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ImClone's New CEO: Is Buying Company Stock Good Idea?

Friday, 10 Aug 2007 | 10:35 AM ET
ImClone
ImClone

Late Thursday, ImClone Systems announced it has finally hired a permanent CEO. It'd been without one for about two years.Thebiotech company which makes the cancer drug Erbitux and became reluctantly famous in the Martha Stewart stock-trading case tapped a guy named John Johnson for the role.

Johnson comes from Johnson & Johnson --presumably no relation--where he was chairman of the company's biopharmaceutical business including biotech and oncology products. He'll start at ImClone later this month.

Carl Icahn is Chairman of the Board at ImClone and you have to wonder how much of a say he had in this: in the press release announcing Johnson's hiring it doesn't disclose any terms of the pay package. Only a line that Mr. Johnson will buy half a million dollars worth of IMCL shares in his new position as CEO. He will not be granted options worth $500,000 or anything like that. But he " "will buy half a million dollars worth of shares."

Very interesting. What do you think?

Questions? Comments? Pharma@cnbc.com

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