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OC METRO, June 9, 2005
Spectrum Pharmaceuticals, Inc.
Snapshot
Founded: 1987 (formerly NeoTherapeutics, Inc.; restructured and renamed in 2002)
Headquarters: Irvine
Business: Specialty pharmaceutical company with a focus on oncology drug development
Leader: Dr. Rajesh C. Shrotriya, M.D.
Employees: 26
Cash and Marketable Securities as of March 31, 2005: $38 million
Best Feature: Inspired leadership
Spectrum Pharmaceuticals, Inc. offers medical, dental and vision benefits, a 401K plan, stock options and an on-site car-washing service. Decent corporate perks. But what really differentiates this company and makes it one of the best to work for, claims a consensus of happy employees, is the CEO and president himself ˇ Dr. Rajesh Shrotriya, an all-around nice human being and nothing short of a miracle worker.
Back in 2002, Shrotriya, newly elected by the board of directors, saved the oncology-focused pharmaceutical company (formerly NeoTherapeutics, Inc.,) from imminent bankruptcy and a fall from Wall Street’s grace ˇ and here’s the miracle part ˇ in just 30 days.
“The vision he’s laid out, how hard he works and what he’s done with this company has been a tremendous inspiration for everyone,” says William Pedranti, Spectrum’s vice president and general counsel.
When the predecessor company’s lead drug to treat Alzheimer’s failed late-stage clinical trials, NeoTherapeutic’s stock tanked to as low as eight cents a share. Shrotriya stepped in and convinced NASDAQ to give the company ˇ renamed Spectrum ˇ another chance. Shrotriya got busy. He downsized from over 100 employees to twelve; outlicensed one of Spectrum’s cancer drugs ˇ a move that brought an immediate infusion of cash into the company; and started a generics business.
His plan worked beautifully. “We just filed our quarterly report with the FCC. We have about $38 million in the bank,” says Pedranti, a Georgetown-educated attorney who was so impressed with the company’s turnaround, that he eagerly accepted a job offer to help manage its legal affairs.
Spectrum Pharmaceuticals is a small company (now 26 employees), but that’s part of its charm. “It’s a very family-like culture,” says Shrotriya. “Everyone here feels like they own this company, and they put their heart and soul behind it.” Employees claim what truly motivates them is Shrotriya’s leadership and down-to-earth management style.
“I walk into every office, every week and sit with everyone in the company. I want to know how their family is, and if there’s something we can help them with to accomplish their job better,” the CEO explains. “In order for people to do their best, they must feel that this company cares for them.”
That’s exactly why Marilyn Gistennar returned as the receptionist after the company’s transformation. “Dr. Raj is the number one reason I decided to come back. He’s a fair person and cares about everyone.” Gistennar, who once volunteered to work for free until the company got back on its feet, commutes every day from Marina del Rey to Irvine. “I feel honored to be here working for him.”
Developing cancer drugs is serious business. On average, it takes about 10 to 15 years to get a drug approved by the FDA ˇ a long time to wait to be rewarded for your work. Given that, Shrotriya believes creating a fun, positive atmosphere at Spectrum is vital to keep hard-working employees happy and motivated.
“There’s no reason not to come to work if you’re having fun,” says Mike Van Vorhis, director of communications and one of the lucky 12 who survived the massive lay-off in 2002. He and Pedranti also head up the unofficial Fun Department. Their collaboration includes an on-site gym, a weekend leadership retreat to a local resort (there’s talk of Palm Springs this year), four Fun Fridays (barbecues, hikes and Bingo tournaments) and a summer party and picnic.
What’s more, one deserving employee gets the spotlight every month at the staff meeting, where Shrotriya presents this dedicated worker with the President’s Award and $100 cash. “I am a strong believer that everyone can contribute more than what they are doing today. All they need to know is that they can make a difference,” Shrotriya explains his philosophy. “If they do make a difference, they need to know someone will be there to reward them for it. And I’m here to do that.”
—By Lynn Armitage.
Source: Armitage, Lynn. "Best Companies To Work For." OC METRO 9 June, 2005
Press Release
