- Push-out Score determined
- After almost eight years in the position
- Accolades, praise, thanks, words of regret and good wishes for Bresch
- Michael Goettler taking over
- Bresch made a lengthy statement and said 403 words
(exechange) — Hertfordshire, England & Pittsburgh, Pennsylvania, July 29, 2019 — Heather Bresch, chief executive of Mylan, leaves. As announced by Mylan NV in a news release and in a regulatory filing published on Monday, July 29, 2019, Heather Bresch leaves her post as Chief Executive Officer at the pharmaceutical company after almost eight years in the role, effective in mid-2020.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 7.4 years, according to data compiled by exechange.
On July 29, 2019, Mylan N.V. and Pfizer Inc. also announced a definitive agreement to combine Mylan with Upjohn, Pfizer’s off-patent branded and generic established medicines business, creating a new global pharmaceutical company. Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, each Mylan share would be converted into one share of the new company. Pfizer shareholders would own 57% of the combined new company, and Mylan shareholders would own 43%. The Boards of Directors of both Mylan and Pfizer have unanimously approved the transaction.
The new company, which will be renamed and rebranded at close, will be led by Mylan’s current Chairman Robert J. Coury, who will serve as Executive Chairman of the new company; Michael Goettler, current Group President, Upjohn, who will serve as Chief Executive Officer (CEO); and Rajiv Malik, current Mylan President, who will serve as President.
Ken Parks, currently CFO of Mylan, has agreed to depart the company at closing.
No reason given
In the announcement, Mylan did not explicitly explain the reason for Heather Bresch’s move.
Precise information regarding Heather Bresch’s future plans was not immediately available.
Mylan said that Heather Bresch’s retirement will be effective upon the closing of the combination of Mylan and Upjohn, a division of Pfizer. The transaction is anticipated to close in mid-2020, subject to customary closing conditions, including receipt of regulatory approvals, and approval by Mylan shareholders.
Mylan further said: “Heather Bresch, Mylan’s current Chief Executive Officer, will retire from Mylan and resign from the Board of Directors of Mylan upon the close of this transaction. Kenneth S. Parks, Mylan’s current Chief Financial Officer, has agreed to depart from Mylan upon the close of this transaction.”
Share price decline
The announcement follows a decline in Mylan N.V.’s share price of 75% since June 2015.
In the position of CEO since 2012
Heather Bresch became CEO of the Company in January 2012.
Bresch has served as Mylan’s CEO since January 1, 2012.
Throughout her 27-year career with Mylan, Bresch has held roles of increasing responsibility in more than 15 functional areas.
Prior to becoming CEO, Bresch served as the Company’s President, where she was responsible for its day-to-day operations.
Before that, she served as Chief Operating Officer and Chief Integration Officer, leading the successful integration of two international acquisitions – Matrix Laboratories and Merck KGaA’s generics business – which more than doubled Mylan’s size and transformed it from a purely U.S. company to a global one.
Bresch is a frequent speaker on issues such as affordable healthcare and global competitiveness and has testified before the U.S. Congress and U.S. Food and Drug Administration (“FDA”) on issues related to access to medicine.
Bresch is the pharmaceutical industry’s first female chief executive officer of a Fortune 500 company and, each year since 2012, has been named by Fortune magazine as one of its “50 Most Powerful Women.”
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to Mylan and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 32.2019 ($).