Merck (NYSE: MRK), known as MSD outside the United States and
Canada, today announced that Kenneth C. Frazier, chairman and chief
executive officer, will retire as CEO, effective June 30, 2021. Mr.
Frazier will continue to serve on Merck’s board of directors as
executive chairman, for a transition period to be determined by the
board. The Merck board of directors has unanimously elected Robert
M. Davis, Merck’s current executive vice president, global services
and chief financial officer, as chief executive officer, as well as
a member of the board, effective July 1, 2021. Mr. Davis will
become president of Merck, effective April 1, 2021, at which time
the company’s operating divisions—Human Health, Animal Health,
Manufacturing, and Merck Research Laboratories—will begin reporting
to him.
“The board and I are delighted that Rob will serve as Merck’s
next CEO,” Mr. Frazier said. “He has deep knowledge of our company
and industry and has been a valued strategic thought partner to me
and the Merck senior management team as well as a highly capable
finance leader. Rob has been instrumental in helping Merck take the
right actions to adapt to the changing healthcare environment while
remaining committed to investing in the scientific innovation that
we expect will drive our future growth. His intellect and proven
ability to define and articulate strategies that can be translated
into clear and focused operational plans that lead to successful
execution are also critical attributes. Rob personifies the values
and integrity that are essential for a leader of Merck. I am
confident that he has the strategic and leadership skills necessary
to ensure that the company remains fully committed to its core
mission of translating cutting-edge science into products and
services that save and improve lives while simultaneously adopting
new business and operating models that will unlock future value
through innovation, digital transformation, and efficiency.”
Les Brun, Merck’s lead independent director, said, “On behalf of
the entire Merck board, I thank Ken for his strong and highly
principled leadership and his commitment to the company’s core
values of scientific excellence, business integrity, patient focus
and respect for all people. Ken’s vision and courage to make
difficult changes within Merck, while steadfastly investing in
research and development, have positioned Merck well for
sustainable future growth. Under Ken’s leadership, Merck has
delivered many innovative lifesaving medicines and vaccines,
including KEYTRUDA, GARDASIL 9, and BRIDION, and also focused on
other key growth drivers, such as Lynparza, Lenvima, and animal
health to create long-term value for its shareholders and other
stakeholders.
Ken’s belief in the importance of a strong, values-based
culture, and his ability to attract and retain the best talent,
will stand as an enduring testament to his concern and care for the
people whose skill and commitment will be critical to Merck’s
continued success. These characteristics and accomplishments,
coupled with his principled stances on broader public issues,
especially those involving intolerance and injustice, make his
planned retirement felt so personally by every member of the
board.”
“It has been a privilege to serve as Merck’s CEO for the past
decade and to work with the most dedicated and talented employees
and management team in the industry,” said Mr. Frazier. “As
executive chairman, I look forward to collaborating with Rob and
our board of directors to help Merck achieve even higher levels of
success.”
Mr. Brun added, “During our succession planning process the
board has had an opportunity to witness Rob’s substantial
contributions to the company and the leadership team. He is the
right person to lead Merck into the future. We have tremendous
confidence in Rob’s ability to continue to foster innovation and to
team with Dean Li, president of Merck Research Laboratories, to
drive scientific excellence into the future. We are particularly
pleased that Ken will continue as executive chairman in order to
work with Rob and Dean to ensure a smooth transition for the
company.”
Mr. Davis joined Merck as chief financial officer in 2014. In
2016 his role was expanded to include the company’s global support
functions, which encompass corporate business development, investor
relations, information technology, procurement, real estate
operations, and corporate strategy.
Mr. Davis said, “I am honored to be appointed the next chief
executive officer of Merck. I thank the board and Ken for their
confidence in me. I plan to continue Ken’s focus on innovation as
we aspire to be the premier research-intensive biopharmaceutical
company. This will be a year of great change both for the company
and for our industry. As we work through the pandemic, we will
continue to focus on the important work of bringing our medicines
and vaccines to those who need them. Merck will not waver in its
role of searching for and developing medically necessary products
to improve people’s lives throughout the world.”
About Robert M. Davis
Prior to joining Merck, Mr. Davis was corporate vice president
and president of Baxter’s Medical Products business, where he
oversaw the successful integration of that company’s Global
Medication Delivery and Renal businesses into a single organization
encompassing commercial operations, manufacturing and R&D,
laying the foundation for sustained growth and a solid R&D
pipeline still delivering value today. Before that, Mr. Davis
served as corporate vice president and president of Baxter’s Renal
business, as corporate vice president and chief financial officer
from May 2006 through May 2010, and as treasurer from 2004 through
May 2006. Mr. Davis previously spent more than 14 years at Eli
Lilly and Company.
Mr. Davis serves on the board of directors of Duke Energy
Corporation and is a member of its compensation and finance
committees. In addition, he is a board member of Project Hope, a
non-profit organization focused on empowering health care workers
to deliver expert care when and where it is needed most.
Mr. Davis received his J.D. from Northwestern University School
of Law, his M.B.A. from Northwestern University’s Kellogg Graduate
School of Management and his bachelor’s degree in finance from
Miami University.
