Pharmaxis names new CEO

Pharmaxis (ASX:PXS) has promoted COO Gary Phillips to the post of CEO, effective immediately.

Phillips replaces founding CEO Dr Alan Robertson, who is leaving the company after 13 years at the helm. Robertson will provide Pharmaxis advice in a consulting capacity.

Phillips, who has been COO of Pharmaxis for five of the last 10 years starting with its ASX listing in 2003, will be tasked with rethinking the company’s approach in light of the January decision by an advisory panel to the US FDA not to recommend Bronchitol for approval in cystic fibrosis.

“Pharmaxis is facing likely delays in the commercialisation of Bronchitol in the United States,” Pharmaxis Chairman Malcolm McComas said in a statement announcing the appointment.

“Gary Phillips will review the current business model and implement a number of changes aimed at securing Pharmaxis’s position as a commercially successful pharmaceutical company.”

He said Phillips has over 30 years’ experience in the pharmaceutical sector and was previously CEO of the Novaritis group companies in Europe, Asia and Australia.

The US FDA will formally respond to Pharmaxis’s application next week. Phillips has revealed the company is likely to need to request a meeting with the FDA in Q2 to address any additional requirements the regulator might need.

The company will also conduct a detailed analysis of the anticipated costs and timing of meeting any FDA requirements and incorporate the projections into the review of its business model.

Going forward, Pharmaxis will concentrate on improving sales growth for Bronchitol in the EU and Australia - where it is approved as a cystic fibrosis treatment - while expanding the territories where it is available and pursuing approvals for Bronchitol’s use in bronchiectasis.

Pharmaxis recently completed a multinational phase III trial of Bronchitol in bronchiectasis and aims to publish the data in the second quarter.

Bronchitol is a dry powder formulation of mannitol designed to hydrate the lungs and assist airway clearance.

Pharmaxis (ASX:PXS) shares were stable at $0.545 as of around 10 am on Wednesday.