Sanofi re­cruits No­var­tis' top phar­ma ex­ec Paul Hud­son as its new CEO — so what hap­pens now?

Sanofi’s board has turned to some­one who’s not French to be its next CEO.

The Paris-based phar­ma gi­ant named No­var­tis phar­ma chief Paul Hud­son — a British phar­ma ex­ec­u­tive with an in­ter­na­tion­al pedi­gree — to the top post as cur­rent CEO Olivi­er Brandi­court heads off to an ear­ly “re­tire­ment.”

Marie-France Tschudin AAA

In a care­ful­ly or­ches­trat­ed re­sponse, No­var­tis CEO Vas Narasimhan con­grat­u­lat­ed Hud­son and named Marie-France Tschudin, a Swiss cit­i­zen who’s head­ing up the re­cent­ly ac­quired can­cer group Ad­vanced Ac­cel­er­a­tor Ap­pli­ca­tions, as Hud­son’s re­place­ment. In do­ing so, he im­me­di­ate­ly po­si­tioned Tschudin — who speaks 6 lan­guages — as a top can­di­date for any fu­ture Big Phar­ma CEO open­ing.

Hud­son joined No­var­tis and the ex­ec­u­tive com­mit­tee just three years ago, af­ter serv­ing as the US phar­ma chief for As­traZeneca. He has a de­gree in eco­nom­ics from Man­ches­ter Met­ro­pol­i­tan Uni­ver­si­ty in the UK.

Hud­son will take the top slot on Sep­tem­ber 1, where he’ll be greet­ed by an ex­tra­or­di­nary chal­lenge. The com­pa­ny has an R&D group with a rep for slow mo­tion move­ment and a mar­ket­ing team that’s faced with some tough chal­lenges on the di­a­betes front, among oth­ers.

In­vestors re­spond­ed warm­ly to the ac­tion, bid­ding Sanofi’s shares up 5.5%  on Fri­day.

Brandi­court came on board just 4 years ago, fol­low­ing in the wake of Chris Viehbach­er, who was axed by the Gal­lic board and pow­er­ful chair­man — Serge Wein­berg — in charge of Sanofi af­ter mov­ing back home to the US. The French clear­ly want­ed a na­tive to run the com­pa­ny at the time, but ap­par­ent­ly feel that pro­fes­sion­al­ism trumps na­tion­al­i­ty as it works to­ward a turn­around.

One of Reuters sources, who tipped the wire ser­vices off ear­ly on the an­nounce­ment, said that Hud­son was picked be­cause of his sol­id man­age­ment ex­pe­ri­ence and ex­pe­ri­ence with dig­i­tal tech­nolo­gies, where No­var­tis has been care­ful­ly fo­cused.

So now the guess­ing games be­gin. What will Hud­son do to shake things up at Sanofi, where its R&D or­ga­ni­za­tion has pro­duced lit­tle of re­al val­ue, with the pos­si­ble ex­cep­tion of their late-stage can­cer drug isat­ux­imab?

Sanofi ex­e­cut­ed ma­jor al­liances with Re­gen­eron and Al­ny­lam on ground­break­ing drugs, but on its own the com­pa­ny is known as large­ly mori­bund and bu­reau­crat­ic, tak­ing a long stretch to fi­nal­ly ex­e­cute on the M&A front un­der Brandi­court. And now they’ve backed away from those al­liances to lean more heav­i­ly on the pipeline and R&D chief John Reed.

If Hud­son’s back­ground at No­var­tis is an in­di­ca­tor, he may turn to deal­mak­ing to help en­liv­en the late-stage pipeline, where all big phar­mas are judged. An in­ter­nal shake­up in key ar­eas like on­col­o­gy may al­so be in the off­ing, as new ex­ecs like Di­et­mar Berg­er join up. And just about every new CEO — Dave Ricks and Em­ma Walm­s­ley, for ex­am­ple — like to bring out the axe to chop away at the dead wood be­fore adding any­thing.

Reed has al­ready re­vamped the pipeline. But look for an even greater re­liance on the US re­search ops around Boston to car­ry the bulk of the weight.

Any­one look­ing for the next sig­nal on Hud­son’s sta­tus should look to his com­pen­sa­tion pack­age. Brandi­court took home a 2018 com­pen­sa­tion pack­age of $8.1 mil­lion — down $2.7 mil­lion, a painful 33% drop — com­pared to his al­lot­ment for 2017. Eu­ro­pean ex­ecs tend to be paid sig­nif­i­cant­ly less than their US coun­ter­parts, but a cut in com­pen­sa­tion like that un­der­scored the board’s feel­ings about Brandi­court’s lack of ef­fec­tive­ness as a man­ag­er.

How much did Hud­son get in his ne­go­ti­a­tions?

Im­age: Paul Hud­son (No­var­tis)

 

John Hood [file photo]

UP­DAT­ED: Cel­gene and the sci­en­tist who cham­pi­oned fe­dra­tinib's rise from Sanofi's R&D grave­yard win FDA OK

Six years after Sanofi gave it up for dead, the FDA has approved the myelofibrosis drug fedratinib, now owned by Celgene.

The drug will be sold as Inrebic, and will soon land in the portfolio at Bristol-Myers Squibb, which is finalizing a deal to acquire Celgene.

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Health­i­er, longer lifes­pans will be a re­al­i­ty soon­er than you think, Ju­ve­nes­cence promis­es as it clos­es $100M round

Earlier this year, an executive from Juvenescence-backed AgeX predicted the field of longevity will eventually “dwarf the dotcom boom.” Greg Bailey, the UK-based anti-aging biotech’s CEO, certainly hopes so.

