Biogen sees "excellent" year, says resignation unrelated
Reuters Story - December 23, 1998 16:14
CAMBRIDGE, Mass, Dec 23 (Reuters) - The chairman of leading biotech firm Biogen Inc. said on Wednesday that the company was having "an excellent quarter."
Chairman James Vincent made the remark during a conference call to reassure Wall Street analysts over the surprise resignation of the Cambridge, Mass., firm's chief executive, Biogen, the maker of Avonex, a popular drug for multiple sclerosis, will "finish up an excellent year," Vincent said, "So there is no connection between Jim's (Tobin) action and any activities or results of any nature related to the company."
Vincent was referring to the sudden resignation of James Tobin, the 52-year-old chief executive. Tobin, who had been with Biogen for five years, gave his resignation to the board of directors on Tuesday.
In a conference call, Vincent assured Wall Street analysts, who have had buy recommendations on the stock for at least three months, that Tobin's resignation "was totally initiated by him...This was not a discharge, this was not a gentle pushing. This was not a whisper in the ear. This has nothing to do with any actions of the board or company."
There will "not be any lurching changes in strategy," Vincent said, adding that he expected to keep the titles of president and chief executive for "no longer than one to two years." He added that he expected to find Tobin's permanent replacement from within current management.
According to First Call, analysts expect Biogen to report $1.80 earnings per share in 1998. In the past 90 days, more than 11 Wall Street analysts have revised their earnings estimate for the company upward. |
