CEO pay

Medivation hands out big bonuses after Pfizer deal

Calisha Myers — Thu, 06 Nov 2008 10:09:31 -0500

San Francisco-based biotech Medivation will pay its top executives $1 million in bonuses for individual performance, achieving company goals and landing a partnership deal with Pfizer. Here's the breakdown according to the company's Securities and Exchange Commission report filed Wednesday: CEO David Hung will receive $413,435, which includes an "extraordinary bonus" of $100,100 for the Pfizer deal; CFO Patrick Machado and Chief Medical Officer Dr. Lynn Seely will each get $290,000, which also includes the same $100,000 for the Pfizer partnership.

The SEC filing also revealed exec salaries for the 2009 fiscal year. Effective January 1, 2009, Hung will receive $570,000; Machado and Seely will both receive $365,000.

Medivation and Pfizer inked a $725 million partnership in early September. The development and commercialization deal is for Dimebon, a late-stage treatment for Alzheimer's and Huntington's disease. Pfizer will pay $225 million upfront and up to $500 million more in milestones. The two companies will share development and commercialization costs in the U.S., with Pfizer assuming a larger portion of the expenses and profits in a 60-40 split.

Medivation stock jumped 31 percent to a high of $34.40 on news of the Pfizer deal back in September. It closed Wednesday at 18.45 a share.

- check out the San Francisco Business Times article

Abbott opens R&D facility, invests $53M

Maureen Martino — Fri, 13 Jun 2008 12:55:22 -0400

Abbott has opened a new Formulation Development Center at its Illinois headquarters. At the R&D facility, researchers will take candidate molecules and formulate them into tablets and capsules for use in in pre-clinical and clinical studies. "The new formulation center is a clear example of Abbott's commitment to advancing scientific innovation," said John Leonard, M.D., senior vice president, Pharmaceuticals, Research and Development, Abbott. "With the growing number of compounds in Abbott's pipeline, the new center utilizes the latest technology to accelerate the development of future medicines."

- see Abbott's release

Development chief outlines strategy at Genentech

John Carroll — Thu, 12 Jun 2008 10:55:43 -0400

Genentech's Susan Desmond-Hellmann, president of product development, outlined the biotech giant's development strategy to a group at the Goldman Sachs healthcare conference. In addition to testing new uses of its cancer blockbusters, Desmond-Hellman says the company will push hard to advance new therapies in the neuroscience and infectious disease areas. Genentech also has 14 new molecules in development for cancer indications.

The research chief also told the group that the blockbuster drugs of the past may never be duplicated. Future drugs will cater to a smaller, better defined group of patients. "The days of big cholesterol-lowering drugs for millions of people may be behind us."

- read the report in the Wall Street Journal

ALSO: Genentech announced that it had settled a patent dispute with MedImmune over basic production methods. Report

Biotech CEO mixes business with vacation-home pleasure

Wed, 21 May 2008 06:59:54 -0400

If you've been pondering the best way to set up your biotech company's corporate retreat, consider the case of Dr. Brian Pereira, the CEO of Amag Pharmaceuticals, which is developing an iron replacement therapy for chronic kidney disease patients. He and his wife came across a two-acre island site off the coast of Maine 10 years that featured a World War II era bunker. They subsequently built a vacation house over the bunker, where execs can do some annual strategic thinking.

Exactly what they'll do to refurbish the 12,000-square-foot bunker, though, hasn't been decided. On the list: art gallery, heating and cooling plant for the house and a kind of storage shed for island wine enthusiasts.

"We do company executive retreats there," Pereira tells the Boston Globe. "The company saves money, and the team gets a good bonding experience at my home."

- read the report from the Boston Globe

SPOTLIGHT: Top 17 Paychecks in Big Pharma

Tue, 20 May 2008 06:59:53 -0400

Few statistics are as hotly debated as CEO pay reports. Investors, analysts, and the just plain curious all want to know how much the head honcho makes--and how one company's chief stacks up against another's. We've already ranked the top five Big Biotech CEO salaries, so here for your rubbernecking pleasure are the 17 best-paid CEOs in Big Pharma. While the names themselves probably won't be a surprise, the pecking order might. List

Amgen CEO: "I felt real economic pain"

Thu, 08 May 2008 06:59:58 -0400

What do you do when your biggest therapeutic earners are swooning, your stock price is down and analysts have turned scornful? Look for that silver lining. That was Amgen CEO Kevin Sharer's approach yesterday when he was confronted by an angry horde of shareholders at the company's annual meeting. While conceding that last year was 'awful,' the chief executive of one of the biggest biotechs in the world said Amgen was off to a good start in '08. And those troubles the company is facing aren't really all that different from the woes faced by other big drug companies.

