Announcement
Glaxo names Andrew Witty next chief
Andrew Witty emerges victorious after a three-way fight to succeed Jean-Pierre Garnier, the present GSK chief, next May.
The battle to replace Jean-Pierre Garnier as chief executive of GlaxoSmithKline ended today when the world’s second-biggest drugs company announced that Andrew Witty would replace the Frenchman next May.
Mr Witty, 43 and president of Glaxo’s European pharmaceuticals business, beat off competition from Chris Viehbacher, the president of Glaxo’s US arm, and David Stout, the president of pharmaceuticals operations.
The three men have been competing openly for the job for two years.
Mr Garnier had already announced his intention to step down at the end of May after nearly eight years with the group.
Mr Garnier, who will be 60 this month, said today: “Andrew has made significant contributions to GSK and I am very pleased that he is to be our next chief executive.
“I look forward to working with him during our handover and wish him every success.”
Sir Christopher Gent, the GSK chairman, added: “Andrew’s appointment follows a rigorous selection process by the board of directors.
“The fact we have been able to select a successor to JP from three strong internal candidates is a testament to the quality of management we have at GSK.
“The board is confident that Andrew will build on JP’s considerable achievements which have positioned GSK as a leader of the pharmaceutical industry.”
Mr Witty, who joined Glaxo UK in 1985, will take over at a testing time for one of Britain's biggest businesses.
Despite annual sales of £20 billion and one of the strongest drug pipelines in the industry, Glaxo is coming under severe pressure to end the furore over Avandia, the group's diabetes medicine and second-biggest selling product.
The drug has been linked to a significantly increased risk of heart attack.
His appointment sees a UK executive take over the running of Glaxo for the first time since the group was formed by the £114 billion merger of equals between Glaxo Wellcome and SmithKline Beecham in 2000.
Mr Viehbacher, a dual Canadian-German citizen, had been seen as favourite for the role with insiders claiming he enjoyed greater access to Mr Garnier. Mr Stout is an American.
Shares in the group fell 7p to 1323p.
Kevin Wilson, an analyst with Citigroup, said that the announcement, and the implicit relative unanimity of the board, should be taken as a minor positive.
(Published by Times Online, October 8, 2007)
______________________