Rev­enue plunges, stock takes a drub­bing, but Te­va CEO Kåre Schultz still grabs $32.5M in chart-top­ping com­pen­sa­tion

Te­va CEO Kåre Schultz hasn’t man­aged to turn the ship around at Te­va, but that didn’t stop him from be­com­ing the high­est paid Big Phar­ma ex­ec we’ve seen so far for 2018 — and we’re al­most done count­ing now.

Te­va’s new­ly filed proxy shows that Schultz’s $20 mil­lion cash bonus dropped in his first full year man­ag­ing the trou­bled gi­ant, push­ing his to­tal com­pen­sa­tion pack­age for the year to $32.5 mil­lion. That fol­lows $16.2 mil­lion in stock awards and op­tions that hit the year be­fore, when Schultz earned $17 mil­lion for his com­pen­sa­tion pack­age. And at $49.5 mil­lion for 14 months of work, that is the top of the curve.

As the rules re­quire, Te­va did cal­cu­late how many salaries Schultz’s pack­age was equal to — 170 to 1 — but on­ly af­ter de­duct­ing the $20 mil­lion wind­fall. Put that back in, and you come up with a ra­tio of 444 jobs to 1. That may not sit well with the Is­raeli unions that took the brunt of the lay­offs af­ter the CEO’s ar­rival from Lund­beck.

Hafrun Fridriks­dot­tir

Schultz wast­ed no time in carv­ing in­to the com­pa­ny soon af­ter his ar­rival, look­ing to stem a rout that had been ini­ti­at­ed by the soft­en­ing that set in on the gener­ics they sell, while Co­pax­one has faced gener­ic com­pe­ti­tion of its own. Te­va had tried to come up with a suc­ces­sor to safe­guard the fran­chise, but it flopped bad­ly af­ter a long and ex­pen­sive de­vel­op­ment cam­paign. 

Cut­ting costs, though, hasn’t saved the bot­tom line. Sub­tract it all up and Te­va’s sales rev­enue fell 16.5% last year, with no sign that the bot­tom had been hit in ear­ly 2019.

In one of the few bright spots last year, Te­va did score an FDA OK for one of a few CGRP mi­graine drugs now on the mar­ket.

Te­va’s share­hold­ers have al­so been hurt­ing. Af­ter shov­ing past the $24 mark last June, the stock end­ed to­day at $14.69 — down 39%. The new R&D chief at Te­va, Hafrun Fridriks­dot­tir, mean­while earned close to $6 mil­lion, not so far be­low GSK CEO Em­ma Walm­s­ley, still in last place at $7.7 mil­lion.

As­traZeneca CEO Pas­cal So­ri­ot had been hot­ly ru­mored to be in the hunt for this job, though he lat­er af­firmed he’d stay on at the UK-based com­pa­ny. With the num­bers we’re see­ing here, it’s not hard to see what might have at­tract­ed him to the Te­va job. So­ri­ot’s 2018 com­pen­sa­tion pack­age was less than half of what Schultz grabbed.


Im­age: Kåre Schultz. Jo­han Wess­man, News Øre­sund

Con­quer­ing a silent killer: HDV and Eiger Bio­Phar­ma­ceu­ti­cals

Hepatitis delta, also known as hepatitis D, is a liver infection caused by the hepatitis delta virus (HDV) that results in the most severe form of human viral hepatitis for which there is no approved therapy.

HDV is a single-stranded, circular RNA virus that requires the envelope protein (HBsAg) of the hepatitis B virus (HBV) for its own assembly. As a result, hepatitis delta virus (HDV) infection occurs only as a co-infection in individuals infected with HBV. However, HDV/HBV co-infections lead to more serious liver disease than HBV infection alone. HDV is associated with faster progression to liver fibrosis (progressing to cirrhosis in about 80% of individuals in 5-10 years), increased risk of liver cancer, and early decompensated cirrhosis and liver failure.
HDV is the most severe form of viral hepatitis with no approved treatment.
Approved nucleos(t)ide treatments for HBV only suppress HBV DNA, do not appreciably impact HBsAg and have no impact on HDV. Investigational agents in development for HBV target multiple new mechanisms. Aspirations are high, but a functional cure for HBV has not been achieved nor is one anticipated in the forseeable future. Without clearance of HBsAg, anti-HBV investigational treatments are not expected to impact the deadly course of HDV infection anytime soon.

UP­DAT­ED: In a land­mark first glimpse of hu­man da­ta from Ver­tex, CRISPR/Cas9 gene ther­a­py sig­nals ear­ly ben­e­fit

Preliminary data on two patients with blood disorders that have been administered with Vertex and partner CRISPR Therapeutics’ gene-editing therapy suggest the technology is safe and effective, marking the first instance of the benefit of the use of CRISPR/Cas9 technology in humans suffering from disease.

Patients in these phase I/II studies give up peripheral blood from which hematopoietic stem and progenitor cells are isolated. The cells are tinkered with using CRISPR/Cas9 technology, and the edited cells — CTX001 — are infused back into the patient via a stem cell transplant. The objective of CTX001 is to fix the errant hemoglobin gene in patents with two blood disorders: beta-thalassemia and sickle cell disease, by unleashing the production of fetal hemoglobin.

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UP­DAT­ED: Make that 2 ap­proved RNAi drugs at Al­ny­lam af­ter the FDA of­fers a speedy OK on ul­tra-rare dis­ease drug

Seventeen years into the game, Alnylam’s pivot into commercial operations is picking up speed.
The bellwether biotech $ALNY has nabbed their second FDA OK for an RNAi drug, this time for givosiran, the only therapy now approved for acute hepatic porphyria. This second approval came months ahead of the February deadline — even after winning priority review following their ‘breakthrough’ title earlier.
AHP is an extremely rare disease, with some 3,000 patients in Europe and the US, not all diagnosed, and analysts have projected peak revenue of $600 million to $700 million a year. The drug will be sold as Givlaari.

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David Ricks. Eli Lilly

Eli Lil­ly touts $400M man­u­fac­tur­ing ex­pan­sion, 100 new jobs to much fan­fare in In­di­anapo­lis — even though it's been chop­ping staff

Eli Lilly is pouring in $400 million to beef up manufacturing facilities at its home base of Indianapolis. The investment, which was lauded by the city’s mayor, is expected to create 100 new jobs.

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Am­gen chops 172 more staffers in R&D, op­er­a­tions and sales amid neu­ro­science ex­it, rev­enue down­turn

Neuroscience wasn’t the only unit that’s being hit by a reorganization underway at Amgen. As well as axing 149 employees in its Cambridge office, the company has disclosed that 172 others nationwide, including some from its Thousand Oaks, CA headquarters, are being let go.

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Stephen Hahn (via Senate HELP Committee)

Stephen Hahn gets through Sen­ate’s soft­ball job in­ter­view — but most­ly plays dodge­ball on the is­sues fac­ing the FDA

Anyone looking for fresh insights on what kind of FDA commissioner Stephen Hahn will be got precious few clues during Wednesday’s Senate hearing on the nomination.

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Op­di­vo/Yer­voy com­bo for melanoma fails in key pa­tient pop­u­la­tion

Bristol-Myers Squibb’s efforts to expand their checkpoint inhibitor combination have run into another recalcitrant cancer.

The NJ-based pharma announced that a combination of Yervoy and Opdivo didn’t beat out Opdivo alone in patients with resected high-risk melanoma who had very low levels of PD-L1. The drug combo couldn’t improve recurrence-free survival in these post-surgery patients.

Ver­tex's stel­lar quar­ter car­ries on with French re­im­burse­ment deal

Vertex’s golden quarter just got brighter. About a month after the US drugmaker finally clinched a deal with UK authorities to cover its slate of cystic fibrosis (CF) drugs following years of protracted negotiations, the company on Wednesday secured a deal with France for its CF therapy, Orkambi.

After the UK, France has one of the largest CF populations outside the United States. Achieving French reimbursement unlocks an ~7000-patient CF population, around ~2500-3000 of which will likely be eligible to receive (and be reimbursed for) Orkambi, Stifel’s Paul Matteis wrote in a note.

Nello Mainolfi, Kymera via Youtube

Kymera hands the helm to No­var­tis vet — and found­ing CSO — Nel­lo Main­olfi

Kymera Therapeutics is turning to a co-founder to run the company.
The protein degradation specialist with a deep-pocket syndicate behind them has opted to give the helm officially to Nello Mainolfi. The new CEO is a veteran of the Novartis Institutes for Biomedical Research. He joined Atlas Venture in their entrepreneur-in-residence program and helped launch Kymera as the CSO three years ago with Atlas’ Bruce Booth.
The boast at Kymera is that they’re angling to create a new class of protein degraders, a popular field where there’s been a variety of startups. One of its chief advocates is NIBR head Jay Bradner, who launched C4 just ahead of joining Novartis, where he’s also been doing new work in the field.