Trou­bled Te­va poach­es Lund­beck CEO Schultz with an of­fer he could­n't refuse, in­clud­ing $20M in cash

A lit­tle more than two years af­ter No­vo Nordisk heir ap­par­ent Kåre Schultz jumped ship for the top job at Lund­beck, he’s mov­ing on to take the helm at a storm-tossed Te­va Phar­ma­ceu­ti­cal. Schultz will al­so re­main in the CEO spot at Lund­beck un­til the Dan­ish bio­phar­ma play­er can find a new CEO of its own.

Kare Schultz

And that’s not all. Co­in­ci­den­tal­ly chief com­mer­cial of­fi­cer Staffan Schüberg is al­so leav­ing Lund­beck and tak­ing over at a pri­vate­ly-held com­pa­ny.

Te­va’s shares shot up more than 12% on the news, with Lund­beck stock tank­ing by the same amount.

Te­va’s re­volv­ing door out­side the ex­ec­u­tive suite has seen a num­ber of com­ings and go­ings in re­cent years. Now the com­pa­ny has been stag­gered by a sud­den drop in gener­ic prices right on the heels of a big deal with Al­ler­gan for their port­fo­lio of knock­offs.

Te­va al­so has a weak drug pipeline that has been blitzed by re­peat­ed set­backs as its flag­ship MS ther­a­py Co­pax­one is ex­pect­ed to lose ground to grow­ing gener­ic com­pe­ti­tion.

As a re­sult, Te­va has be­gun to get se­ri­ous about a long-await­ed re­struc­tur­ing of the com­pa­ny in an at­tempt to sal­vage a steadi­ly de­te­ri­o­rat­ing fi­nan­cial po­si­tion. A num­ber of the world’s top bio­phar­ma ex­ecs have been con­sid­ered for the job, in­clud­ing As­traZeneca CEO Pas­cal So­ri­ot and Jack­ie Fouse, who left a top job at Cel­gene and is now run­ning her own biotech com­pa­ny.

They re­port­ed­ly turned down the of­fers.

So the re­cruit­ment team, led by Chair­man Sol Bar­er, turned to Schultz, who has had a mixed record dur­ing his brief run at Lund­beck field­ing new drugs. No­vo Nordisk, mean­while, re­mains one of the most ad­mired com­peti­tors in the in­dus­try.

For CEOs in this cat­e­go­ry, the bulk of their in­come comes from stock awards. Schultz is start­ing with a base pay of $2 mil­lion, up to $4 mil­lion in bonus­es for hit­ting his goals, a $5 mil­lion chunk of stock as a sign-on bonus, an­nu­al eq­ui­ty in­cen­tives of $6 mil­lion, a $20 mil­lion sign­ing bonus and ad­di­tion­al eq­ui­ty awards, plus mon­ey for mov­ing to Is­rael. The ini­tial pack­age is worth around $44 mil­lion-plus, ac­cord­ing to the SEC fil­ing.

Schultz is mak­ing his move at a key point in bio­phar­ma’s his­to­ry. There’s been a wave of top-lev­el changes in the in­dus­try, with new CEOs at GSK, Eli Lil­ly, No­var­tis, Sanofi, Bio­gen, Alex­ion and more. And every new CEO brings their own new R&D and com­mer­cial strat­e­gy in­to play.

For Schultz, Te­va looks like the op­por­tu­ni­ty of a life­time.

“The out­look (at Lund­beck) is strong with high prof­itabil­i­ty and sol­id cash flow gen­er­a­tion many years ahead and I could eas­i­ly see my­self work­ing at Lund­beck for many years. I just got an of­fer that I couldn’t refuse, be­ing CEO at one of the biggest phar­ma­ceu­ti­cal com­pa­nies in the world,” says Schultz in a state­ment.

Im­age cred­it: Shut­ter­stock

Hal Barron, GSK

Break­ing the death spi­ral: Hal Bar­ron talks about trans­form­ing the mori­bund R&D cul­ture at GSK in a crit­i­cal year for the late-stage pipeline

Just ahead of GlaxoSmithKline’s Q2 update on Wednesday, science chief Hal Barron is making the rounds to talk up the pharma giant’s late-stage strategy as the top execs continue to woo back a deeply skeptical investor group while pushing through a whole new R&D culture.

And that’s not easy, Barron is quick to note. He told the Financial Times:

I think that culture, to some extent, is as hard, in fact even harder, than doing the science.

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Aca­dia is mak­ing the best of it, but their lat­est PhI­II Nu­plazid study is a bust

Acadia’s late-stage program to widen the commercial prospects for Nuplazid has hit a wall. The biotech reported that their Phase III ENHANCE trial flat failed. And while they $ACAD did their best to cherry pick positive data wherever they can be found, this is a clear setback for the biotech.

