AstraZeneca CEO leaves CSL board over potential conflict of interest

AstraZeneca’s Pascal Soriot will resign as a director of CSL over a potential conflict of interest with a corporate acquisition.

Pascal Soriot, chief executive officer of AstraZeneca. Photographer: Simon Dawson/Bloomberg

AstraZeneca chief executive Pascal Soriot will resign from the board of CSL just months after his appointment, over concerns that a billion-dollar corporate acquisition may promote a conflict of interest.

On Wednesday, CSL informed the market that Mr Soriot would resign as a non-executive director of the company “regretfully, but with mutual agreement,” effective February 1.

Australia’s largest listed company said the decision was made to avoid a conflict of interest over AstraZeneca’s $US39bn ($50.28bn) acquisition of Boston-based biotechnology company Alexion, which operates in the same market as CSL through the treatment of various heart and blood conditions.

“He has resigned to avoid any potential future conflict of strategic interest between CSL and AstraZeneca that may arise due to the acquisition of Alexion by AstraZeneca,” CSL said.

“The acquisition, announced on December 12, 2020, is subject to a number of closing conditions that have not yet been satisfied.”

CSL is the local manufacturer of AstraZeneca’s COVID-19 vaccine and is currently producing 50 million doses for release in the second quarter of the year.

Mr Soriot, a French national, joined the board of CSL following the company’s AGM in July of last year.

His tenure as chief executive of AstraZeneca stretches back to 2012, when he departed his role as chief operating officer of Swiss medical firm Roche AG’s pharmaceuticals division.

CSL’s chairman, Brian McNamee, said Mr Soriot made a strong contribution to the company during his short tenure as a director.

“While Pascal has only served for a short time as a non-executive director of CSL, he made a strong contribution and become a valued member of the board,” Dr McNamee said.

“CSL is regretful that Pascal’s tenure has come to an early close. We look forward to maintaining our ongoing relationship as CSL continues to work closely with AstraZeneca on the critically important COVID-19 vaccine project for the benefit of Australians.

“On behalf of the CSL board I thank Pascal for all his work and for his continued relationship with CSL through the vaccine efforts.”

CSL closed at $275.20 per share, down 0.1 per cent.