Biotech Mailbag: Bad CEOs Offer Lessons

Welcome back to the Biotech Mailbag, which is overstuffed with new email now that I've moved to a twice-a-month schedule. Let's get to your questions and comments without further delay.

Readers had a lot to say about my choice of Elan's (ELN - commentary - Cramer's Take) Kelly Martin as the first-ever recipient of the Nance Trophy as 2008's worst biotech CEO. Most of you were happy with the pick. I even heard nice things from the Elanians. Still, you can't please everyone.

Gordon R. emailed to say, "Nice hatchet job on Elan. By the way, since you cover the drug sector, you should do some personal research on Propecia, or is it too late?"

I've never found being follicularly challenged to be much of an impediment. Bald is beautiful.

Karl Keegan, global head of life science research at Canaccord Adams, emailed to say:

"Adam, a really nice article on Elan and Kelly [Martin.] My only criticism, albeit slightly biased, is that I did not get a mention as the only analyst that has had two sell calls work out on Elan (Tysabri the first time round and bapineuzumab.) Given that analysts do get bad press (I think you mentioned fawning in your article), it would be nice to highlight to your readers that there are those who believe that biotech sell-side coverage is a calling just like the priesthood. This has a resonance with me as I am Irish but also possess a dilemma that I might be shunned by the Irish investor community for stating that the emperor had no clothes."

Nice work, Karl. I admire analysts who make gutsy calls, especially when they turn out to be right. Pay attention, everyone.

Gerry B. wanted more in the worst CEO column about Medarex (MEDX - commentary - Cramer's Take) CEO Howard Pien.

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At the time of publication, Feuerstein's Biotech Select model portfolio was long Genentech and ImmunoGen.

Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.