Alexion Pharmaceuticals announced Monday it has replaced its CEO and another top executive about a month after its report of an internal probe into sales practice and subsequent launching of a class action lawsuit against the firm.
CEO David Hallal has resigned for personal reasons, effective immediately, while CFO Vikas Sinha has left Alexion to “pursue other opportunities,” the company said in a statement. Hallal has been CEO since early 2015, while Sinha has been CFO since 2005.
Alexion said it has hired executive search firm Spencer Stuart to begin the search for a permanent CEO.
Meanwhile, board member David Brennan will succeed Hallal as interim CEO. Hallal also has resigned from the board.
Brennan is the former CEO and executive director of AstraZeneca PLC and has been a member of Alexion’s board of directors since July 2014.
Also, David J. Anderson, the former senior vice president and CFO of Honeywell for 11 years, has joined the company as CFO, effective immediately.
Hallal’s total compensation in calendar 2015 was $14.7 million while Sinha earned $4.7 million.
In November, Alexion disclosed it is investigating sales practices of its Soliris drug following a complaint by a former employee. Shortly thereafter, a shareholder filed a class action lawsuit against the company in connection with the probe, which Alexion now says is nearing completion.
“At this point in time, the Audit and Finance Committee’s investigation has not identified any facts that require the company to update its previously reported historical results,” Alexion stated. “The company continues to assess these matters from an accounting, disclosure and internal controls perspective.”
The drug maker says it will file the appropriate information with the U.S. Securities and Exchange Commission by January or earlier.
In a statement, Dr. Leonard Bell, board chairman, said Alexion is in position of “great strength and momentum” despite the leadership transition.
“With strong new leaders in place, we will continue to be relentlessly focused on serving patients and families with devastating and rare diseases,” Bell said.
