MO Altria Group Inc

By Maria Armental and Stephen Nakrosis 

Perrigo Co. has hired a former food and tobacco industry executive to lead the company, less than a year after the drugmaker picked a pharmaceutical and health care manufacturer veteran to lead a turnaround effort.

Murray S. Kessler, 59 years old, on Monday succeeded Uwe Röhrhoff as chief executive as Perrigo moves to separate its prescription pharmaceutical unit, which accounted for about one-fifth of revenue in 2017.

In announcing his hiring on Monday, Perrigo highlighted Mr. Kessler's leadership experience in growing consumer-product companies and managing businesses in a regulated environment.

A Perrigo representative declined to comment beyond a press release.

Mr. Röhrhoff, previously CEO at Gerresheimer AG, has stepped down as Perrigo president, CEO and board member but will remain available to help with the transition, Perrigo said.

"The Board and Uwe mutually agreed the transition was in the best interest of the Company and, given the previously announced separation of the Rx business, now is the appropriate time to make this change," Perrigo Chairman Rolf Classon said in a statement.

Financial details weren't disclosed.

One the world's largest makers of over-the-counter drugs, Perrigo's shareholders in 2015 spurned a $26 billion offer from Mylan NV.

Five months later, Chief Executive Joseph Papa, who had successfully steered Perrigo through the rejection of Mylan's hostile takeover bid, left for Valeant Pharmaceuticals International Inc., now Bausch Health Cos. Mr. Papa was succeeded by John Hendrickson, a Perrigo veteran who struggled to stabilize the company and left this year.

Mr. Kessler, who last year became president of the U.S. Equestrian Federation, is the former chief executive and president of the Lorillard Tobacco Co. and joined Reynolds American Inc.'s board after Reynolds, now part of British American Tobacco PLC, bought Lorillard.

Before joining Lorillard, Mr. Kessler served as vice chairman of Altria Group Inc. and president and chief executive of UST Inc., a wholly owned subsidiary of Altria.

Asked how his business experience would help him as president of the governing body for equestrian sport in the U.S., Mr. Kessler told the Chronicle of the Horse magazine: "A lot of people who don't know might worry about the tobacco experience. It's not a popular industry. But on the other hand it's an industry that gives you tremendous experience with legislation and with regulation."

Perrigo's stock, which lags the market with a 16% decline this year, fell 1.1% to $72 in after-hours trading in New York.

(END) Dow Jones Newswires

October 08, 2018 21:54 ET (01:54 GMT)

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