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Friday, November 03, 2006

ICOS Executives Cash In

Company executives at ICOS Inc. granted themselves millions in bonuses the day before the marger with Merck was announced. The CEO of Icos, Paul Clark, will get $23.3 million. Eight executives will be leaving the companny with large severance packages. In the first wave of layoffs, 180 sales staffers will be terminated when the merger is completed.

But wait just a minute! A statement from HealthCor Management LP, a major ICOS investor, sent a shot across the bow of the board of directors. "We cannot imagine how the compensation commuttee could have possibly justified the audacious handout or how the board of directors failed to stop it. We remain confused as to to how the board of directors of ICOS can so generously calculate the value of management performance yet simultaneously so conservatively undervalue the assets of the company that is being managed by this same group." Ewwww!!! Tales of biotech backstabbing!

Things are heating up in Bothell Washington. "We're waiting to hear whether Lilly will keep any presence in Bothell", Icos spokeswoman Lacy Fitzpatrick said this week. Well I got some sour news for ya, Lacy. You're going to get laid off with the rest of them. After HealthCor piped up on the BS executive payouts, some experts wonder if the investors will reject the merger offer. Not likely. They're getting a good deal. Cialis is all ICOS had to offer. Lilly is taking it. Bothellonians are now free to wander.

As this Titanic biotech ship continues it's ascent to the upward position prior to its thunder plunge, the Cargo Cult Scientist will keep his zero readers abreast of the ICOS demise. There are over 600 human beings who earned their livings off of the company. A handful are in like Flynn. 180 sales people are out on the streets. I hope they still have their good looks! That leaves 500 and some odd humans left wondering when and how it all ends. We'll be waiting. First things first however, the execs got paid.

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