About Kenneth C. Frazier
Mr. Frazier joined Merck in 1992 as vice president, general
counsel and secretary of the Astra Merck group. He was appointed as
vice president of public affairs in 1994, and then in 1997 he
assumed the additional responsibilities of assistant general
counsel, corporate staff. Mr. Frazier was promoted to vice
president and deputy general counsel in January 1999. In December
1999, he became senior vice president and general counsel. In
November 2006, he was promoted to executive vice president and
general counsel. Mr. Frazier served as executive vice president and
president, Global Human Health, from 2007 to 2010. He was named
president of Merck in May 2010. Mr. Frazier became Merck’s chief
executive officer and a member of its board in January 2011. He
became chairman of the board on December 1, 2011.
He sits on the boards of PhRMA, Weill Cornell Medicine, Exxon
Mobil Corporation, Catalyst and Cornerstone Christian
Academy in Philadelphia, PA. He is co-founder and co-chair of
OneTen, a coalition of leading organizations committed to
upskilling, hiring, and promoting one million Black Americans into
family-sustaining jobs. Mr. Frazier also is a member of the
American Academy of Arts and Sciences, the American Philosophical
Society, The Business Council, the Council of the American Law
Institute, and the American Bar Association. Additionally, Mr.
Frazier is co-chair of the Legal Services Corporation’s Leaders
Council.
As a strong advocate for social justice and economic inclusion,
Mr. Frazier is the recipient of numerous awards and honors,
including the Anti-Defamation League Courage Against Hate Award,
the Botwinick Prize in Business Ethics from Columbia Business
School, the Legend in Leadership Award from the Yale School of
Management, the NAACP Legal Defense and Educational Fund National
Equal Justice Award, and the National Minority Quality Forum’s
Lifetime Achievement Award. In 2018, Mr. Frazier was named one of
the World’s Greatest Leaders by Fortune Magazine and also was named
to the Time 100 Most Influential People. In 2019, he became the
first recipient of the Forbes Lifetime Achievement Award for
Healthcare.
Mr. Frazier received his bachelor’s degree from The Pennsylvania
State University and holds a J.D. from Harvard Law School.
Earnings Conference Call
Investors, journalists and the general public may access a live
audio webcast of Merck’s earnings call today at 8:00 a.m. EST on
Merck’s website at
https://www.merck.com/investor-relations/events-and-presentations/.
Institutional investors and analysts can participate in the call by
dialing (833) 353-0277 or (469) 886-1947 and using ID code number
2268598. Members of the media are invited to monitor the call by
dialing (833) 353-0277 or (469) 886-1947 and using ID code number
2268598. Journalists who wish to ask questions are requested to
contact a member of Merck’s Media Relations team at the conclusion
of the call.
About Merck
For 130 years, Merck, known as MSD outside of the United States
and Canada, has been inventing for life, bringing forward medicines
and vaccines for many of the world’s most challenging diseases in
pursuit of our mission to save and improve lives. We demonstrate
our commitment to patients and population health by increasing
access to health care through far-reaching policies, programs and
partnerships. Today, Merck continues to be at the forefront of
research to prevent and treat diseases that threaten people and
animals – including cancer, infectious diseases such as HIV and
Ebola, and emerging animal diseases – as we aspire to be the
premier research-intensive biopharmaceutical company in the world.
For more information, visit www.merck.com and connect with us on
Twitter, Facebook, Instagram, YouTube and LinkedIn.
Forward-Looking Statement of Merck & Co., Inc.,
Kenilworth, N.J., USA
This news release of Merck & Co., Inc., Kenilworth, N.J.,
USA (the “company”) includes “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These statements are
based upon the current beliefs and expectations of the company’s
management and are subject to significant risks and uncertainties.
There can be no guarantees with respect to pipeline products that
the products will receive the necessary regulatory approvals or
that they will prove to be commercially successful. If underlying
assumptions prove inaccurate or risks or uncertainties materialize,
actual results may differ materially from those set forth in the
forward-looking statements.
Risks and uncertainties include but are not limited to, general
industry conditions and competition; general economic factors,
including interest rate and currency exchange rate fluctuations;
the impact of the global outbreak of novel coronavirus disease
(COVID-19); the impact of pharmaceutical industry regulation and
health care legislation in the United States and internationally;
global trends toward health care cost containment; technological
advances, new products and patents attained by competitors;
challenges inherent in new product development, including obtaining
regulatory approval; the company’s ability to accurately predict
future market conditions; manufacturing difficulties or delays;
financial instability of international economies and sovereign
risk; dependence on the effectiveness of the company’s patents and
other protections for innovative products; and the exposure to
litigation, including patent litigation, and/or regulatory
actions.
The company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise. Additional factors that could cause
results to differ materially from those described in the
forward-looking statements can be found in the company’s 2019
Annual Report on Form 10-K and the company’s other filings with the
Securities and Exchange Commission (SEC) available at the SEC’s
Internet site (www.sec.gov).
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