Should Amgen’s Sharer Walk The Plank?
4 CommentsBy Ed Silverman // August 11th, 2007 // 9:57 pm
Tempers are rising now that it’s become clear cutbacks are on the way. First, there was a companywide voice mail last week from ceo Kevin Sharer discussing unspecified changes. Then, a lengthy story in The Los Angeles Times quoted unnamed sources predicting layoffs. And there was also an SEC filing that offered more ominous warnings (see pages 18 and 19).
That layoffs may occur shouldn’t come as a surprise. Amgen is besieged. The FDA issued strict warnings on its key products, Aranesp and Epogen. Congress is investigating the marketing and safety of these drugs. The SEC is probing its failure to tell Wall Street that a key clinical trial ended over safety concerns, which only became known after an industry newsletter published the details. Medicare reduced reimbursement. And the stock is near a 52-week low.
Through it all, Sharer has insisted Amgen doesn’t face a crisis. But some understand a crisis does exist - and blame him. So an Internet petition created by unnamed “patients, shareholders and employees” is circulating, calling for Amgen’s board to seek Sharer’s resignation.
“His poor leadership, arrogance, compromised character, and a lack of interest in Amgen patients, stockholders, & employees have created a difficult environment for the future of Amgen. There are countless individuals & organizations whose lives are being affected by the classless actions & lack-of-value examples put forth by Mr. Sharer,” the petition reads.
Sharer is controversial, but whether this petition will accomplish anything is uncertain, at best. There may be one reason, meanwhile, Sharer hasn’t publicly acknowledged a crisis - he received nearly $35 million in total compensation last year, placing him as No. 24 on the Forbes list of highly paid ceo’s. For Sharer, there really is no crisis.
roccaas
Ed, thanks for another elegantly written precis of the situation at Amgen. As a loyal Amgenite, I’m sorry to see us spread all over SO MANY papers (and the SEC).
I know what Bill Clinton felt like — I just want to get back to the people’s (patient’s) business!
Dr. Sal Giorgianni
Top level leadership is of utmost importance to the health (let alone survival) of any BIO or PhARMA company, particularly these days. These are complex hybrid science based business organizations with very complex products and product lines. They are subject to many economic and sociopolitical factors which often can not be planned let alone averted.
It would be irresponsible for me, or anyone outside of the inner circle of a company, to pass judgement on Mr. Sharer, his decisions or his temperment (or to do so for any of the other senior executives of this complex industry who may find themselves in similar difficult spots). Having said that it is the absolute obligation of the Board of these organzations to become engaged - fully engaged - a the earliest signs of such difficulties and help do what they are supposed to do, provide governance and fulfill their fiduciary and moral obligations. They have - or should have - the understanding, insight and capability to review companies and executives when there are some big-old pink flags raise. Without such diligence small flaws can become big ones and the culture of the “yes-(wo)man” can become rampant very quickly. this can set even the strongest corporation on a donward spiral that could take a decade to reverse.
So, the burden is squarely on the Amgen Board to do it’s job…
Dr. Mike
Bye, bye Sharer, and, of course, he has only about “$35 million” worth of reasons and counting (I’m sure with this year’s bonus to come after he jettisons enough people in time to “make the numbers” for this year so that he and the other execs get their ridiculous bonuses) to account for why he “doesn’t see a crisis”. Of course, he doesn’t see a crisis for it’s too far “beneath” him to be worried about- only the people far below him will be effected. Amgen, what a fall and what a joke these days. Leadership begins and ends at the top as well as the success and failure of organizations and countries (see US of A, Iraq for references).
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[...] Sharer called on to resign — Also from Pharmalot comes news of an Internet petition demanding the resignation of Amgen’s CEO, who has overseen a sharp decline in the biotech [...]