OC 50 – HEALTHCARE
LAWRENCE MEAD HIGBY
CEO, President
Apria Healthcare Group Inc.
Born in Pomona, June 15, 1945
Lives in Newport Beach (Lido Isle)
Runs country’s largest home healthcare company with $1.2 billion in yearly revenue, in a buying mood.
Has shopping money: balance sheet counted $26 million in cash at end of 2002, up from $9.4 million a year earlier. Market value of $1.3 billion at recent check.
Seen as more personable than former chief Philip Carter, who he succeeded some 15 months ago.
Company now has four years of profitability under belt. 2002 net income was $115.6 million, up 60%. Provides home drug infusion treatments, respirators, wheelchairs, other products. Recently toured Iowa Republican Sen. Chuck Grassley, chairman of the Finance Committee, around Tustin oxygen tank facility.
Stock has bounced around because of concerns about lower Medicare payments, Justice Department over-billing investigation.
Sees growth ahead. Has diversified revenue base: around 67% from HMOs, private payers, 33% Medicare, Medicaid, lower than many rivals.
Company came about in 1995 combination of Abbey Healthcare Group, Homedco Group. Trying marriage marked by initial culture clashes, board scrums, system glitches, piles of uncollected payments later smoothed out.
Higby, formerly president, COO, succeeded turnaround specialist and 2001 OC 50er Carter, who worked with Higby to lead Apria’s comeback.
Pre-Apria career includes running 76 Products, oil refining, marketing company. Negotiated 76 Products 1996 sale from Unocal to Tosco for $2.1 billion.
Came to Apria via Homedco faction, once led by fellow OC 50er George Argyros, who resigned as director in 1998.
Political activities include serving as a principal aide to H.R. Haldeman, President Nixon’s chief of staff, and as a leader of the New Majority, socially moderate GOP business group. Receives faxes from the White House at office.
Bachelor’s in political science from UCLA, attended business school there. Board memberships include UCI Medical Center, Southern Counties Oil, Performing Arts Center, South Coast Rep.
Married to Dee, former chairperson of South Coast Rep. Three sons, a daughter, ages 23 to 31. Likes skiing, jogging, music, theater, boating.
,Vita Reed
MICHAEL
ALBERT MUSSALLEM
Chairman, CEO,
Edwards Lifesciences Corp.
Born in Gary, Ind., Nov. 21, 1952
Lives in Laguna Beach
Entering third year at helm of heart valve maker, sees innovation, diversification as keys to growth. Only chief Edwards has had since 2000 spinoff from Baxter International.
Continued diversification push last year, including biotech play with Sangamo Bio-Sciences. Also signed deal with Cook Biotech to developed engineered tissue, launched PreSep catheter to find, manage sepsis, a blood disorder.
Overall, boosted last year’s research spending to $65 million, 19% higher than 2001.
Received two cardiac device approvals from the FDA last year,for the Carpentier-Edwards S.A.V. porcine valve, and for MC (3) Tricuspid Annuloplasty system. Bought out a Japanese cardiovascular device business Edwards previously ran as joint venture with Baxter. Launched Lifepath AAA system for treating abnormal aortic aneurysms in Europe, still awaiting U.S. nod.
2002 sales of $704 million, up 7% excluding currency, divested businesses, Japan consolidation. Cardiac surgery sales rose 15% in fourth quarter. 2002 earnings up 32% to $83 million, excluding one-time items. Plans to grow sales between 7% and 9% this year, up research. Counted market value of $1.7 billion at recent check.
Around 45% of sales from outside U.S. In some 100 countries. Besides heart valves, repair devices, products include heart-monitoring catheters, vascular therapies. Manufacturing in Irvine, Laguna Hills, Europe, Latin America. Employs 5,108 worldwide, 1,698 in OC.
Joined Baxter in 1979, worked at Union Carbide before. Named Baxter general manager of access products; promoted in 1986 to VP, product development for Parenterals. Became general manager of Baxter’s pharmaceuticals division in 1987, president of the Bentley Labs unit in 1989.
