Genzyme's Termeer: Worst Biotech CEO of '09

Investors I've spoken with over the past few days are fed up with Termeer's schtick and would like nothing more than to see him resign. Unfortunately, Termeer's grip on Genzyme is strong and his board of directors is as spineless and ineffectual as the cadre of yes-men managers Termeer has working under him.

That leaves Carl Icahn or some other activist investor as Genzyme's best hope for positive change. Icahn owns 1.45 million shares of Genzyme, according to an SEC filing released Monday night.

This is the second time that Icahn has taken an interest in Genzyme. Icahn bought a 1% stake in Genzyme in late 2007, right around the time he was agitating for Biogen Idec(BIIB) to be sold.

Icahn's interest in Genzyme remained passive and he sold the stock for a profit towards the end of 2007, helped in part, of course, by all the speculation that comes with Icahn taking an interest in any biotech stock. That was good for Icahn but less so for Genzyme's remaining shareholders.

For all its current troubles, there is value in Genzyme if the business can be turned around. So, perhaps Icahn's new stake in Genzyme is a signal that he's taking another serious look at the stock, including taking on the task of finding a new CEO.

Termeer won't need a gold watch to wear on his way out the door. He'll be carrying the Nance Trophy as the 2009 Worst Biotech CEO of the Year.

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Does Termeer deserve the Nance Trophy this year? Did I miss a CEO who performed even worse in 2009? Perhaps Joe Podolski of Repros Therapeutics(RPRX)? Bill Carter of Hemispherx BioPharma(HEB)? Discovery Labs'(DSCO) Robert Capetola? I'll discuss these worthy candidates and more in a future column, but in the meantime, share your thoughts on Termeer or any other Worst CEOS the comments section accompanying this column.

A short explanation for the name on the award: The Nance Trophy honors David Nance, the former CEO of now bankrupted Introgen Therapeutics. Few CEOs in biotech have done more to hone the fine craft of investor bamboozlement and outright incompetence as Introgen's Nance.

For forever setting the standard by which other awful biotech CEOs will be judged, the trophy bears Nance's name.

-- Written by Adam Feuerstein in Boston.

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