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

Martin Shkreli [via Getty]

Pris­on­er #87850-053 does not get to add drug de­vel­op­er to his list of cred­its

Just days after Retrophin shed its last ties to founder Martin Shkreli, the biotech is reporting that the lead drug he co-invented flopped in a pivotal trial. Fosmetpantotenate flunked both the primary and key secondary endpoints in a placebo-controlled trial for a rare disease called pantothenate kinase-associated neurodegeneration, or PKAN.

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Hal Barron. GSK

GSK's Hal Bar­ron her­alds their sec­ond pos­i­tive piv­otal for cru­cial an­ti-BC­MA ther­a­py, point­ing to a push for quick OKs in a crowd­ed field

Hal Barron has his second positive round of Phase III data in hand for his anti-BCMA antibody drug conjugate belantamab mafodotin (GSK2857916). And GSK’s research chief says the data paves the way for their drive in search of an FDA approval for treating multiple myeloma.

It’s hard to overestimate the importance of this drug for GSK, a cornerstone of Barron’s campaign to make a dramatic impact on the oncology market and provide some long-lost excitement for the pharma giant’s pipeline. They’re putting this BCMA program at the front of that charge — looking to lead a host of rivals all aimed at the same target.

We don’t know what the data are yet, but DREAMM-2 falls on the heels of a promising set of data delivered 5 months ago for DREAMM-1. There investigators noted that complete responses among treatment-resistant patients rose to 15% in the extra year’s worth of data to look over, with a median progression-free survival rate of 12 months, up from 7.9 months reported earlier. The median duration of response was 14.3 months.

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We­bi­nar: Re­al World End­points — the brave new world com­ing in build­ing fran­chise ther­a­pies

Several biopharma companies have been working on expanding drug labels through the use of real world endpoints, combing through the data to find evidence of a drug’s efficacy for particular indications. But we’ve just begun. Real World Evidence is becoming an important part of every clinical development plan, in the soup-through-nuts approach used in building franchises.

I’ve recruited a panel of 3 top experts in the field — the first in a series of premium webinars — to look at the practical realities governing what can be done today, and where this is headed over the next few years, at the prodding of the FDA.

ZHEN SU — Merck Serono’s Senior Vice President and Global Head of Oncology
ELLIOTT LEVY — Amgen’s Senior Vice President of Global Development
CHRIS BOSHOFF — Pfizer Oncology’s Chief Development Officer

A premium subscription to Endpoints News is required to attend this webinar. Please upgrade to either an Insider or Enterprise plan for access. Already have Endpoints Premium? Please sign-in below. You can contact our Subscriptions team at with any issues.

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UP­DAT­ED: An em­bold­ened As­traZeneca splurges $95M on a pri­or­i­ty re­view vouch­er. Where do they need the FDA to hus­tle up?

AstraZeneca is in a hurry.

We learned this morning that the pharma giant — not known as a big spender, until recently — forked over $95 million to get its hands on a priority review voucher from Sobi, otherwise known as Swedish Orphan Biovitrum.

That marks another step down on price for a PRV, which allows the holder to slash 4 months off of any FDA review time.

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Brian Kaspar. AveXis via Twitter

AveX­is sci­en­tif­ic founder fires back at No­var­tis CEO Vas Narasimhan, 'cat­e­gor­i­cal­ly de­nies any wrong­do­ing'

Brian Kaspar’s head was among the first to roll at Novartis after company execs became aware of the fact that manipulated data had been included in its application for Zolgensma, now the world’s most expensive therapy.

But in his first public response, the scientific founder at AveXis — acquired by Novartis for $8.7 billion — is firing back. And he says that not only was he not involved in any wrongdoing, he’s ready to defend his name as needed.

I reached out to Brian Kaspar after Novartis put out word that he and his brother Allen had been axed in mid-May, two months after the company became aware of the allegations related to manipulated data. His response came back through his attorneys.

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Why would Am­gen want to buy Alex­ion? An­a­lysts call hot­ly ru­mored takeover un­like­ly, but seize the mo­ment

A rumor that Amgen is closing in on buyout deal for Alexion has sparked a guessing game on just what kind of M&A strategy Amgen is pursuing and how much Alexion is worth.

Mizuho analyst Salim Syed first lent credence to the report out of the Spanish news outlet Intereconomía, which said Amgen is bidding as much as $200 per share. While the source may be questionable, “the concept of this happening doesn’t sound too crazy to me,” he wrote.

FDA asks why No­var­tis took two months to launch for­mal in­ter­nal probe, af­ter AveX­is flagged da­ta ma­nip­u­la­tion

And the plot thickens. Novartis $NVS officials are reportedly now scrambling to explain to the FDA why it took them two months to open an internal investigation into data discrepancies for their $2.1 million gene-therapy for spinal muscular dystrophy — the world’s most expensive drug.

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Build­ing on suc­cess­ful PD-1 pact, Eli Lil­ly li­cens­es di­a­betes drug to Chi­nese part­ners at In­novent

Eli Lilly is expanding its partnership with China’s Innovent in a deal involving a diabetes drug sitting in its Phase I reserves.

The two companies had jointly developed one of China’s first homegrown PD-1 agents, scoring an approval for Tyvyt (sintilimab) late last year for relapsed/refractory classical Hodgkin’s lymphoma. This time around, Lilly is out-licensing a piece of its diabetes pipeline, a leading franchise that has historically produced the top-selling Trulicity and Humalog.

Am­gen, Al­ler­gan biosim­i­lar of Roche's block­buster Rit­ux­an clears an­oth­er US piv­otal study 

Novartis $NVS may have given up, but Amgen $AMGN and Allergan $AGN are plowing ahead with their knockoff of Roche’s blockbuster biologic Rituxan in the United States.

Their copycat, ABP 798, was found to have a clinically equivalent impact as Rituxan — meeting the main goal of the study involving CD20-positive B-cell non-Hodgkin’s lymphoma patients. This is the second trial supporting the profile of the biosimilar. In January, it came through with positive PK results in patients with rheumatoid arthritis.