Was named president of Baxter’s critical-care division; group VP of Baxter’s surgical group in 1994. Assumed oversight of Baxter’s cardiovascular business from 1995 until spinoff.
On the boards of Advanced Medical Technology Association, Advanced Medical Optics, World Heart. Chairman-elect, California Healthcare Institute, member of business roundtable of the Keck Graduate Institute, UCI Chief Executive Roundtable.
Bachelor’s in chemical engineering from Rose-Hulman Institute of Technology in Terre Haute, Ind.
Married to wife Linda for 27 years. No children. Enjoys jogging, skiing. Die-hard Chicago Cubs fan, keeps cap in office. Interested in projects for people with special needs, brother has Down’s syndrome. Heritage is Lebanese.
,Vita Reed
HOWARD
GUSTAVE PHANSTIEL
President, CEO,
PacifiCare Health Systems Inc.
Born in New York, 1948
Lives in Brentwood
Beginning to see fruits from efforts to rework, burnish managed care company. Looking to transform PacifiCare from strict HMO to what he calls “diversified consumer health organization.”
Says 2003 earnings would exceed forecasts, thanks to rising premiums, rate hikes on employers. Raised commercial premiums average 18.5% at start of year. Lost nearly 200,000 members when CalPERS balked.
Rolled out new offerings. “Consumer-directed health plan” offers more choice, control in exchange for more patient responsibility. Also plans to emphasize supplemental Medicare drug coverage for seniors.
Continued slicing unprofitable businesses. Cut membership in PacifiCare’s Medicare+Choice HMO health plan, Secure Horizons, commercial businesses. Profits at specialties such as Prescription Solutions, pharmacy unit, seen rising 60% this year.
2002 revenue of $11 billion, down 5%. Loss of CalPERS stands to lower revenue this year by about 1%. Company employs 7,800, 4,700 in OC. Last year moved headquarters from Santa Ana to Cypress, where PacifiCare of California unit is. Move part of “profit improvement program” designed to save up to $90 million a year.
Generally gets high marks from Wall Street, but rankled some analysts with series of positive, negative earnings surprises. Investors have cheered PacifiCare’s gains, jeered missteps.
Recently came to terms with Texas regulators on unpaid doctors’ bills. Company expected to pay $4.5 million in legal fees, other expenses, fines.
Sports air of decisiveness, confidence. Joined PacifiCare in 2000 as executive VP, CFO. Previously chairman, CEO of ARV Assisted Living, Costa Mesa. Fought ARV takeover by Lazard Freres, sued by Lazard over annual meeting election. Worked for WellPoint Health Networks as executive VP of finance, information services. Also held various jobs with Prudential-Bache, Marine Midland, Sallie Mae, Citibank.
Public sector experience includes stint as managing director of the U.S. Health Care Financing Administration’s Office of Management and Budget.
Bachelor’s in political science from Syracuse University, master’s from Syracuse’s Maxwell School of Public Administration. Wife Louise, grown son, daughter. Enjoys golf, recently moved from Westwood to Brentwood.
,Vita Reed
ROBERT WHITE O’LEARY
Chairman, CEO,
ICN Pharmaceuticals Inc.
Born in Massachusetts, age 59
Lives in Rancho Santa Fe
TIMOTHY CYRIL TYSON
President, COO,
ICN Pharmaceuticals Inc.
Born April 14, 1952, Hornell, N.Y.
Lives in South Orange County
Turnaround team tapped to resurrect drug maker long controlled by former OC 50er Milan Panic, ousted last year but still a director.
ICN second Orange County healthcare company O’Leary has run,did short stint at PacifiCare in 2000. Resigned after earnings bomb, saying experience, background weren’t what HMO needed. Once was CEO of Premier, big hospital supplier.
Cleaned house. Moved to oust Panic-allied directors, managers of Ribapharm, which ICN partially spun off but still owns 80% of. Still weighing whether to buy back remaining Ribapharm shares.
