Lundbeck CEO resigns, shares drop to 3-yr low

By Gelu Sulugiuc

COPENHAGEN (Reuters) - Danish pharmaceutical group H Lundbeck's A/S President and Chief Executive resigned on Wednesday, sending the stock to a three-year low as the shock news added to worries about the firm's lack of new drugs.

Claus Braestrup had been due to retire but his departure came earlier than expected and without explanation.

Lundbeck (LUN.CO) shares ended the day down 6 percent at 106 crowns, while the Danish top-20 index was up 1.3 percent. The company's shares have fallen 23 percent so far this year.

"This comes as a big surprise," said Rune Dahl, an analyst at Sydbank. "(Braestrup) was under contract through 2009 and I thought he'd stay until 2010, when he would have had to leave under Lundbeck's pension rules. His resignation creates uncertainty around the share."

Lundbeck said its strategy of being a research-based company focusing on diseases of the central nervous system will remain unchanged.

Lundbeck generates the majority of its revenue from antidepressant Cipralex, sold in the United States as Lexapro. Patents for the drug expire in 2012 to 2014 and the company is looking for new revenue sources.

Last year it licensed the European rights to the insomnia drug Circadin and in January it bought the UK and Ireland rights for alcoholism drug nalmefene.

It also plans new trials for a stroke drug based on vampire bat saliva, once believed ineffective but later revived after an original trial proved flawed.

Braestrup acknowledged on Tuesday that Lundbeck's drug pipeline was not strong enough, but said the company had laid down "good ground work" to secure its future.

Analyst Peter Bertram Andersen at Jyske Bank said the new chief executive will have to deal with this challenge, possibly buying in new products. "It is surprising that it (the CEO's departure) happens right now and it is not optimal not to have a new CEO ready to take over," he said.

Until a replacement for Braestrup is found, Per Wold-Olsen, the chairman of the supervisory board, will act as executive chairman.

"It is regrettable that Claus Braestrup has decided to resign from his position sooner than we had expected," Wold-Olsen said in a statement. "We expect to announce the name of Lundbeck's new president and CEO within the next couple of months."

(Additional reporting by Martin Dahl; editing by Elaine Hardcastle)