Year Old Biotech Pick Demonstrates CEO Significance

In March 2006 I selected a number of companies that experienced a CEO change that I suggested investors re-examine as possible investment possibilities. One that stood out was Allos Therapeutics (ALTH - NASDAQ). On January 16, 2006 Allos Therapeutics, a health and security imaging equipment manufacturer, announced that President, Chief Executive Officer and Chief Financial Officer Michael E. Hart, had notified the Company's Board of Directors of his intention to resign his positions once a successor CEO was named.

Just two months later, Allos announced the appointment of Paul L. Berns as the Company's President, Chief Executive Officer and a member of the Board of Directors. Berns brought close to 15 years of pharmaceutical industry experience to Allos. He previously lead Bone Care International, Inc. from June 2002 until its acquisition by Genzyme, Corp. in July 2005. During his tenure at the firm revenues increased nearly 14-fold, the company became profitable and market capitalization increased from approximately $40 million to a sale value of $719 million. Prior to joining Bone Care International, Inc., Berns held senior management positions at Abbott Laboratories, BASF Pharmaceuticals, and Bristol-Myers Squibb Company.

Berns was an extremely solid appointment for a struggling biotech seeking to find ways to grow and get its products approved by the FDA and into the marketplace. Berns, because of his previous experience and talents was the type of executive capable of hitting the ground running and making the necessary corporate adjustments to help the company succeed over the long term. So far, Berns has been good for the firm.