Came to ICN when dissident shareholders’ group led by Franklin Mutual Advisers, Iridian Asset Management, nominated him as director against Panic’s slate, with eye toward making him CEO. O’Leary, fellow dissident nominees won, forcing Panic ouster. Named interim chief in June, elevated to permanent CEO in November.
Tyson bears what analysts call “real-world pharmaceutical experience.” Came to ICN in November from GlaxoSmithKline. Goals: slimming down, goosing domestic sales, divesting Russia, Eastern Europe units.
Replaced Adam Jerney, longtime ICN veteran closely tied to Panic. Before, was president of global production, supply for GlaxoSmithKline in Raleigh-Durham, N.C.
ICN counted 2002 sales from continuing operations of $737 million, up 19%. 2002 net loss totaled $135 million. Shares took major hit last summer when O’Leary said results wouldn’t meet expectations,price halved to 10, hovering around 8 in recent weeks. Counted market value of $660 million at recent check. Total employment at 11,500, 101 in OC (another 130 here at Ribapharm).
O’Leary holds bachelor’s from University of Massachusetts, master’s in public administration from State University of New York Graduate School of Public Affairs. Law degree, honorary doctor of law degree from Suffolk University Law School. Married.
Tyson, who served five years in Army, is 1974 graduate of U.S. Military Academy at West Point. Received business master’s, master’s of public administration from Jacksonville State University. Married to Amy, son.
,Vita Reed
DAVID E.I. PYOTT
Chairman, CEO, President,
Allergan Inc.
Born in London, Oct. 13, 1953
Lives in Coto de Caza
Wordly executive with lilting Scottish brogue, vague resemblance to Super Bowl-winning coach Jon Gruden.
Runs company whose flagship Botox is revered by movie stars, socialites, ordinary folks seeking smoother, more youthful visages.
Launched cosmetic version of Botox last year with $50 million ad campaign aiming to bring drug’s wrinkle-reducing message to flyover America.
Botox Cosmetic became favorite at wine-and-cheese parties, media buzzword. Cosmetic use makes up 40% of total Botox sales, but growing faster than therapeutic uses.
Company is more than Botox. Wall Street has stroked Pyott for growth, boosting product pipeline. Runs OC’s most valuable company with recent market value of more than $9 billion.
Spun off ophthalmic surgical, contact lens businesses as Santa Ana’s Advanced Medical Optics last summer. Became member of Santa Ana-based Advanced Medical’s board after spinoff. Now playing as a pure drug company focused on eye, skin offerings.
Spent first couple of years cutting costs, shifting resources to boost sales, marketing, research. Now overseeing big expansion of Irvine campus with new research labs. Analysts see company’s product pipeline as bright spot.
Looking at new uses for Botox, including treating cerebral palsy, strokes. Products also include Tazorac skin medicine, Lumigan and Alphagan glaucoma drugs.
Lost court battle against Alcon Laboratories, Bausch & Lomb, to sell generic Alphagan. Borrowed page from other drug makers by coming out with new patented version.
Has 4,900 employees, 2,200 in OC. In 2002, company posted earnings of $75.2 million on revenue of $1.4 billion.
Joined Sandoz, later Novartis, in 1980. Spent 15 years in various positions with company. Appointed head of Sandoz Nutrition unit in 1995. Came to Allergan in 1998.
Other board memberships: University of California, Irvine’s Graduate School of Management, Pan-American Ophthalmolo-gical Foundation, Pharmaceutical Research and Manufacturers of America, Avery-Dennison, California Healthcare Institute, Edwards Lifesciences.
Extensive education: holds diploma in German, European law from University of Amsterdam, master’s from University of Edinburgh, business master’s from London Business School.
Raised in Scotland, India. Fluent in English, German, French, Spanish.
Married to Julianna with four children. Enjoys playing tennis.
,Vita Reed
MARVIN S. SAMSON
President, CEO, Sicor Inc.
