Delcath shares up after Novartis exec joins board

NEW YORK

Shares of Delcath Systems Inc. jumped 10 percent on Wednesday after the company said former Novartis Corp. President and Chief Executive Douglas Watson has joined its board of directors.

Wedbush Securities analyst Gregory Wade said the addition of such a prominent executive is fueling investor confidence in Delcath, a pharmaceutical and medical device company focused on the oncology market. In April, Delcath reported promising clinical trial results for its PHP drug administration system, which delivers heavy doses of chemotherapy to the liver.

Watson headed Novartis Corp., the U.S. unit of the Swiss pharmaceutical giant Novartis AG, from 1997 to 1999. He took an early retirement from Novartis in 1999 and then founded Pittencrieff Glen Associates, an executive-level management consulting organization

Delcath also said Wednesday that its former chief executive, Richard Taney, has resigned from the board. Taney, who joined the board in 2006, will continue to serve as a consultant to the company. He stepped down as president and chief executive a year ago.

Both executive changes became effective on Monday.

Shares of Delcath Systems, which is based in New York, surged 95 cents, or 13 percent, to $8.27 Wednesday.