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