Born June 20, 1941, Philadelphia
Lives in Moorestown, N.J.
ARMAND “ART”
JOSEPH LeBLANC
President, Gensia Sicor
Pharmaceuticals Inc.,
Senior Vice President, Corporate Affairs, Sicor Inc.
Born Nov. 29, 1942, Donaldsonville, La.
Lives in Dove Canyon
Bicoastal duo heading up generic drug maker with $2 billion market value at recent check.
Samson has background in Big Pharma, smaller, entrepreneurial companies. Leads company from his base in New Jersey, nation’s “medicine chest,” he says. Stepping up OC visits.
LeBlanc is top local official, runs largest business unit. Re-sponsible for sales, marketing, technology, manufacturing, engineering. Spends a lot of time talking with Samson during typical business day.
Company makes cancer drugs, anesthesia, other products. Through acquisitions, internal growth, Sicor positioning itself to be player in generic biotech drugs when wave of branded products comes off patent later this decade.
Counted 2002 sales of $456 million, up 23%. Earnings of $99 million, up 43%. Employs 1,945, 689 in OC.
Samson was Sicor consultant, investor, became drug maker’s CEO on Sept. 11, 2001. Heard Pentagon attack while discussing generic legislation at Willard Intercontinental Hotel in Washington, D.C. Succeeded Carlo Salvi, European drug industry veteran, Sicor vice chairman, big shareholder.
Founded pair of generic injectable drug companies: Marsam Pharmaceuticals, sold in 1995 to Schein Pharmaceutical, now part of Corona-based Watson Pharmaceut-icals. Elkins-Finn, sold to AH Robins, now part of Wyeth.
Has chemistry de-gree from Temple University in Philadelphia. Holds five U.S. patents on drug manufacturing. On executive committee of the Generic Pharmaceut-ical Association. Board memberships include University of the Sciences in Philadelphia, Virtua Health System.
Divorced, four children, five grandchildren. Enjoys boating and tennis.
LeBlanc became president of Gensia Sicor in 2001. Joined company in 1996. Prior to Sicor, was VP, quality assurance for Fujisawa USA.
Career includes management posts at Mallinckrodt (now Tyco Healthcare), G.D. Searle & Co. Was a FDA microbiologist for 10 years.
Bachelor’s degree in bacteriology from Louisiana State University, master’s in biology from Georgia Institute of Technology.
Married to Lillian, two adult daughters, adult son, three grandsons, two granddaughters. Enjoys golf, fishing, exercising, music.
,Vita Reed
RICHARD
JOSEPH STATUTO
President, CEO,
St. Joseph Health System
Born in Long Island, N.Y., June 10, 1957
Lives in Orange
Operates biggest hospital here by beds (St. Joseph-Orange), three others. Spending millions to upgrade hospitals, long-term plans for fourth facility in South County.
Seminal figure in 2001 provider backlash against HMOs. In all, runs 15 hospitals nationwide, home health agencies, physician practices from Orange.
Spending about $125 million on local flagship in Orange, expanding campus to meet state earthquake standards, offer more private rooms. In Fullerton, St. Jude Medical Center spending $160 million in next few years on five-story patient care building, medical office building.
Mission Hospital in Mission Viejo readying to spend $108 million on five-story, 75-bed critical care building to meet South County population growth. Plans being laid for new South County hospital, 10 to 15 years from now.
Divested physician groups in OC, Sonoma last year, continuing business ties with four “partner health plans” it selected after cutting HMO network down in 2001.
Counts 18,830 workers, down from 19,150 a year earlier. In OC, 8,600 workers. Nonprofit Catholic hospital operator reported fiscal 2002 gain of $31 million, up slightly from year earlier. Revenue of $2.5 billion, also up slightly.
Community benefit spending, or operating gains spent on clinics, health fairs, $221.9 million, vs. $230.7 million a year earlier.
Came to St. Joseph in 1990. Was VP of planning, marketing, COO. Assumed top spot in 1995. St. Joseph more than tripled size, expanded operations under his watch.
