Chairman and CEO, Celgene
Total 2014 Compensation: $24.24 million
Celgene's Bob Hugin might have been beat out by the CEOs of fellow biologic drugmakers Regeneron ($REGN) and Vertex ($VRTX) on this list, but he's still the highest-paid executive in Big Biotech--and he beats out quite a few in Big Pharma as well.
That's partly because Celgene ($CELG) is one of the fastest-growing drugmakers on the scene. Of the pharma companies in the Fortune 500, Celgene came in second for sales growth over the past 5 years, partly because its blood cancer treatment Revlimid just can't be stopped (at least not till biosimilars appear on the scene in the coming years).
With a 5-year annual growth rate of 23.3% and $7.7 billion in 2014 revenue, the company is on its way to Hugin's ambitious goal of $12 billion in sales by 2017. Revlimid accounted for almost $5 billion of that 2014 revenue, and it has since won a new indication in newly diagnosed multiple myeloma patients. Even with the spectre of biosimilars, EvaluatePharma predicts $8 billion-plus in Revlimid sales by 2020.
Plus, Celgene can boast some industry-leading margins. According to Investor's Business Daily, Celgene delivered a 47% margin last year, again thanks to Revlimid.
But the company won't be relying on Revlimid forever. It has a follow-up multiple myeloma drug, Pomalyst, that it's currently selling as a third-line treatment, but hoping to move to the first-line setting down the road. And it's working to move into anti-inflammatories with Otezla, which has new indications in psoriasis and psoriatic arthritis--and it's a pill, not an injection like its big-time rivals, such as AbbVie's ($ABBV) Humira and Amgen's ($AMGN) Enbrel.
Hugin collected on those accomplishments in his 2014 pay package, with more than $9 million in cash incentive pay and options awards alike. His stock awards amounted to $3.9 million. And all that came on top of a base salary of $1.38 million. Other compensation of $231,000 completed the package.
Special Reports: 15 Highest-Paid Biopharma CEOs of 2013 - Robert Hugin - Celgene | The top 10 most expensive drugs of 2013 - Pomalyst - Revlimid
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