Perrigo picks new CEO in latest top level change
- Following the retirement of John T. Hendrickson, Perrigo Company plc has announced a new president and CEO, Uwe Röhrhoff, who will take up his post January 15, 2018.
- John T. Hendrickson, the current CEO, will remain with the company until March 15, 2018 "to ensure a smooth and successful transition".
- The news follows some major changes in top personnel and challenging times for Perrigo, which makes extended topical prescription drugs, as well as over-the-counter therapeutics and infant formulas.
Perrigo has had challenges with with high level personnel changes in recent years. In April 2016, Perrigo lost its CEO, Joseph Papa, to struggling drugmaker Valeant Pharmaceuticals International, and replaced him with Hendrickson. The firm's 2016 annual results showed an operating loss of $4.7 billion, and this and the loss of its CEO led to a downward slide in its shares of nearly 55%.
CFO Judy L. Brown also resigned and was replaced by Ron Winowiecki as acting CFO. In 2017, Perrigo faced pressure from activist investor Starboard Value LP. The hedge fund alleged mismanagement of integration of Omega Pharma NV, and shutting down Mylan's hostile takeover attempt. This resulted in a restructure of the board and replacement of almost half of the board of directors.
And now Hendrickson has retired, replaced by Röhrhoff, formerly at drug packaging and device manufacturer Gerresheimer AG.
He joins at a time when Perrigo is working to reposition itself and de-lever its balance sheet. Over the last year, the company has divested the multiple sclerosis drug Tysabri (natalizumab) to Royalty Pharma for up to $2.85 billion, a useful injection of cash, and sold its active pharmaceutical ingredient business for $110 million. The third quarter 2017 results showed growth in sales following actions "to focus and simplify" the business.
"Uwe brings a strong track record of operational excellence, strategic growth, and healthcare supply chain management. As the CEO of Gerresheimer AG, a publicly-traded international manufacturer for the global pharmaceutical and healthcare industries, Uwe's transformative strategic vision and focus on operational excellence enhanced the company's leading market positions," said Perrigo chair Laurie Brlas.
- Perrigo Statement
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