Was corporate VP at Bon Secours Health System in Maryland, senior management consultant at Touche Ross & Co. in Michigan. International marketing consultant for Commerce Department prior to coming to St. Joseph. As Kmart director, voted to authorize discount retailer’s bankruptcy filing.
Chairman of Catholic Health Association, organization of more than 2,000 Catholic healthcare sponsors, systems, facilities, related organizations. Vice chairman of Christus Health, Dallas-based healthcare system with $2.5 billion in yearly revenue. On board of Red Cross’ OC chapter.
Holds bachelor’s in chemical engineering from Vanderbilt University, business master’s from Xavier University.
Married to Jennifer, four sons, 13, 11, 9, 6. Likes golfing, tennis, family, community activities.
,Vita Reed
JOHN PETER WAREHAM
Chairman, CEO, President,
Beckman Coulter Inc.
Born in Clinton, Iowa, Aug. 12, 1941
Lives in Orange
After leading Beckman Coulter through years of slow, steady growth, now battling slowdown as research spending by drug makers, academics, scientists dried up late last year.
Combined life science, specialty testing units to form new biomedical research business in January. Spearheaded global restructuring, cut some 300 jobs.
Also made key executive appointments: Elias Caro, veteran of Beckman and predecessor Coulter, as head of new biomedical division, which accounts for a third of yearly sales. Scott Garrett, who spent some 25 years with Baxter International, named head of key clinical diagnostics division, which accounts for 67%.
Provides research, medical testing systems to hospitals, doctors’ offices, drug makers, biotech companies, universities. Credited with smooth melding of Beckman Instruments and Coulter in 1997. Acquisition gave Beckman scale, independent viability.
Company has strong reputation, global presence, long history in OC. Employs roughly 10,000 people worldwide, 2,340 here. 2002 revenue of $2.1 billion, up 4%. Global sales from Europe, Asia, elsewhere nearly 40%. More than 200,000 instrument systems in use worldwide.
With biomed turnaround, continued clinical growth, sees Beckman’s 2003 sales expanding 7%, with profit up some 11%.
Company started in 1935. Founder Arnold Beckman turned 103 this year. Makes centrifuges, DNA, automated testing systems for body fluids, blood cells, compounds. Emphasizes diverse business model, says company can “withstand changes in any one market segment and any one geography.”
Businesslike, pleasant Midwestern demeanor. Pharmacist by education, spent 15 years with SmithKline as operations research analyst, several management positions, including president of Norden Laboratories. Joined Beckman in 1984 as VP of diagnostics group, promoted to president, chief operating officer in 1993. Named chief executive in 1998.
Bachelor’s in pharmacy from Creighton University in Omaha, Neb. Business master’s from Washington University in St. Louis. Past chairman, board member, Advanced Medical Technology Association. Board member, Steris, Manufacturers Alliance, National Association of Manufacturers.
On advisory board for the John Henry Foundation. Member of Center for Corporate Innovation in Los Angeles, UCI Chief Executive Roundtable, advisory council of Keck Graduate Institute of Applied Life Sciences.
Wife Lois. Two grown children, three young grandchildren. Enjoys company of family. Likes art, golf. Traveled the world, fondness for the Far East.
,Vita Reed
HONORABLE MENTIONS
Allen Chao
Chairman, CEO,
Watson Pharmaceuticals Inc.
KENNETH F. LICKEL
VP, General Manager,
Alcon Inc.’s Irvine Technology Center
JAMES V. MAZZO
CEO, President,
Advanced Medical Optics Inc.
Floyd W. Pickrell Jr.
CEO, President,
Sybron Dental Specialties Inc.
Michael D. Stephens
CEO, President,
Hoag Memorial Hospital Presbyterian
Gustavo A. Valdespino
Senior VP, Operations,
Tenet Healthcare Corp.
MICHAEL WALLACE
VP, General Manager,
B. Braun McGaw Inc.