It was a tough sell. Even with his income down by 29 percent compared to 2006, steamed shareholders questioned Sharer's $13.2 million in compensation ($19 million according to SEC filings), his driver and car and use of the company plane.

Hey, responded Sharer, his shares are down too. "I felt real economic pain," he told the group. With Amgen shares down 30 percent from the 52-week high and Aranesp sales off by 20 percent, there was plenty of pain to go around the room.

- check out the article from the Los Angeles Times

ALSO NOTED: ISTA announces positive data; Proteolix launches Phase II trial; and much more...

Thu, 01 May 2008 06:59:50 -0400

> If anyone doubted Andrew Witty's professed faith in emerging markets, those doubts can be put to rest. The incoming GlaxoSmithKline CEO lured Eli Lilly's Abbas Hussein to spearhead a new unit charged with building business in China, Russia, Brazil, India and the Middle East. GSK report

> ISTA Pharmaceuticals announced positive preliminary results from its second and final late-stage study of Bepreve. ISTA release

> Proteolix has launched a Phase II clinical trial of carfilzomib (PR-171), a selective blocker of proteasome activity, in relapsed solid tumors. Proteolix release

> Oncothyreon has filed an investigational new drug for PX-866, a small molecule phosphatidylinositol-3-kinase inhibitor for advanced cancers. Oncothyreon release

> The FDA has given Merck 15 days to decide how to fix manufacturing problems at its main vaccine plant in West Point, PA, according to a warning letter dated April 30. Report

> As the U.K. nears a long-term drug-pricing deal with pharma firms, drugmakers are grousing about the fact that the government decided to renegotiate at all. Report

> Pfizer is breathing a big sigh of relief. The U.S. Patent & Trademark Office has said it will confirm the drugmaker's basic patent on the blockbuster Lipitor drug. Report

Special Report... CEO Pay: Who makes what in Big Biotech? Report

And Finally... A large group of American parents are having a tough time keeping up with their kids' vaccination schedules. Vaccine report

CEO pay: Who makes what in Big Biotech?

Maureen Martino — Wed, 30 Apr 2008 14:40:04 -0400

What do you get when you make it to the top of Big Biotech's biggest companies? Millions in compensation, for one thing. But although the average pay for the CEOs listed is $14.42 million, most saw a decline from 2006 levels, underscoring the stock market challenges some biotechs faced in 2007. Take, for instance, Amgen CEO Kevin Sharer. Though he came out on top in this year's CEO pay ranking, Sharer's pay down 17 percent from 2006. His base salary was up slightly to $1.55 million but he took a hit on stock awards and incentive plan compensation.

Because companies each have their own approach to reporting CEO pay, FierceBiotech's numbers are based on total compensation reported in these companies SEC filings. The numbers include base salary, bonus and "other" compensation in 2007. Click below to see what biotech's biggest players made last year.

1. Kevin Sharer - Amgen

2. Arthur Levinson - Genentech

3. Henri Treemer - Genzyme

4. John Martin - Gilead

5. James Mullen - Biogen Idec

CEO pay: Who makes what in Big Biotech?

Wed, 30 Apr 2008 06:59:57 -0400

What do you get when you make it to the top of of Big Biotech's biggest companies? Millions in compensation, for one thing. But although the average pay for the CEOs listed is $14.42 million, most saw a decline from 2006 levels, underscoring the stock market challenges some biotechs faced in 2007. Take, for instance, Amgen CEO Kevin Sharer. Though he came out on top in this year's CEO pay ranking, Sharer's pay down 17 percent from 2006. His base salary was up slightly to $1.55 million but he took a hit on stock awards and incentive plan compensation. Arthur Levinson (Genentech), Henri Treemer (Genzyme), John Martin (Gilead) and James Mullen (Biogen Idec) round out the five highest paid Big Biotech execs.

Because companies each have their own approach to reporting CEO pay, FierceBiotech's CEO numbers are based on total compensation reported in these companies SEC filings. The number include base salary, bonus and "other" compensation in 2007. Click below to see what biotech's biggest players made last year.

