Celgene Corp. named Chief Operating Officer Mark Alles as its new chief executive starting in March, as the biopharmaceutical company also lowered 2015 profit guidance to reflect dilution from its acquisition of Receptos Inc.
The Summit, N.J., company also projected 2016 sales that missed analysts’ estimates. Celgene’s shares fell 6.5% to $101.88 in recent trading.
Among other management shifts, Celgene said Chairman and Chief Executive Bob Hugin would become executive chairman. Lead independent director Michael D. Casey credited him with leading Celgene’s transformation into a global biopharmaceutical company during his tenure.
Mr. Alles, who has been with the company since 2004, was named chief operating officer in August of 2014. His previous experience includes heading Celgene’s hematology and oncology business.
Mr. Hugin has been CEO since 2010 and chairman since June 2011. He previously had been chief operating officer and chief financial officer.
Celgene has been trying to diversify beyond its foothold in drugs treating multiple myeloma. In August, the company completed its $7.2 billion acquisition of Receptos Inc., a bid to move deeper into the multibillion-dollar market for autoimmune diseases.
For 2015, Celgene now expects adjusted per-share earnings of roughly $4.71 on net product sales of $9.16 billion, compared with its previous estimate for per-share profit of between $4.75 and $4.85 on sales of between $9 billion and $9.5 billion. The updated view reflects 14 cents a share dilution related to the Receptos acquisition.
For 2016, the company projected adjusted per-share earnings of $5.50 to $5.70 on net product sales of $10.5 billion to $11 billion. Analysts polled by Thomson Reuters expected per-share profit of $5.68 on revenue of $11.14 billion.
Among other executive moves, Mr. Alles will be succeeded as chief operating officer by Jackie Fouse, who currently heads Celgene’s hematology and oncology business.
Scott Smith, head of the company’s immunology and inflammation business, will have an expanded role as chairman of Celgene’s global management committee.
The company also named Tom Daniel, head of research and early development, to the newly created position of chairman of Celgene research, in which he will oversee the company’s strategic initiatives and investments in its research and collaboration portfolio.
The company plans to release fourth-quarter results Jan. 28.
By Tess Stynes
Source: Wall Street Journal
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