Vertex's planned CEO handoff could signal stagnant growth to come: analyst

Succession planning is usually nothing to balk at—in fact, it’s considered responsible governance, particularly at a fast-growing company like Vertex Pharmaceuticals. But could Vertex's plan to move CEO Jeffrey Leiden to executive chairman and hand his job to Chief Medical Officer Reshma Kewalramani augur an end to the company’s strong growth cycle?

That was the question posed by SVB Leerink analyst Geoffrey Porges and colleagues in a note sent to investors Friday. They’re worried about the transition plan—which surfaced without warning Thursday—for a variety of reasons, including the possibility that other top execs might jump ship.