over 3 percent. Credit Suisse sees Clancy's departure from Biogen as a loss for the company's operations.

Analysts Alethia Young, Eliana Merle and Derek Yuan said they had always liked Clancy at Biogen. The analysts believe Clancy would add a lot of experience at a critical time in Alexion's operational history.

At a time when most of the management is new to Alexion, Credit Suisse believes the addition of a veteran biopharma CFO gives it a lot of credibility.

Sending A Positive Signal

Given its understanding the hiring diligence process wad robust from both sides, Credit Suisse thinks Clancy wouldn't have joined if there was something profoundly wrong at Alexion in commercial practices or financials.

"From looking at the 8k the initial term is 3 years, subject to automatic one-year extensions, with a very attractive financial package," the firm's Alethia Young said of the hiring terms (check out Young's track record).

Biogen To Move On

Meanwhile, Credit Suisse believes Biogen, which has begun a CFO search, would settle for an external candidate. The firm doesn't think the CFO transition would impact its deal making ability, given its deep bench.

Credit Suisse has an Outperform rating on the shares of Alexion and a $164 price target.

Stock Movements

  • Alexion shares were up 7.55 percent at $116.15 Wednesday, but had fallen 1.27 percent in Thursday's pre-market to $116.50.
  • Biogen shares were off 3.11 percent at $253.30 Wednesday and down 0.74 percent in Thursday's pre-market session at $251.50.

Related News:

Tracking The Busy June PDUFA Calendar

Alexion Shares Under Pressure Amid Brazilian Office Raid; Barclays Says Buy The Dip

Latest Ratings for ALXN

DateFirmActionFromTo
Oct 2018CitigroupMaintainsBuyBuy
Oct 2018Morgan StanleyMaintainsOverweightOverweight
Sep 2018CitigroupMaintainsBuyBuy

View More Analyst Ratings for ALXN
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Long Ideas News Reiteration Management Analyst Ratings Movers Best of Benzinga

 

Related Articles (ALXN + BIIB)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TVPTImperial CapitalDowngrades15.8
ACORGoldman SachsDowngrades10.0
APTIJefferiesDowngrades38.0
BCOVB. Riley FBRUpgrades12.0
CAMPFirst AnalysisDowngrades22.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Benzinga's Top Upgrades, Downgrades For June 15, 2017

The Vetr Community Continues To Love Netflix