Durect CFO Matt Hogan leaves at short notice

  • Push-out Score suggests push-out forces
  • After about 12 years in the position
  • Thanks for Hogan
  • Mike Arenberg taking over
  • Hogan said 88 words

(exechange) — Cupertino, California, October 1, 2018 — Matt Hogan, finance chief of Durect, leaves. It is a change at short notice. As announced by Durect Corporation in a news release and in a regulatory filing published on Monday, October 1, 2018, Matthew J. (Matt) Hogan leaves his post as Chief Financial Officer at the biopharmaceutical company after about 12 years in the role, effective October 15, 2018.

It is the end of an era.

Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CFOs who departed over the past 12 months was 6.7 years, according to data compiled by exechange. Only 24 percent of the CFOs who departed over the past 12 months left the position after more than 10 years.

Hogan’s duties will be taken over by Michael H. (Mike) Arenberg, currently Senior Vice President, Corporate and Business Development of Durect Corporation.

“Devote more time to family and other activities”

Hogan’s imminent departure from the CFO post is explained as follows. Matt Hogan said: “After much reflection, I have made the decision to scale back my professional obligations so that I can devote more time to family and other activities, although I intend to remain actively engaged in advising Durect over the next six months.”

The phrase “devote more time to family and other activities” opens the door to speculation.

Precise information about Hogan’s future plans was not immediately available.

Alarm signal

Generally speaking, it is often an alarm signal for investors when a CFO leaves the position at short notice and without a reasonable explanation.

“Retirement”

Durect said: “Durect has entered into a consulting arrangement through April 15, 2019 with outgoing Chief Financial Officer, Matthew J. Hogan, to provide support and facilitate the transition.”

Durect further said: “On October 1, 2018, Durect Corporation … announced the promotion of Michael H. Arenberg, the Company’s Senior Vice President, Corporate and Business Development, to Chief Financial Officer, and the retirement of Matthew J. Hogan, the Company’s outgoing Chief Financial Officer, in each case effective October 15, 2018, both of which were approved by the Company’s Board of Directors … on September 27, 2018.”

Share price decline

The change follows a decline in the share price of Durect Corporation since April 2018.

Chaired by Felix Theeuwes

Durect Corporation is chaired by Felix Theeuwes.

Felix Theeuwes, D.Sc. is Chairman, co-founder, and Chief Scientific Officer at Durect Corporation, established in July of 1998 as a spinout from Alza Corporation to focus on the development of pharmaceutical systems and products to treat chronic debilitating diseases and enabling biotechnology drugs.

CEO: James E. Brown

James E. Brown serves as CEO of Durect Corporation. James E. Brown, D.V.M. co-founded Durect in February 1998 and has served as President, Chief Executive Officer and a Director since June 1998.

In the position of CFO since 2006

Matthew J. Hogan has been the Chief Financial Officer of Durect Corporation since September 12, 2006.

Matthew J. Hogan joined Durect from Ciphergen Biosystems, Inc., where he was the Chief Financial Officer from 2000 to 2006 and a consultant from March 2006.

Prior to joining Ciphergen, Hogan was the Chief Financial Officer at Avocet Medical, Inc. from 1999 to 2000.

From 1996 to 1999, Hogan was the Chief Financial Officer at Microcide Pharmaceuticals, Inc.

From 1986 to 1996, he held various positions in the investment banking group at Merrill Lynch & Co., most recently as a Director focusing on the biotechnology and pharmaceutical sectors.

Hogan holds a B.A. in economics from Dartmouth College and an M.B.A. from the Amos Tuck School of Business Administration.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Matt Hogan’s imminent move.

The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the change.

Read the full story in the exechange report 41.2018 ($).