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Elan's Martin: Worst biotech CEO?
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Elan's CEO Kelly Martin (photo) has the dubious honor of being picked as The Street's worst biotech CEO of 2008. Biotech writer Adam Feuerstein slams Martin for talking up the experimental Alzheimer's therapy bapineuzumab. Martin, he said, enticed analysts and portfolio managers to invest in Elan with the promise that bapineuzumab would offer the first real breakthrough for Alzheimer's treatment--despite the fact that the drug was only in mid-stage trials. "Those bapineuzumab data were horrible and put a serious crimp in the drug's future, even as Elan and partner Wyeth were sinking big bucks into phase III clinical trials," notes Feuerstein.
Elan hasn't recovered. The company's stock plunged 70 percent this year and 80 percent since its high in July. Shareholders have since filed a class action suit against Elan, claiming the company made false and misleading statements about the drug's development and prospects.
Martin wasn't the only CEO to be considered for the award. Here's a sampling from Feuerstein's list of honorable mentions:
- Diane Goostree (photo) of Artes Medical - Goostree resigned earlier this year and Artes had gone bankrupt.
- Michael Polymeropoulos of Vanda Pharmaceuticals - Polymeropoulos sold much of his stock before it took a dive following the rejection of partner Titan's drug iloperidone. The company has since gone through a round of layoffs and cost-cutting.
- Harvey Berger (photo) Ariad Pharmaceuticals - Four members of Araid's board resigned last week, placing the blame for their departure on Berger.
- see TheStreet article for more
Related Articles:
Elan shareholders file lawsuit
Alzheimer's drug results boost Elan, Wyeth
Comments
By Anonymous | Posted 2:57pm | December 11, 2008
One needs to realize the demise of Artes Medical began when the Chairman, Chris Reinhard released Dr. Stefan Lemperle as CEO. Chris Reinhard is the true culprit here and Diane Goostree was certainly a major contributor as well. She turned down distribution agreements with the potential of growing a very large International market for ArteFill. This day in age, who turns down cash? My condolences for any company who hires Chris Reinhard or Diane Goostree.
By artefiller | Posted 3:28am | December 12, 2008
"Anonymous" is right on the money! Stefan knows the market extremely well and treats the docs out there with respect and all the right tools to set up a great business model. Frank Fazio completely failed at marketing ArteFill and is known for not shaking hands with docs and the guys who put food on his table. He never shook mine! He has the personality of a doorknob. How does this strategy work? I understand he never had a written marketing plan. This guy should have been handed his walking papers along with Diane Goostree!
By Anonymous | Posted 3:42pm | December 12, 2008
The company was already on the slide when Diane got there...and she was kept in a tight box by Reinhard and the BOD once she arrived. As such, I'm with those who feel she is getting a raw deal. Much of the blame lies elsewhere!
By ex-Artes Employee | Posted 1:03am | December 15, 2008
Goostree had absolutely no knowledge of the business. Rather than listening to her team of executives, she ignored them. She made decisions in a vacuum. This CEO made the huge mistake of visiting Dr. Kline and walked right into a trap. She was more concerned about the process and not the results. She had plenty of time and resources to make this into a successful company. I agree with this article all the way.
By Anonymous | Posted 12:36am | December 29, 2008
Another corporate winner. The problem is that nobody put checks and balances on these people.
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