New Haven-Based Alexion CEO, CFO Depart, Stock Falls 13%

NEW HAVEN, CT — The CEO and chief financial officer of Alexion Pharmaceuticals have left the company amid allegations of shady sales practices.

CEO David Hallal resigned "for personal reasons" and CFO Vikas Sinha left "to pursue other opportunities," according to a press release.

The company's stock was down about 13 percent as of 4 p.m. Monday afternoon.

A former employee expressed some reservations about how the company's star drug Soliris was being sold. The company launched an internal investigation and notified the Securities and Exchange Commissionthat it would be late in filing its Form 10-Q, which is used to file quarterly reports.

"Specifically, the Audit and Finance Committee is investigating whether Company personnel have engaged in sales practices that were inconsistent with Company policies and procedures and the related disclosure and other considerations raised by such practices," the company said in its notification that it would file late.

The investigation is nearing completion, according to a statement from Alexion and it plans to file its Form 10-Q for the period ending on Sept. 30 by January 2017 or earlier.

"At this point in time, the Audit and Finance Committee’s investigation has not identified any facts that require the Company to update its previously reported historical results," the company said in a statement.

David Brennan, an Alexion board member and former CEO of AstraZeneca was named interim CEO and David Anderson, the former CFO of Honeywell will join as the new CFO.

The State of Connecticut provided Alexion with up to $51 million in assistance through the First Five program. It included a $6 million grant to help construct its laboratory in New Haven, tax credits of up to $25 million and a 10-year loan of $20 million at a rate of 1% with principal and interest deferred for five years. Between $16 and $20 million of the loan was forgivable if the company created 200-300 full-time jobs.