Allergan CFO Departs Due to 'Family Commitments'

By Anastasia Thrift

Allergan chief financial officer Jeff Edwards has voluntarily stepped down from his position due to "family commitments," according to the company. The staff shifts occur amid tumultuous times for the company, including a hostile takeover attempt, resulting lawsuits and SEC investigations, and the Irvine, CA-based company's own quest for potential new partners.

The Irvine, CA-based company--best known for the drug Botox, but also a maker of silicone breast implants and tissue expanders--recently went through job cuts and restructuring to increase shareholder value in the face of a potential takeover. Valeant Pharmaceuticals International Inc. (Laval, Quebec, Canada) and Pershing Square Capital Management principal investor William Ackman have combined attempts at a $53 billion takeover of the Botox maker; Pershing purchased Allergan stock and securities then valued at over $3.2 billion from company stockholders while Valeant began preparing to announce an initial offer on Allergan in April.The company fought back with a lawsuit against Valeant and Pershing Square for alleged securities violations, and an SEC investigation followed. Reuters reports that Allergan has approached Salix Pharmaceuticals Ltd (Raleigh, N.C.) and at least one other company about a potential partnership. While "family commitments" can sound euphemistic, especially when offered as a reason for stepping down during such extraordinary times, reports maintain that Edwards left on good terms without being encouraged to depart. He will remain employed by Allergan in a non-executive position in order to make the transition for the new CFO run smoothly.

Taking on the role of executive vice president of finance and business development and CFO will be Jim Hindman. Hindman had previously served as Allergen's senior vice president of treasury, risk and investor relations. His new position offers a base salary of $550,000 as well as continued participation in Allergen's bonus plan and eligibility to receive an annual bonus, targeted at 70% of the annual base salary. Toward the end of the year, HIndman will receive a grant of restricted stock units with a value of $2 million The RSU Grant reflects Hindman's promotion as well as the value of his 2015 equity grant.

Anastasia Thrift is a contributor to Qmed and MPMN.

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