Alexion Management Changes Overshadow Potentially Positive Audit Results

Alexion Pharmaceuticals, Inc. ALXN are down 13.6 percent in pre-market trading after the company dropped a bombshell that CEO David Hallal and board member Vikas Sinha are leaving the company amid an ongoing audit and finance committee investigation. The news of the departures seems to have overshadowed a positive update on the progress of the audit.

Investigation

“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,” the Alexion press release read. In addition, the company reports that the investigation is “nearing completion.”

Alexion reported that board member and former AstraZeneca plc (ADR) AZN CEO David Brennan will be taking over as interim CEO. In addition, former Honeywell International Inc. HON CFO David Anderson will be taking over as new chief financial officer at Alexion.

In addition to the management changes, Alexion reported that the company expects to file its Q3 10-Q form no later than January 2017.

Stock Movement

The market’s knee-jerk reaction to the news seems to be skepticism. Clearly the market is more concerned about the management shuffling than the update to the internal investigation. Alexion reported Hallal left for “personal reasons” and Sinha left “to pursue other opportunities.”

Alexion’s stock is now down 39.4 percent in 2016.