Clinuvel Pharmaceuticals Limited (ASX: CUV) shares opened more than 3% higher this morning after announcing a renewed employment agreement with the existing CEO. Here’s what you need to know.
About Clinuvel
Clinuvel Pharmaceuticals is a global biopharmaceuticals company with a focus on developing and delivering treatments for patients with a range of severe genetic and skin disorders. Clinuvel’s main product is called SCENESSE, which it develops and self-distributes.
Renewed Employment Agreement
Clinuvel shares have risen this morning following the announcement of a renewed employment agreement with the existing CEO and Managing Director Dr Philippe Wolgen.
The new contract will see Dr Wolgen’s term extended until at least July 1st, 2022. Dr Wolgen has a long-term track record with Clinuvel and has led the company since 2005.
Clinuvel’s Chair, Stan McLiesh, said the company was looking to maintain a stable management team.
“The Board of Directors and larger investors are clear in their opinion that we want to retain Philippe and see him supported by a stable senior management team in order to continue the Company’s successful journey, by incentivising him and his team for executing our strategy,” he said.
The new remuneration agreement is focused on long-term objectives such as positive results of a Phase II SCENESSE study, and research and development that leads to the development of new molecules or formulations progressing to clinical trials.
Time To Buy?
There’s a lot to like about Clinuvel shares and this announcement. One thing I always look for in an investment is a long-term CEO with a proven track record and long-term incentives which align their interests with those of shareholders.
While Clinuvel does tick those boxes, I’m not sure about the valuation with shares currently trading on a price-to-earnings (P/E) multiple of around 69 times.
I like Clinuvel, but I think there are better options for growth, like the two companies in the free report below.
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Disclosure: At the time of writing, Max does not have a financial interest in any of the companies mentioned.