- see this CEO pay report for more

Related Article:
Big Biotech's Stock Report

Biogen Idec CEO James Mullen - CEO pay report

Maureen Martino — Fri, 25 Apr 2008 14:54:40 -0400

James Mullen - Biogen Idec

Total Compensation: $8.9 million

Details: Mullen garnered $1.14 million in base salary, $1.94 million in incentives and $159,625 in other compensation. Most of Mullen's earnings this year came from $7.23 million in stock. Despie the big numbers, Mullen earned almost a third less in 2007 than he did in 2006, primairly due to Biogen Idec's failed bid to find a buyer for the company.

Biogen Idec News:
Biogen squares off against Icahn
Icahn aims for Biogen control
Biogen CEO: Pharma too wimpy to deal
Biogen shares deflate as it gives up on sale
Biogen Idec in play after Icahn makes his move

Gilead CEO John C. Martin - CEO pay report

Maureen Martino — Fri, 25 Apr 2008 14:52:55 -0400

John C. Martin - Gilead

Total Compensation: $10.8 million

Details: Martin received roughly $1 million in salary, $1.6 million in bonuses and $3,800 in "other" compensation. Most of Martin's slary came from stock and option awards valued at about $10.1 million. Overall, Martin's compensation fell 6.8 percent from 2006.

Gilead News:
FDA approves Letairis
Gilead touts Phase III Hep B results

Genzyme CEO Henri Termeer - CEO pay report

Maureen Martino — Fri, 25 Apr 2008 14:49:55 -0400

Henri A. Termeer - Genzyme

Total Compensation: $14.6 million

Details: Termeer spent part of 2007 convincing investors that, unlike Biogen Idec and MedImmune, Genzyme wasn't a good takeover target. For his efforts, Termeer gained $1.5 million in base salary--a 5 percent increase over 2006--about $2.1 million in bonuses, $10 million in option awards, and $105,773 in other expenses like travel, insurance and 401(k) contributions.

Genzyme News:
Genzyme on buyouts: Thanks but no thanks
Icahn sells Genzyme stock

Amgen CEO Kevin Sharer - CEO pay report

Maureen Martino — Fri, 25 Apr 2008 14:47:30 -0400

Kevin Sharer - Amgen

Total Compensation: $19.9 million

Details: Despite weathering its toughest year to date, Amgen CEO Kevin Sharer came out on top in this year's CEO pay ranking. However, Sharer's pay was down 17 percent from 2006. His base salary was up slightly to $1.55 million but he took a hit on stock awards and incentive plan compensation. This was no surprise considering the beating Amgen stock took after safety problems were reported on the company's best-selling anemia drugs Aranesp and Epogen. In addition to traditional compensation, Sharer spent $247,743 on personal use of Amgen's aircraft, almost $25,000 on personal use of a car and driver, and $15,000 on financial planning services. His direct compensation totaled $13.2 million--less than Genentech's Arthur Levinson.

Amgen News:
Amgen CEO touts blockbuster potential of D-mab
Amgen discusses the future with analysts
Amgen in crisis? Not us, says CEO Sharer

Genentech CEO Arthur Levinson - CEO pay report

Maureen Martino — Fri, 25 Apr 2008 14:44:52 -0400

Arthur Levinson - Genentech

Total Compensation: $18.8 million

Details: Levinson declined a pay raise, keeping his base salary at $995K. He received $2.73 million in incentives and $9.77 million in stock option grants, bringing his total direct compensation to $13.9 million in 2007. His direct pay was $2.6 million lower than in 2006 due to the company's lower stock value in 2007.

Genentech News:
Genentech successes pay off big for CEO
Genentech touts pipeline as doubts fester
Genentech fights to keep edge in drug dev.

Troubled Amgen pays CEO $13.2M in compensation

Wed, 02 Apr 2008 07:59:56 -0400

With its shares plunging and regulators threatening its blockbuster anemia franchise, Amgen CEO Kevin Sharer (photo) nevertheless garnered $13.2 million in compensation last year, according to the AP. Sharer's fortunes waned by a hefty 29 percent, dropping from $18.6 million taken in the halcyon days of 2006. Sharer took home $1.5 million in pay last year (up), $1.5 million in bonuses (down) and stock and options valued at $9.3 million when they were offered (also down). The perks of the job may have softened the blow, though. Sharer's use of a company plane, Amgen car and driver and tax and financial planning services were worth a collective $900,000. Amgen shareholders did a little worse than the CEO. Company shares plunged 35 percent last year.

- read the AFX story

Related Articles:
Amgen--Big Biotech's Stock Report. Report
Amgen CEO touts blockbuster potential of D-mab. Report
Amgen discusses the future with analysts. Report
Amgen in crisis? Not us, says CEO Sharer. Report