Ever since Merck's painkiller drug Vioxx was pulled from the market--after
a study found it doubled the risk of heart attacks and strokes--Merck
has become a well-known household name.
One strike after another has mounted against the drug company,
which makes it no surprise that, amid falling revenues, an escalating
number of lawsuits and a slew of bad publicity, Merck has replaced
its longtime chairman, president and chief executive officer, Raymond
V. Gilmartin. (According to the company, Gilmartin's sudden departure
had nothing to do with the Vioxx controversy.)
Who replaced him? Head of Merck's manufacturing operations, Richard
Clark, was named the new president and chief executive, though the
amount of power he will hold is questionable.
A New Plan of Action
It seems Merck will operate with a new three-person executive committee
handling many of the former chairman's duties.
The committee will work with Clark for up to two years, the company
explained; however, critics of the new, three-person arrangement
said having three board members overseeing Clark is almost as if
he is sporting training wheels. Three corporate management experts
said they had never heard of such an arrangement before.
Regardless of the new arrangements, one fact remains: Merck is
in dire need of a savior who can restore the company's damaged credibility
in the wake of the Vioxx scandal and guide it through one of the
industry's most turbulent periods.
Business
Week May 5, 2005
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