Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Merck & Co. has announced the replacement of longtime CEO and chairman Raymond Gilmartin. Richard Clark will now look to turnaround the fortunes of a company that has suffered considerable losses since the market withdrawal of the blockbuster painkiller Vioxx late last year.
Subscribe to our email newsletter
Mr Clark, formerly president of Merck’s manufacturing division and once chairman and CEO of Medco Health Solutions, was described as an “exceptional leader and strategist” by Mr Bossidy, chairperson of Merck’s compensation & benefits committee. Yet how much power he will command is still in question as Mr Clark will be guided in his new duties by a newly appointed executive committee.
Lawrence Bossidy, former chairman and CEO of Honeywell International, will serve as chairperson of the new three-member executive committee, which is expected to be in place for one to two years. Former chief executive, Mr Gilmartin will serve as special advisor to the committee.
A new chairman has not yet been named, although the decision not to give this additional title to Mr Clark, combined with the creation of the executive committee, may reflect a desire to quell the criticisms of those who wanted to see an external appointment.
Some analysts have speculated that Mr Clark, who does not have a background in drug development, was not the first choice for the position and is merely filling in until the company has a clear idea of the direction it wants to take.
Although one of Mr Clark’s first tasks will be to establish a pipeline of new drugs, Merck is currently holding discussions with the FDA designed to bring Vioxx back to the market. The treatment was withdrawn from sale following an increase of thousands of cases linking the drug to an increased risk of heart attacks.
The talks are currently taking place amid new claims by lawyers of crafty sales techniques designed to distract doctors from the safety issues surrounding the drug. The company is facing over 2,000 lawsuits relating to the product.
Since Merck has fallen behind its competitors, Pfizer and GlaxoSmithKline, many investors have wanted to enlarge the company by taking advantage of acquisition and partnership opportunities. Mr Gilmartin had opposed such opportunities as distractions to the company’s primary aim; drug development. With Mr Gilmartin now an advisor, there is greater possibility of future mergers.