Axovant Sciences Ltd. (NASDAQ: AXON) saw its shares take a big step back to start out the week after the company announced that there would be some changes at the executive level. The main takeaway is that Dr. David Hung is resigning from his role as chief executive officer, among other board members. After seeing the stock’s performance over the past year, it looks more like everyone is abandoning ship.
Ultimately, Hung resigned to pursue other opportunities and has also resigned from the firm’s board of directors, but he will still continue as scientific advisor to the Roivant family of companies.
Additionally, President and Chief Operating Officer (COO) Marion McCourt also has resigned to pursue another opportunity, and directors Kate Falberg, Tony Vernon and Patrick Machado have resigned as members of the board of directors.
In turn, Dr. Pavan Cheruvu has joined Axovant as CEO. Roger Jeffs, Ph.D., former president and co-CEO of United Therapeutics, and George Bickerstaff, former CFO of Novartis Pharma, have joined the Axovant board of directors.
Excluding Monday’s move, Axovant had vastly underperformed the broad markets, with its stock down about 64% year to date. Over the past 52 weeks, the stock was down over 85%.
Vivek Ramaswamy, CEO of Roivant Sciences and chair of Axovant’s board of directors, commented:
I would like to thank David for his commitment to Axovant over the past ten months, and we wish him well in his future endeavors. Roivant remains firmly committed to Axovant’s long-term success. Axovant will need to operate as a lean, entrepreneurial organization in the near term. In that context, Pavan is the right leader for the company at this time. Pavan is emblematic of the future industry leaders we hope to cultivate within Roivant, and I have full confidence in his ability to rebuild Axovant.
Dr. Cheruvu added:
I am excited for the opportunity to lead Axovant, and I look forward to getting started. Our top priorities are to expand the pipeline with high-quality product candidates, solidify next steps for nelotanserin and RVT-104, and ensure operational excellence across all areas of the business. We will provide a comprehensive update on the company’s strategy by mid-year. Given Axovant’s strong cash position, we are starting from a solid foundation from which to rebuild the company’s value.
Shares of Axovant were last seen down about 20% at $1.52, with a consensus analyst price target of $11.50 and a 52-week range of $1.47 to $27.98.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