On Monday, Juvenescence completed its $100 million Series B round of financing. The company is backed by British billionaire Jim Mellon — who wrote his 400-page guide to investing in the field of longevity shortly after launching the company in 2017.  Bailey, who served as a board director for seven years at Medivation before Pfizer swallowed the biotech for $14 billion, is joined by Declan Doogan, an industry veteran with stints at Pfizer and Amarin.

UP­DAT­ED: AveX­is sci­en­tif­ic founder was axed — and No­var­tis names a new CSO in wake of an ethics scan­dal

Now at the center of a storm of controversy over its decision to keep its knowledge of manipulated data hidden from regulators during an FDA review, Novartis CEO Vas Narasimhan has found a longtime veteran in the ranks to head the scientific work underway at AveXis, where the incident occurred. And the scientific founder has hit the exit.

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Ab­b­Vie gets its FDA OK for JAK in­hibitor upadac­i­tinib, but don’t look for this one to hit ex­ecs’ lofty ex­pec­ta­tions

Another big drug approval came through on Friday afternoon as the FDA OK’d AbbVie’s upadacitinib — an oral JAK1 inhibitor that is hitting the rheumatoid arthritis market with a black box warning of serious malignancies, infections and thrombosis reflecting fears associated with the class.

It will be sold as Rinvoq — at a wholesale price of $59,000 a year — and will likely soon face competition from a drug that AbbVie once controlled, and spurned. Reuters reports that a 4-week supply of Humira, by comparison, is $5,174, adding up to about $67,000 a year.

The top 10 fran­chise drugs in bio­phar­ma his­to­ry will earn a to­tal of $1.4T (tril­lion) by 2024 — what does that tell us?

Just in case you were looking for more evidence of just how important Amgen’s patent win on Enbrel is for the company and its investors, EvaluatePharma has come up with a forward-looking consensus estimate on what the list of top 10 drugs will look like in 2024.

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UP­DAT­ED: Sci­en­tist-CEO ac­cused of im­prop­er­ly us­ing con­fi­den­tial in­fo from uni­corn Alec­tor

The executive team at Alector $ALEC has a bone to pick with scientific co-founder Asa Abeliovich. Their latest quarterly rundown has this brief note buried inside:

On June 18, 2019, we initiated a confidential arbitration proceeding against Dr. Asa Abeliovich, our former consulting co-founder, related to alleged breaches of his consulting agreement and the improper use of our confidential information that he learned during the course of rendering services to us as our consulting Chief Scientific Officer/Chief Innovation Officer. We are in the early stage of this arbitration proceeding and are unable to assess or provide any assurances regarding its possible outcome.

There’s no explicit word in the filing on what kind of confidential info was involved, but the proceeding got started 2 days ahead of Abeliovich’s IPO.

Abeliovich, formerly a tenured associate professor at Columbia, is a top scientist in the field of neurodegeneration, which is where Alector is targeted. More recently, he’s also helped start up Prevail Therapeutics as the CEO, which raised $125 million in an IPO. And there he’s planning on working on new gene therapies that target genetically defined subpopulations of Parkinson’s disease. Followup programs target Gaucher disease, frontotemporal dementia and synucleinopathies.

But this time Abeliovich is the CEO rather than a founding scientist. And some of their pipeline overlaps with Alector’s.

Abeliovich and Prevail, though, aren’t taking this one lying down.

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Chi­na has be­come a CEO-lev­el pri­or­i­ty for multi­na­tion­al phar­ma­ceu­ti­cal com­pa­nies: the trend and the im­pli­ca­tions

After a “hot” period of rapid growth between 2009 and 2012, and a relatively “cooler” period of slower growth from 2013 to 2015, China has once again become a top-of-mind priority for the CEOs of most large, multinational pharmaceutical companies.

At the International Pharma Forum, hosted in March in Beijing by the R&D Based Pharmaceutical Association Committee (RDPAC) and the Pharmaceutical Research and Manufacturers of America (PhRMA), no fewer than seven CEOs of major multinational pharmaceutical firms participated, including GSK, Eli Lilly, LEO Pharma, Merck KGaA, Pfizer, Sanofi and UCB. A few days earlier, the CEOs of several other large multinationals attended the China Development Forum, an annual business forum hosted by the research arm of China’s State Council. It’s hard to imagine any other country, except the US, having such drawing power at CEO level.

As dis­as­ter struck, Ab­b­Vie’s Rick Gon­za­lez swooped in on Al­ler­gan with an of­fer Brent Saun­ders couldn’t say no to

Early March was a no good, awful, terrible time for Allergan CEO Brent Saunders. His big lead drug had imploded in a Phase III disaster and activists were after his hide — or at least his chairman’s title — as the stock price continued a steady droop that had eviscerated share value for investors.

But it was a perfect time for AbbVie CEO Rick Gonzalez to pick up the phone and ask Saunders if he’d like to consider a “strategic” deal.

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CEO Pascal Soriot via Getty Images

As­traZeneca's jug­ger­naut PARP play­er Lyn­parza scoops up an­oth­er dom­i­nant win in PhI­II as the FDA adds a 'break­through' for Calquence

AstraZeneca’s oncology R&D group under José Baselga keeps churning out hits.

Wednesday morning the pharma giant and their partners at Merck parted the curtains on a successful readout for their Phase III PAOLA-1 study, demonstrating statistically significant improvement in progression-free survival for women with ovarian cancer in a first-line maintenance setting who added their PARP Lynparza to Avastin. This is their second late-stage success in ovarian cancer, which will help stave off rivals like GSK.

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