By Ezequiel Minaya 

Biogen Inc. said Monday it has named veteran biopharmaceutical executive Michel Vounatsos, head of the company's commercial organization, its next chief executive.

Mr. Vounatsos will succeed George Scangos, who announced earlier this year his intention to step down after his replacement was found.

The appointment of Mr. Vounatsos, who joined Biogen in April 2016 after 20 years at Merck & Co., is effective Jan. 6. In his current post, Mr. Vounatsos has steered Biogen's commercial strategy.

"Our near-term priorities are clear," Mr. Vounatsos said in a prepared statement, adding that the company intends to "reinvigorate our pipeline in the areas of neurology and neuro-repair" and advance an experimental treatment for Alzheimer's disease, among other initiatives.

Mr. Scangos, who has served as CEO since 2010, led Biogen through a turnaround, taking over when the company's stock was trading in the low $50s. Shares hit a high of $480.18 in March of last year, but have since flagged as worries over growth prospects stir. Shares of the company slipped in after-hours trading Monday, falling 1.2% to $275.30.

The decline in Biogen's stock may be seen as an opening for prospective suitors. Merck and Allergan PLC have each sounded out Biogen on the possibility of a takeover, The Wall Street Journal previously has reported.

Biogen has focused research and development on multiple sclerosis and other neurodegenerative conditions, including some to treat Alzheimer's and Parkinson's disease.

The company, based in Cambridge, Mass., dominates the lucrative market for MS drugs, now worth nearly $20 billion a year. Biogen had sales of $10.8 billion last year, up 11%. Its Tecfidera treatment for the condition had one of the best new-drug launches after its 2013 approval. Tecfidera sales have slowed as competitors like Roche Holding AG develop rival treatments.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

 

(END) Dow Jones Newswires

December 19, 2016 17:37 ET (22:37 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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