Biogen Names New CEO -- Update
December 19 2016 - 05:52PM
Dow Jones News
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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