November 24, 2014
By Riley McDermid, BioSpace.com Breaking News Editor
Danish pharmaceutical firm H. Lundbeck Inc. (Lundbeck) said today that President and CEO Ulf Wiinberg has resigned at his own request, after failing to obtain prior approval from Lundbeck’s Board of Directors to receive shares in the biotech company Stratified Medical Ltd. from the company’s founder.
Wiinberg’s bought the shares in 2013 and was found to be in breach of Lundbeck’s Code of Conduct, which sets the rules for the conduct of management and employees. The company said the mistake was a particularly “aggravating circumstance” because Lundbeck later invested around DKK 19 million in Stratified.
”The Board acknowledges Ulf Wiinberg’s considerable contributions since his appointment in 2008. Ulf Wiinberg has not only acknowledged but also apologized for his erroneous actions, but this does not change the fact that Lundbeck has a clear and unmistakable Code of Conduct for all employees. We cannot operate with degrees of compliance with our Code of Conduct and the Board of Directors therefore concurs with Ulf Wiinberg’s decision to resign,” says Håkan Björklund, chairman of the board, in a statement.
For his part, Wiinberg expressed contrition and said the decision to resign was entirely his own.
”I am sincerely sorry for the course of events, which on my part was unintentional, and of which I myself informed Håkan Björklund. I am extremely happy about my time at Lundbeck and I am proud of having taken part in the development and strengthening of the company. However, based on these events, I have found it in both parties’ best interests that I resign from my position today,” said Wiinberg.
Lundbeck said that the search for Wiinberg’s replacement will begin immediately and that Björklund, will be remain as chairman but with “extended operational responsibilities” as day-to-day leader of the company until a new CEO is hired.
Björklund has more than 30 years of experience from the pharmaceutical industry, as is best known as CEO of Nycomed from 1999 to 2011. He has served on Lundbeck’s Board of Directors since 2011.
