LONDON -- Celltech Group PLC , the U.K.'s largest biotech company, Wednesday signaled the start of a new era after winning the battle for Oxford GlycoSciences PLC with the appointment of a new chief executive from a giant U.S. drug company.
Celltech hired as CEO Goran Ando, who was president of research and development at Pharmacia Corp. (PHA) until its acquisition by Pfizer Inc. (NYSE:PFE - News) , a deal that completed late Tuesday.
Although Celltech is one of Europe's few profitable biotech groups, it's much smaller than Pharmacia. Mr. Ando will be moving from a group with a market capitalization of $52 billion to one capitalized at 788 million pounds ($1.24 billion).
Howard Miller, an analyst at Teather & Greenwood who has a "buy" rating on Celltech, said Mr. Ando's appointment represents a positive move because he brings more than just research and development experience.
"He also brings an awful lot of managerial experience and also experience of making product acquisitions. Celltech should benefit from this," Mr. Miller said.
Nomura analyst Sam Fazeli said, "This had been massively expected. It was rumored in the market for two or three months."
The appointment comes at a critical time for Celltech. On Monday it declared that its 100 million pound offer for Oxford GlycoSciences would go unconditional.
OGS has just one small marketed drug, Zavesca for Gaucher's disease, but also brings a library of around 4,000 protein targets, which could be further explored as potential drugs.
Mr. Ando succeeds Peter Fellner, who will take up the position of chairman. Mr. Ando had been previously involved with Celltech as part of a partnership with Pharmacia to develop its CDP870 rheumatoid arthritis treatment.
Celltech also said that Peter Allen will continue his role as chief financial officer in addition to his new position as deputy chief executive.
Oxford GlycoSciences put itself up for sale earlier this year, but its board rejected first an all-share offer from Cambridge Antibody Technology Group PLC and then a higher cash offer of 101.4 million pounds from Celltech, saying both were too low.
OGS then courted other suitors, but said last week that three potential bidders who were examining its finances were unlikely to make a bid.
Eventually Oxford GlycoSciences recommended Celltech's bid to shareholders, saying it was the most "realistic option" available, but also adding that the price didn't fully reflect the value of the company.
Celltech clinched the deal on Monday by buying 4.2% of OGS, taking its stake plus acceptances past 50%.
Slough-based Celltech has several drugs on the market including Metadate, the hyperactivity drug for children, and a large cash holding.
The Celltech announcement:
CELLTECH ANNOUNCES APPOINTMENT OF
NEW CHIEF EXECUTIVE OFFICER
Celltech Group plc today announced the appointment of Dr. Goran Ando (54) as
CEO, with immediate effect. Dr. Ando served as President of R&D at Pharmacia
Corporation until its acquisition by Pfizer, which completed on 15 April 2003.
Dr. Ando's extensive business role as an Executive Vice President of Pharmacia
incorporated responsibility for business development, including mergers and
acquisitions, and for manufacturing. Dr. Ando's previous appointments
(summarised in the attached CV) included a period as R&D Director for Glaxo
Group Research.
Dr. Ando succeeds Dr. Peter Fellner, who has been CEO of Celltech since 1990.
Dr. Fellner will take up the position of Chairman with immediate effect,
following the retirement of Mr. John Jackson.
Dr. Fellner commented, 'In appointing Dr. Ando as Celltech's new Chief Executive
Officer, we have selected an individual who not only has an exceptional track
record in drug discovery and development appropriate for a leading R&D based
biotechnology company, but one who also has extensive business experience and
capabilities to guide Celltech through its next phase of growth. We are
delighted that someone of his stature will be taking up the leadership of
Celltech.
Goran and I have worked closely together during the past two years, in the
context of Celltech's landmark partnership with Pharmacia, and he brings to
Celltech qualities which I believe will accelerate the Company's development as
a global biotechnology leader'.
The Celltech management team reporting to Dr. Ando will be:
• Peter Allen, who is appointed Deputy CEO, with further operational
responsibilities, in addition to his continuing role as Chief Financial Officer.
• Dr. Melanie Lee, Director of R&D.
• Ingelise Saunders, CEO of Celltech Pharmaceuticals.
• Peter Nicholls, Group HR Director.
Dr. Ando commented, 'Celltech is a world-leading biotechnology company with an
exciting and innovative product pipeline. I am looking forward immensely to
working with its management and scientists at this very exciting stage in the
company's development.'
The Board of Celltech thanks Mr. John Jackson for his very valuable contribution
as Chairman over a 20 year period, during which Celltech has developed from an
early-stage research-based company into one of the largest European
biotechnology companies.
Contacts:
Dr. Peter Fellner Chairman (44) (0) 1753 534655
Peter Allen Deputy CEO and CFO
Richard Bungay Director of Corporate Communications
Jon Coles Brunswick (London) (44) (0) 207 404 5959
Fiona Fong Brunswick (London) (44) (0) 207 404 5959
Cindy Leggett-Flynn Brunswick (New York) (1) (212) 333 3810
Celltech Group plc (LSE: CCH; NYSE: CLL) is one of Europe's largest
biotechnology companies, with an extensive late stage development pipeline and a
profitable, cash-generative pharmaceutical business. Celltech also possesses
drug discovery capabilities of exceptional strength, including a leading
position in antibody engineering. More details can be found at
www.celltechgroup.com.
Notes for Editors
Dr. Goran Ando - Curriculum vitae
CURRICULUM VITAE
DR. GORAN A. ANDO
Personal Details
Date of Birth: March 6, 1949
Marital status: Married (2 children)
Education
Saltsjobaden High School, Sweden: Graduated 1967
Linkoping Medical University: Graduated 1973, MD
Specialist, General Medicine: 1978
Professional
1973 -1977 House Physician
Visby Hospital, Sweden
1978 -1980 Medical Director
Pfizer AB, Sweden
1980 -1983 Director Clinical Research,
Pfizer International, NY USA
1983 -1985 Vice President, Medical & Scientific Affairs
Bristol-Myers International Group, NY USA
1986 - 1989 Medical Director, promoted to President
Astra Research Centre, Sweden
1989 -1995 Joined as Medical Director; promoted to Deputy R&D Director, and then
R&D Director for Glaxo Group Research. For two years, was also
responsible for Product Strategy (= central marketing) group. Managing
Director of Glaxo Group Ltd. Member of Group Executive Committee
Glaxo Ltd., UK
Executive Vice President & Deputy CEO
Pharmacia AB, Sweden
1995 - 1997 Executive Vice President, Worldwide Science & Technology
Pharmacia & Upjohn, UK
Chairman
Pharmacia & Upjohn AB, Sweden
1997 - Present Executive Vice President and President, Research & Development, with additional
responsibility for manufacturing, IT, business development, mergers & acquisitions.
Pharmacia Corporation, NJ USA
Other
Member, Board of Directors
Biotechnology Industry Organization (BIO)
Washington, DC
Member, Board of Directors
Agency of Science, Technology & Research (A*STAR)
Singapore
Chairman of Board (1995-1999)
MorphoSys GmbH
Munich, Germany
Chairman of Board (1996-1999)
Prolifix Limited
London, UK
Chairman of Board (1998-2000)
IntrinsiQ Data Corporation
Boston, MA
Honorary Doctorate in Medicine (awarded 2002)
Karolinska Institute
Stockholm, Sweden
William Pitt Fellow (1997 - present)
Pembroke College
Cambridge University
Founding Fellow
American College of Rheumatology
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