Replies to post #69825 on Biotech Values

[DragonBits]

Dew, I agree with loss of shareholder value, but you might want to parse the survey more finely. Most decpetive CEO, most lost value, most heartache, biggest crook, and why not the best CEOs?

[ghmm]

I voted for names on the list but my vote would have been for Altus's former CEO Sheldon Berkle. While most of his damage was prior to 2008 and the company was small enough that his destruction of Shareholder Value was not as high as large companies listed. He basically ruined Altus ever becoming a real biotech. There are numerous things to fault him for I'm probably forgetting several but going by memory:
1) Having not 1 but 2 partnerships terminate under his regimin.
2) Having numerous staff lead including the found of the technology the company is based. Who left (my sense in disgust) and started another company (Alexey Margolin, Alnara which is currently private).
3) Having numerous manufacturing issues with both lead programs. Delays 2+ years in 1, 1+ in other.
4) Probably designing the Tryztek trial faulty. While we can't say for sure I highly suspect the drug works but somehow they managed to botch the Phase 3.
5) Wasting money to excess, such as hiring a head of sales a couple years before product approved (I believe she has since resigned).
6) Promising and failing to deliver on time lines. In addition to the above mfg delays. The preclinical candidates where supposed to be out of the clinic end of '07 I believe (perhaps even earlier).
7) Stock peaked in the 20's was in the 5 range after Genetech bailed and now is in the .50's while he left before the latest drop the Tryztek failure is basically due to mistakes under his reign. so he had about a 95% drop in stock value.

[DragonBits]

I would have also picked John Kapoor as one of the worst, based more on consistency and though not a CEO he was the power behind INGN.PK, NEOL, AKRX, SCRX.OB. Two are broke, one is close and one got bought out.

Nance at INGN really had only one choice, to quit. Kapoor ran some crazy power struggle at NEOL when his CEO tried to revolt. Kapoor is a control freak.

The companies he controlled never got close to the size of ELN, but any company he starts I would look closely at and try and be short after the spike up on hype.

But I picked ELN as having created the most damage the most times to the greatest number of shareholders of any biotech.

I see many picked Cox, but at least GTC was a slow fade over many years, it never really looked safe and it gave time for people to make decisions.

ELN goes down 70% overnight, it gives the appearance of being safe because it is such a large cap stock, not only wiping people out but created huge tax problems for those on margin / options. Despite the fact that investor were asking to get wiped out the way they leveraged their investments, the CEO encouraged them to think that way.

Take care

[DewDiligence]

Results of the Worst Pharma/Biotech CEO Survey

I made the mistake of mentioning the survey on the GTCB board, which may have biased the results. My own picks (FWIW) were Cox for 2008 and McKinnell for “all time.”

There were 37 votes on Q1 and 36 votes on Q2.


Q1: Who is/was the worst pharma/biotech CEO in 2008?

Geoff Cox of GTCB: 65%
Kelly Martin of ELN: 14%
Harvey Berger of ARIA: 8%
Bruce Carter of ZGEN: 5%
Mitch Gold of DNDN: 5%
Dan Bradbury of AMLN: 3%
Howard Pien of MEDX: 0%
Gérard Le Fur of SNY: 0%


Q2: Who is/was the worst pharma/biotech CEO of all time?

Geoff Cox of GTCB: 44%
Hank McKinnell of PFE: 17%
Sam Waksal of IMCL: 17%
Donal Geaney of ELN: 8%
Peter Dolan of BMY: 6%
Ray Gilmartin of MRK: 3%
Kevin Sharer of AMGN: 3%
Mitch Gold of DNDN: 3%
Bill Haseltine of HGSI: 0%


Thanks to all of the participants for participating.