Celgene Juggles Executive Leadership Amid Volatile Stock Prices, New CEO Named
January 12, 2016
By Mark Terry, BioSpace.com Breaking News Staff
Summit, N.J.-based Celgene Corporation announced changes in its executive leadership today, with Mark Alles moving to chief executive officer, and Bob Hugin taking on the role as executive chairman and remaining to lead the board of directors.
Formerly chief executive officer and chairman of the board, Hugin has run the company for 17 years. “I am excited for the opportunity to continue to significantly impact the lives of patients through advancing key strategic initiatives,” he said in a statement. “The elevation of exceptional leaders like Mark, Jackie and Scott will strengthen our organization and energize our operations allowing us to more fully realize our incredible potential, both benefiting Celgene and the patients that we serve.”
Mark Alles has been with Celgene since 2004, most recently as president and chief operating officer.
In other shifts, Jackie Fouse, who has been with the company since 2010 as chief financial officer, and president of the company’s Hematology & Oncology franchise, will become president and chief operating officer.
Scott Smith, currently president of Celgene’s I&I (immunology and inflammation) franchise, was appointed to chair the company’s Global Management Committee.
Tom Daniel has been appointed to be head of research and early development, a new position. In that role, he will manage the company’s strategic initiatives and investments in its research and collaboration portfolio. He was previously president of Research and Early Development.
The changes will be effective on March 1.
In late December 2015, Celgene announced it had settled a patent dispute with Natco Pharma Ltd. over Revlimid. Starting in March 2022, Natco will begin selling generic Revlimid in the U.S., with some volume restrictions in place. In 2026, it will be able to sell the generic version without limitations.
Revlimid is used to treat multiple myeloma, and in 2014 was responsible for 65 percent of Celgene’s sales. Although covered by various patents, the primary patent expires in 2019 and the final patent expires in 2027.
Celgene also announced yesterday its 2016 financial outlook and preliminary 2015 financials. It is projecting net product sales for 2016 of $10.5 billion to $11 billion, a 17 percent increase year-over-year. Revlimid net sales are expected to be about $6.6 to $6.7 billion.
For 2015, the company is showing unaudited net product sales of $9.16 billion, up about 21 percent year-over-year, with fourth quarter 2015 net product sales of about $2.54 billion. Although Revlimid is the biggest seller, with $5.801 billion in sales, Abraxane showed a 14 percent increase to $967 million, Pomalyst/Imnovid showed a 45 percent increase to $983 million, and Otezla, in its first full year of sales, showed $472 million.
“In 2015, we delivered a strong year operationally and commercially with eight regulatory approvals, the acquisition of Receptors and significant acceleration of our pipeline,” said Hugin in a statement. “The momentum in our operations and the advancement of our pipeline gives us confidence in our 2020 targets and beyond.”
Celgene has been on a roller coaster ride this year and didn’t seem to react positively to either its preliminary financials and projects, or the shuffling of executive leadership. Shares traded on May 5, 2015 for $103.03, jumped to $139.01 on July 23, then dropped back to $104.79 on Sept. 28. Shares then recovered on Nov. 2 to $127.20 before dropping back to $106.55 on Dec. 3, then back to $122.14 on Dec. 24. Shares are currently trading for $103.03.