With close to 400 patients enrolled, researchers said the drug flunked the primary endpoint as an adjunctive therapy for patients with an inadequate response to antipsychotic therapy. The p-value was an ugly 0.0940 on the Positive and Negative Syndrome Scale, which the company called out as a positive trend.

Their shares slid 12% on the news, good for a $426 million hit on a $3.7 billion market cap at close.

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Some Big Phar­mas stepped up their game on da­ta trans­paren­cy — but which flunked the test?

The nonprofit Bioethics International has come out with their latest scorecard on data transparency among the big biopharmas in the industry — flagging a few standouts while spotlighting some laggards who are continuing to underperform.

Now in its third year, the nonprofit created a new set of standards with Yale School of Medicine and Stanford Law School to evaluate the track record on trial registration, results reporting, publication and data-sharing practice.

Busy Gilead crew throws strug­gling biotech a life­line, with some cash up­front and hun­dreds of mil­lions in biobucks for HIV deal

Durect $DRRX got a badly needed shot in the arm Monday morning as Gilead’s busy BD team lined up access to its extended-release platform tech for HIV and hepatitis B.

Gilead, a leader in the HIV sector, is paying a modest $25 million in cash for the right to jump on the platform at Durect, which has been using its technology to come up with an extended-release version of bupivacaine. The FDA rejected that in 2014, but Durect has been working on a comeback.

In­tec blitzed by PhI­II flop as lead pro­gram fails to beat Mer­ck­'s stan­dard com­bo for Parkin­son’s

Intec Pharma’s $NTEC lead drug slammed into a brick wall Monday morning. The small-cap Israeli biotech reported that its lead program — coming off a platform designed to produce a safer, more effective oral drug for Parkinson’s — failed the Phase III at the primary endpoint.

Researchers at Intec, which has already seen its share price collapse over the past few months, says that its Accordion Pill-Carbidopa/Levodopa failed to prove superior to Sinemet in reducing daily ‘off’ time. 

Cel­gene racks up third Ote­zla ap­proval, heat­ing up talks about who Bris­tol-My­ers will sell to

Whoever is taking Otezla off Bristol-Myers Squibb’s hands will have one more revenue stream to boast.

The drug — a rising star in Celgene’s pipeline that generated global sales of $1.6 billion last year — is now OK’d to treat oral ulcers associated with Behçet’s disease, a common symptom for a rare inflammatory disorder. This marks the third FDA approval for the PDE4 inhibitor since 2014, when it was greenlighted for plaque psoriasis and psoriatic arthritis.

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Francesco De Rubertis

Medicxi is rolling out its biggest fund ever to back Eu­rope's top 'sci­en­tists with strange ideas'

Francesco De Rubertis built Medicxi to be the kind of biotech venture player he would have liked to have known back when he was a full time scientist.

“When I was a scientist 20 years ago I would have loved Medicxi,’ the co-founder tells me. It’s the kind of place run by and for investigators, what the Medicxi partner calls “scientists with strange ideas — a platform for the drug hunter and scientific entrepreneur. That’s what I wanted when I was a scientist.”

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Af­ter a decade, Vi­iV CSO John Pot­tage says it's time to step down — and he's hand­ing the job to long­time col­league Kim Smith

ViiV Healthcare has always been something unique in the global drug industry.

Owned by GlaxoSmithKline and Pfizer — with GSK in the lead as majority owner — it was created 10 years ago in a time of deep turmoil for the field as something independent of the pharma giants, but with access to lots of infrastructural support on demand. While R&D at the mother ship inside GSK was souring, a razor-focused ViiV provided a rare bright spot, challenging Gilead on a lucrative front in delivering new combinations that require fewer therapies with a more easily tolerated regimen.

They kept a massive number of people alive who would otherwise have been facing a death sentence. And they made money.

And throughout, John Pottage has been the chief scientific and chief medical officer.

Until now.

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Vlad Coric (Biohaven)

In an­oth­er dis­ap­point­ment for in­vestors, FDA slaps down Bio­haven’s re­vised ver­sion of an old ALS drug

Biohaven is at risk of making a habit of disappointing its investors.

Late Friday the biotech $BHVN reported that the FDA had rejected its application for riluzole, an old drug that they had made over into a sublingual formulation that dissolves under the tongue. According to Biohaven, the FDA had a problem with the active ingredient used in a bioequivalence study back in 2017, which they got from the Canadian drugmaker Apotex.

Apotex, though, has been a disaster ground. The manufacturer voluntarily yanked the ANDAs on 31 drugs — in late 2017 — after the FDA came across serious manufacturing deficiencies at their plants in India. A few days ago, the FDA made it official.

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