Lundbeck plunges as Teva poaches its CEO

11 September 2017

Danish CNS specialist Lundbeck (LUND: CO) saw its shares drop 11.58% to 364.20 Danish kroner this morning, when it was revealed that its chief executive Kåre Schultz is set to join Israeli generics behemoth Teva Pharmaceutical Industries (NYSE: TEVA) as the latter’s president and CEO.

Mr Schultz resigned from fellow Danish company Novo Nordisk (NOV: N) after being passed over for the CEO role, and expected to help revive the fortunes of Teva, which has been pretty much rudderless since Erez Vigodman quit the CEO post in February and puts paid to any more suggestions that Sanofi’s Pascal Soriot was being lured to the post.

Shares of Teva jumped 7.8% to 58.75 shekels as of 10:45 am in Tel Aviv. Lundbeck’s stock has generated almost threefold returns during Mr Schultz’s tenure as CEO, according to a Bloomberg report.

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