Jack Lief retires at the request of his board of directors, and Dr. Harry will serve as interim CEO.
Arena Pharmaceuticals CEO and President, Jack Lief, has retired on request of company's board of directors. Dr. Harry F. Hixson, one of the members of the board since 2004, will be serving on interim basis as CEO and chief financial officer while the pharmaceutical company searches for the new CEO.
Dr. Harry is expected to serve as a good interim CEO because of his experience in several other companies as chief executive, including Sequenom, Braincells, and Elitra Pharmaceuticals. He is qualified for the position as well.
On his departure, Jack Lief stated, "I leave Arena proud of the accomplishments made by our employees in advancing healthcare and science, I look forward to watching the company transition through its next phase of development." According to the interim CEO Dr. Hixson, Liefs contributed in many ways since the company was found in 1997. He thanked and wished him success for the future.
The biopharmaceutical company is going to provide details about its financial plans for 2016 after evaluations of its affairs.
Shareholders were frustrated after the release and failure of the anti-obesity drug, Belviq, in 2013 by the research and development department. Jack was blamed for this failure by the shareholders; many were looking forward to his retirement while assuming that stock would rise after he leaves the health care services company.
The company's financial plan involves investing in the health department and improving it, as well as the research and development facility, to produce innovative medications for consumers. There are various risks with the financial plan, such as commercializing drugs from manufacturing to supplying and marketing. The organization's revenues are based on its judgment, accounting policies, and estimates and this is very risky because there is a high chance of mistakes and automatically, the reported results and estimates will, and can, vary.
Arena Pharmaceuticals is in a critical position at this time regarding its success and development. A search for a new CEO should be rapid. The company's first commercial drug is not meeting the expectations it had for its sales, which are quite low. Dr. Harry will be under pressure due to these circumstances but since he knows the company well enough and worked in many other companies with the same pressure, he might serve it well. Arena's stock closed at $2.15 on October 5, 7:50PM.
The efforts of the CEO will determine the results in saving it from crucial times. Thus, Dr. Hixson should observe the matter carefully.