Some additional details from WSJ Interactive:
December 24, 1998
Who's News
Biogen Chief Executive Tobin Resigns,
Sending Company's Shares Down 8.1%
By LAURA JOHANNES
Staff Reporter of THE WALL STREET JOURNAL
Biogen Inc. Chief Executive James R. Tobin, who presided over the
successful launch of the company's multiple-sclerosis drug Avonex, resigned
suddenly, surprising the investment community.
Biogen stock fell 8.1%, or $7.0625, to $79.8125, losing $522.6 million of
market capitalization in only a few hours. Many investors credit Mr. Tobin
with the growth of Avonex to nearly $400 million in sales in less than three
years.
Chairman James Vincent, who will take on the post of chief executive until a
successor is found, said he had no inkling that Mr. Tobin was preparing to
leave until about a week ago. "We were all quite shocked and surprised," Mr.
Vincent said.
Mr. Vincent declined to give any details about the circumstances of the
54-year-old Mr. Tobin's departure, saying only that "he's a talented person
and we will miss this talent in the organization."
But, according to people familiar with the matter, Mr. Tobin wasn't happy
working with Mr. Vincent, who had himself served as chief executive from
1985 to 1997. Frustrated by what he viewed as constant micromanagement
and occasional open disagreements with Mr. Vincent, Mr. Tobin told the
board earlier this month "It's him or me," according to a person familiar with
the matter.
The board, in a closed-door meeting Tuesday, chose Mr. Vincent, and Mr.
Tobin resigned that day, this person said.
Reached Wednesday, Mr. Tobin said of Mr. Vincent: "We are very different
personalities and it wouldn't be uncommon for two people with different
personalities to have some difficulties."
Mr. Vincent, 59, didn't return phone calls seeking comment on the issue of
personality clashes.
Mr. Tobin, who owns some $40 million in company stock and options, said
he planned to take some time off and ski. "The fundamentals of the company
are strong, the company is in great shape, and I felt now is a great time for me
to go and find something else to do," he said.
Mr. Tobin, a former Baxter International Inc. executive, was hired by Mr.
Vincent in February 1994, as president and chief operating officer, with a
promise that he would be named chief executive. Mr. Tobin was elevated to
the CEO job in February 1997, and Mr. Vincent announced that he would be
scaling back his involvement in day-to-day operations.
However, according to people familiar with the matter, Mr. Vincent remained
deeply involved in company issues, such as how much to spend on research
and development, and on marketing programs for Avonex. The two had
several significant disagreements over the past few months, according people
familiar with the matter.
Many on Wall Street had long suspected some isolated conflicts, but most
had thought the two worked together relatively well. "They both have Type A
personalities, but they had a good working relationship for a long time," said
C. Anthony Butler, a Lehman Brothers analyst.
Mr. Vincent said he plans to remain chief executive for a year or two at most,
and doesn't plan to implement any major strategic changes. He said he
expects to pick a successor from within the company, but declined to give
names. People familiar with the company said James C. Mullen, vice
president of the company's international operations, is likely to make the short
list, as is Mark W. Leuchtenberger, who headed Avonex marketing during its
successful launch.
In any case, Mr. Tobin may be hard to replace.
"I'm really, really disappointed," said investor Jeffrey Casdin, chief executive
of Casdin Capital Partners LLC in New York, a Biogen shareholder.
"Biogen's a great company partly because of Jim Vincent but in large measure
because of Jim Tobin. He has done a fabulous job in realizing the value of
Avonex." The stock has more than doubled from a range of about $30-$38 in
the fourth quarter of 1997.
Mr. Vincent's most significant contributions came in the late 1980s, Mr.
Casdin said, when he "saved the company" by selling other companies the
rights to its most valuable patents, thus generating the steady stream of
revenue it needed to develop Avonex, Mr. Casdin said.
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