Unexpected resignation of Lundbeck’s CEO

Danish CNS specialist Lundbeck (LUND: CO) this morning announced the resignation of its chief executive, Ulf Wiinberg, with immediate effect.

Mr Wiinberg's resignation, which comes at his own request, is due to the fact that, in 2013, he omitted to request and obtain prior approval from Lundbeck's board of directors to receive shares in the biotech company Stratified Medical from the company's founder. This is a breach of Lundbeck's Code of Conduct, which sets the rules for the conduct of management and employees. It is an aggravating circumstance that the shares in question were in a company in which Lundbeck later invested around 19 million Danish kroner ($3.2 million).

Shares of Lundbeck which recently reported a downturn in first nine months of 2014 sales and earnings as generic competition continued to take a toll (The Pharma Letter November 5), saw its shares fall 2.9% to 122.70 Danish kroner in very early trading, quickly recovered to 126.30 kroner (-0.8%).