Health-care investment banker David MacCallum has joined
Salomon Smith Barney
after a short stint at
ING Baring Furman Selz
, according to one person at Solly.
MacCallum will become the head of health-care banking at Solly. He replaces the now-megagazillionaire Benjamin Lorello, who went to
Warburg Dillon Read
Only one team member, investment banker Margaret McKenna, is expected to follow MacCallum.
MacCallum couldn't be reached to comment. Solomon Smith Barney declined to comment. An ING Baring spokeswoman confirms that MacCallum left and says the firm is looking for a successor.
MacCallum is fast becoming the
Jaren Jackson of the health-care banking world, almost matching the gypsy swingman's eight teams in nine years.
He joined ING Baring lo a year and a half ago after heading up the health-care business at
. That health-care team was dismantled four years after it was created. MacCallum made his name and reputation at
Hambrecht & Quist
, where he spent 1983 to 1994 building the firm into the health-care force that it remains today under the stewardship of Dennis Purcell.
The Solly acquisition comes at a time of potentially booming consolidation in health care. With biotechnology companies struggling and I-banks unable to sell much equity these days, bankers are looking to sell biotech companies to each other and to pharmaceutical companies. Just this week, drug concern
Pharmacia & Upjohn
reached an agreement to acquire south San Francisco cancer research shop
in a deal valued at around $700 million. In addition, health-care services and, especially information technology, also are areas of burgeoning mergers and acquisitions activity.
But according to one person at ING Baring, MacCallum's strengths don't lie in M&A. "His forte is in small-caps," and equity financing, the person says. "But at Salomon Smith Barney, they do large-caps, so we're all scratching our heads here."
Nevertheless, it's clearly a good time to be a health-care banker. Warburg Dillon Read's Lorello reportedly was given the type of pay package that could make grown Wall Streeters weep with envy: $70 million over the next three and a half years. At least two other bankers in Lorello's group were reportedly given packages ranging between $20 million and $30 million.
MacCallum is unlikely to even be close to that, according to one recruiter and the person at ING Baring. But he won't go hungry, so don't worry.
There's been lots of movement in health-care banking since Lorello bid adieu. Last week, Warburg's longtime health-care team, Paul Donofrio and David Gottlieb, bolted to join
Banc of America Securities
under Brian Brille, who himself joined B of A earlier this year from
Morgan Stanley Dean Witter
Staff reporter Gregg Wirth and senior writer Dan Colarusso contributed to this story.