Allergan's Rapastinel Failure, the end for Brent Saunders?

Yet another miss by Saunders. How soon before Brent Saunders is out at Allergan.

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Looks like Saunders is getting the last laugh...to the tune of $39 million laughs....

Allergan CEO Brent Saunders’ meteoric rise through pharma’s chief exec ranks is paying off, and in a big way. If he’s let go after AbbVie’s $63 billion takeover of the California company goes through, Saunders will net a cool $38.7 million.

According to a regulatory filing, the Allergan skipper will pocket $14.9 million in cash as part of his golden parachute. That’s on top of $23.6 million in equity, the majority of which is made up of stock awards that pay off based on performance.

That, of course, doesn’t include the 167,909 shares of Allergan that Saunders currently holds. At AbbVie’s takeover price of $188 per share, those are worth more than $31 million.

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Now that rapastinel isn’t going anywhere, “we expect greater focus on strategic actions with activist push likely to continue to heighten” before the company’s May 1 shareholder meeting, Stanicky wrote.

Imagine being the CEO and having investors cheer your failures because they want you gone.

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As the Dublin drugmaker’s shareholders told Leerink Partners analyst Marc Goodman ahead of the trial results—which saw depression prospect rapastinel flunk three phase 3 studies—if rapastinel came up short, “there could be (and should be) increased pressure on management and/or the Board to implement some type of change.”

Enthusiasm for that change is likely what drove Allergan shares higher Thursday after an initial Wednesday dip. “We wouldn’t be surprised to see the stock higher over the next week in anticipation,” Goodman wrote to clients.

The analyst was right as the stock is up almost 5% today. Saunders time is limited.

Now that rapastinel isn’t going anywhere, “we expect greater focus on strategic actions with activist push likely to continue to heighten” before the company’s May 1 shareholder meeting, Stanicky wrote.

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As the Dublin drugmaker’s shareholders told Leerink Partners analyst Marc Goodman ahead of the trial results—which saw depression prospect rapastinel flunk three phase 3 studies—if rapastinel came up short, “there could be (and should be) increased pressure on management and/or the Board to implement some type of change.”

Enthusiasm for that change is likely what drove Allergan shares higher Thursday after an initial Wednesday dip. “We wouldn’t be surprised to see the stock higher over the next week in anticipation,” Goodman wrote to clients.

The analyst was right as the stock is up almost 5% today. Saunders time is limited.

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