Largest Shareholder to Take Helm at Loss-Plagued Gensia

Gensia Sicor Inc. appointed its largest shareholder, Carlo Salvi, as its new chief executive Thursday, handing him the task of leading the loss-plagued drug company into profitability.

Salvi, 61, owns a 38.5% stake in the company, mostly through his controlling interest in a company Gensia acquired early last year--Rakepoll Holding B.V. of the Netherlands, according to Gensia’s recent proxy.

The company’s longtime chief executive, David F. Hale, resigned in November after Gensia--once a promising biotech firm--failed to develop its own new drug for heart patients.

Salvi was named executive vice president when Hale resigned.

At the time, Salvi said the company intended to recruit a new chief executive and its chairman, Donald E. Panoz, stepped in to run the company until the position was filled. Since then, the company has moved its headquarters to Irvine from San Diego and opened a new drug plant.

Salvi and Panoz could not be reached for comment.

In a prepared statement, Panoz said, “I am confident that Carlo will provide the necessary leadership and strategic direction that this company needs to achieve its objectives as a profitable specialty pharmaceutical company.”

Gensia also said Thursday that it lost $2.5 million, or 3 cents a share, in the second quarter, compared with a net loss of $10.4 million, or 14 cents a share, for the same quarter last year. Revenue increased 17% to $48 million from $41.2 million.

For the first half, the company posted a net loss of $7.4 million, or 9 cents a share, compared with a net loss of $50.6 million, or 74 cents a share, for the first six months a year ago. The year-earlier figure included a $29.2 million write-off of research and development associated with the Rakepoll acquisition. Revenue was up 44% to $91.6 million from $63.6 million.

Salvi has been a Gensia director and chairman of its executive operating committee since the Rakepoll merger.

According to the proxy, he owns Alco Chemicals Ltd. of Switzerland, which serves as a sales agent for some of Gensia’s subsidiaries.

In another business deal involving Salvi and Gensia, Archimica S.P.A. in Italy sold its 50% stake in another Italian firm, Disaspa S.P.A., to Gensia in July. Salvi owns 50% of Archimica.