The world’s largest pharmaceutical company unexpectedly announced the change of CEO
On Thursday, US Eastern time, Johnson & Johnson, the world’s most valuable pharmaceutical company, announced that Alex Gorsky, chairman of the board of directors and CEO of the company since 2012, will be changed to executive chairman from 2022, and the post of CEO will be taken over by Joaquin duato, the current Vice President.
Gorsky said in a statement that stepping down from the front line is the most difficult decision I have made in my life. However, for the company and organization, it is the right time to complete the personnel turnover when the performance of the three business departments continues to be strong, and the same is true for his individual. Due to family health, he will spend more time on his family.
During Gorsky’s nearly ten-year tenure, he led hundreds of mergers and acquisitions and cooperation, which promoted the company’s amortized earnings per share to increase by nearly 85%. In the field of oncology, the company’s revenue increased from US $2 billion in 2012 to US $12 billion in 2020. Over the past decade, the company’s market value has risen from $180 billion to $470 billion, and its share price has risen 170% over the same period. It is worth mentioning that with the recent spread of the epidemic in many countries, Johnson & Johnson’s share price continued to set a record high on Tuesday.
While affirming the achievements, Gorsky’s tenure also witnessed some of the biggest crisis events in Johnson & Johnson’s history, including a large number of lawsuits against the doping of carcinogen asbestos in baby talcum powder and allegations of contributing to the opioid crisis in the United States.
SEL Hardy, an analyst at CFRA research, interpreted the incident as an unexpected leadership change. Although the company is in a challenging period, considering Du Anqing’s famous executive and successful career in the industry, the handover is likely to be very smooth.
Duato has worked at Johnson & Johnson for more than 30 years. At present, duato is responsible for the company’s pharmaceutical and consumer health business, with an annual revenue of about $60 billion. Duato has served as chairman of the American pharmaceutical research and Manufacturers Association and is currently a member of the Advisory Committee of the school of pharmacy of Tsinghua University.
Gorsky expressed great confidence in duato’s succession as CEO. They have worked together for more than 25 years. Duato has always had great enthusiasm for solving difficult medical and business challenges. In the past few years, duato has guided the enterprise’s strategic planning process and is responsible for implementing large-scale technology transformation. Covid-19 is also responsible for the rapid response of the company to the new crown epidemic, and the initiatives to lead and coordinate the protection of workers and ensure the continuous operation of the business and supply chain worldwide. Johnson is looking forward to opening up a new chapter under his leadership, Duato.