Founder of Premier Laser Quits Board
Colette Cozean has resigned from the board of Premier Laser Systems Inc., severing her last official link with the company she founded nine years ago, the Irvine firm said Tuesday.
Less than three years ago, Cozean garnered national attention by announcing federal approval for a new dental laser that could treat tooth decay fairly painlessly. But the promise never materialized into big sales, and after mounting losses and supplier problems, Cozean fell out of favor.
In late November, she turned over her job as chief executive and president to health industry veteran Michael J. Quinn. At the beginning of this year, Cozean was ousted as chairwoman and chief technology officer.
Analysts attributed Cozean’s downfall to her inability to market products that she helped develop.
Cozean, one of the first women to found a technology company when she started Premier, remains a major shareholder of the company.
“I wish the best for Premier,” she said in an interview Tuesday. “I am encouraged and agree with the company’s [heightened] focus on marketing.”
Cozean, 41, who holds a doctoral degree in biomedical engineering, said she is mulling several options about her future but declined to elaborate.
On Tuesday, Premier’s seven-member board elected Quinn as a director and announced the retirements of two board members who had supported Cozean--Patrick Day, 72, and G. Lynn Powell, 58. Day had served on the board since 1991; Powell, since 1997.
Premier’s board recently selected outside director Fredric J. Feldman as its new chairman.
“You have a new chairman and chief executive, so there’s going to be major changes,” said John F. Doss, an analyst with New York brokerage Dominick & Dominick. “This is a palace coup.”
As the new chief executive, Quinn said he wanted to move Premier away from being a research and development company to one that focuses on product marketing, distribution and sales. As part of Premier’s overhaul, Quinn said he might consider forming a partnership with another health care company or raising money by selling an equity stake in the company.
In the past 2 1/2 years, Premier has lost more than $72 million, including $5.1 million in the first half of its current fiscal year, which ends March 31.
Last January, Premier agreed to settle 19 shareholder lawsuits for nearly $14 million. The company has denied allegations in the suits of fraud and securities violations.
The company’s stock closed Tuesday at $1.47, down 9 cents on Nasdaq. Premier shares have lost 61% of their value in the past 12 months.
