AstraZeneca share price tumbles as report suggests CEO is leaving for Teva

  • AstraZeneca share price tumbles as report suggests CEO is leaving for Teva

AstraZeneca share price tumbles as report suggests CEO is leaving for Teva

Israeli business news site Calcalist reported yesterday that AstraZeneca (AZN) CEO Pascal Soriot will leave his job to become the CEO at Teva Pharmaceuticals (TEVA).

Both companies said they did not comment on market rumours.

Calcalist was first to report that Teva's previous CEO, Erez Vigodman, was leaving. Its chief financial officer Eyal Desheh also resigned last month.

Shares in the group fell 4.7% to £49.48, while the FTSE 100 edged four points higher to 7,421. Shares in Teva jumped 5.4% on the news. Soriot, 58, has been running AstraZeneca since 2012, although the company has been struggling.

During his five years at the company he successfully defended Astra against a US$118 billion takeover approach from Pfizer.

But Divan said investors shouldn't rule out the move quite yet.

"Such a move only makes sense if Mystic is expected to disappoint", Trinity Delta analyst Mick Cooper told the newswire. Even this though could potentially be received negatively, ' he said.

According to reports, Soriot won't come cheaply - he is expected to earn twice as much as Vigodman did and will reportedly get a $20 million bonus upon signing a contract. "If Astra knew the results, they would have announced them".

When asked whether Teva might waive its requirement for the CEO to be based in Israel, Barer said in May: "We are looking around the world for the best candidate".

"While neither Teva nor AstraZeneca has confirmed, we can not dismiss the Calcalist article given the track record of the Israeli press and the detailed disclosure of the compensation package", said Baum in a note to clients this morning.