Actelion hires operating chief in management shake-up
Europe’s largest biotech company Actelion is changing its management structure, including appointing a chief operating officer, meeting some of the demands of activist investor Elliott Advisors.
Actelion said in a statement it had appointed Otto Schwarz, head of business strategy and operations at Actelion since 2008, as COO, allowing chief executive Jean-Paul Clozel to focus more on strategic matters.
Actelion managed to see off challenges from New York-based hedge fund Elliott at its annual general meeting last month, but analysts said the top-level changes were a sign that Actelion was reacting to the shareholder pressure.
Elliott, Actelion’s largest shareholder, had urged the Swiss biotech group to consider seeking a buyer after a string of product setbacks and accused Actelion of pursuing a high-risk strategy that has eroded shareholder value.
The group also said Isaac Kobrin, previously chief medical officer, would lead a separate biotech startup, which would focus on the clinical development of Actelion’s non-core drugs.
“We welcome the changes. It would have been difficult to develop all the early-stage candidates with the resources Actelion has, and the COO nomination together with the strategy comment suggest the company might be open to a sale,” Kepler Capital Markets analyst Tero Weckroth said.
Actelion has denied it received a takeover offer but has said it would consider a bid at the right price. However it has also warned shareholders that putting itself up for sale now would deprive them of value as it works on future products.