Robert Hugin--Celgene

Robert Hugin
CEO, Celgene

2012 pay: $10.57 million
2011 pay: $8.92 million
Change: +19%

Professional Profile: Bob Hugin, a former Marine officer, took over as CEO of Celgene ($CELG) in June 2010 after more than a decade with the biopharma powerhouse. Hugin joined Celgene as chief financial officer in 1999 following his career at the major financial firm J.P. Morgan & Co. Like the biotech legend and ex-Genzyme boss Henri Termeer, Hugin went to business school at the University of Virginia. Under Hugin, Celgene has aggressively built on its bread-and-butter Revlimid franchise and other marquee products while nailing down deals with a host of biotech players to secure the future of the company in the fields of oncology, inflammation and hematology.

2012 Compensation Stack: At Summit, NJ-based Celgene, there's a strong belief in pay-for-performance compensation in the top executive ranks, and 84% of C-level executives' pay is performance-based. For Hugin, the company broke out the total $10.57 million pay package for 2012 in just shy of $6 million in stock and options, a bonus of $3.23 million, a $1.16 million salary and other pay of $192,685.

Company Performance: Hugin has one of the best problems of any biopharma chief in the business: Revlimid sales were $3.8 billion in 2012, up 17%, and accounting for 68% of the company's total revenue. At this point, Celgene has no blockbusters other than Revlimid. Yet the product throws off lots of cash to finance development of other potential contenders in the $1-billion-plus sales club. And Celgene has also spent significantly on business development and acquisition deals.

Last year Celgene reaped some of the spoils from the 2010 acquisition of Abraxis Bioscience, which cost $2.9 billion and gave the company the protein-bound chemo drug Abraxane. Sales of the drug jumped 11% to $427 million last year, and the company also picked up an additional FDA approval for use of the drug against non-small cell lung cancer. Yet analysts have been pumped about use of the drug against pancreatic cancer, for which the treatment passed muster in a Phase III study reported in January with regulatory filings for approval in patients with the tough-to-treat cancer to follow.

Celgene also beefed up its portfolio of early-stage assets in a string of deals. The company's biggest deal last year was the buyout of Avila Therapeutics for $350 million in upfront cash and up to $575 million in potential milestone payments, acquiring the biotech startup's BTK inhibitor and other assets. It piled on other partnerships with Epizyme in oncology and Sutro for next-gen antibody-drug conjugates.

It'll take several years or more for any of those deals to result in marketed products--if anything. In the near term, Hugin has blueprinted an aggressive plan to double sales, with the experimental rheumatoid arthritis drug apremilast, the recently FDA-approved myeloma therapy Pomalyst and Abraxane contributing much of the growth.

For more:
Special Reports: The 25 most influential people in biopharma today - 2013 - Bob Hugin - Celgene | Celgene - The Biggest R&D Spenders in Biotech
New Celgene drug packs punch for multiple myeloma market
Celgene grabs FDA approval for new multiple myeloma pill
Celgene keeps biotech spotlight with sanguine Abraxane data in pancreatic cancer
Celgene chief aims to double sales to $12B by 2017

Robert Hugin--Celgene
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