NitroMed Brass Resign Posts
NitroMed (NTMD) said Tuesday that Michael Loberg, its chief executive and president, and Lawrence Bloch, its chief financial officer, resigned effective immediately. Loberg also resigned as a director.
The Lexington, Mass., drug company provided no reason for the executives' departure, which comes less than three weeks after NitroMed issued a dreadful fourth-quarter financial report.
The company said sales of BiDil -- a treatment for congestive heart failure in African-Americans -- were disappointing. At the time, Loberg and Bloch attributed the weak sales to an inconsistent performance by its sales force and to high copayments charged by managed-care firms. They said they were reorganizing the sales force and stepping up discussions with insurers.
The Food and Drug Administration approved BiDil in June as the first drug endorsed for a specific ethnic group. In July, NitroMed began marketing BiDil, which combines two generic drugs.NitroMed's stock had been sinking since August, losing about two-thirds of its value. But on Tuesday, shares gained 34 cents, or 3.1%, to $8.07 by midmorning. The stock climbed as high as $8.80. Loberg, 57, had been CEO and a director since September 1997. Bloch, 39, had been CFO since September 2004. NitroMed's board said Argeris Karabelas, 52, the company's chairman, has been appointed interim CEO. Karabelas also is a partner of Care Capital LLC, a life-sciences investment firm. Previously, he was CEO of worldwide pharmaceuticals at Novartis (NVS). Karabelas has been NitroMed's chairman since August 2003. The board said Kenneth Bate will become CFO and chief operating officer. Bate has held executive positions with Millennium Pharmaceuticals (MLNM) and with the former Biogen before it became Biogen Idec (BIIB) through a merger.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV