Annex
Letter to Dr Keith McCullagh,
Chief Executive Officer British Biotech plc from Dr L John Wilkerson
As I am sure you appreciate, there is much occurring
within the BBT Management team of which I am unaware. This puts
me at a disadvantage in assisting the company; however, my distance
and involvement in the industry do provide me, I believe, with
some advantages. This letter offers some thoughts I hope you will
consider. Of course, please feel comfortable to share this with
your team. If anything herein might assist us.
First of all, senior management's spoken words,
actions and subtle body language are communicated throughout an
organisation ten times faster and with far greater impact than
any formal communication. I am concerned, given the tone of management's
comments at the last few board meetings, and my reading of their
body language, that the obvious dissension among the team is,
or will, negatively affect the outlook for a very valuable company.
We have a very capable management team. They must be reminded
that they have accepted the title of leaders (not just managers)
and each of them must now demonstrate courage in leading BBT through
uncertain times. I know of no biotechnology company at our stage
of development that has not experienced enormous disappointments.
That is, simply stated, part of the business we are in; not unlike
wildcatters searching for oil. The potential for equity appreciation
is what the public and board is willing to offer a management
team for shepherding a portfolio of high risk projects through
a torturous path to market, and doing so under intense public
scrutiny. Historically, this scrutiny and the resultant pressure
are what few biotech executives properly assess when considering
joining our fledgling and most fragile industry.
Once a company stumbles in public, nothing is
sacrosanct; management's competence, life style, compensation,
equity transactions, veracity, level of optimism, grasp of reality,
and not the least, management and board cohesiveness. The latter
is often examined in unanticipated ways, and in excruciating detail.
Current and former employees, executive recruiters, neighbors,
clinical investigators, consultants, advertising agencies are
all rich sources of insight into "what's really going on
inside?" This is not speculation. I was a security analyst
and believe me this list of obvious sources is a mere sample of
the vast treasure trove of valuable sources.
I am sure your team will feel my statements
are obvious and, in fact, they are. Nevertheless, I have witnessed
several biotechnology management teams self destruct because their
professional and personal frustrations were not contained. They
chose prolonged debate when leadership was needed.
The frustrations of our management group are
more than a little obvious, and I am concerned that unless the
team pulls together in the immediate future, this discord will
negatively affect our shareholders, employees and eventually themselves.
In closing, I want to be sure that no one misinterprets
my thoughts as a recommendation to suppress open, honest debate
among the senior management team and with the board. What I am
urging is that our team continue their most productive work, maintain
and/or further develop open dialogue, but most importantly, come
together around a set of objectives and continue to communicate
these to the board and as appropriate, to your staff as a unified
leadership team.
28 April 1998
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