Biogen Idec Inc., the third-largest biotechnology company in the world, which develops, manufactures, and commercializes therapies focusing on neurology, oncology, and immunology is going to name director Stelios Papadopoulos as new chairman, which is to replace William Young on the position.
The people familiar with this processes, who asked not to be identified, because the information is still private, reported that Chairman Young does not have any plans for seeking re-election this year. According to a regulatory filing last year, he has been chairman of the company since January 2010, and a director since 1997. The position is decided to be taken by Mr. Papadopoulos after the term of Mr. Young ends at the companys next annual meeting. Kate Niazi-Sai, who is a spokeswoman of Biogen Idec Inc, refused to make any comments on these rumours.
Mr. Papadopoulos has experience as an investment banker, who specialized in life sciences companies. He has been a member of the companys board since July 2008, and also a chairman and co-founder of Exelixis Inc.
The companys share value has almost doubled during the last year after Biogen exceeded forecasts for the sales of its newest multiple sclerosis drug, called Tecfidera. About 2.2 billion dollars are expected to be generated this year. Biogen is also known for offering other multiple sclerosis drugs – Avonex and Tysabri. Currently it is waiting for an approval of three additional medicines for hemophilia and multiple sclerosis.
One of the analysts working for ISI Group – Mark Schoenebaum, said in a telephone interview for Bloomberg: “Stelios has as much, if not more, experience than anyone on Planet Earth right now advising biotech companies on how to create shareholder value. If the world of biotech was a city, Stelios would be mayor.”
According to Mr. Schoenebaum, the new Chairman-to-be Mr. Papadopoulos should become more focused on the next sources of growth of the company. He also added: “The board should be focused on generating earnings growth after 2020. Between now and then, they’ve got pretty much everything they need with Tecfidera and the hemophilia drugs. These guys are stocked.”
Biogen Idec Inc.s shares fell by 0.10% on Friday to settle at $328.29, marking a one-year change of +94.55%. According to CNN Money, the 24 analysts offering 12-month price forecasts for Biogen Idec Inc. have a median target of $325.00, with a high estimate of $415.00 and a low estimate of $262.00. The median estimate represents a -1.00% decrease from the last close.
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